- Clarification Regarding Technical Bulletin TB-92
Clarification Regarding Technical Bulletin TB-92
It has come to the Division’s attention that part of our message in TB-92 led to misinterpretation of our intent. We expect to revise the TB for clarification and/or issue further guidance soon. In the interim, we would like to immediately clarify the following points:
- First, while FDII has been newly identified under the IRC as a special category of income, the Division recognizes that the income already existed for both Federal and New Jersey tax purposes. Our intent is that FDII continue to be classified, sourced and apportioned as appropriate under existing NJ statutes and regulations.
- Second, while the Division is not aware of any specific situation that would require GILTI or FDII related amounts to be included in the numerator of the apportionment factor, we are also not certain that no such situations exist; hence the use of the term “if applicable” in the TB. We welcome input both on this issue and in general as we work cooperatively to draft final regulations that are reasonable and equitable to the business community and the State.