A Checklist for Changing Your Domicile
Although it is a person’s subjective intent that establishes changing their domicile, taxing authorities and the courts may place substantial weight on objective factors. However, a list of objective factors does not reduce a domicile determination to a mathematical test. A change of domicile to another state may be challenged…
Diagnosing the AMA
The alternative minimum assessment (AMA) was enacted as part of the 2002 Business Tax Reform Act. The AMA requires taxable corporations to pay the greater of their New Jersey corporation business tax (CBT) regular liability or the AMA. For corporations subject to the regular CBT, the AMA rates were reduced to…
Back Pay Withholding
The Appellate Division held that an employer may deduct state and federal withholding taxes from back pay arbitration awards when a union employee is reinstated. The payments made as a direct consequence of the plaintiff’s employment constituted wages subject to federal and state withholding taxes. Amalgamated Transit Union Local 880 v. NJ…
Partnership Filing Fee
The Division has issued Technical Bulletin TB-55R which discusses the partnership filing fee. In general, if a partnership has 3 or more owners and New Jersey source income or loss, it must pay a $150 per owner filing fee (to a maximum of $250,000). Due Date The filing fee must be…
Non-profit Organizations Filing Deadline
The Pension Protection Act of 2006 mandates that all non-profit organizations, other than churches and church related organizations, must file an information form with the IRS. This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization…
2009 Tax Break for Haiti Relief Donations
Tax Break for Haiti Relief Donations – On January 12, 2010, a massive earthquake struck the nation of Haiti, causing catastrophic damage inside and around the capital city of Port-au-Prince. President Obama promised the people of Haiti that “you will not be forsaken; you will not be forgotten” and ordered an immediate…
Tax Reform Advice for President’s Task Force
On March 25 President Obama announced the creation of a special task force to review the shortcomings of the U.S. tax system. The group is part of the President’s Economic Recovery Advisory Board. Headed by Paul Volcke, the task force has come to be known as the Volcker task force…
Special Federal Loss Carryback Option to Expire
IR-2009-72, Aug. 13, 2009 WASHINGTON — “CARRYBACK OPTION”. Time is running out for many small businesses wishing to take advantage of the expanded business loss carryback option included in this year’s recovery law, the Internal Revenue Service said today. Eligible individuals have until Oct. 15 to choose this expanded carryback…
Is the AMT in need of a fix?
New Jersey ranks first among the states in the percentage of Alternative Minimum Tax filers. 273,589 New Jersey taxpayers, 6.5% of all New Jersey taxpayers paid the AMT in 2006. The Joint Committee on Taxation projects that without another legislative patch or AMT reform, more than 1.6 million New Jersey…
Current Applicable Federal Rates
Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates (or AFRs), are regularly published as revenue rulings. Click here for the IRS Index of Applicable Federal Rates (AFR) Rulings