Instructions for Form Bfc-1 - Corporation Business Tax Return for Banking and Financial Corporations 2017

ADVERTISEMENT
NEW JERSEY
2017 BFC-1
General Instructions For
CORPORATION BUSINESS TAX FORMS
FOR BANKING AND FINANCIAL CORPORATIONS
Form BFC-1
Corporation Business Tax Return for
Banking and Financial Corporations
Form BFC-150
Statement of Estimated Tax Instructions
Form BFC-160-A
Underpayment of Estimated Corporation Tax
Form BFC-160-B
Underpayment of Estimated Corporation Tax
Form BFC-200-T
Tentative Return and Application for
Extension of Time to File Return Instructions
MAIL COMPLETED BFC-1 TO:
STATE OF NEW JERSEY
DIVISION OF TAXATION – BFC
REVENUE PROCESSING CENTER
PO BOX 247
TRENTON, NJ 08646-0247
NEW JERSEY
2017 BFC-1
General Instructions For
CORPORATION BUSINESS TAX FORMS
FOR BANKING AND FINANCIAL CORPORATIONS
Form BFC-1
Corporation Business Tax Return for
Banking and Financial Corporations
Form BFC-150
Statement of Estimated Tax Instructions
Form BFC-160-A
Underpayment of Estimated Corporation Tax
Form BFC-160-B
Underpayment of Estimated Corporation Tax
Form BFC-200-T
Tentative Return and Application for
Extension of Time to File Return Instructions
MAIL COMPLETED BFC-1 TO:
STATE OF NEW JERSEY
DIVISION OF TAXATION – BFC
REVENUE PROCESSING CENTER
PO BOX 247
TRENTON, NJ 08646-0247
BFC-1 – TABLE OF CONTENTS
Subject / Instruction Number
Page
Accounting Method 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Accounting Periods 3(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Allocation 33, 34a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Alternative Minimum Assessment 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Amended Returns 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Consolidated Returns 8(a), 16(a)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2, 3
Credit for Installment Payments 45(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Depreciation and Safe Harbor Leasing 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Dividend Exclusion 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Due Dates 3(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Electronic Funds Transfers 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Estimated Tax Installment Payments 44, 45(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Extension of Time to File Return 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Federal Adjustments to Income 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Gross Income Test for Financial Businesses 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Inactive Corporations 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Installment Payment 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Interest 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Interest and Intangible Expenses and Costs 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Minimum Tax 11(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Net Operating Loss 16(i), 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
New Corporations 3(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Nexus – Immune Activity Declaration 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Nonoperational Activity 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Optional Copies of Schedules 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Overpayment Credit 45(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Partnership Investments 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Payment of Tax 4(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Penalties 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Personal Liability of Officers and Directors in Dissolution or Liquidation 6 . . . . . . . . . . . . . .
1
Professional Corporations 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Riders 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
S Corporations 8(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Signature 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Subsidiary Investments 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Summary Schedule 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Tax Credits 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Tax Rates 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Taxes 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Tentative Payment Credit 45(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Underpayment of Estimated Tax 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
State of New Jersey
BFC-1-A
(10-17)
DIVISION OF TAXATION – CORPORATION TAX
INSTRUCTIONS FOR BANKING AND FINANCIAL BUSINESS TAX RETURN
(Form – BFC-1)
NOTE: These instructions are applicable only to taxpayers filing on Form BFC-1.
1. Please read all instructions carefully before executing returns.
A tax return must be filed for each fiscal period, or part
thereof, beginning on the date of incorporation in New
(a) Statutory references are to New Jersey Statutes Annotated
Jersey. No return may cover a period exceeding twelve
and indicate, unless otherwise designated, the section of
(12) months, even by a day. The appropriate due dates
the Corporation Business Tax Act, as amended and sup-
will be found in the schedule of due dates shown in
plemented, on which the instruction is based. For infor-
paragraph (a) above.
mation, forms, etc., address all requests to the Division of
Taxation, PO Box 271, Trenton, New Jersey 08695-0271.
