Tax Law

New Jersey Court Rejects Taxpayer’s Claims Regarding Sales Tax Audit

August 19, 2025

In a recent decision, the New Jersey Tax Court reaffirmed the Division of Taxation’s authority to hold corporate officers personally liable for sales and use tax liabilities—even when procedural arguments are raised. Martin D. Hauptman, Esq., Partner in Mandelbaum Barrett PC’s Tax, Trusts, and Estates Practice Group, notes that this ruling reinforces the importance of corporate compliance, proactive tax practices, and individual accountability when it comes to navigating the audit process.

The High Cost of Delay: Ultra-High-Net-Worth Estate Planning & Asset Protection

August 18, 2025

The Looming Estate Tax Challenge for Ultra-High-Net-Worth Individuals For ultra-high-net-worth estate planning, the stakes for estate and asset protection have never been higher—or more urgent. For ultra-high-net-worth individuals (UHNWIs) whose estates far exceed the 2025 federal lifetime exemption of $13.99 million per person, the risks are clear. Although the current federal exemption will not sunset […]

New Jersey Extends and Enhances Film and Digital Media Tax Credit

August 4, 2025

On June 30, 2025, Governor Phil Murphy signed legislation that significantly expands the New Jersey film and digital media tax credit program. The new law (L. 2025, S4618 (c. 81)) extends the credit for 10 years and introduces new benefits aimed at making New Jersey even more attractive to production companies. The enhancements apply to applications submitted after June 30, 2025. Martin D. Hauptman, Esq., Partner in Mandelbaum Barrett PC’s Tax, Trusts, and Estates Practice Group, explains this recent enhancement means for media production.

Legacy Lesson: Federal and State Income Tax Planning

July 31, 2025

In this episode of Legacy Lessons, Martin D. Hauptman, Partner in our Tax, Trusts, and Estates Practice Group, explores a powerful, yet often overlooked, tax planning strategy for business owners preparing to sell their companies.

NJ Advises Tariffs on Foreign Goods Count Toward Sales Tax

July 25, 2025

The New Jersey Division of Taxation has issued new guidance that may impact how businesses handle sales tax on imported goods. In its May 20, 2025 advisory, Sales Tax Treatment of Tariff Markups, the Division clarified that federal tariffs imposed on goods brought into the U.S. must be included in the taxable sales price in New Jersey—even if those tariffs are listed as separate line items on customer invoices. Martin D. Hauptman, Esq., Partner in Mandelbaum Barrett PC’s Tax, Trusts, and Estates Practice Group, explains that this guidance is a reminder that any charge necessary to place a product into the hands of a buyer—including tariffs—forms part of the taxable “receipt” under state law.

Veterinary Practice Buy-In: Phantom Equity, Vesting, Conversion, and Tax Implications

July 24, 2025

For many veterinary practices, the next generation of ownership begins with a conversation between a practice owner and a valued associate. While traditional buy-ins often involve a direct purchase of equity, innovative approaches, such as phantom equity, offer greater flexibility, improved retention incentives, and a smoother transition for both parties. This article explores a scenario […]

2025 Tax Reform Act Q&As: What Employers and Employees Need to Know

July 22, 2025

On July 4th, 2025, the Tax Reform Act of 2025, also known as the One Big Beautiful Bill (OBBB), was signed into law, bringing significant changes to federal income tax treatment for workers in the hospitality industry. Under the OBBB Act, employees in the hospitality sector may now exclude both tip income and overtime wages from federal income tax. These provisions represent a significant shift in wage taxation policy, aimed at increasing take-home pay for hourly workers while imposing new compliance considerations for employers.

What You Need to Know About the One Big Beautiful Bill Act (OBBBA)

July 17, 2025

OBBBA extends many provisions of the 2017 Tax Cuts and Jobs Act while significantly reshaping government spending priorities. Below is a breakdown of key elements that may impact individuals, families, and business owners from a tax and estate planning perspective. 🔹 Key Tax Provisions Impacting Individuals and Businesses 🟢 New and Expanded Deductions Included in tax cut cost […]

New Jersey’s Mansion Tax Is Changing in 2025: What Sellers Need to Know

July 7, 2025

If you’re planning to sell high-value real estate in New Jersey, it’s time to take note: major changes to the state’s mansion tax go into effect on July 10, 2025. These updates significantly impact who pays the tax, how much is owed, and which transactions are affected.

As a full-service law firm with deep experience in real estate, tax, and transactional law, our team at Mandelbaum Barrett PC is here to help you understand what these changes mean for your next deal.

Legacy Lesson: Will or Trust? Estate Planning for Single Parents

June 18, 2025

In this episode of Legacy Lessons, Shawn R. McClelland, Partner in our Tax, Trusts, and Estates Practice Group, walks us through one of the most common estate planning questions families face: Should I create a will, or do I need a trust?

New Jersey Announces Mediation for Tax Disputes

June 12, 2025

Martin D. Hauptman, Partner in the Tax, Trusts, and Estates Practice Groups at Mandelbaum Barrett PC, highlights a new development from the New Jersey Division of Taxation: the launch of a pilot mediation program beginning October 1, 2025. As announced in Technical Bulletin No. TB-115 (April 15, 2025), the initiative is intended to reduce the number of tax protests that reach the Conferences and Appeals Branch (CAB) and the New Jersey Tax Court, offering taxpayers a more efficient and collaborative path to resolution. By addressing disputes earlier in the process, the Division hopes to enhance resolution timelines, lower costs, and ease the burden on the tax appeals infrastructure.

Legacy Lesson: Estate and Gift Tax Returns

June 2, 2025

Meet the Johnsons, a group of siblings who recently inherited a multi-million-dollar estate after the passing of their parents. The estate includes investment properties, stocks, and other high-value assets—leaving them not only with deep emotions to process, but also a host of complex tax questions.

Like many families facing a significant inheritance, the Johnsons are overwhelmed. They’ve heard about estate and gift tax returns, possible deductions, and filing requirements—but aren’t sure where to start or what applies to them.

NJ Tax Court Clarifies Tobacco Products Tax Base for Premium Cigars

May 29, 2025

In Barrister Cigars LLC v. Director, Division of Taxation (Dkt. No. 009089-2022, April 1, 2025), the court ruled that a premium cigar retailer must base its 30% tobacco products tax on the actual price wholesalers paid to manufacturers—not on the retailer’s purchase price from wholesalers or on any estimated discounts. Martin D. Hauptman, Partner in our Tax, Trusts, and Estates practice groups, breaks down what this means for tobacco retailers and distributors.

New Jersey Tax Court Affirms Mansion Tax on Farmland with Farmhouse

May 23, 2025

A recent decision by the New Jersey Tax Court offers a critical reminder that in real estate transactions, what exists at closing matters more than what’s planned for the future—especially when it comes to taxes.

In this blog, Martin D. Hauptman breaks down how a farmhouse on farmland triggered the state’s mansion tax, even though the buyer planned to demolish it. In Matrix Bordentown, Lot 2 LLC v. Director, Division of Taxation (Dkt. No. 013007-2019, March 25, 2025), the court held that New Jersey’s 1% “mansion tax” was properly applied to the $4.7 million purchase of farmland that included a farmhouse. This decision clarifies the interpretation of N.J. Rev. Stat. § 46:15-7.2, which imposes the tax on transfers of residential real property where the consideration exceeds $1 million.

The High Cost of Delay: Why Ultra-High-Net-Worth Families Must Act Now on Estate and Asset Protection

May 20, 2025

For ultra-high-net-worth individuals (UHNWIs) whose estates far exceed the 2025 federal lifetime exemption of $13.99 million per person, the stakes for estate and asset protection planning have never been higher-or more urgent. With the current exemption set to plummet at the end of 2025, and a flat 40% federal estate tax rate looming over every […]

Protecting What Matters Most: IRS Urges Tax Professionals to Strengthen Client Data Security

May 19, 2025

As stewards of sensitive financial and personal data, tax professionals are increasingly prime targets for cybercriminals seeking to exploit taxpayer information for fraudulent refunds, identity theft, and unauthorized access to e-filing systems.

