reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.2 - Actions not requiring the prior issuance of a Tax Clearance Certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A
				corporation may merge under the laws of New Jersey or any other jurisdiction without
				applying for a Tax Clearance Certificate only where the surviving corporation is a
				domestic corporation or an authorized foreign corporation.
(b) A corporate dissolution before commencing
				business may occur without applying for a Tax Clearance Certificate pursuant to
				N.J.S.A.
				14A:12-2(3).
(c) A dissolution of a corporation without assets
				may occur without applying for a Tax Clearance Certificate pursuant to
				N.J.S.A.
				14A:12-4.1(3).
(d) See
				N.J.A.C.
				18:7-14.5 for the streamlined dissolution or
				withdrawal procedure.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.3 - Actions and transactions requiring the prior issuance of a Tax Clearance Certificate in order to avoid a personal liability to certain officers and directors

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No
				corporation may either distribute any of its assets in dissolution or in partial or
				complete liquidation, or consolidate with another corporation to form a new
				corporation or merge into a foreign corporation that is an unauthorized foreign
				corporation, and no domestic corporation may dissolve (except as may be provided by
				law), and no authorized foreign corporation may withdraw its authority to do
				business in New Jersey, unless the foreign corporation shall have applied for and
				received a Tax Clearance Certificate from the Director of the Division of
				Taxation.
(b) See
				N.J.A.C.
				18:7-14.5 for the streamlined dissolution or
				withdrawal procedure.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.4 - Forms and instructions regarding procedure to obtain a Tax Clearance Certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				forms for the closure of operations in New Jersey may be:
1. Downloaded from the Division of Revenue and
				Enterprise Services website
http://www.nj.gov/treasury/revenue/dissforms.shtml
.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.5 - Streamlined dissolution or withdrawal procedure

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Notwithstanding
				any rule or regulation to the contrary, the streamlined dissolution or withdrawal
				process begins when a corporation submits all required forms with proper remittance
				to:
New Jersey Division of Revenue and Enterprise Services
Business Liquidations
PO Box 308
Trenton, NJ 08625
(b) Remittance shall be in the form of a single
				check or money order payable to "Treasurer, State of New Jersey" in the amount of $
				120.00. This amount represents the formerly separate $ 25.00 fee to the New Jersey
				Division of Taxation and the $ 95.00 dissolution fee to the Division of Revenue and
				Enterprise Services. The full payment shall be forfeited if the applicant does not
				complete the tax clearance procedure.
(c) The applicant's tax eligibility will be deemed
				ended with the Division of Taxation on the date the application for dissolution or
				withdrawal is accepted by the Division of Revenue and Enterprise Services, provided
				that the tax clearance procedure is successfully concluded with the Division of
				Taxation. Although the business tax eligibilities end before the issuance of the Tax
				Clearance Certificate, all prior tax obligations remain payable and must be
				satisfied before a Tax Clearance Certificate will be issued. If a Tax Clearance
				Certificate is not issued, the business tax eligibilities of the taxpayer will be
				reactivated as if there had been no lapse in subjectivity.
(d) The application procedures to merge or
				consolidate corporations or reauthorize a foreign corporation remain
				unchanged.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.18 - Actions not requiring the prior issuance of a Tax Clearance Certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A corporation may
				merge under the laws of New Jersey or any other jurisdiction without applying for a
				Tax Clearance Certificate only where the survivor is a domestic corporation or an
				authorized foreign corporation.
(b) A
				corporate dissolution before commencing business may be made without applying for a
				Tax Clearance Certificate pursuant to
				14A:12-2(3).
(c) A dissolution of a corporation without assets
				may be made without applying for a Tax Clearance Certificate pursuant to
				14A:12-4.1(3).
(d) See
				18:7-14.2 1 for the streamlined
				dissolution or withdrawal procedure.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.19 - Actions and transactions requiring the prior issuance of a Tax Clearance Certificate in order to avoid a personal liability to certain officers and directors

