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General information on combined reporting is available on Corporation Business Tax Reform Information.
To register as the managerial member of a combined group for corporation business tax purposes, login to Online Registration Change Service using the taxpayer’s current New Jersey identification number and corporation business tax PIN. Check the box “Register as the Managerial Member of a Unitary Combined Group,” and follow the onscreen prompts. Note: Your corporation business tax PIN is printed on the Welcome Letter you received when you first registered your business. In most cases, it is the same 4-digit PIN used to submit other New Jersey tax payments and returns either online or by phone (e.g., withholding tax returns (Forms NJ-927/NJ-500 or Form NJ-927-W) or sales and use tax returns (Forms ST-50/51)). If you need help obtaining your PIN, Contact Us.
Managerial member entities must allow two business days after receipt of unitary ID number and PIN before filing a Unitary Corporate Business Tax extension online. At that point, the entity must submit an extension request within five business days for consideration to file until Oct. 15, 2020. The Division will review all extension requests filed under these circumstances.
P.L. 2018, c. 48, and P.L. 2018, c. 131, collectively mandate combined reporting for tax years ending on and after July 31, 2019 (beginning on and after August 1, 2018, if the managerial member has a 12-month tax year that ends July 31, 2019). Commonly owned companies engaged in a unitary business are required to calculate their Corporation Business Tax on a combined basis.
A combined group is a group of companies that have a common ownership (N.J.S.A. 54:10A-4(aa)) and are engaged in a unitary business (N.J.S.A. 54:10A-4(gg)), if at least one company is subject to New Jersey Corporation Business Tax (N.J.S.A. 54:10A-4(z)). For information on what business entities must be included in a combined group and what business entities are not included in a combined group, see Technical Bulletin TB-86(R) .
As an initial step in implementing combined reporting, the managerial member (N.J.S.A. 54:10A-4(cc)) of each combined group must register with the New Jersey Division of Revenue and Enterprise Services (DORES).
What are the managerial member’s responsibilities?
The managerial member acts as the agent on behalf of the combined group. The managerial member is required to address all tax matters including, but not limited to: filing/amending tax returns, filing extensions, and making estimated tax payments and/or any tax liability payment on behalf of its taxable members. The managerial member is also responsible for responding to notices and assessments for its combined group. (N.J.S.A. 54:10A-4.10)
How is the managerial member determined?
If the combined group has a common parent corporation and that common parent corporation is a taxable group member, the common parent corporation must register as the managerial member. If the common parent member is not a taxable member, the combined group must designate a taxable member as its managerial member. The election is for ten tax years.
Registering the managerial member to file and pay for New Jersey combined reporting:
Information for Managerial Member – Making or Crediting Estimated Payments.
Registration will generate a New Jersey identification number specific to combined reporting. This unique identification number will serve as the combined group’s tax identification number. The managerial member will use it to file the combined return on behalf of the group. The identification number will also serve as the number to which payments will be applied. Overpayments credited to the combined group by a taxpayer on a 2018 CBT-100 or 2018 BFC-1 will be applied to the combined group after the registration process is complete. In addition, once registration is complete, all estimated payments must be made using the combined group’s identification number. The managerial member cannot continue to make the payments under their preexisting tax identification number. Information on procedures for the managerial member to transfer funds that were made (or forwarded) on a separate entity basis to the account of the newly registered managerial member under combined reporting is available.
What if your company already has a New Jersey tax identification number and it is currently filing Corporation Business Tax returns?
The managerial member must register in New Jersey to obtain a new identification number that is specific to combined reporting. The managerial member’s preexisting tax identification number cannot be used as the primary identification number for the combined group filing. Also, a company’s Federal Employer Identification Number cannot be used to file any return or payment for the combined group.
Which member of the combined group should make estimated payments?
The managerial member is responsible for making payments on behalf of the group. Even though the managerial member is responsible for paying on behalf of the combined group, each taxable member is jointly and severally liable for the tax due.
If a combined group has members that have overpayments from a previously filed or return or that made payments under their own account, the managerial member for that combined group can take the following steps to merge the funds before filing the tax return.
Provide a spreadsheet showing:
A sample spreadsheet is available online. Send the information using one of the following methods:
Include a cover letter with a contact name and phone number in the event that the Division needs additional information or clarification.
Note: The combined return (Form CBT-100U) will contain a form for the managerial member to provide the information at the time of filing if the combined group is not ready to submit it in advance.