In a recent advisory, the IRS Return Preparer Office (RPO) issued a critical warning: hackers are actively targeting tax preparers using increasingly sophisticated tactics to gain access to electronic filing credentials and client records.

At Mandelbaum Barrett PC, we echo the IRS’s call to action: Protect your clients; protect yourself.

Navigating the So-Called “Exit Tax” When Leaving New Jersey

May 6, 2025

Thinking of leaving New Jersey and wondering about the so-called “exit tax”? You’re not alone—and the name itself is misleading. In this article, originally featured on NJMoneyHelp.com, Martin D. Hauptman, Partner in the Trusts & Estates and Tax Law Practice Groups at Mandelbaum Barrett PC, breaks down what the “exit tax” actually is, how it […]

Don’t Ignore Planning for the New York Estate Tax

April 22, 2025

The Upcoming Federal Estate Tax Sunset: What You Need to Know Many high-net-worth clients are busy planning for the possibility of a Federal estate tax exclusion sunset scheduled to occur on January 1, 2026. This will occur automatically unless Congress is able to pass major budget legislation to avert a per person reduction in the […]

GO DIGITAL OR GO HOME! Trump’s Executive Order to Eliminate Paper Checks To/From Federal Agencies

April 15, 2025

On March 25, 2025, President Donald Trump signed a landmark executive order that will fundamentally change how the United States Treasury Department handles payments. Effective September 30, 2025, the Treasury will cease issuing paper checks for all federal disbursements and will require that payments to the federal government, including taxes, be made electronically, with limited exceptions. This sweeping modernization effort is designed to increase efficiency, reduce costs, and combat fraud, but it also carries significant implications for taxpayers across the country.

The $5 Million Hush Money Payment in White Lotus Season 3

April 11, 2025

The explosive finale of White Lotus Season 3 left fans with more than just plot twists—it raised fascinating legal and tax questions. Chief among them: what are the implications of Greg’s $5 million wire transfer to Belinda, intended to ensure her silence regarding his late wife’s mysterious death? Though fictional, the scenario invites real-world analysis […]

Steven Holt Answers Tax Concerns for NJ Money Help

April 7, 2025

When someone passes away, questions about who can legally inherit their assets often arise—especially when immigration status is involved. In a recent NJMoneyHelp.com column, Steven Holt, Partner and Chair of the Tax, Trusts & Estates Practice at Mandelbaum Barrett PC, addressed a reader’s concern about whether an undocumented spouse with a felony record could inherit money and real estate left to her in her late husband’s will.

New Jersey Once Again Modifies Position on Difficulty of Care Payments

April 4, 2025

The New Jersey Division of Taxation has recently revised its position on difficulty of care (DOC) wage payments, bringing clarity and potential benefits to taxpayers who provide care to individuals with disabilities. This update affects both the taxation of these payments and their eligibility for the New Jersey Earned Income Tax Credit (EITC).

New Jersey is Now Issuing Gross Income Tax Refunds

April 1, 2025

As of March 1, 2025, the New Jersey Division of Taxation has begun issuing gross income tax refunds to taxpayers. Martin D. Hauptman, Partner in our Tax, Trusts, and Estates Practice Groups at Mandelbaum Barrett PC, shares important updates on the refund process and how this announcement is particularly significant for individuals and businesses who are beginning to check their income tax refund status. Understanding the refund processing timeline is essential for managing expectations and ensuring smooth financial planning.

How New Jersey’s GIT/REP Form Rules Impact Real Estate Transactions

March 27, 2025

The New Jersey Division of Taxation has recently clarified important procedures regarding the signing and submission of GIT/REP forms. Martin D. Hauptman, Partner in our Tax, Trusts, and Estates Practice Groups at Mandelbaum Barrett PC, breaks down the updates that are required when selling real estate in New Jersey. These updates highlight the distinction between the Division’s role in issuing the forms and the authority of county clerks in accepting or rejecting deed filings.

New Jersey Advises Taxpayers to Apply for State Earned Income Credit

March 21, 2025

The New Jersey Department of Treasury is encouraging taxpayers to determine if they qualify for the state’s Earned Income Credit (EIC) for the 2024 tax season. This credit is designed to provide financial relief for low- to moderate-income taxpayers, and New Jersey has expanded eligibility criteria for those without a qualifying child.

New Jersey Updates Guidance for Military Families: Key Tax Considerations for Veterans and Their Spouses

March 14, 2025

The New Jersey Division of Taxation has updated its guidance for military families, effective January 1, 2025. These updates, outlined in Technical Bulletin No. GIT-7, provide clarity on tax issues affecting veterans and their families, including the veteran’s exemption, the wounded warrior’s caregivers credit, combat pay, and tax exemptions for military spouses. Martin D. Hauptman, Partner in our Tax, Trusts, and Estates practice groups, explains how these updates impact military families and their tax filings.

New Jersey Updates Guidance on Credit for Taxes Paid to Other States

March 13, 2025

The New Jersey Division of Taxation has recently updated its guidance on how taxpayers should calculate the credit for taxes paid to other jurisdictions. This update, outlined in Technical Bulletin No. GIT-3B (effective January 1, 2025), clarifies what income qualifies for the credit and provides distinctions regarding what is properly taxable by another state. Martin D. Hauptman, Partner in our Tax, Trusts, and Estates Practice Groups at Mandelbaum Barrett PC, breaks down these updates to ensure taxpayers take full advantage of available credits while remaining compliant.

IRS Direct File Now Available to New Jersey Taxpayers 

February 28, 2025

As we approach the 2025 tax season, New Jersey residents are set to benefit from a new, cost-effective filing option that simplifies the process of filing both federal and state income tax returns. New Jersey Governor Phil Murphy has announced that the IRS Direct File tool is now available for eligible taxpayers to file their returns online at no cost. 

New Jersey Revises Its Position on Difficulty of Care Payments

February 25, 2025

The New Jersey Division of Taxation has issued a revised statement regarding the taxability of Difficulty of Care payments, providing clearer guidance for taxpayers. This clarification is crucial as many caregivers who provide essential services to individuals with disabilities or chronic illnesses depend on these payments as part of their livelihood, and understanding the tax implications ensures they do not overpay on their taxes or miss out on potential refunds.

IRS Increases 2025 Standard Business Mileage Rate to 70 Cents Per Mile

February 21, 2025

In a recent announcement, the IRS confirmed that the optional standard business mileage rate for 2025 will increase by three cents, rising to 70 cents per mile for vehicles used for business purposes. This change, which takes effect on January 1, 2025, provides an opportunity for taxpayers to adjust their vehicle expense deductions accordingly. However, the rates for vehicles used for medical, moving, or charitable purposes will remain unchanged from the 2024 levels.

New Jersey Launches New Combined Property Tax Relief Application for Seniors

February 18, 2025

New Jersey seniors and disabled homeowners now have an easier way to apply for property tax relief. The Department of Treasury announced a new, simplified application that combines three major relief programs into one form, reducing paperwork and streamlining the process.

New Jersey Makes Changes to Aspire Program

February 7, 2025

New Jersey has made significant changes to the Aspire Program under L. 2025, S1323 (c.2), effective January 23, 2024. These updates impact developers utilizing tax credits for mixed-use and commercial redevelopment projects.

New Jersey Tax Court Rules Deemed Dividends from CFCs Are Not Taxable

February 5, 2025

A recent decision by the New Jersey Tax Court has significant implications for taxpayers with controlled foreign corporations (CFCs). In Amin v. Division of Taxation (N.J. Tax Ct., Dkt. No. 007430-2022, Dec. 31, 2024), the court ruled that deemed distributions of earnings and profits from CFCs, as required under Internal Revenue Code (IRC) § 965, are not considered taxable dividends for New Jersey gross income tax purposes.