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No corporation may
				either distribute any of its assets in dissolution or in partial or complete
				liquidation, or consolidate with another corporation to form a new corporation or
				merge into a foreign corporation which is an unauthorized foreign corporation, and
				no domestic corporation may dissolve (except as may be provided by law), and no
				authorized foreign corporation may withdraw its authority to do business in New
				Jersey, unless it shall have applied for and received a Tax Clearance Certificate
				from the Director of the Division of Taxation.
(b) See
				18:7-14.2 1 for the streamlined
				dissolution or withdrawal procedure.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.20 - Forms and instructions regarding procedure to obtain a Tax Clearance Certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The forms for the
				closure of operations in New Jersey may be:
1.
				Downloaded from the Division of Revenue website
www.state.nj.us/treasury/revenue/dissolvewithdraw.htm
;
2. Requested by calling Business Services at (609)
				292-9292;
3. Obtained by writing to the
				New Jersey Division of Revenue, Business Liquidations, PO Box 308, Trenton, NJ
				08625; or
4. Obtained over the counter
				at the New Jersey Division of Revenue, Business Liquidations, 225 West State Street,
				3rd Floor, Trenton, NJ 08608.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 14 - TAX CLEARANCE › Section 18:7-14.21 - Streamlined dissolution or withdrawal procedure

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Notwithstanding any
				rule or regulation to the contrary, the streamlined dissolution or withdrawal
				process begins when a corporation submits all required forms with proper remittance
				to:
The New Jersey Division of Revenue
Business Liquidations
PO Box 308
Trenton, NJ 08625
(b) Remittance shall be in the form of a single
				check or money order payable to "Treasurer, State of New Jersey" in the amount of
				$120.00. This amount represents the formerly separate $25.00 fee to the New Jersey
				Division of Taxation and the $95.00 dissolution fee to the Division of Revenue. The
				full payment shall be forfeited if the applicant does not complete the tax clearance
				procedure.
(c) The applicant's tax
				eligibility will be deemed ended with the Division of Taxation on the date the
				application for dissolution or withdrawal is accepted by the Division of Revenue,
				provided that the tax clearance procedure is successfully concluded with the
				Division of Taxation. Although the business tax eligibilities end before the
				issuance of the Tax Clearance Certificate, all prior tax obligations remain payable
				and must be satisfied before a Tax Clearance Certificate will be issued. If a Tax
				Clearance Certificate is not issued, the business tax eligibilities of the taxpayer
				will be reactivated as if there had been no lapse in subjectivity.
(d) The application procedures to merge or
				consolidate corporations or reauthorize a foreign corporation remain
				unchanged.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
"Nonresident corporate partner" means a partner that is not an
				  individual, estate, or trust subject to taxation pursuant to the New Jersey Gross
				  Income Tax Act,
				  N.J.S.A.
				  54A:1-1 et seq. Nonresident corporate partners
				  include:
1. Entities that are classified as partnerships for Federal income
				  tax purposes;
2. Entities that are classified as corporations for Federal income
				  tax purposes that:
i. Are not corporations exempt from tax pursuant to
				  N.J.S.A.
				  54:10A-3; or
ii. Do not maintain a regular place of business, as defined in
				  N.J.A.C.
				  18:7-7.2, in New Jersey.
"Nonresident noncorporate partner" means an individual, an
				  estate, or a trust subject to taxation pursuant to the New Jersey Gross Income Tax
				  Act, 54A:1-1 et seq., that is not a
				  resident taxpayer or a resident estate or trust under that Act.
"Partner" means an owner of an interest in the partnership, in
				  whatever manner that owner and ownership interest are designated.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.2 - Subjectivity

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For privilege periods beginning on or after
				January 1, 2002, a partnership, including any entity that is classified as a
				partnership for Federal income tax purposes, except a qualified investment
				partnership as defined herein (see
				N.J.A.C.
				18:7-1.21 ) or a partnership listed on a United
				States national stock exchange, shall file a return on a form prescribed by the
				Director and remit tax under these rules.
(b) Entities that meet the requirements of
				N.J.S.A.
				54A:5-8(c)  are commonly referred
				to as "hedge funds." Income received by a nonresident individual, estate, or trust
				from a "hedge fund" is exempt from tax under the New Jersey gross income tax because
				it is not deemed to be carrying on from a trade or business.
1. In those situations in which partnerships do
				not meet the definition of qualified investment partnerships in
				N.J.S.A.
				54:10A-4(r)  (which would
				automatically exempt partnerships from partnership payments under N.J.S.A.
				54:10A-15.11a ), and if all of the income derived from the hedge fund partnership by
				the partners is not subject to New Jersey gross income tax, the partnership is not
				required to remit a payment of tax on behalf of its nonresident, noncorporate
				partners, since the income to the nonresidents is not considered subject to tax in
				New Jersey.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.3 - Due date for return

Current through Register Vol. 56, No. 14, July 15, 2024
The return and payment of tax shall be due on or before the 15th
				  day of the fourth month succeeding the close of the privilege period.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.4 - Extension of time to file returns

