Detailed New Jersey Development
The New Jersey Division of Taxation recently announced that it was extending the deadline for participating in the current initiative for non-filing members of a combined group. This initiative is for corporations that filed as part of a unitary group indicating they have New Jersey nexus, but did not file as a separate entity for periods prior to 2019. These corporations have been given an opportunity to come forward and voluntarily comply with their separate entity Corporate Business Tax filing requirements for periods prior to 2019. The initiative began June 15, 2021 and was originally to end on October 15, 2021. The Division will now allow taxpayers to come forward through January 3, 2022. To qualify, companies must not have been incorporated in New Jersey, authorized to do business in New Jersey, or previously registered for Corporation Business Tax outside of being included in a combined return. The Division will limit the look-back period for companies that voluntarily come forward to the latest of periods ending after June 30, 2016 or the date nexus was established. Additionally, while taxpayers will be required to remit payment of their full tax liability within 45 days of executing a voluntary disclosure agreement and interest within 30 days of assessment, the Division will waive all penalties. Please contact Jim Venere with questions on the New Jersey Combined Reporting Initiative.
This Week's Developments
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