Navigating Family Disputes: Wills, Trusts, and Finding the Right Solution

February 3, 2025

When it comes to estate planning, family dynamics can complicate the process. Steven Holt, Chair of Tax, & Trusts and Estates at Mandelbaum Barrett, addressed two crucial issues families often face in his recent contributions to NJ Money Help. These articles provide valuable insights for those navigating the challenges of wills, trusts, and family disputes.

New Jersey Gross Income Tax Changes for 2024: What You Need to Know

January 31, 2025

As we head into the 2024 tax season, there are some important changes to New Jersey’s gross income tax laws that residents should be aware of. The New Jersey Division of Taxation has recently released a summary of these updates, and it’s essential for taxpayers to understand how they may impact their filings for the 2024 tax year.

New Jersey Lowers Interest Rate on Outstanding Tax Balances for 2025

January 24, 2025

The New Jersey Division of Taxation has announced a reduction in the interest rate on outstanding tax balances for the year 2025. Starting from January 1, 2025, the interest rate on unpaid tax balances will be set at 10.75%. This is a decrease from the current interest rate of 11.5%, which applies for the period from January 1, 2024, to December 31, 2024.

New Jersey Updates Cannabis Tax Guidance: Key Changes You Need to Know

January 14, 2025

The New Jersey Division of Taxation has recently updated its guidance on cannabis product taxes, providing important clarifications for both consumers and businesses in the state. The updated guidance specifically defines which cannabis items are subject to state taxes, with a focus on “Intoxicating Hemp” products.

New Jersey Modifies Stay New Jersey Property Tax Credit for 2026

January 10, 2025

On November 1, 2024, Governor Phil Murphy signed into law legislation that introduces significant changes to the Stay New Jersey Property Tax Credit program, which is set to take effect in 2026. The new law brings adjustments aimed at refining eligibility and benefit amounts for New Jersey residents, particularly senior citizens and other qualifying individuals. Here’s an overview of the major updates to this program.

IRS Expands Tax-Deductible Medical Expenses and HDHP Preventative Care Benefits

January 8, 2025

In a recent update, the IRS has made significant changes to its guidelines surrounding tax-deductible medical expenses and high deductible health plan (HDHP) preventative care benefits. These updates, which were announced on Thursday through two notices (Notice 2024-71 and Notice 2024-75), aim to broaden the scope of what qualifies as medical care and preventive care under specific tax and health plan regulations.

Apply Now: Senior Freeze Property Tax Reimbursement Program in New Jersey

December 16, 2024

This is a valuable opportunity to gain financial relief. If you or someone you know meets the eligibility requirements, act now to ensure you don’t miss out on this program. For more information, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com

New Jersey Residents May Be Eligible for Tax Credit When Challenging Out-of-State Convenience Rules

December 11, 2024

With the rise of remote work, convenience rules have become a contentious issue for taxpayers and states alike. By offering this credit, New Jersey is advocating for its residents’ right to fair taxation and encouraging them to stand up against potentially improper assessments by other states.

New Jersey Division of Taxation Enhances Identity Verification for NJ ANCHOR Benefit Applications

December 5, 2024

The integration of ID.me’s technology enhances the security and efficiency of the NJ ANCHOR application process. By verifying the identities of applicants, the Division can better protect taxpayers’ benefits from potential misuse and streamline application approvals.

New Jersey Modifies Cigarette Tax Regulations

November 6, 2024

These regulatory updates will likely lead to a smoother, more efficient system for cigarette wholesalers and distributors in New Jersey. By eliminating outdated rules and simplifying the submission process, the state aims to reduce administrative burdens and improve compliance. Businesses involved in the sale and distribution of cigarettes should review these changes carefully to ensure they meet the new requirements.

New Jersey Expands Tax Credits for Historic Property and Brownfield Projects

October 30, 2024

These changes to the Historic Property and Brownfield Programs show New Jersey’s commitment to improving its communities by encouraging investment in older buildings and contaminated sites. The larger tax credits and relaxed rules make these projects more financially attractive, helping developers breathe new life into properties and clean up the environment.

Important Update on New Jersey’s Zero Emission Vehicle (ZEV) Exemption

October 23, 2024

The New Jersey Division of Taxation has updated its frequently asked questions regarding the phaseout of the Zero Emission Vehicle (ZEV) exemption. As part of New Jersey’s commitment to promoting sustainable transportation, these updates clarify important aspects of the exemption that will affect potential ZEV purchasers.

New Jersey Adopts Regulation on Nonresident Stock Option Income and Amends Tax Rules

October 21, 2024

The Division has also amended N.J.A.C. 18:35-1.3, which affects the filing of Form NJ-1065 for partnerships. Effective August 19, 2024, when filing this form, taxpayers must now include a statement of income and expenses, balance sheet per books, and all referenced supporting schedules, along with the partner directory from the federal Form 1065.

Elder Law Alert: IRS Issues Guidance on Exceptions to Early Distribution Penalty from Retirement Plans

October 7, 2024

The Internal Revenue Service (IRS) recently issued guidance on two new exceptions to the tax on early distributions from certain eligible retirement plans. This guidance, outlined in Notice 2024-55 (IR 2024-170, 6/20/2024), addresses changes introduced by the SECURE 2.0 Act of 2022, which amended the rules under Code Sec. 72(t)(2). Early Distribution Penalty Under Code […]

New Jersey Division of Taxation Announces ANCHOR Program Updates

September 17, 2024

These updates aim to ensure that the ANCHOR Program effectively supports those who meet the revised criteria. For more detailed information and further updates, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com.

NJ Taxation: Reporting Federal and State Differences from Lower-Tier Partnerships

September 5, 2024

To complete the NJ-1065 correctly, compare the federal K-1s and NJK-1s, calculate the differences, and enter them on the appropriate lines. For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com

IRS Advances Processing of Employee Retention Credit Claims

August 28, 2024

As the IRS continues its review process, businesses should be aware that they may receive payments for certain quarters while the IRS continues to assess eligibility for other periods. This phased approach aims to ensure that valid claims are promptly addressed while maintaining scrutiny over potentially improper submissions.

IRS Alerts Taxpayers to New Warning Signs of Incorrect ERC Claims

August 23, 2024

The IRS issued a new Information Release (IR 2024-198) on July 26, 2024, highlighting five additional signs of incorrect Employee Retention Credit (ERC) claims. This update supplements earlier warnings about ERC claim issues. For a comprehensive review of the previously identified problem areas, see our earlier publication: IRS: Warning Signs of Incorrect ERC Claims (02/15/2024).

New Jersey Joins IRS Direct File Program for 2025 Tax Season

August 21, 2024

Governor Phil Murphy, alongside officials from the U.S. Department of the Treasury, has endorsed this initiative as a significant step forward in modernizing and simplifying tax administration in New Jersey. The move aligns with broader efforts to enhance taxpayer services and integrate technology into the tax filing process.

New Jersey’s Phaseout of Zero Emission Vehicle Tax Exemption

August 16, 2024

This phased reduction in the tax exemption aims to encourage the adoption of zero emission vehicles while gradually aligning them with broader tax policies. For potential buyers, understanding these changes can help in planning purchases and budgeting for future costs.

New Jersey Extends Flexibility for Tax Credit Program Participants

August 13, 2024

This legislative update provides a valuable opportunity for businesses to adjust their operations in response to evolving work environments and market conditions. By reducing the in-person requirements and extending commitment periods, New Jersey is aiming to support business flexibility and sustained economic growth while ensuring compliance with state incentives.

Senior Freeze Reimbursements for 2023 Tax Year: What You Need to Know

August 7, 2024

Significant changes have been made to the program for the 2023 tax year to make it more accessible:

Residency Requirement: Previously, applicants needed to be New Jersey residents for 10 consecutive years. This requirement has been eliminated, making it easier for more seniors to qualify.