A newly chartered banking corporation or a newly autho-
rized foreign financial corporation which did not com-
(b) Every taxpayer must insert its FEDERAL EMPLOYER
mence doing business in New Jersey during the period
IDENTIFICATION NUMBER on Page 1 of the return.
covered by its first return, must file form CBT-100 as a
(c) Provide the remaining information requested on the top
regular corporation. All others must file returns on Form
portion of the return. The principal business activity code
BFC-1.
should be taken from the taxpayer’s federal tax return. Be
(2) Every corporation that elects to be a New Jersey S
sure to provide the location of the corporate books as well
Corporation must file a “New Jersey S Corporation or
as a contact person and telephone number.
New Jersey QSSS Election” (Form CBT-2553) within
2. All schedules and questions, unless permission to omit or
one calendar month subsequent to the Federal S
substitute for same is indicated on the return form, must be
Corporation filing requirement.
answered. If the answer to any item is “No” or “None,” write
(3) Every corporation which incorporates, qualifies, or
“No” or “None”. Do not merely leave the item blank. Failure
otherwise acquires a taxable status in New Jersey and
to observe this rule will render the return incomplete and
which has adopted a fiscal year other than December
the same will not be considered filed until such informa-
31, shall advise the Division of Taxation promptly of
tion has been submitted.
the date of such accounting period. If no such advice
3. (a) Schedule of Due Dates for Financial Corporations
is received on or before April 18, 2018, the taxpayer
Only. NOTE: If the due date falls on a weekend or a
will be deemed “delinquent” if no return is filed on or
legal holiday, the return and payment are due the fol-
before April 18, 2018.
lowing business day.
4. (a) PAYMENT OF TAX:
Make remittance payable to
“State of New Jersey – BFC” and forward with return
If accounting
July 31
August 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31
to Division of Taxation – BFC, Revenue Processing
period ends on
Center, PO Box 247, Trenton, NJ 08646-0247. MAKE
Due date for
OUT A SEPARATE REMITTANCE FOR EACH
Nov. 15
Dec. 15
Jan. 15
Feb. 15
March 15
April 18
filing is:
RETURN.
Do not remit the tax for two or more
returns in one check.
If accounting
Jan. 31
Feb. 28
March 31
April 30
May 31
June 30
(b) All corporations are required to make installment pay-
period ends on:
ments of estimated tax. Generally, these payments are
remitted with Form BFC-150. Refer to instruction 45 for
Due date for
May 15
June 15
July 15
August 15
Sept. 15
Oct. 15
further information.
filing is:
5. ELECTRONIC FUNDS TRANSFERS:
The Division of
BANKING CORPORATIONS MUST REPORT ON A CALENDAR
Revenue and Enterprise Services has established proce-
YEAR BASIS – N.J.S.A. 54:10A-34.
dures to allow the remittance of tax payments through
Unless otherwise indicated, calendar or fiscal accounting or base
Electronic Funds Transfer (EFT).
Taxpayers with a prior
year shall mean the same calendar, fiscal, or other accounting
year’s liability of $10,000 or more in any one tax are required
period upon which the taxpayer is required to report to the United
to remit all tax payments using EFT. If you have any ques-
States Treasury Department for Federal Income Tax purposes. All
tions concerning the EFT program, call (609) 984-9830, fax
fiscal or accounting periods must end on the last day of the month,
(609) 292-1777 or write to N.J. Division of Revenue and
unless specific written authority is granted to taxpayer by the
Enterprise Services, EFT Section, PO Box 191, Trenton, NJ
Federal Internal Revenue Service to use any other period-ending
08646-0191.
date. For taxpayers using a 52-53 week accounting year for fed-
eral income tax purposes, see N.J.A.C. 18:7-2.3.
6. PERSONAL LIABILITY OF OFFICERS AND DIRECTORS:
(b) NEW CORPORATIONS:
Any officer or director of any corporation who shall distribute
or cause to be distributed any assets in dissolution or liqui-
(1) Every New Jersey Banking or Financial Corporation
dation to the stockholders without having first paid all corpo-
acquires a taxable status under the New Jersey
ration franchise taxes, fees, penalties, and interest imposed
Corporation Business Tax Act beginning on the date of
upon said corporation, in accordance with N.J.S.A. 14A:6-12,
its incorporation, regardless of whether it had assets or
N.J.S.A. 54:50-18 and other applicable provisions of law,
conducted any business activities.
