N.J. Admin. Code § 18:7-11.12

Current through Register Vol. 56, No. 12, June 17, 2024

Section 18:7-11.12 - Extension of time to file return; interest and penalty

(a) No extension will be granted unless request is made on a Tentative Return Form and is actually received by the Division of Taxation on or before the due date of the return. The Tentative Return must:

1. Show the information required, including the exact name, address, New Jersey corporation number, the Federal employer identification number, if any, and the amount of the estimated tax liability;

2. Be accompanied by a remittance to cover the unpaid balance of the estimated tax due for the accounting year for which an extension of time to file the return is requested; and

3. Be accompanied by the payment on account of its tentative tax which is due on or before the original due date for filing of the return for which an extension is requested.

(b) Taxpayers using the New Jersey corporation business tax return may request an extension for a period not exceeding six months and will generally receive approval, provided that the taxpayer has complied with the instructions set forth on the Tentative Return on the electronic portal application, and has paid any unpaid balance of its estimated tax and the taxpayer has subsequently timely filed their return no later than the extension period due date.

1. In general, extension requests shall not be granted for any period exceeding six months from the original due date.

2. Requests are to be submitted electronically.

3. If the final return is not submitted within the extended period, penalties for delinquent filing will be applied as if no extension has been granted.

(c) Banking and financial corporations may request an extension of time to file their respective New Jersey corporation business tax return subject to the following conditions:

1. No extension will be granted unless request is actually received by the Division or postmarked on or before the due date of the return;

2. The extension shall be made on a copy of page 1 of the taxpayer's respective New Jersey corporation business tax return, including the exact name, address, New Jersey corporation number, if applicable, the Federal employer identification number, if any, and the amount of tentative tax liability;

3. The request shall be accompanied by a remittance to cover the unpaid balance of the tentative tax due for the accounting year for which an extension of time to file the return is requested;

4. The request shall be accompanied by a completed copy of Schedule L from the taxpayer's respective New Jersey corporation business tax return, and a copy of the taxpayer's Federal extension request; and

5. The extension request may be for a period not exceeding six months.

(d) In general, extension requests shall not be granted for any period exceeding six months from the original due date.

(e) Where the taxpayer has requested a Federal extension, the Division shall grant the taxpayer an extension for a period not exceeding six months. In cases where the taxpayer has failed to obtain a Federal extension, the taxpayer, upon request, may be granted a two-month extension for filing the return from the original due date of the return, if sufficient cause is established and the request is submitted in writing. Sufficient cause should be interpreted, so that it is impossible or wholly impracticable to file a return within two months from the original due date of the return.

(f) Extensions may be confirmed, in writing, by the Division, if necessary.

(g) If the original return is not submitted within the extended period, penalty for delinquent filing will be applied as if no extension has been granted.

(h) Interest and penalty are chargeable as follows:

1. The total amount of the tax due must be paid on or before the original due date for filing the return.

2. Any unpaid portion of the tax on the final return that is in excess of the amount paid shall bear interest at the rate of one and one-half percent per month, or fraction thereof from the original due date of the return to the date of actual payment. The unpaid portion of the tax shall bear interest at the rate of three percentage points above the prime rate assessed for each month or fraction thereof, compounded annually at the end of each year from the date such tax was originally due to the date of actual payment.

3. In addition, if the amounts paid up to and including the time for filing of the tentative return total less than the lesser of 90 percent of the amount of tax due, or for a taxpayer that had a preceding fiscal or calendar accounting year of 12 months and filed a return for that year showing a tax liability equal to the tax computed at the rates applicable to the current accounting year applied to the facts shown on the return for and the law applicable to the preceding accounting year, the taxpayer shall be liable for a penalty of five percent per month, or fraction thereof, on the amount of underpayment. In this context, "filing of the return" means filing of the tentative return incident to a request for extension; "the time for filing" means the original due date for filing the return; and "amount of underpayment" means the difference between 100 percent of the tax shown on the final return and the total of all installments of estimated tax paid on or before the original due date for filing the return, as well as any amount paid with the tentative return.

(i) Where a taxpayer makes an election on Federal Form 7004, it will be granted an extension of time to file a corporation business tax return until the Federal election is filed, provided that the New Jersey extension has been properly filed in accordance with these rules.

(j) No request for extension will be considered unless taxpayer has complied with all the filing requirements for extensions set forth in this rule.

(k) The managerial member of a combined group filing a New Jersey combined return for the group privilege period may request an extension of time to file on behalf of the combined group pursuant to (b) above, as though the combined group were one taxpayer and shall include the unitary I.D. number for the combined group.

N.J. Admin. Code § 18:7-11.12

Amended by 49 N.J.R. 1694(a), effective 6/19/2017

Amended by 54 N.J.R. 1819(a), effective 9/19/2022