About
Foundational Principles In the Community Diversity, Equity & Inclusion Technical Excellence Alumni TIAG Membership
Careers
Why Cohen & Company Our Culture Total Rewards & Benefits Intern & Entry Level Opportunities Experienced Opportunities
Contact
Akron, OH Baltimore, MD Chicago, IL Cleveland, OH Detroit, MI Milwaukee, WI New York, NY Philadelphia, PA Pittsburgh, PA St. Clair Shores, MI Youngstown, OH
Client Portal
Services Industries Knowledge Center People

About Our Services

We offer tailored solutions — whether private company or owner; public or private fund, adviser or fund service provider; or Fortune 1000 enterprise. Learn how we can help you.

Learn More

Assurance Services

Employee Benefit Plan Audits Internal Controls Investment Company Audits Private Company Audits SOC Readiness & Compliance

Tax Services

Federal Tax Planning & Compliance High Net Worth & Wealth Transfer International Filings & Structuring Investment Company Tax State & Local Tax Tax Credits & Incentives Transaction Tax Planning

Advisory Services

Business Valuations Data & Insights Digital Finance Solutions IT Strategy & Implementation M&A Advisory Outsourced Accounting Solutions Risk Assurance & Advisory Transaction Services Turnaround & Restructuring

Our Industry Expertise

Our industry experience means you can find professionals who speak your language and bring earned insights to the table. Learn how we can help you.

Learn More

Key Industries

Digital Assets Investment Companies Manufacturing Private Companies Private Equity Real Estate & Construction Technology & Life Science
VIEW THE COMPLETE LIST

Knowledge Center

Our team wants to help your team stay up to date. Browse our thought leadership, events and news for insights and a point of view on business-critical topics.

Learn More

Insights

Browse valuable articles and publications our experts have written to help you and your organization answer key questions — and consider new ones.

Read Our Insights

Events

Join us in person and online for events that address timely topics and key business considerations.

Explore Our Events

News

Find out what is happening at Cohen & Company, from industry recognitions and growth updates, to where we are contributing to important media stories.

Read Our News
People
Foundational Principles In the Community Diversity, Equity & Inclusion Technical Excellence Alumni TIAG Membership
Why Cohen & Company Our Culture Total Rewards & Benefits Intern & Entry Level Opportunities Experienced Opportunities
Akron, OH Baltimore, MD Chicago, IL Cleveland, OH Detroit, MI Milwaukee, WI New York, NY Philadelphia, PA Pittsburgh, PA St. Clair Shores, MI Youngstown, OH
Client Portal
Back to Insights

New Jersey Kicks Off Nexus Program Targeting Corporate Taxpayers

by Hannah Prengler

June 17, 2021 State & Local Tax

New Jersey is launching a compliance initiative that will allow members of combined filing groups who owe New Jersey state tax from periods prior to 2019 to voluntarily come forward with reduced consequences. If non-filers participate in the program — running June 15, 2021, through October 15, 2021 — and remit past due returns, tax and interest, the state will waive penalties and limit the lookback period to 2016 through 2018.

Background on the CBT Combined Filer Nexus Initiative

In 2019, New Jersey began requiring qualifying corporate taxpayers to file one combined unitary state income tax return. A qualifying unitary group is one in which there is common ownership, represented by 50% or more voting control for each member either directly or indirectly, and where the unitary group members are sufficiently interdependent, integrated, and have interrelated activities that provide synergies and mutual benefit. 

Each member of the combined group, regardless of whether they have nexus with the state, is disclosed on the unitary return as is a description of each entity’s New Jersey activities. New Jersey has begun mining the unitary CBT return (Form CBT-100U) disclosures to identify entities that failed to file prior to the 2019 combined reporting requirement.

Before pursing those non-filers, New Jersey is providing corporations an opportunity to evaluate their historic nexus activity and address identified corporate tax exposures via its new compliance initiative.

Requirements of New Jersey’s Compliance Program

To participate, a non-filing corporation must:

  • Not have been incorporated in New Jersey, authorized or registered to do business in New Jersey prior to 2019.
  • Provide its managerial member’s tax registration number and file returns for the 2016 through 2018 tax years.
  • Pay any tax due within 45 days of executing the closing agreement. The state will issue an assessment for any associated interest, which must be paid within 30 days.

Significant Consequences of Not Participating

Businesses that fail to come forward by October 15, 2021, will be prohibited from participating in New Jersey’s standard voluntary disclosure program. If a non-filing business is identified and audited, the business may be subject to penalties of up to 30% and may be required to file returns prior to 2016 to the extent the company had nexus. Of concern is that when New Jersey has identified non-filers in the past, the audit department has threatened the state may require companies to file CBT returns as far back as 1946.

Please contact Hannah Prengler at hprengler@cohencpa.com or a member of your service team or for further discussion.

Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.

About the Author

Hannah Prengler, CPA

Partner, Tax
hprengler@cohencpa.com
216.774.1245

Related Insights

Article

New Jersey Adds Combined Filing Rule, Increases Tax Rates and Alters Factor Sourcing Rules

Read More

Sign Up for Our Emails & Events

Receive insights from our specialists in a variety of areas and timely information on upcoming events directly to your inbox as they go live in our online Knowledge Center.

Subscribe Today
Subscribe to our newsletter
About Contact Submit RFP Privacy Policy
LinkedIn Twitter Facebook
© 2023 Cohen & Company