Tax Notes Newsletter Two Voluntary Disclosure Initiatives Available for New Jersey Taxpayers Due by May 15, 2014 Sandy Weinberg, Principal, Director of State and Local Taxation Intangible Asset Nexus Companies that own intangible assets and derive income from the use of those assets in New Jersey can now comply, penalty free, with corporation business tax reporting and payment obligations they may have missed in the past. However, the New Jersey Division of Taxation (“the Division”) has announced that the opportunity only runs through May 15, 2014. The Division noted that it continues to discover non-filing companies that have nexus with New Jersey as a result of deriving income from the use of intangible assets in the state. “Often, the intangible assets have been ‘embedded’ into companies with other business operations beyond merely owning intellectual property.” Corporations deriving income from the use of intangible assets in New Jersey are required to file New Jersey Corporate Business Tax Returns and pay the appropriate tax due. In addition to the standard procedures for voluntary disclosure agreements (VDAs), the following also apply: Look-back period will be limited to periods beginning after July 1, 2010 Taxpayer must file all required returns and remit payment of the full tax liability within 45 days of the execution of its VDA The Division will waive all penalties Taxpayer must remit interest within 30 days of assessment All returns will be subject to routine audit with Sandy Weinberg Principal sweinberg@odpkf. com 203.323.2400
Learn about two new NJ voluntary disclosure initiatives including Intangible Asset Nexus and the Partnership Tax. Companies meeting select criteria will may qualify for the Voluntary Disclosure Initiative- O'Connor Davies CPAs - New Jersey CPA Firm
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1. Tax Notes Newsletter Two Voluntary Disclosure Initiatives
Available for New Jersey Taxpayers Due by May 15, 2014 Sandy
Weinberg, Principal, Director of State and Local Taxation
Intangible Asset Nexus Companies that own intangible assets and
derive income from the use of those assets in New Jersey can now
comply, penalty free, with corporation business tax reporting and
payment obligations they may have missed in the past. However, the
New Jersey Division of Taxation (the Division) has announced that
the opportunity only runs through May 15, 2014. The Division noted
that it continues to discover non-filing companies that have nexus
with New Jersey as a result of deriving income from the use of
intangible assets in the state. Often, the intangible assets have
been embedded into companies with other business operations beyond
merely owning intellectual property. Corporations deriving income
from the use of intangible assets in New Jersey are required to
file New Jersey Corporate Business Tax Returns and pay the
appropriate tax due. In addition to the standard procedures for
voluntary disclosure agreements (VDAs), the following also apply:
Look-back period will be limited to periods beginning after July 1,
2010 Taxpayer must file all required returns and remit payment of
the full tax liability within 45 days of the execution of its VDA
The Division will waive all penalties Taxpayer must remit interest
within 30 days of assessment All returns will be subject to routine
audit with respect to issues not specifically covered in the VDA.
Partnership Tax The Division has also announced a Partnership Tax
& Partner Fees Initiative permitting partnerships that have New
Jersey sourced income that have not filed the relevant forms
(PART-100, PART-200T & NJ-1065) and/or remitted tax and fees to
voluntarily come forward and comply. The same deadline, May 15,
2014, and similar procedures as the intangible asset nexus
initiative apply. The Division stated it continues to discover
partnerships with New Jersey sourced income that have failed to
file the required returns and remit the partnership tax due under
the Corporation Business Tax and the per partner fee due under the
Gross Income Tax. Partnerships deriving income from New Jersey
sources are generally required to pay a $150 filing fee per partner
and are also generally required to withhold income tax on behalf
Sandy Weinberg Principal [email protected] 203.323.2400
2. of non-resident partners. By complying with these tax
requirements, taxpayers will receive a potential limited look- back
and penalty waiver. ***** Participating in a voluntary disclosure
program provides taxpayers with an opportunity to limit exposure to
tax liabilities and penalties that may be otherwise due. Taxpayers
should review their New Jersey activities and filings to determine
whether participating in the 2014 voluntary disclosure initiative
is beneficial. Contact Us: If you have any questions regarding the
New Jersey Intangible Asset Nexus or the Partnership Tax &
Partner Fees voluntary disclosure initiatives, please contact your
OConnor Davies representative or Sandy Weinberg at
[email protected]. About OConnor Davies, LLP: O'Connor Davies,
LLP is a full service Certified Public Accounting and consulting
firm that has a long history of serving clients both domestically
and internationally and providing specialized professional services
of the highest quality. With roots tracing to 1891, seven offices
located in New York, New Jersey and Connecticut, and approximately
500 professionals including 84 partners, the Firm provides a
complete range of accounting, auditing, tax and management advisory
services. OConnor Davies is ranked as number 32 in Accounting
Today's 2014 "Top 100 Firms" in the United States. The Firm is also
within the 20 largest accounting firms in the New York Metropolitan
area according to Crain's New York Business and the Westchester and
Fairfield County Business Journals. OConnor Davies, LLP is a member
firm of the PKF International Limited network of legally
independent firms and does not accept any responsibility or
liability for the actions or inactions on the part of any other
individual member firm or firms. Our firm provides the information
in this e-newsletter for general guidance only, and it does not
constitute the provision of legal advice, tax advice, accounting
services, investment advice, or professional consulting of any
kind. IRS CIRCULAR 230 DISCLOSURE: To comply with IRS regulations,
we are required to inform you that unless expressly stated
otherwise, any discussion of U.S. federal tax issues in this
correspondence (including any attachments) is not intended or
written to be used, and cannot be used, (i) to avoid any penalties
imposed under the Internal Revenue Code, or (ii) to promote,
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addressed herein. Contact: New York, NY 212.286.2600 212.867.8000
Harrison, NY 914.381.8900 Stamford, CT 203.323.2400 Paramus, NJ
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