Current through Register Vol. 56, No. 14, July 15, 2024
No extension will be granted unless the request is made on
				  Partnership Tentative Return and Application for Extension of Time to File Form
				  PART-200T and the form is actually received by the Division of Taxation or is
				  postmarked on or before the due date of the return. (See
				  N.J.A.C.
				  18:7-11.12 for additional standards for extension
				  of time to file.)
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.5 - Calculation of tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The tax to be paid shall be the total of:
1. The share of entire net income of the
				partnership for the privilege period of all nonresident noncorporate partners
				multiplied by an allocation factor determined pursuant to
				N.J.S.A.
				54:10A-6 and using the partnership's allocation
				fractions multiplied by the tax rate of .0637; plus
2. The share of entire net income of the
				partnership for the privilege period of all nonresident corporate partners
				multiplied by an allocation factor determined pursuant to
				N.J.S.A.
				54:10A-6 and using the partnership's allocation
				fractions multiplied by the tax rate of .09.
3. As used in this subsection, the term "entire
				net income" as applied to partnerships means distributive share of partnership
				income for Federal purposes plus tax exempt interest income as shown on the Form
				Federal K-1.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.6 - Credit or refund

Current through Register Vol. 56, No. 14, July 15, 2024
(a) As of the date the Division of Taxation
				receives the payment, the amount of tax paid by a partnership pursuant to
				N.J.A.C.
				18:7-17.5 shall be credited to accounts of its
				nonresident partners in proportion to each nonresident partner's share of allocated
				entire net income and the rate for that partner class set forth in
				N.J.A.C.
				18:7-17.5.
(b) Each payment amount credited will be deemed to
				have been paid by the respective partner for the privilege period of the
				partner.
(c) A nonresident noncorporate
				partner and a nonresident corporate partner may claim a credit on their own New
				Jersey returns for the amount of tax allocated to them by the partnership. Any
				excess tax payments may be refunded to the partner.
(d) Since partners may wish to claim a credit or
				refund for tax payments made on their behalf by a partnership, there may be an
				advantage if certain partnerships issue Form NJ-K1's as soon as possible after the
				close of the tax period.
(e) Example: A
				partnership has a fiscal year ending on January 31. The partnership tax payment on
				behalf of foreign partners is due May 15. The amount of payment on behalf of
				partners will not be credited to the accounts of partners until the date received by
				the Division of Taxation.
1. Accordingly, a
				calendar year partner, whose first quarter estimated payment is due by April 15
				cannot take a credit against its April 15 estimated payment, for the partnership's
				May 15 tax payment that has not yet been received by the Division.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.7 - Estimated return

Current through Register Vol. 56, No. 14, July 15, 2024
A partnership that is not a qualified investment partnership or an
				  investment club and that is not listed on a United States national stock exchange
				  shall be required to make installment payments of tax. For privilege periods
				  beginning on January 1, 2007, and thereafter, those partnerships that are required
				  to make tax payments pursuant to N.J.S.A. 54:10A-15.11a.(1) shall make installment
				  payments of 25 percent of that tax on or before the 15th day of each of the fourth
				  month, sixth month, and ninth month of the privilege period and on or before the
				  15th day of the first month succeeding the close of the privilege period. A
				  partnership required to make such payments shall be deemed to make them subject to
				  the provisions of
				  N.J.S.A.
				  54:10A-15.4 and shall be liable for any addition
				  to tax provided thereunder.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.8 - Certain corporate partners; exemption form

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In order for a
				nonresident corporate partner to establish that the partnership is not required to
				pay tax on its behalf, the partner must file annually with the partnership a
				statement making its claim for exemption. The claim shall be on a form specified by
				the Director. It must be filed annually and must be received by the partnership on
				or before the 15th day of the fourth month succeeding the close of the privilege
				period, or on or before the filing date of the return, if that occurs
				earlier.
(b) If a partnership
				erroneously makes a tax payment to the Division of Taxation on behalf of an entity
				that is exempt, the exempt entity must establish that the money has actually been
				paid to the State by the partnership, and the entity is actually exempt, in order to
				qualify for a refund.
(c) If a New
				Jersey S corporation, that does not have a place of business in New Jersey is a
				partner in a partnership, a tax payment is made on its behalf at the nine percent
				rate, since the corporation does not have a regular place of business in New
				Jersey.
(d) For purposes of this
				subchapter, each regular place of business of a partnership that is unitary with a
				corporate partner is to be treated as a regular place of business of the corporate
				partner. See N.J.A.C. 18:7-7.6(g) and
				(h)1.
(e) If a partner in a partnership is a qualified
				I.R.C. § 501(c)(3) charity or any retirement plan approved by the Internal
				Revenue Service, the partner may file Form 1065E with the partnership to relieve the
				partnership from making a payment measured by the partner's share. At present, New
				Jersey does not impose a tax on unrelated business income.
Example: A New Jersey general partnership has a unitary
				  relationship under the criteria set forth at
				  N.J.A.C.
				  18:7-7.6(g)3  with a corporate
				  partner located in Illinois. As a result of this relationship the corporate partner
				  is considered to have a regular place of business in the State and is not a
				  "nonresident corporate partner." This partner may file a Form 1065E with the
				  partnership so that no tax payments will be made by the partnership on the partner's
				  behalf.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.9 - Allocation of tax for partners that are corporations

