The federal Tax Cuts and Jobs Act (Public Law 115-97) enacted in December 2017 made amendments to IRC § 965. Under these amendments, certain United States taxpayers are required to recognize mandatory deemed repatriation income in the 2017 taxable year. The Division is finalizing procedures for corporate taxpayers to report IRC § 965 income for New Jersey tax purposes. Such guidance will be issued no later than October 1, 2018.
For corporate taxpayers that have already filed a 2017 NJ CBT-100 return, and whose federal taxable income or federal adjusted gross income is impacted by the amendments to IRC § 965, please note that an amended NJ CBT return will not be required. Instead, NJ CBT taxpayers will be required to prepare and mail a hardcopy of Form CBT-DIV 2017 (also being finalized) along with a payment and voucher to a Division post office box (to be determined) for any additional NJ CBT tax generated by increased income attributable to IRC § 965. No changes will be required to your 2017 CBT-100. All changes will be taken into account on the new Form CBT-DIV 2017.
Similarly, for corporate taxpayers who have not yet filed their 2017 NJ CBT-100 returns, such returns should be prepared without taking into account the amendments enacted in December 2017 to IRC § 965. The impact of those amendments will be fully taken into account and reflected on the new Form CBT-DIV 2017, which must also be mailed with a voucher and payment to a Division post office box (to be determined) following the filing of the corporate taxpayer’s CBT-100 return.