Income Limit Increase: The income limit to be eligible for the program has been raised to $163,050. This increase allows more senior citizens to benefit from the program.

These changes are designed to provide more seniors with financial stability and peace of mind by helping manage property tax expenses.

New Jersey Division of Taxation Issues Guidance on New Corporate Transit Fee

July 25, 2024

For detailed instructions and to access forms, visit the New Jersey Division of Taxation website.

By understanding these changes and preparing accordingly, businesses can ensure compliance with the new CTF regulations and avoid unnecessary complications.

For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com

Challenge to New Jersey Partnership Filing Fee Rejected by Federal Court

July 19, 2024

The ruling has significant implications for businesses operating in New Jersey, particularly those with extensive out-of-state operations. By upholding the fee, the court has confirmed that such companies must comply with New Jersey’s partnership filing requirements, regardless of the extent of their activities outside the state.

HMO Assessment Rate Increased: What You Need to Know

July 17, 2024

Effective June 28, 2024, a significant change has been enacted through L. 2024, A4705 (c. 21), which increases the annual assessment rate for Health Maintenance Organizations (HMOs). This new legislation raises the HMO assessment from 5% to 6% of net written premiums. Additionally, this increase is in addition to the existing 2.5% health insurance assessment applied to all health insurance providers, including HMOs.

Understanding the IRS Guidance on Tax Treatment of Energy-Efficient Rebates

July 12, 2024

The IRS guidance provides clarity on the tax treatment of rebates for energy-efficient property and improvements, offering valuable insights for taxpayers navigating these incentives. By understanding the coordination rules outlined in the guidance, taxpayers can optimize their tax strategies while promoting energy efficiency. As the landscape of energy incentives evolves, staying informed about these guidelines becomes increasingly important for taxpayers and businesses alike.

2025 HSA and Excepted Benefits Inflation-Adjusted Limits

July 9, 2024

Staying informed about these changes can help you maximize the benefits of your HSA and make more informed decisions about your healthcare coverage. If you have any questions or need further assistance, consider consulting with a tax professional or financial advisor to make the most of your HSA contributions and benefits.

New York Updates Guidance on Pass-Through Entity Tax

June 25, 2024

To claim the PTET credit, eligible claimants must file an individual personal income tax return and attach Form IT-653 (Pass-Through Entity Tax Credit). The PTET credit cannot be claimed on Form IT-203-GR (Group Return for Nonresident Partners) or Form IT-203-S (Group Return for Nonresident Shareholders of New York S Corporations). Additionally, claimants must include an additional modification to their federal adjusted gross income or federal taxable income on their New York state personal income tax return equal to the PTET credit they are claiming.

New Jersey Updates Personal Income Tax Sourcing and Allocation Rules

June 11, 2024

New Jersey’s updated personal income tax sourcing and allocation rules introduce significant changes that align with corporate tax methodologies. Businesses operating across state lines need to understand these changes to ensure compliance and optimize their tax positions. For more detailed information, refer to the New Jersey Division of Taxation Technical Bulletin No. TB-112(R).

Taxpayers Now Qualify for Home Energy Credits

June 7, 2024

Taxpayers can benefit from home energy credits for making energy-efficient upgrades, as outlined in IRS announcement (IR 2024-137). Eligible improvements, such as exterior doors and insulation, can earn up to $3,200 in credits. Additionally, the Residential Clean Energy Credit covers 30% of costs for qualified clean energy installations like solar panels and geothermal heat pumps.

Updated Guidance on Sales of New Jersey Real Estate

June 3, 2024

Technical Bulletin No. TB-57(R) outlines new requirements for real estate transactions in New Jersey, effective January 30, 2024. Nonresidents selling property must withhold either 10.75% of the net gain or 2% of the sale price, whichever is higher. Accurate form completion and compliance are crucial to avoid penalties.

What New Jersey Taxpayers Need to Know About Partnership Income Reporting

May 24, 2024

Staying informed about updates in tax regulations is vital for taxpayers to fulfill their obligations accurately. The recent update from the New Jersey Division of Taxation regarding the reporting of income from partnerships underscores the importance of staying abreast of state-specific requirements. By adhering to these guidelines and seeking professional assistance when needed, taxpayers can effectively navigate partnership income reporting in New Jersey and maintain compliance with state tax laws.

Maximizing Tax Benefits: The New Affordable Housing Depreciation Rule

May 17, 2024

Lawmakers have introduced a significant change to the tax code, effective for tax years beginning on or after January 1, 2025. This legislation allows taxpayers to elect a 10-year depreciation period for new affordable housing they construct, aiming to increase the availability of affordable housing for households earning no more than 80% of the regional median income.

New Jersey Introduces Tax Exemption to Boost Affordable Housing

May 15, 2024

New Jersey’s recent tax exemption for materials, supplies, and services in affordable housing projects marks a significant leap forward in combating the housing crisis. This incentive aims to spur construction and renovation efforts, fostering socio-economic inclusivity and expanding housing options for low-income individuals. The move underscores the state’s commitment to building a more equitable housing landscape.

New Jersey Introduces Accelerated Depreciation for Affordable Housing

May 10, 2024

New Jersey’s new policy incentivizes affordable housing development through accelerated depreciation starting in 2025. The legislation defines affordable housing as units for households with incomes below 80% of the regional median. Eligible properties can opt for a 10-year depreciation period. This move aims to stimulate investment and alleviate the housing affordability crisis in the state.

New Jersey’s Adoption of the Federal Partnership Audit Regime

May 1, 2024

The New Jersey Division of Taxation has adopted the federal centralized partnership audit regime, streamlining processes and compliance efforts. Partnerships must adjust to new protocols, including the default and election methods, to address federal adjustments and tax liabilities. Adherence to specified timelines is crucial to mitigate penalties and financial implications.

New Reporting Rules for Grow NJ Credits in New Jersey

April 19, 2024

The New Jersey Economic Development Agency (EDA) has amended reporting requirements for Grow NJ credits, effective April 1, 2024, to enhance transparency. Businesses must now submit annual reports with CPA certification, ensuring compliance. These changes heighten scrutiny and underscore the state’s commitment to accountability, urging businesses to uphold regulatory standards for continued eligibility.

New Modifications to Motor Fuel Tax Formula: What You Need to Know

April 12, 2024

Recent legislative amendments, outlined in L. 2024, A4011 (c. 7), aim to boost revenue for infrastructure projects and promote eco-friendly transportation. The law sets escalating targets for petroleum product taxes, ensuring increased revenues. A novel fee structure for zero-emissions vehicles will gradually rise, reflecting a strategic move towards sustainable infrastructure and equitable contributions.

Empowering Communities: Unlocking Property Tax Exemptions for Affordable Housing Projects

April 1, 2024

As of March 20, 2024, municipal bodies may grant property tax exemptions to affordable housing units, fostering their development and preservation. Supported by state or municipal housing trust funds, sponsors contribute to local services through payments, while exemptions spur development in low-income areas. Challenges include budget management and sponsor accountability, requiring diligent oversight for success.

New Jersey Lawmakers Approve Gas Tax Hike to Bolster Transportation Funding

March 25, 2024

New Jersey lawmakers have approved a gas tax hike to boost transportation funding, aiming to address infrastructure needs. The bill, A4011, raises the gas tax gradually over five years, generating revenue for vital projects. While consumers may face higher prices at the pump, the investment promises long-term benefits including safer roads and economic growth.

Navigating New Jersey’s Updated Retirement Income Tax Guidelines

March 15, 2024

Ensuring a stable financial future is crucial, especially nearing retirement. Understanding tax implications is vital. New Jersey’s Division of Taxation offers updated guidance on retirement income taxation, clarifying handling of contributions to tax-deferred accounts. Exclusions are available, providing avenues to minimize tax burdens. Consulting professionals and official resources is recommended for effective planning.

