Category: State & Local Taxes
Treatment of Madoff Losses Under GIT Explained
The New Jersey Division of Taxation has revised a previously reported notice clarifying how taxpayers should report losses from the Bernard Madoff Ponzi scheme for purposes of the gross (personal) income tax. In a recent ruling, the IRS stated that the investment losses resulting from the Madoff Ponzi scheme should be written…
Where Is Your State Tax Home?
Where to live has traditionally been a decision based on personal factors such as quality of life and proximity to family and friends. However, as state and local income and death tax rates rise, high income and high net worth individuals are increasingly asking “how do I change my tax…
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…
New Jersey Recordkeeping Rules Proposed
The New Jersey Division of Taxation has proposed new rules to clarify a Corporation’s recordkeeping requirements under state tax laws. The proposal would provide that corporations are required to maintain all records used to determine their Corporation Business Tax liability and such other records as the Director of the Division…
Pennsylvania Tax Amnesty Begins
Pennsylvania’s Tax Amnesty period from April 26 to June 18, 2010. During this limited, 54-day timeframe, the Pennsylvania Department of Revenue will waive 100 percent of penalties and half of the interest for anyone who pays his/her delinquent state taxes. Individuals, businesses and other entities with Pennsylvania tax delinquencies as of…
Philadelphia Tax Amnesty to begin May 3rd
The City of Philadelphia will offer a tax amnesty program from May 3rd to June 25th, 2010. During amnesty, Philadelphia will waive all penalties and half the interest due on eligible delinquent tax bills. This will allow taxpayers the opportunity to clear up their debts and avoid further enforcement activities, including additional…
Deadline for 2010 New Jersey Property Tax Appeals
In municipalities where a revaluation or reassessment has been undertaken, real property tax appeal petitions must be filed and received by May 1st. All property owners have the right to file tax appeals with the County Board of Taxation, regardless of the amount of their assessment. For properties with assessments greater…