Current through Register Vol. 56, No. 14, July 15, 2024
Separate accounting apportionment shall be used if a corporate
				  partner and partnership are not in a unitary relationship in which the apportioned
				  income of the partnership and partner (excluding the partner's distributive share)
				  are added together. When a corporation and a partnership are in a unitary
				  relationship, then a blended or combined allocation factor should be used. This
				  allocation factor is derived by adding the partnership and corporation allocation
				  fractions together and applying the combined factor to the corporation's entire net
				  income including its distributive share of the partnership's income (see
				  N.J.A.C.
				  18:7-7.6(g) ).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 17 - PARTNERSHIPS › Section 18:7-17.10 - Electronic filing

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A partnership subject to the provisions of the
				Corporation Business Tax Act shall file its return and make payment of its liability
				by electronic means, if it has 10 or more partners, provided that the return is not
				prepared by a paid tax preparer. Payments of partnership liabilities and fees along
				with the submission of payment-related returns, such as the Partnership Return
				Voucher (Form Part-100) and the Partnership Tentative Return and Application for
				Extension of Time to File (Form Part 200-T), by a partnership subject to the
				provisions of the Corporation Business Tax Act with more than 10 partners shall be
				made electronically.
(b) A paid tax
				preparer who prepares returns for partnerships subject to the provisions of the
				Corporation Business Tax Act shall file electronically all of the partnership
				returns prepared by that preparer during the tax year as instructed by the partners
				of the partnership. Payment of the partnership liabilities and fees along with the
				submission of payment-related returns, such as the Partnership Return Voucher (Form
				Part-100) and the Partnership Tentative Return and Application for Extension of Time
				to File (Form Part 200-T), either by the partners or by a paid tax practitioner as
				instructed by the partners of the partnership shall be made
				electronically.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT › Section 18:7-18.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
"Affiliated group" means a group of corporations defined as an
				  affiliated group by I.R.C. § 1504, or any successor Federal law, that files a
				  consolidated Federal income tax return for the privilege period pursuant to I.R.C.
				  §§ 1501 through 1504.
"Cost of goods sold" means the cost of goods sold calculated
				  pursuant to the same method used by the taxpayer for the purpose of computing its
				  Federal income tax (including, for example, and without limitation, I.R.C. §
				  263A) multiplied at the taxpayer's election by (1) either the allocation factor
				  computed pursuant to
				  N.J.S.A.
				  54:10A-6; or (2) the receipts fraction of the
				  allocation factor (N.J.A.C. 18:7-10.1 regarding
				  discretionary adjustments of the allocation factor by the Director). In a particular
				  case, the Director may use another input or expenditure that is necessary to measure
				  fairly and reasonably the business activity of the taxpayer.
"Key corporation" means a single member within an affiliated group
				  designated by the group to act as a "clearinghouse" for adjustments made by or to
				  members of the group. For privilege periods commencing after June 30, 2006, key
				  corporations are not permitted for reporting for any other tax purposes in New
				  Jersey.
"Member of an affiliated group" means a taxpayer that is part of
				  an affiliated group.
"New Jersey gross profits" means New Jersey gross receipts reduced
				  by returns and allowances attributable to New Jersey gross receipts, less the cost
				  of goods sold. See
				  N.J.S.A.
				  54:10A-5a.
"New Jersey gross receipts" means the receipts of the taxpayer for
				  the privilege period, computed on the cash or accrual basis according to the method
				  of accounting used in the computation of its net income for Federal tax purposes
				  arising during the privilege period from:
1. Sales of its tangible personal property located within this
				  State at the time of the receipt of or appropriation to the orders where shipments
				  are made to points within this State;
2. Sales of tangible personal property located outside the State
				  at the time of the receipt of or appropriation to the order where shipment is made
				  to points within the State;
3. Services performed within the State;