Governor Murphy Proposes Corporate Transit Fee: What You Need to Know

March 8, 2024

Governor Phil Murphy’s budget speech unveiled a bold plan: a corporate transit levy targeting big businesses. This initiative seeks to tackle transportation woes and broaden funding avenues. Set at 2.5% for firms with over $10 million in income, it promises better transit and infrastructure. While stirring debate, its potential to reshape commuting and infrastructure funding remains pivotal.

Constitutionality of the Corporate Transparency Act

March 4, 2024

On March 1, 2024, the U.S. District Court in Alabama declared the Corporate Transparency Act (CTA) unconstitutional, challenging its mandate for a national database of business owners aimed at curbing financial crimes. The Court found the Act exceeded legislative powers, failing the “necessary and proper” test. This pivotal decision, favoring the National Small Business Association’s injunction request, raises questions on the enforcement implications for non-party companies. The ruling’s broader impact on financial crime prevention efforts remains under scrutiny as developments continue.

Introducing the Enhanced 2023 Senior Freeze Program in New Jersey

March 4, 2024

Introducing the Enhanced 2023 Senior Freeze Program in New Jersey: The New Jersey Division of Taxation launches the improved Senior Freeze program for eligible seniors statewide. Key updates include an increased income limit of $150,000 and the elimination of the 10-year residency requirement. Eligibility criteria and application details are available, with a deadline of October 31, 2024.

Navigating ERC Compliance: Identifying Red Flags and Ensuring Accuracy

March 1, 2024

The IRS has flagged warning signs for potential inaccuracies in Employee Retention Credit (ERC) claims, urging businesses to act swiftly before the March 22, 2024 deadline. Red flags include excessive quarter claims, non-qualifying government orders, inaccurate employee counts, and misattributed supply chain issues. Eligible businesses can rectify issues through the Voluntary Disclosure Program for a 20% repayment reduction. Accuracy and compliance are crucial to avoid penalties. Prompt action and professional guidance are advised.

S Corporation Update: New Jersey Enhances Guidelines for S Corporation Elections

February 26, 2024

The New Jersey Division of Taxation has updated guidelines for S corporation elections, streamlining procedures for shareholder consent. When registering a new business through the NJ-REG system, indicate federal S corporation or QSSS status and upload the federal approval letter. Alternatively, submit documentation with Form CBT-100S or use the S Corporation Election system. Contact Martin D. Hauptman for advice.

Navigate Tax Regulations Effortlessly with 2024 IRS Mileage Rates Update

February 23, 2024

Stay ahead of the curve in 2024 with IRS’s newly released standard mileage rates. For business use, the rate rises to 67 cents per mile. Medical or moving purposes see a decrease to 21 cents per mile, while charitable service remains at 14 cents. Keep operations efficient and compliant with these updated rates.

Updated Guidance on Tax Withholding for Nonresidents Selling Real Estate in New Jersey

February 20, 2024

The New Jersey Division of Taxation updated guidance on tax withholding for nonresident real estate sellers. Nonresidents must withhold income tax at 10.75% of the gain or 2% of total consideration. Reporting via GIT/REP forms is required, with options for exemptions. Refund claims are available if tax withheld exceeds liability. Consult Bulletin TB-57(R) for details.

New Jersey Raises Interest Rates on Outstanding Tax Balances for 2024

February 16, 2024

The New Jersey Division of Taxation raised the interest rate on tax balances for 2024, from 11.25% to 11.50%. This change affects individuals and businesses, increasing the cost of overdue taxes. Taxpayers must plan accordingly, understanding the reasons behind the adjustment and proactively managing their financial obligations to minimize impact.

New Jersey Introduces 2024 Social Equity Excise Fee for Cannabis Sales

February 5, 2024

The New Jersey Division of Taxation has adjusted the Social Equity Excise Fee (SEEF) for recreational cannabis, effective January 1, 2024. Class 1 license holders must now file monthly tax returns and pay $1.24 per ounce, down from $1.52 in 2023. Compliance is vital for contributing to the industry’s growth.

Key Changes in New Jersey’s 2023 Income Tax Returns

February 2, 2024

As New Jersey residents gear up for the 2023 income tax season, the Division of Taxation unveils crucial adjustments. The filing deadline extends to April 15, 2024, granting extra time. Contribution limits are revised: unemployment insurance capped at $174.68, employee disability insurance at $0, and family leave at $94.08. Child Tax Credit offers up to $1,000 for dependents under five. Nonresident taxpayers face sourcing alterations in compensation. Completing the NJ-EZ Enroll Form exempts from shared responsibility payments, easing healthcare coverage concerns. Stay informed, consult professionals, and file accurately and promptly for optimal financial management.

Understanding the 2024 IRS Updates on Estate and Gift Tax Exemptions

January 10, 2024

In 2024, significant changes to the IRS regulations regarding estate and gift tax exemptions are set to take effect. These updates, critical for individuals and couples engaged in estate planning, herald a substantial shift in the financial planning landscape. Jason Marx, partner in the Tax Trust and Estates Practice Group at Mandelbaum Barrett PC, provides insights into these changes and their implications.

IRS Reminder: RMD Deadline for Those Aged 73 and Older

December 22, 2023

As 2023 approaches, the IRS emphasizes the year-end deadline for required minimum distributions (RMDs) from IRAs and retirement plans. The Secure 2.0 Act raises the RMD age requirement to 73. Individuals aged 73 and older must complete RMDs by December 31, considering new legal requirements in 2023. Stay informed for prudent financial decisions.

IRS Announces Pandemic-Related Penalty Relief for Millions

December 22, 2023

The Internal Revenue Service (IRS) has introduced a substantial relief measure in response to COVID-19 challenges. The $1 billion initiative benefits approximately 4.7 million taxpayers who missed automated collection reminders during the pandemic. With a focus on those earning under $400,000 annually, the IRS plans to resume regular collection procedures while offering a more lenient approach to overdue tax bills.

Preserving Farmland in New Jersey

November 28, 2023

New Jersey reinforces its commitment to its agricultural heritage through the Division of Taxation’s re-affirmed farmland assessment regulations, effective from October 19, 2023, under N.J. Admin. Code §§ 18:15. These regulations, in place until October 19, 2030, provide favorable tax treatment to eligible farmland owners, supporting local farmers and preserving landscapes for sustainable farming. This initiative reflects New Jersey’s dedication to safeguarding agricultural traditions and securing the future of farming.

Exemption for Disabled Veterans in New Jersey

November 28, 2023

New Jersey’s Division of Taxation has reaffirmed its commitment to the exemption for disabled veterans, effective until October 19, 2030. This exemption recognizes the sacrifices of veterans disabled in service, providing relief from specific tax obligations to ease their financial burden and improve their quality of life. The re-adopted regulations under N.J. Admin. Code §§ 18:14 reflect the state’s ongoing dedication to supporting and recognizing those who have served our nation.

IRS Delays Form 1099-K Reporting Threshold Change

November 28, 2023

The IRS has postponed the Form 1099-K reporting threshold changes originally slated for 2023, following concerns from tax professionals and payment facilitators. The phased-in approach, commencing in 2024 at a $5,000 threshold, aims to alleviate taxpayer confusion. IRS Commissioner Danny Werfel stresses the importance of feedback, allowing effective implementation and addressing income reporting responsibilities. Additional guidance is expected before the upcoming tax season.

New Jersey Offers Tax Credit for Challenging Out-of-State Tax Rules

October 23, 2023

New Jersey residents facing tax challenges from other states can now find relief. The state offers a tax credit to those who successfully challenge the ‘Convenience of the Employer’ rule imposed by other states. This credit eases the financial burden and encourages fairness for remote workers in the Garden State.

New Jersey Tax Court Retroactively Updates Royalty Addback Rule

October 23, 2023

In a significant ruling, the New Jersey Tax Court has applied a 2020 amendment retroactively to the state’s royalty addback regulation. This decision carries profound implications for businesses, altering the way they calculate taxable income when related-party royalties are involved.

