in its certificate of incorporation. Every corporation
which incorporates, qualifies or otherwise acquires a
taxable status in New Jersey must file a Corporation
Business Tax Return. A tax return must be filed for each
fiscal period, or part thereof, beginning on the date the
corporation acquired a taxable status in New Jersey
regardless of whether it had any assets or conducted any
business activities. No return may cover a period
exceeding twelve (12) months, even by a day.
(2) Every corporation which incorporates, qualifies or
otherwise acquires a taxable status in New Jersey and
which has adopted a fiscal year other than December 31,
shall advise the Division of Taxation promptly of the date
of such accounting period. If no such advice is received
on or before April 17, 2000, the taxpayer will be deemed
“delinquent” if no return is filed on or before April 17,
(3) Every corporation that elects to be a New Jersey S
corporation must file a “New Jersey S Corporation or
New Jersey QSSS Election” (Form CBT-2553) within
one calendar month subsequent to the Federal S
corporation filing requirement.
(c) TRANSACTING BUSINESS WITHOUT A
CERTIFICATE OF AUTHORITY: In addition to any other
liabilities imposed by law, a foreign corporation which
transacts business in this State without a certificate of
authority shall forfeit to the State a penalty of not less than
$200.00, nor more than $1,000.00 for each calendar year, not
more than 5 years prior thereto, in which it shall have
transacted business in this State without a certificate of
authority. N.J.S.A. 14A:13-11(3).
4. (a) PAYMENT OF TAX: Make remittance payable to “State of
New Jersey - CBT” and forward with the preprinted payment
voucher, CAR-100, provided in this packet. MAKE OUT A
SEPARATE REMITTANCE FOR EACH TAX RETURN
(CBT-100S) OR ESTIMATED PAYMENT VOUCHER
(CBT-150) SUBMITTED. Do not remit the tax for two or
more returns in one check. Indicate the taxpayer’s Federal
Employer Identification Number on each remittance.
(b) All corporations are required to make installment payments of
estimated tax. Generally, these payments are remitted with
the form CBT-150. Refer to Instruction 38 for further
5. ELECTRONIC FUNDS TRANSFERS: The Division of
Revenue has established procedures to allow the remittance of tax
payments through Electronic Funds Transfer (EFT). Taxpayers
with a prior year’s liability of $20,000 or more in any one tax are
required to remit all tax payments using EFT. If you have any
questions concerning the EFT program, call (609) 984-9830 or
write to N.J. Division of Revenue EFT Section, PO Box 191,
Trenton, N.J. 08646-0191.
6. PERSONAL LIABILITY OF OFFICERS AND
DIRECTORS: Any officer or director of any corporation who
shall distribute or cause to be distributed any assets in dissolution
or liquidation to the stockholders without having first paid all
corporation franchise taxes, fees, penalties and interest imposed
upon said corporation, in accordance with N.J.S.A. 14A:6-12,
N.J.S.A. 54:50-18 and other applicable provisions of law, shall be
personally liable for said unpaid taxes, fees, penalties and interest.
Compliance with N.J.S.A. 54:50-13 is also required in the case of
certain mergers, consolidations and dissolutions.
7. EXTENSION OF TIME TO FILE RETURN:
(a) The Division of Taxation will grant an automatic extension of
six (6) months for filing the final Corporation Business Tax
Return. In general, the extended period may not exceed six
(6) months from the original due date of the return. No
extensions will be granted unless requested on tentative return
form CBT-200-T which must be postmarked on or before the
due date for filing the return. The Tentative Return must show
the full name, address, Federal Employer Identification
Number, N.J. Corporation Number, the tax liability, and must
be submitted with payment for the total amount due. A
preprinted CBT-200-T voucher is included in this packet.
(b) If an extension has been requested, the corporation should
notify all shareholders of such request.
(c) Installment Payment - Any taxpayer with a tax liability of less
than $500 on line 1, may make a payment of 50 percent of line
1 in lieu of making the installment payments otherwise
required. Taxpayers who report a tax liability of $500 or more
on line 1 should not make an entry on line 2 and are required
to make installment payments as indicated in Instruction 38.
(d) PENALTIES AND INTEREST
(1) Interest - The annual interest rate is 3% above the average
predominant prime rate. Interest is imposed each month or
fraction thereof on the unpaid balance of tax from the
original due date to the date of payment. At the end of
each calendar year, any tax, penalties and interest
remaining due will become part of the balance on which
interest will be charged. The interest rates assessed by the
Division of Taxation are published in the quarterly issues
of the New Jersey State Tax News. To obtain a copy, refer
to the instructions at the bottom of page 13.
NOTE: The average predominant prime rate is the rate as
determined by the Board of Governors of the Federal
Reserve System, quoted by commercial banks to large
businesses on December 1st of the calendar year
immediately preceding the calendar year in which
payment was due or as redetermined by the Director in
accordance with N.J.S.A. 54:48-2.
(2) Insufficiency Penalty - If the amount paid with the
Tentative Return, Form CBT-200-T, is less than 90% of
the tax liability computed on Form CBT-100S, or in the
case of a taxpayer whose preceding return covered a full
12 month period, is less than the amount of the tax
computed at the rates applicable to the current accounting
year but on the basis of the facts shown and the law
applicable to the preceding accounting year, the taxpayer
may be liable for a penalty of 5% per month or fraction
thereof not to exceed 25% of the amount of underpayment
from the original due date to the date of actual payment.
8. ACCOUNTING METHOD: The return must be completed
using the same method of accounting, cash, accrual or other, that
was employed in the taxpayer’s Federal Income Tax Return.
9. RIDERS: Where space is insufficient, attach riders in the same
form as the original printed sheets. Only write on one side of the
10. TAX RATES:
(a) The tax rate on entire net income that is not subject to federal
income taxation or such portion thereof as may be allocable to
New Jersey is 2.0% (.02). For taxpayers with total entire net
income (Schedule A, line 41) of $100,000 or less, the
applicable tax rate for entire net income that is not subject to
Federal corporate taxation is 0.5% (.005). Tax periods of less
than 12 months qualify for this reduced rate if the prorated
entire net income does not exceed $8,333 per month.
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