New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 21 - COMBINED RETURNS › Section 18:7-21.16 - Worldwide group election

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A worldwide election
				shall be made by the managerial member of the combined group. The election shall be
				made on an original, timely filed return or as otherwise required, in writing, by
				the Director. A return shall be considered timely if it is filed on or before the
				original due date or extended due date for the filing of the managerial member's
				return. No return filed after this date, whether filed with an application for
				abatement or otherwise, shall constitute a valid worldwide election. The election,
				to be valid, must indicate in the manner required by the Director that every
				corporation that is a member of the combined group has agreed to be bound by such
				election, including an agreement by each member of the group that such election
				shall apply to any member that subsequently enters the group and an agreement that
				each member continues to be bound by the election in the event that such member is
				subsequently the subject of a reverse acquisition as described at U.S. Treas. Reg.
				§ 1.1502-75(d)(3).
(b) A worldwide
				election shall be binding for, and applicable to, the group privilege period for
				which it is made and for the next five group privilege periods. Any corporation
				entering the unitary combined group after the year of the election shall be deemed
				to have consented to the application of the election and to have waived any
				objection thereto. Reverse acquisition rules based on the Federal rules set forth at
				U.S. Treas. Reg. 1.1502-75(d)(3) shall be applied in determining whether a
				corporation is bound by a worldwide election.
(c) The renewal of an election shall be made on an
				original, timely filed return by the combined group's managerial member. A renewal
				shall be effective for the first privilege period after the completion of the six
				privilege periods for which the prior election was in place. If a prior worldwide
				election is not affirmatively renewed after six privilege periods, the election
				shall terminate for the subsequent privilege period, but a new worldwide election
				may be made thereafter by election.
(d)
				If either the water's-edge method or affiliated group method was used to account for
				the combined group members' income and allocation data in the preceding privilege
				period and the worldwide method is to be used for the combined group's combined
				return for the current privilege period, adjustments to the income and allocation
				data of the group members shall be made to prevent income and allocation data from
				being omitted or duplicated.
(e) A
				managerial member may not make a worldwide election and an affiliated group election
				for the same group privilege period and may not make a worldwide election for any
				year in which an affiliated group election is in effect.
(f) An election shall constitute consent to the
				production of documents or other information that the Director reasonably requires.
				The documents shall be provided in language and forms acceptable to the
				Director.
(g) For changes in the
				composition of the combined group, the members shall notify the Director as set
				forth at N.J.A.C. 18:7-21.29.