New Jersey: Net deferred tax liability deduction form must be filed by July 1 has been saved
New Jersey: Net deferred tax liability deduction form must be filed by July 1
Multistate Tax alert | June 1, 2020
Form DT-1 (Statement of Net Deferred Tax Liability Deduction), N.J. Div. of Tax. (5/8/20). According to the New Jersey Division of Taxation (Division), this form must be filed on or before July 1, 2020 and failure to do so will result in a loss of the net deferred tax liability deduction as “no extensions of time to file this statement will be granted.” Form DT-1 and any accompanying riders should be electronically uploaded through the Division’s “New Jersey Online Notice Response Service (NJ ONRS),” and the Division states that it will not accept paper copies through the mail. The Division also clarifies that submission of Form DT-1 “does not guarantee the deduction will be granted.”
This requirement is pursuant to legislation enacted in 2018 (see A.4202 2018, and previously issued Multistate Tax alert for more details on these 2018 law changes, see A.4495 (2018), and previously issued Multistate Tax alert for more details on these 2018 law changes) that collectively mandates combined reporting for privilege periods ending on and after July 31, 2019 (beginning on and after August 1, 2018, if a full twelve-month privilege period of the managerial member begins August 1, 2018, and ends July 31, 2019) and incorporates a “special ASC-740 relief deduction” for eligible businesses that are adversely affected by the shift to combined reporting (see Technical Bulletin TB-96: Net Deferred Tax Liability Deduction and Combined Returns, N.J. Div. of Tax. (2/24/20)).
If you have questions regarding Form DT-1 please contact any of the following Deloitte professionals:
Norm Lobins, managing director—Multistate, Deloitte Tax LLP, Cleveland, +1 973 602 4226
Mike Bryan, managing director—Multistate, Deloitte Tax LLP, Philadelphia, +1 215 977 7564
Kevin Friedhoff, senior manager—Multistate, Deloitte Tax LLP, Parsippany, +1 973 602 4216
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The Multistate Tax alert archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.
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