September 28, 2020
New Jersey Division of Taxation releases statement allowing for limited penalty relief for corporations
On September 25, 2020, the New Jersey Division of Taxation (DOT) announced an automatic waiver of the late-filing penalty for filers of the 2019 New Jersey Corporation Business Tax Return.1 If a return filer has properly extended its filing requirement to the October 15, 2020 due date, the DOT stated that it will automatically waive any late filing penalty that would be due if the return is filed by November 16, 2020. Fiscal-year filers are also given an additional month to file.
Although the notice only mentions penalty abatement, EY has learned through discussions with the DOT that it will treat elections that need to be made on a timely filed return (e.g., affiliated group, worldwide) as timely filed if the returns are submitted within the one-month abatement period.
The latest DOT guidance allows for an additional 30 days to file a 2019 NJ CBT-100 return as long as a proper extension has been filed. This will prevent the late-filing penalty from being assessed from October 15, 2020 to November 15, 2020 for eligible calendar-year filers and for an additional month for eligible fiscal-year filers. However, additional interest and penalties for late payment will continue to accrue during this period.
1 N.J. Div. of Tax., 30-Day Penalty Relief for Corporations for 2019 (last updated Sept. 25, 2020) (last accessed Sept. 28, 2020).