4. Rentals from property situated, and royalties from the use of
				  patents or copyrights, within the State; and
5. All other business receipts earned within the State.
Dividends are included in New Jersey gross receipts when the
				  recipient's commercial domicile is in New Jersey.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT › Section 18:7-18.2 - Alternative minimum assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For privilege
				periods beginning on or after January 1, 2002, all New Jersey taxpayers except those
				enumerated in N.J.A.C. 18:7-18.3 are required to pay
				New Jersey corporation business tax computed under
				N.J.S.A.
				54:10A-5 or the alternative minimum assessment
				computed under N.J.S.A. 54:10A-5a, whichever is
				greater. There are two methods of determining the alternative minimum assessment.
				One is based on New Jersey Gross Receipts, and the other is based upon New Jersey
				Gross Profits.
(b) For privilege periods
				beginning on and after July 1, 2006, the alternative minimum assessment shall be $
				0.00 except for corporations exempt from the corporation business tax on net income
				by virtue of the application of
				15 U.S.C. §§
										381 et seq. ( P.L. 86-272 ). For such taxpayers,
				the alternative minimum assessment shall continue to be computed in accordance with
				N.J.S.A. 54:10A-5a.
(c) For privilege
				periods beginning on and after January 1, 2007, a taxpayer exempt from corporation
				business tax on net income by virtue of the application of
				15 U.S.C. §§
										381 et seq. ( P.L. 86-272 ), that files a consent
				to the jurisdiction of this State to impose and pay the tax pursuant to
				N.J.S.A.
				54:10A-5 shall have an alternative minimum
				assessment of $ 0.00.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT › Section 18:7-18.3 - Taxpayers not subject to the alternative minimum assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Corporations that
				are subject to tax under
				54:10A-5 but that are not subject to
				the alternative minimum assessment are:
1. New
				Jersey S corporations;
2. Investment
				companies;
3. Professional corporations
				organized pursuant to
				14A:17-1 et seq. or a similar
				corporation for profit organized to render professional services under the laws of
				another state; or
4. A person operating
				as a cooperative under
				26 U.S.C. §§
											1381 et seq.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT › Section 18:7-18.4 - Calculation of the alternative minimum assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The computation
				of the alternative minimum assessment (AMA) based on New Jersey gross profits is
				calculated as follows:
1. If New Jersey gross
				profits are:
i. $ 1,000,000 or less, the AMA based
				on gross profits is zero;
ii. Greater
				than $ 1,000,000, but not over $ 10,000,000, the AMA is .0025 times the gross
				profits in excess of $ 1,000,000, multiplied by the AMA exclusion rate of
				1.11111;
iii. Greater than $ 10,000,000,
				but not over $ 15,000,000, the AMA is the gross profits multiplied by
				.0035;
iv. Greater than $ 15,000,000,
				but not over $ 25,000,000, the AMA is the gross profits multiplied by
				.006;
v. Greater than $ 25,000,000, but
				not over $ 37,500,000, the AMA is the gross profits multiplied by .007; or
vi. Greater than $ 37,500,000, the AMA is the
				gross profits multiplied by .008.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT › Section 18:7-18.5 - Alternative minimum assessment credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If the alternative
				minimum assessment (AMA) for a taxpayer exceeds the amount of tax computed under
				N.J.S.A.
				54:10A-5 for a privilege period, that excess
				amount shall be permitted to the taxpayer as a credit unless such taxpayer is also
				entitled to a credit pursuant to
				N.J.S.A.
				54:10A-5b (for certain air carriers pursuant to
				49 U.S.C.
				§
										40102 ).
(b) The credit may be carried forward to
				subsequent privilege periods, including periods when the AMA is no longer
				applicable, during which the tax pursuant to
				N.J.S.A.
				54:10A-5 exceeds the AMA provided that:
1. The credit applied shall not reduce the amount
				of tax otherwise due to an amount less than the AMA for that period;
2. The credit applied shall not reduce the amount
				of tax otherwise due by more than 50 percent; and
3. The credit applied shall not reduce the amount
				of tax otherwise due below the statutory minimum set forth in
				54:10A-5(e).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 18 - ALTERNATIVE MINIMUM ASSESSMENT › Section 18:7-18.6 - Gross receipts calculation; agency businesses

