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June 8, 2021

Combined reporting initiative for New Jersey's Corporation Business Tax begins June 15, 2021

On June 3, 2021, the New Jersey Division of Taxation (NJ DOT) announced it will offer a unique closing agreement to any corporation that: (1) joined in a New Jersey combined return; (2) indicated it has New Jersey nexus; and (3) did not file separate company returns in prior years, even if it may have been obligated to do so. Under this initiative, NJ DOT offers the following terms to all corporations that apply for a closing agreement between June 15 and October 15, 2021:

  • A limited look-back period to the privilege periods (i.e., return periods) ending after June 30, 2016, or the date nexus was established with New Jersey, whichever is later (returns for prior periods will not be required)
  • Waiver of all penalties

As part of the closing agreement, applicants must do all of the following:

  • Provide the New Jersey registration number of the Managerial Member of the New Jersey combined reporting group of which they are a member (which begins with "NU")
  • Remit payment of interest within 30 days of assessment
  • File all required returns and remit payment of the reported tax liability in full within 45 days of execution of the closing agreement

Corporations requesting a closing agreement cannot have been: (1) incorporated in New Jersey, (2) authorized to do business in New Jersey or (3) registered for Corporation Business Tax purposes before being included as part of a 2019 or 2020 combined return. In addition, all submitted returns will be subject to routine audits.

Corporations that do not take advantage of this initiative are subject to the assessment of all applicable penalties and interest for the look-back period going back beyond the privilege periods ending after June 30, 2016.


The NJ DOT's announcement represents a unique opportunity for corporations that may be otherwise ineligible for the state's voluntary disclosure program to obtain significant relief from tax and penalty liability for failing to file in earlier years when they may have had nexus with New Jersey.

This initiative differs significantly from the state's November 2018 through January 2019 statutory amnesty program, in that corporations are offered a limited lookback to privilege periods ending on or after July 30, 2016.


Contact Information
For additional information concerning this Alert, please contact:
State and Local Taxation Group
   • Bill Korman (
   • Mike Puzyk (