The Senior Freeze Program

October 18, 2023

The New Jersey Department of Treasury has announced an important deadline for senior residents looking to apply for the Senior Freeze Reimbursement program. The deadline for filing applications is October 31, 2023, so eligible residents need to act promptly. Eligibility Requirements To qualify for this program, applicants must meet specific criteria: New Changes Notably, for […]

Navigating State Tax Rules: Understanding the ‘Convenience of the Employer’ Rule for Remote Workers in New Jersey and Connecticut

October 18, 2023

The New Jersey Division of Taxation has recently updated its guidance regarding the “convenience of the employer” rule, with specific implications for Connecticut residents. This rule has a significant impact on how income is taxed for remote workers, and the latest information sheds light on how it operates in the context of interstate work arrangements. […]

Updating Payment Codes and Handling Overpayments: New Guidelines for Former BFC-1 Filers in New Jersey

October 18, 2023

New Jersey’s tax division issues guidance for former BFC-1 filers, requiring them to update payment codes to align with CBT-100 and manage overpayments before filing

Video: Gary and Martin discuss why they became Attorneys

October 12, 2023

Martin and Gary reflect on their ‘whys’. While Marty embarked on this journey to deepen his understanding of tax complexities, Gary was driven by a steadfast belief in the rule of law. It’s more than just a profession; it’s a lifelong commitment to their respective passions and principles.

Video: The Wildenstein Case, Tax, Trusts & Estates.

October 5, 2023

Join us as we explore Silvia Wildenstein’s quest to rectify her inheritance. With insights from Chris Zona, white-collar crime and criminal defense attorney, and Shawn McClelland tax, trusts, and estates attorney. Their perspectives shine a light in this case’s financial investigations, estate planning, and the shadows of the art world.

Video: Sky High Successes

October 3, 2023

Martin Hauptman recounts some of his most successful outcomes as well as the story of how he helped Kiwi Airlines take flight.

Automatic Filing of Anchor Benefit Applications in New Jersey: A Step Towards Ease and Convenience

August 25, 2023

In an effort to streamline the process for Anchor benefits, the New Jersey Division of Taxation has introduced a new initiative to automatically file 2020 Anchor applications for qualified residents. This is a significant step for those who received a 2019 Anchor benefit earlier this year, making the process more accessible and hassle-free. Qualified residents […]

IRS Warns of ESOP Compliance Issues as Enforcement Ramps Up

August 25, 2023

The IRS has sounded the alarm bell for businesses and tax professionals over compliance issues concerning Employee Stock Ownership Plans (ESOPs). As part of its commitment to ensure fair application of tax laws and that high-income filers pay the required taxes, the IRS announced a comprehensive plan to increase compliance enforcement on ESOPs (IR 2023-144, […]

Individual Home Energy Tax Credits for 2023

August 25, 2023

In an era where sustainable living and energy efficiency are at the forefront of national policy, taxpayers making home energy improvements in 2023 have something to cheer about. The Inflation Reduction Act of 2022 has expanded and increased the amount of tax credits available for those investing in energy-efficient home improvements. This blog post will […]

New Jersey’s Convenience of the Employer Rule Explained

August 22, 2023

The New Jersey Division of Taxation recently expanded its interpretation of the convenience of the employer rule, providing clarity on which nonresidents will be subject to the rule (State Tax Update, 08/08/2023). This development is significant for employees who work in New Jersey but reside in states that have similar laws. Who Does the Rule […]

2023 Modifications to New Jersey’s Tax Credit Programs

August 11, 2023

Effective from 07/20/2023, New Jersey has enacted modifications to its tax credit programs, specifically targeting the New Jersey Innovation Evergreen Act and the Food Desert Relief Act (L. 2023, S3783, c. 118). Innovation Evergreen Act The provisions related to eligibility for becoming a qualified business under the Innovation Evergreen Act have been made more stringent. […]

Legal Insights on Claiming a Lottery Jackpot

August 10, 2023

Partner in the Commercial Litigation & White Collar and Criminal Defense Group, Chris Zona, and Partner in the Tax, Trusts & Estates Practice Gorup, Shawn McClelland, discuss the steps you should take if you come into a life-changing amount of money, not unlike the recent Mega Millions winner in Florida this month.

New Jersey Enacts Tax Laws Impacting Nonresident Employees and Credit Programs

August 2, 2023

Governor Murphy Reinforces the Convenience of the Employer Rule for Nonresident Employees On July 21, 2023, New Jersey Governor Phil Murphy signed into law a noteworthy change concerning nonresident employees working for New Jersey employers. This change is particularly significant for those who are residents of states that use a “convenience of the employer” rule […]

New Jersey Corporate Income Tax: Revised Timing for Deducting Research and Development Expenditure

July 21, 2023

In a notable move for businesses operating in New Jersey, the state’s Division of Taxation has recently introduced a new law that affects the timing of tax deductions for research and development (R&D) expenditures. The amendment, which is part of L. 2023, A5323 (c. 96), will impact tax years ending on or after January 1, […]

New Jersey’s Corporate Income Tax: A New Era for Cannabis Businesses

July 21, 2023

The New Jersey Division of Taxation has recently issued a technical bulletin discussing critical changes in the taxation of cannabis businesses, particularly how income computation and reporting are influenced by a new law. Starting from the tax years beginning on or after January 1, 2023, New Jersey has made a decisive move by decoupling itself […]

Ensuring Continuity and Proper Handling When a Tax Practitioner Becomes Incapacitated or Dies

July 12, 2023

In a recent alert dated June 27, the IRS’ Office of Professional Responsibility (OPR) addressed a critical topic that all tax practitioners should be mindful of: What to Do When a Tax Practitioner Becomes Incapacitated or Dies. The OPR outlined best practices and provided invaluable guidance on implementing a comprehensive succession plan to ensure the […]

Understanding New Jersey’s Sourcing Rules for Business Taxes

July 11, 2023

On July 3, 2023, New Jersey Governor Phil Murphy signed a law that adopts certain corporation business tax (CBT) sourcing rules for gross income tax purposes. However, these sourcing rules apply only if the taxpayer cannot readily ascertain its income from New Jersey sources. (L. 2023, A5323, effective for tax years beginning on or after […]

Back-to-School Sales Tax Holiday

July 6, 2023

New Jersey is set to hold a sales tax holiday between August 26 and September 4, providing a temporary exemption from sales tax on certain retail purchases. Aimed at promoting affordability and stimulating the economy, this tax holiday applies to computers, school supplies, and sports or recreational equipment. Individual purchasers for non-business use can take advantage of this opportunity to save on items such as computers priced under $3,000, school art supplies, instructional materials, and sports equipment. The government’s intention is to alleviate the financial burden on individuals, particularly those preparing for the upcoming school year, by temporarily eliminating sales tax on these essential goods.

The Inflation Reduction Act of 2022: What You Need to Know about Federal Funding for Electric Vehicles

March 8, 2023

The Inflation Reduction Act of 2022 (IRA), signed into law on August 16, 2022, directs new federal spending toward reducing carbon emissions, lowering healthcare costs, funding the Internal Revenue Service, and improving taxpayer compliance. The law renewed the Clean Vehicle Credit for new electric vehicles. Electric Vehicle Credits The law renewed the $7,500 Clean Vehicle Credit for new […]

New Jersey Taxation Updates

February 22, 2023

Filing status. The New Jersey Division of Taxation has updated its publication that discusses filing status. The publication states that a civil union couple, even if legally sanctioned in another state, must file their gross income tax return as either Married/Civil Union Filing Jointly or Married/Civil Union Filing Separately even though the Internal Revenue Service […]

New Jersey Provides Credits for Low Carbon Concrete.