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Under the
				applicable accounting principles for several industries, cash flow relating to the
				underlying product is not considered a receipt of the taxpayer. Using this approach,
				a taxpayer in such a business may report as its gross receipts for Federal purposes
				fees it receives from its customers. This methodology enables certain high volume,
				low margin industries to achieve an accurate reflection of their tax liability when
				calculating the alternative minimum assessment (AMA).
1. For example, a professional employer
				organization (PEO), which serves as a co-employer with its customers, may use this
				"agency approach" in calculating its New Jersey gross receipts. Using that approach,
				the PEO may report as its gross receipts for Federal purposes the administrative
				fees it receives from its customers. The customers' payments of the fixed
				obligations and costs relating to the employees, such as wages, taxes and benefits,
				are then reported as reimbursed expenses, namely, direct expenses without profit or
				indirect cost reimbursement.
2. This
				approach is also applicable to other entities such as real estate and insurance
				agencies, where cash flow relating to the underlying product is not considered a
				receipt of the taxpayer.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 19 - FILING FEE PAYMENTS BY PROFESSIONAL CORPORATIONS › Section 18:7-19.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
"Licensed professional" means, and is limited to, persons
				  rendering a professional service as defined in
				  N.J.S.A.
				  14A:17-3(1).
"Professional corporation" means a corporation which is organized
				  under The Professional Service Corporation Act,
				  14A:17-1 et seq., or a similar act of
				  another state for the purpose of rendering the same or closely allied professional
				  service as its shareholders, each of whom must be licensed or otherwise legally
				  authorized within the State to render such professional service.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 19 - FILING FEE PAYMENTS BY PROFESSIONAL CORPORATIONS › Section 18:7-19.2 - Payment of filing fee

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For privilege periods beginning on or after
				January 1, 2002, each professional corporation filing a corporation business tax
				return that has more than two licensed professionals shall make a payment of a
				filing fee of $150.00 for each licensed professional of the corporation, provided
				that the payment shall not exceed $250,000.
(b) If a professional corporation includes
				nonresident professionals, some of whom have physical nexus with New Jersey and some
				of whom do not, then an apportionment methodology for the professional corporation
				filing fee may be used, provided that the professional corporation has an office
				outside New Jersey.
(c) The total
				apportioned professional corporation fee is equal to the sum of:
1. The number of resident professionals multiplied
				by $150.00; plus
2. The number of
				nonresident professionals with physical nexus to New Jersey multiplied by $150.00;
				plus
3. The number of nonresident
				professionals without physical nexus to New Jersey multiplied by $150.00, and the
				resulting product multiplied by the corporate allocation factor of the professional
				corporation.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 19 - FILING FEE PAYMENTS BY PROFESSIONAL CORPORATIONS › Section 18:7-19.3 - Installment payment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Each professional corporation required to make
				a payment of the professional corporation filing fee shall, on or before the 15th
				day of the fourth month of its fiscal year, make an installment payment of its
				filing fee for the succeeding return period. The amount of the installment payment
				is 50 percent of the amount required to be paid for the present fiscal
				year.
(b) The amount of the installment
				payment shall be credited against the amount of the filing fee due for the
				succeeding return period. If the amount exceeds the fee due for the succeeding
				return period, the excess shall be credited against the amount for succeeding return
				periods.
(c) If a professional
				corporation dissolves, the corporation is not required to make a prepayment of the
				fee for the succeeding taxable period.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 19 - FILING FEE PAYMENTS BY PROFESSIONAL CORPORATIONS › Section 18:7-19.4 - Penalty and interest

Current through Register Vol. 56, No. 14, July 15, 2024
For purposes of tax administration, the filing fee and installment
				  payments pursuant to this subchapter are subject to the provisions of the State
				  Uniform Procedure Law,
				  N.J.S.A.
				  54:48-1 et seq. Collection of the filing fee and
				  installment payments shall be enforced pursuant to the terms of that Act, including,
				  without limitation thereto, penalty and interest and cost of collection
				  provisions.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 20 - TREATMENT OF S CORPORATIONS › Section 18:7-20.1 - S corporations

