Tax Law

Recent Posts

Legal Alert – New Jersey fixes “trapped dividend exclusion” problem
Posted on 6 Nov 2020 by Eversheds Sutherland LLP

The New Jersey Division of Taxation issued a notice on November 5th solving the “trapped dividend exclusion” issue faced by many taxpayers as they prepared to file their first New Jersey combined Corporate Business Tax (CBT) returns for the 2019 year... Read More

New Jersey Governor Signs Corporation Surtax Increase Bill, A. 4721
Posted on 2 Oct 2020 by Eversheds Sutherland LLP

On September 29, 2020, Governor Philip Murphy signed A. 4721, the bill extending and retroactively increasing New Jersey’s Corporation Business Tax (“CBT”) surtax. Instead of eliminating the surtax after December 31, 2021, as was previously scheduled... Read More

Saving “At Risk” Losses – New Jersey Superior Court Holds Individual Allowed to Carry Forward Losses From Partnership
Posted on 1 Oct 2020 by Eversheds Sutherland LLP

The New Jersey Superior Court reversed the New Jersey Tax Court and held that an individual taxpayer was permitted to carry forward losses from a partnership incurred in 2009 to reduce the individual’s distributive share of the partnership’s income in... Read More

Merely deriving receipts from New Jersey sources does not create nexus for Corporation Business Tax purposes
Posted on 10 Sep 2020 by Eversheds Sutherland LLP

On September, 9, 2020, the New Jersey Appellate Division ruled against the taxpayer in Preserve II, Inc. v. Director, Div. of Taxation , No. A-1331-17T3. On its face, the decision looks like a disappointing taxpayer loss because the court upheld the determination... Read More

New Jersey regulations provide guidance on GILTI and FDII apportionment
Posted on 24 Apr 2020 by Eversheds Sutherland LLP

The New Jersey Division of Taxation (Division) quietly issued special regulations addressing the inclusion and apportionment of global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) for purposes of the Corporation Business... Read More

Taxpayer Dials the Wrong Number: New Jersey Court Holds Phone Company Sourcing Rule Inapplicable
Posted on 17 Mar 2020 by Eversheds Sutherland LLP

On January 9, 2020, the New Jersey Superior Court, Appellate Division, upheld a New Jersey Tax Court decision that income, or “receipts,” earned by a taxpayer from providing broadcast fax, email and voice messaging services were performed within New Jersey... Read More

New Jersey Tax Court Concluded SMLLC’s Share of Partnership Loss Not Business Loss
Posted on 17 Mar 2020 by Eversheds Sutherland LLP

The New Jersey Tax Court ruled that an individual owner of a single-member limited liability company (“SMLLC”) correctly reported his distributive share of partnership income reported by the SMLCC. The SMLLC owned a 50% interest in a partnership that... Read More

New Jersey Appellate Court Reverses Tax Court and Holds Insurance Premium Tax Limited to New Jersey Risk
Posted on 15 Oct 2019 by Eversheds Sutherland LLP

The New Jersey Appellate Division held that New Jersey’s insurance premium tax (IPT) for self-procured insurance coverage is based only on the risks insured in the state, and not based on risk insured throughout the United States. In reversing the New... Read More

Get Your Refunds: New Jersey’s Alternative Minimum Tax Preempted by P.L. 86-272, Tax Court Says
Posted on 17 Jul 2019 by Eversheds Sutherland LLP

On June 28, the New Jersey Tax Court held that the state’s alternative minimum tax (known as the “Alternative Minimum Assessment,” or AMA) – which was repealed for tax years beginning on or after January 1, 2018 – is preempted by P.L. 86-272... Read More

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