Tax Law

Recent Posts

New Jersey Tax Court Allows Unreasonable Exception to Royalty Addback
Posted on 9 May 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court held that a parent corporation was not required to add back to its corporation business tax base any amount of royalty payments it made to a subsidiary. The parent company and subsidiary company each filed a New Jersey CBT return... Read More

New Jersey Tax Court Rules Not Taxes but Must be Added-Back as Taxes for CBT
Posted on 27 Mar 2019 by Eversheds Sutherland LLP

On January 31, 2019, the New Jersey Tax Court issued its ruling on whether a taxpayer must add-back intercompany payments to its parent, estimated payments based on tax sharing agreements, as tax payments made to other states. The payments were to reimburse... Read More

Unboxing the New Jersey Tax Court’s Decision in IP Holding Company Nexus Case
Posted on 19 Mar 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court denied a holding company’s motion for partial summary judgment seeking a determination that the taxpayer lacked nexus with New Jersey and would not be required to file corporation business tax returns. The taxpayer’s only connection... Read More

Podcast: Requirements for delivery of tax assessment
Posted on 27 Feb 2019 by Eversheds Sutherland LLP

In this podcast , our state tax team discusses a matter where New Jersey upheld an assessment addressed to the wrong taxpayer and routed to the wrong location. Read More

Podcast: New Jersey apportionment of GILTI
Posted on 6 Feb 2019 by Eversheds Sutherland LLP

In this podcast , our state tax team discusses New Jersey guidance regarding the apportionment treatment of GILTI income. Read More

New Jersey Tax Court Holds Appointment Allowed in Place of Business Suit
Posted on 11 Feb 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court ruled that a corporation was entitled to apportion its corporate income based on a “regular place of business” outside of New Jersey. This now-repealed apportionment requirement was the source of several New Jersey Tax Court cases... Read More

New Jersey Upholds Assessment Addressed to Wrong Taxpayer and Routed to Wrong Location
Posted on 9 Feb 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected a taxpayer’s due process claim finding that the Division of Taxation properly issued the notice of assessment. The taxpayer made three arguments: (1) that the Division issued the assessment in the name of the predecessor... Read More

Podcast: New Jersey apportionment of GILTI
Posted on 6 Feb 2019 by Eversheds Sutherland LLP

In this podcast , our state tax team discusses New Jersey guidance regarding the apportionment treatment of GILTI income. Read More

New Jersey Tax Court Rejects Alternative Apportionment Formula
Posted on 1 Feb 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected the Division of Taxation’s application of a five-factor alternative apportionment formula as invalid rulemaking under New Jersey’s Administrative Procedures Act (APA). The Tax Court previously determined that an application... Read More

It’s Not the Eggnog – New Jersey Proposes to Specially Allocate GILTI Based on GDP
Posted on 24 Dec 2018 by Eversheds Sutherland LLP

On December 21, the New Jersey Division of Taxation released Technical Bulletin TB-85, which addresses how the Division will expect taxpayers to calculate the amount of so-called global intangible low-taxed income (GILTI) and foreign derived intangible... Read More

New Jersey Partnership Filing Fee Is Not an Unconstitutional Flat Tax
Posted on 18 Dec 2018 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected the taxpayer’s argument that the partnership filing fee, which requires a partnership with New Jersey source income to pay a per-partner fee of $150 (capped at $250,000), violated the Commerce Clause. The Tax Court held... Read More

New Jersey Tax Court Upholds Division’s Use of 25/50/25 Sourcing Rule
Posted on 25 Sep 2018 by Eversheds Sutherland LLP

The New Jersey Tax Court upheld the New Jersey Division of Taxation’s use of the 25/50/25 sourcing rule for “certain services” against a provider of mass messaging services by fax, email and voice. Specifically, the court upheld the Division’s determination... Read More

Top New Jersey Tax Changes in the 2018 Budget Deal
Posted on 6 Jul 2018 by Eversheds Sutherland LLP

In a last-minute deal to avert a government shutdown, New Jersey Governor Phil Murphy and the New Jersey Legislature cobbled together a budget with numerous amendments to New Jersey’s tax law. View the full legal alert. Read More

New Jersey Legislature Passes Corporate Tax Increases, Still Negotiating with Governor
Posted on 28 Jun 2018 by Eversheds Sutherland LLP

In the midst of a budget showdown between New Jersey’s Legislature and Governor Murphy, on June 25, 2018, the Legislature passed a replacement bill that seeks to raise revenue with a temporary Corporation Business Tax “surtax” on corporations meeting... Read More

New Jersey Court Holds That Taxpayer Not Entitled to Exception to State’s Interest Add-Back Requirement
Posted on 12 Jun 2018 by Eversheds Sutherland LLP

In Kraft Foods Global, Inc. v. Director, Division of Taxation, 2018 WL 2247356 (May 17, 2018), the New Jersey Superior Court, Appellate Division, recently upheld a New Jersey Tax Court decision denying a taxpayer an exception to the state’s interest add... Read More