Discover the latest update from the New Jersey Division of Taxation, where important revisions have been made to the guidelines surrounding S corporation elections.
In a dedicated effort to improve efficiency and compliance, the Division has refined its procedures regarding shareholder consent for S corporation elections. Here’s what businesses need to know:
Initial Registration Process:
Upon registering a new business via the Division of Revenue and Enterprise Services (DORES) online NJ-REG system, businesses will be prompted to indicate whether they have obtained the federal approval letter authorizing them to file as a federal S corporation or QSSS.
Submission Requirements:
For those in possession of the federal approval letter, simply upload a copy of it during the NJ-REG process. Additionally, complete the Shareholder Jurisdictional Consent form as part of this step.
If awaiting the federal approval letter, businesses can provide a copy of the federal acceptance letter instead. Once the approval letter is received, complete the Shareholder Jurisdictional Consent accordingly.
Filing Options:
Businesses also have the option to provide the necessary documentation when filing the S corporation return (Form CBT-100S). Alternatively, they can utilize the Division of Revenue and Enterprise Services S Corporation Election system for submission.
For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com