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				following words and terms, when used in this subchapter, shall have the following
				meanings:
1. "Federal S corporation" means a
				corporation making a valid election under Federal law (I.R.C. § 1361), to be an
				S corporation. For the definition of "S corporation" as used in this section, see
				N.J.A.C.
				18:7-1.18.
2. "New Jersey S corporation" means an S
				corporation that has made a valid election under
				N.J.S.A.
				54:10A-5.22, and that has been an S corporation
				since such election. For a definition of "New Jersey S corporation" see
				N.J.A.C.
				18:7-1.19. For purposes of this section, a New
				Jersey S corporation also refers to a parent of a New Jersey Qualified Subchapter S
				Subsidiary.
3. "S corporation
				shareholder" means an individual, an estate, or a trust owning a share(s) in an S
				corporation.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 20 - TREATMENT OF S CORPORATIONS › Section 18:7-20.2 - Qualified Subchapter S Subsidiaries (QSSS)

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following terms,
				when used in this subchapter, shall have the following meanings:
1. "Qualified Subchapter S Subsidiary" (QSSS)
				means and includes a domestic corporation that is a wholly owned subsidiary of a
				Federal S corporation and for which a valid election has been made by the parent S
				corporation to be treated as a QSSS for Federal income tax purposes.
2. "New Jersey Qualified Subchapter S Subsidiary"
				(NJ-QSSS) means and includes a Federally qualified QSSS, wholly owned by a New
				Jersey S corporation, and for which the parent and the New Jersey S corporation make
				a valid NJ-QSSS election as set forth in these regulations.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 20 - TREATMENT OF S CORPORATIONS › Section 18:7-20.3 - Retroactive New Jersey S corporation elections

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A taxpayer that
				is authorized to do business in New Jersey, is registered with the Division of
				Taxation, and has filed Form NJ-CBT-100S tax returns with New Jersey but has failed
				to file a timely New Jersey S corporation election may file a retroactive election
				to be recognized as a New Jersey S corporation.
(b) An administrative user fee of $ 100.00 shall
				be included with a taxpayer's filing of its retroactive New Jersey S corporation
				election Form NJ-2553R, for each tax year that will be affected by the late
				filing.
(c) A retroactive New Jersey S
				corporation or Qualified Subchapter S Subsidiary election will not be granted if:
1. All appropriate corporation business tax
				returns have not been timely filed and taxes timely paid as if the New Jersey S
				corporation election request had been previously approved;
2. A New Jersey S corporation request is not
				received before an assessment becomes final;
3. The Division of Taxation has issued a notice
				denying a previous late filed New Jersey S election request, and the taxpayer has
				not protested the denial within 90 days; or
4. All shareholders have not filed appropriate tax
				returns and paid tax in full when due as if the New Jersey S corporation election
				request had been previously approved, and the taxpayers have not reported the
				appropriate S corporation income on their returns.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 21 - COMBINED RETURNS › Section 18:7-21.1 - Definitions relevant to combined returns

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				following words and terms, as used in this subchapter shall have the following
				meanings, unless the context clearly indicates otherwise:
1. "Affiliated group" means for purposes of
				section 23 at
				P.L.
				2018, c. 48 (N.J.S.A.
				54:10A-4.11), an affiliated group as defined at I.R.C. § 1504, except such
				affiliated group shall include all U.S. domestic corporations that are commonly
				owned, directly or indirectly, by any member of such affiliated group, without
				regard to whether the affiliated group includes:
(1) corporations included in more than one Federal
				consolidated return;
(2) corporations
				engaged in one or more unitary businesses; or
(3) corporations that are not engaged in a unitary
				business with any other member of the affiliated group.
As used in this definition, "U.S. domestic corporations"
				  means:
(1) business entities wherever
				incorporated or formed that are U.S. domestic corporations, are deemed to be, or are
				treated as U.S. domestic corporations pursuant to the provisions of the Internal
				Revenue Code; or
(2) any entities
				incorporated or formed under the laws of a foreign nation that are required to file
				Federal tax returns if such entities have effectively connected income within the
				meaning of the Internal Revenue Code. "Commonly owned" means that more than 50
				percent of the voting control of each member of an affiliated group is directly or
				indirectly owned by a common owner or owners, either corporate or non-corporate,
				whether the owner or owners are members of the affiliated group. Whether voting
				control is indirectly owned shall be determined, in accordance with I.R.C. §
				318.
In cases where the "commonly owned" ownership standard is met, a
				  New Jersey affiliated group shall include:
(1) business entities wherever incorporated or
				formed that are U.S. domestic corporations, that are deemed to be, or are treated as
				U.S. domestic corporations pursuant to the provisions of the Internal Revenue Code;
				or
(2) any entities incorporated or
				formed under the laws of a foreign nation that are required to file Federal tax
				returns, if such entities have effectively connected income within the meaning of
				the Internal Revenue Code.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 21 - COMBINED RETURNS › Section 18:7-21.2 - Unitary business