February 3, 2023

L. 2023, S287 (c. 4), effective 6 months from 01/31/2023, provides corporation business tax and gross income tax credits for certain deliveries of low carbon concrete and for costs of conducting environmental product declaration analyses of low carbon concrete. Under the bill, for the delivery of low embodied carbon concrete, a taxpayer may be eligible for […]

IRS Issues Standard Mileage Rates for 2023

January 3, 2023

The IRS has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. (Notice 2023-3, 2023-3 IRB; IR 2022-234 (12/29/2022)) Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

Marty D. Hauptman Comments on NJ.com’s Reader Questions

December 16, 2022

“You should be prepared for the tax consequences of a home sale before you get in too deep. You’re probably asking about the capital gains exclusion — the Section 121 exclusion — on a home sale. To qualify, you must meet both the ownership test and the use test, said Martin D. Hauptman, partner in the trust and estates […]

5 Key Tax Updates to Be Aware of in 2023

December 15, 2022

As the end of the year approaches, it’s important to stay up-to-date on the latest tax updates. Martin D. Hauptman, Esq., partner in the Firm’s Trusts & Estates, Tax & ERISA Practice Groups brings you 5 key tax updates to be aware of before 2023. Challenge to partner fee structure rejected. The U.S. District Court […]

New Jersey Adopts Regulations for Historic Property Reinvestment Program

November 11, 2022

Effective November 7, 2022, the New Jersey Economic Development Authority has adopted N.J.A.C. 19:31-26 et seq., to provide regulations for the historic property reinvestment program that was first enacted in 2020. The regulations deal with eligibility criteria; application submission requirements; fees; review and approval of completed applications; approval letters and rehabilitation agreements; reporting requirements and […]

IRS Eliminates Penalties for Certain 2021 and 2022 Required Minimum Distribution Failures

November 2, 2022

In Notice 2022-53 , 2022-44 IRB (Oct. 31, 2022), the IRS stated that the final regulations on required minimum distributions will not apply earlier than the 2023 distribution calendar year, and that the 50 percent excise tax under Code Sec. 4974(a) that is otherwise imposed on certain missed required minimum distributions will not be imposed for years 2021 and […]

2023 Social Security Wage Base Increases to $160,200

October 25, 2022

The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security tax (Social Security wage base) will increase from $147,000 to $160,200 in 2023 (an increase of $13,200). The maximum Social Security employer contribution will increase $818.40 in 2023. (SSA Press Release, 10/13/2022) For 2023, the FICA tax rate for both […]

New Jersey’s Senior Freeze Program Application Deadline Approaching

September 9, 2022

The State Treasurer is reminding residents eligible for the Senior Freeze property tax reimbursement program to apply for the benefit prior to the October 31, 2022 deadline. New Jersey’s Senior Freeze program reimburses eligible senior citizens and disabled individuals for increases in property taxes or mobile home park site fees on their principal residence. In recent […]

IRS Notice: COVID Tax Relief

August 26, 2022

The IRS has issued Notice 2022-36 providing pandemic-related tax relief. This notice provides relief for certain taxpayers from certain failure to file penalties and certain international information return (IIR) penalties with respect to tax returns for taxable years 2019 and 2020 that are filed on or before September 30, 2022. This notice also provides relief […]

IRS Update: Estate Tax Return

July 19, 2022

In Revenue Procedure 2022-32, the IRS stated that it will now permit an executor of an estate that is not otherwise required to file an estate tax return to file a late return to elect portability, up to five years after the date of the decedent’s death. Filing this return does not change the statute of limitations […]

New Jersey Middle Class Property Tax Relief Program

July 11, 2022

L. 2022, S2023 (c. 49), effective 07/01/2022, establishes a homestead tax rebate program for property tax purposes based on the 2019 tax year. The rebate for eligible homestead owners with gross income not in excess of $150,000 will be up to $1,500 of property taxes paid. The rebate for eligible homestead owners with gross income in […]

New Jersey Child Tax Credit Program

July 8, 2022

L. 2022, S2523, effective for tax years beginning on or after 01/01/2023, provides to New Jersey residents, a child tax credit for each child who has not attained six years of age as of the close of the tax year. Regardless of filing status, the amount of the credit will be: (1) $500 if New Jersey […]

New Jersey Tax Alert: New Jersey Governor Phil Murphy and legislative leaders have reached an agreement on a proposal for a back-to-school sales tax holiday.

June 28, 2022

The sales tax holiday would take place from August 27 to September 5, 2022. Under the sales tax holiday, tax exempt supplies and equipment include: (1) school supplies, such as pens and pencils, notebooks, and binders; (2) school art supplies, such as paints and paintbrushes, clay, and glazes; (3) school instructional materials, such as reference […]

IRS Increases Mileage Rate for the Remainder of 2022

June 24, 2022

In June 2022, the IRS announced an increase in the optional standard mileage rate for the final six months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. These new rates become effective 7/1/2022. Mandelbaum Barrett PC Tax Law […]

IRS Update: Employer Leave Based Donation Programs to Aid Victims of the Further Russian Invasion of Ukraine

June 17, 2022

Notice 2022-28, 2022-23 IRB In the above referenced notice, the IRS said employer leave-based donation payments by an employer before January 1, 2023, to Code Sec. 170(c) organizations to aid victims of Russia’s invasion of Ukraine will not be treated as gross income or wages of the employer’s employees. Under an employer leave-based donation programs, […]

Tax Alert: NJ Retirement Guide

May 6, 2022

The New Jersey Division of Taxation has prepared a tax guide for retirees in New Jersey discussing the taxability of various sources of retirement income including pensions, IRAs and annuities. Some other important topics included are the pension exclusion, life insurance policies, the tax consequences related to qualified domestic relations order saving plans and the […]

New Jersey Tax Alert: New Jersey Lists COVID-19 Policies Still in Effect

May 2, 2022

The New Jersey Division of Taxation has advised that since the State of Emergency has not been lifted, the following extensions remain in effect: (1) the law which delayed the payment of interest on refunds until six months after the State of Emergency has ended when the original interest payment period ended on or after April 14, 2020; and (2) the statute of limitations for the assessment of tax which runs until 90 days after the State of Emergency has ended if the original assessment or consent period ended after April 14, 2020. The Division also stated that digital signatures will continue to be accepted on extensions of the statute of limitations, closing agreements and the appointment of a Taxpayer Representative. The Division will work with taxpayers to complete its audits through correspondence (mail or electronic) where possible and avoid in-person meetings until further notice. Conferences with taxpayers will take place over the telephone.

Supreme Court of NJ Order: Extension Period for Conferences and Appeals Expires May 2, 2022

April 29, 2022

The New Jersey Supreme Court has determined that because the public health emergency has ended, there is no longer a need to extend certain deadlines for state tax matters. On April 14, 2022, the Court issued an order which ends the extension of time for filing an administrative protest or a Tax Court appeal. An administrative protest must be postmarked by Monday, May 2, 2022 to be considered timely. This applies to any determination or finding of the Director containing protest and appeal rights that would have expired between March 19, 2020 and May 1, 2022 (but for the original order's extension). If an administrative protest is not postmarked by May 2, 2022, the matter will be final and the Division will proceed with collection activity.

New Jersey Tax Alert: COVID-19 Test Kits

April 22, 2022

The New Jersey Division of Taxation has advised that because the presumption in New Jersey is that a lump sum charge that consists of taxable and nontaxable items is subject to tax, retail sales of COVID-19 test kits are taxable. The test kit is presumed taxable because it contains an exempt reagent and other taxable components. The purchase of a COVID-19 test kit that is reimbursed by the federal or New Jersey State government is not exempt under the Sales and Use Tax Act. Purchases of test kits directly by the federal or New Jersey State government are exempt.

New Jersey Tax Alert: Virtual Currency and Sales Tax

March 25, 2022

The New Jersey Division of Taxation has advised that the purchase of convertible virtual currency for investment purposes is treated as the purchase of intangible property and is not subject to sales tax. However, when a person uses convertible virtual currency as payment for taxable goods or services, New Jersey sales tax applies. Any seller and or retailer of taxable goods or services that accepts virtual currency as payment must determine the fair market value in U.S. dollars as of the date of payment and charge the purchaser sales tax on that transaction. Sellers that accept convertible virtual currency must record in their books and records the value of the convertible virtual currency accepted at the time of each transaction, converted to U.S. dollars and record the amount of sales tax collected at the time of each transaction, converted to U.S. dollars.

New Jersey Tax Alert: Commuter Transportation Benefits

February 18, 2022

The New Jersey Division of Taxation has announced that the adjusted limit for employer-provided commuter transportation benefits excludable by an employee for New Jersey Gross Income Tax purposes pursuant to N.J. Rev. Stat. § 54A:6-23 is $3,240 for calendar year 2021. This amount will increase to $3,360 for calendar year 2022. (N.J. Div. of Taxation, Commuter Transportation Benefit Limits, 01/25/2022.) Martin D. Hauptman, Chair of the ERISA and Employee Benefits Practice Group at Mandelbaum Barrett PC is available to answer any questions you have.

Tax Alert: Garden State Film and Digital Media Jobs Act Credit

February 11, 2022

The New Jersey Division of Taxation has updated its list of answers to frequently asked questions regarding the film and digital media tax credit. The Division states that applicants that are seeking to qualify for an additional 5% credit must keep track of all qualified expenses incurred for services performed and goods purchased through qualified New Jersey vendors. The tax credit verification report will include a breakdown of those expenses. If any of the qualified expenses were made through a vendor whose primary a place of business is in one of the counties that qualifies for the increased 5% credit, the county must be notated in the report.

Tax Alert: New Jersey's Earned Income Tax Credit (NJEITC)

February 4, 2022

The New Jersey Division of Taxation is reminding taxpayers and practitioners that for the 2021 tax filing season, the New Jersey's Earned Income Tax Credit (NJEITC) is 40% of the federal credit, following three annual increases under a 2018 law. Additionally, legislation signed as part of last year's budget lowered the minimum age eligibility for the EITC from 21 to 18 and to those 65 and older without dependents. This means that for tax year 2021, New Jersey taxpayers could receive a refundable credit of up to $2,691 with qualifying dependents or $601 without dependents. The maximum credit available for workers without dependents is nearly tripled from previous years in thanks to provisions expanding the federal EITC in the American Rescue Plan. To be eligible for the NJEITC, a taxpayer must: (1) meet all qualifications for the federal earned income tax credit, except for the minimum age requirement; (2) be a resident of New Jersey who works or earns income; (3) have a qualifying child or be at least 18 years old; (4) meet the income limits for their filing status; and (5) have a valid social security number for themselves, their spouse and any qualifying child listed on the tax return.

New Jersey Department of Taxation Announcement: New deductions for college related expenses

January 28, 2022

The New Jersey Division of Taxation has advised that there will be three new deductions available for college related expenses in the 2022 tax year for taxpayers with gross income of $200,000 or less. Taxpayers will be able to deduct up to: (1) $10,000 of contributions made during the year to a New Jersey 529 plan account; (2) $2,500 of principal and interest paid on student loans issued under New Jersey College Loans to Assist State Students; and (3) $10,000 of tuition costs if the taxpayer, his or her spouse or dependent enrolls and attends a New Jersey institution of higher education.

New Jersey Division of Taxation Announcement: Important Tax Changes That Impact 2021 Personal Income Tax Returns

January 14, 2022

The New Jersey Division of Taxation has listed the following important tax changes that impact 2021 personal income tax returns:

New Legislation Drops Notable Tax Law Changes: What You Need to Know

November 1, 2021

Earlier this week legislation was introduced in Congress that reflects President Biden's "Build Better" plan. This replaces legislation previously introduced on September 13, 2021 and there are a number of notable tax law changes that were dropped. Many of our clients have been doing significant planning and even accelerating certain actions in an attempt to avoid the harsh tax impact of the September 13th legislation, but much of that planning may no longer be necessary or at least not urgently necessary.

NJ Tax Relief for Hurricane Ida Victims

September 10, 2021

The New Jersey Division of Taxation is following the federal guidelines for tax relief as recently provided in the Internal Revenue Service announcement LA-2021-04, issued August 31, 2021, for victims of Hurricane Ida. Affected taxpayers include businesses and individuals located in the disaster areas and those whose tax records are in the disaster areas.

New Jersey Issues Notice Regarding COVID-19 Precaution Sales Tax and Surcharges

July 31, 2020

On July 24, 2020, the state of New Jersey issued the following notice, which helps businesses determine whether their COVID-19 surcharge is subject to state sales tax. Also included are practical examples that business can use to help in making their determination. Some businesses have begun to include a surcharge for COVID-19 precaution and prevention […]

Another Uncertainty Under the CARES Act Resolved

May 1, 2020

May 1, 2020 By Steven A. Holt On Thursday, April 30, the IRS published Notice 2020-32, which clarifies that no deduction will be allowed for any otherwise deductible expense where the payment of the expense results in forgiveness of a loan received pursuant to the CARES Act and where the income associated with the forgiveness […]

Required Contribution Relief

April 9, 2020

April 9, 2020 By Steven A. Holt ERISA and the Internal Revenue Code impose strict funding requirements on defined benefit pension plans. Recent IRS guidance gives sponsors of single-employer pension plans additional time to meet their 2020 funding obligations, including obligations to make quarterly plan contributions. The due date for any contributions otherwise due during […]

Relief From Failure To Make Employment Tax Deposit

April 3, 2020

April 3, 2020 By Martin D. Hauptman and Steven A. Holt The IRS provides that an employer will not be subject to a penalty under Code Sec. 6656 for failing to deposit employment taxes relating to qualified leave wages or qualified retention wages in a calendar quarter if: (1) The employer paid qualified leave wages or […]

Tax and ERISA Update

March 31, 2020

March 31, 2020By Martin D. Hauptman and Steven A. Holt Mandelbaum Barrett PC’s Taxation and ERISA Departments will be keeping you informed as we learn more about the CARES Act and other developments affecting you as taxpayers. Here are a few updates: Coronavirus Relief Package and its Impact on Retirement PlansThe recently enacted Stimulus package […]

Tax and Estate Planning Alert

March 24, 2020

March 24, 2020 By Martin D. Hauptman and Steven A. Holt We want all of you, our valued clients and friends, to know that the Firm is "open for business" and that we are available to handle your estate planning needs on an emergent basis, including wills and living will. Accessing Qualified Retirement Fund Balances […]

Treasury Department Announces New July 15 Filing Deadline

March 18, 2020

Treasury Secretary Steven Mnuchin announced today that the filing date for individual tax returns for the 2019 tax year has been moved to July 15, 2020. “We are moving Tax Day from April 15 to July 15,” Mnuchin wrote on Twitter. “All taxpayers and businesses will have this additional time to file and make payments […]

Calculating Alimony in New Jersey as a Result of the Tax Code Changes

February 24, 2020

Tax Law Alert: Four Companies Selected to Collect IRS Debts

October 30, 2018

Martin D. Hauptman, a Member in the Firm's Tax Law Practice Group, issued a recent Tax Alert on "Four Companies Selected to Collect IRS Debts." Click here to read more.

Tax Law Alert: U.S. Supreme Court Decision Increases Collection of State Tax on E-Commerce Sales

October 24, 2018

Marc J. Comer, Counsel in the Firm's Tax, Trusts & Estates Practice Groups, recently authored a Tax Law Alert on a recent U.S. Supreme Court decision which increases collection of state tax on e-commerce sales. To learn more about how this could impact your business, click here: https://conta.cc/2O3tpX1

Tax law Alert: Does Your Will Still Work? How the New Tax Law Can Impact Your Estate Plan

January 23, 2018

The Tax Law Department of Mandelbaum Barrett PC has just issued an important Tax Law Alert for clients on how the new tax law can impact their estate plans! Read more here to learn if your will still works!