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The definition of
				unitary business for New Jersey corporation business tax purposes is defined at
				N.J.S.A.
				54:10A-4(gg). New Jersey
				construes the term "unitary business" to the broadest extent permitted under the
				United States Constitution.
1. A determination as
				to whether an entity forms part of a unitary business with another entity is based
				on the facts and circumstances of each case. Such analysis is both quantitative and
				qualitative.
2. A unitary business is
				characterized by significant flows of value evidenced by factors, such as functional
				integration, centralization of management, and economies of scale. These factors
				provide evidence of whether the business activities operate as an integrated whole
				or exhibit substantial mutual interdependence.
i.
				One or more related business organizations engaged in business activity--entirely
				within this State or both within and without this State--are unitary if there is
				interdependence in their functions. The United States Supreme Court has expressed
				the constitutional test using a variety of language; in some cases holding that a
				finding of unitary relationship requires "contribution or dependency" between
				businesses, in others requiring "substantial mutual interdependency" or "flow of
				value," and also finding that it requires functional integration, centralized
				management, or economy of scale.
3. The participants in an economic enterprise
				under common ownership may also be considered a unitary business if there is unity
				of operation and use. See Butler Brothers v. McColgan, 315 U.S. 501, 508 (1942).
				Unity of operation and use indicates the existence of interdependence of
				functions.
4. An affiliated
				group/commonly controlled group may be engaged in one or more unitary businesses.
				Therefore, an affiliated group/commonly controlled group may contain more than one
				combined group and file more than one New Jersey combined return.
5. If the entities meet either the
				"Interdependence of Functions Test" or the "Unity of Use and Management Test," the
				entities are part of the unitary business.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 21 - COMBINED RETURNS › Section 18:7-21.3 - Entities included and excluded from a combined return

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For the purposes of the corporation business
				tax, the following business entity types must be included as members of the combined
				group filing a New Jersey combined return:
1.
				Corporations;
2. Combinable captive
				insurance companies;
3. Banking
				corporations and financial corporations;
4. Limited liability companies (taxed as
				corporations);
5. Foreign limited
				liability companies (taxed as corporations);
6. S corporations, except as provided at (c)
				below;
7. Casino licensees;
8. Qualified Subchapter S Subsidiaries that have
				not made a New Jersey S corporation election;
9. New Jersey Qualified Subchapter S Subsidiaries
				that elected to be included in the combined group;
10. Business entities that are treated as
				corporations for Federal purposes;
11.
				Professional corporations;
12. Business
				entities included in the combined group include entities incorporated under the laws
				of a foreign country as business entities that would be corporations if such
				entities had been incorporated under the laws of the United States; and
13. Public utilities, as defined at
				N.J.S.A.
				54:10A-4(q), that are not
				excluded pursuant to
				N.J.S.A.
				54:10A-4.6(k).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 21 - COMBINED RETURNS › Section 18:7-21.5 - Determining the managerial member of the combined group and the managerial member's responsibilities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If the
				combined group has a common parent corporation within the meaning of the Corporation
				Business Tax Act, P.L. 1945, c. 162 (N.J.S.A.
				54:10A-1 et seq.), and that common parent
				corporation is a taxable member of the combined group, the managerial member shall
				be the common parent corporation. In other cases, the combined group shall select a
				taxable member as its managerial member or, at the discretion of the Director, or
				upon failure of the combined group to select its managerial member, the Director
				shall designate a taxable member of the combined group as the managerial member.
				Once the election of the managerial member is made, the election shall be binding
				for 10 successive privilege periods, pursuant to
				N.J.S.A.
				54:10A-4.10(a), except as
				otherwise provided for by the Director (based on the facts and circumstances of the
				combined group and the specific business entity).
(b) The managerial member of the combined group
				shall file the mandatory combined return on behalf of the members of the combined
				group. The managerial member shall be required to: file member returns; file member
				extensions for filing tax returns and other documents with the Director; pay member
				liabilities; receive member findings, assessments, and notices; make and receive
				member claims or file member protests and appeals; and shall be the responsible
				party liable for filing and paying the tax on behalf of the combined group.
1. A combined group shall file a mandatory
				combined return in a form and manner prescribed by the Director. If a member of a
				combined group does not have any activities or income outside of the unitary
				business, the combined return filed by the managerial member shall constitute the
				member's New Jersey corporation business tax return.