- 1 -
shall be personally liable for said unpaid taxes, fees, penal-
year, but on the basis of the facts shown and the law
ties, and interest. Compliance with N.J.S.A. 54:50-13 is also
applicable to the preceding accounting year, the tax-
required in the case of certain mergers, consolidations and
payer may be liable for a penalty of 5% per month or
dissolutions.
fraction thereof not to exceed 25% of the amount of
underpayment from the original due date to the date of
7. EXTENSION OF TIME TO FILE RETURN/INSTRUCTIONS
actual payment.
FOR FORM BFC-200-T:
8. (a) CONSOLIDATED RETURNS NOT PERMITTED: A cor-
(a) AUTOMATIC EXTENSION:
Where a tentative return,
poration which is included in a consolidated Federal
Form BFC-200-T, and tax payment are timely and proper-
Income Tax Return must complete all schedules on its
ly filed, it is the policy of the Division of Taxation to grant
own separate basis, and attach to its return, a copy of the
an extension of no more than five (5) months for filing the
Affiliations Schedule, Form 851, which it filed with U.S.
BFC-1.
Form 1120 for federal income tax purposes.
The return must include the computation of tax liabilities on
(b) FEDERAL S CORPORATIONS: Federal S Corporations
Lines 1 and 2, and, if applicable, the Key Corporation AMA
which have not elected to be New Jersey S Corporations
payment on Line 3 and the Tentative Professional Fees on
must complete this return as though no election had been
Lines 4 and 5. Submit the completed BFC-200-T with pay-
made under Section 1362 of the Internal Revenue Code.
ment of the total amount due as reflected on Line 8. The
A copy of Form 1120S as filed must be submitted. New
tentative return must be postmarked on or before the orig-
Jersey S Corporations must file the New Jersey S
inal due date of the tax return.
Corporation Business Tax Return, CBT-100S.
(b) Request for extension of time for filing a return must be
signed by an officer of the corporation, an accountant
9. ACCOUNTING METHOD: The return must be completed
authorized to prepare this return, or any duly authorized
using the same basis, cash, accrual, or other basis that was
agent of the taxpayer. Tax preparers who fail to sign the
employed in the taxpayer’s federal income tax return.
return and provide their assigned tax identification number
10. RIDERS: Where space is insufficient, attach rider in form of
shall be liable for a $25 penalty for each failure. If the tax
original typewritten sheets. Write only on one side of sheet.
preparer is not self-employed, the name of the tax prepar-
11. TAX RATES:
er’s employer and the employer’s tax identification number
should also be provided.
(a) For taxpayers with Entire Net Income (Page 1, Line 1 and
Line 4b) greater than $100,000, the tax rate is 9% (.09) on
(c) Where a request for extension is duly made, it will be
adjusted entire net income or such portion thereof as may
granted by the Division. Approved extensions will not be
be allocable to New Jersey.
confirmed in writing.
For taxpayers with Entire Net Income (Page 1, Line 1 and
(d) MINIMUM TAX: See instruction 11(b).
Line 4(b)) greater than $50,000 and less than or equal to
(e) INSTALLMENT PAYMENT: Any taxpayer with a tax liabili-
$100,000, the tax rate is 7.5% (.075) on adjusted entire net
ty of $500 on Line 1, may make a payment of 50% of Line
income or such portion thereof as may be allocable to New
1 in lieu of making the installment payments otherwise
Jersey. Tax periods of less than 12 months qualify for the
required. Taxpayers that report a tax liability greater than
7.5% rate if the prorated entire net income does not
$500 on Line 1 should not make an entry on Line 2 and are
exceed $8,333 per month.
required to make installment payments as indicated in
For taxpayers with Entire Net Income (Page 1, Line 1 and
instruction 45. Any taxpayer with Professional Corporation
Line 4(b)) of $50,000 or less, the tax rate is 6.5% (.065) on
Fee liabilities at Line 5 must pay an installment payment of
adjusted net income or such portion thereof as may be
50% of Line 5.
allocable to New Jersey. Tax periods of less than 12
(f) PENALTIES AND INTEREST
months qualify for the 6.5% rate if the prorated entire net
(1) Interest – The annual interest rate is 3% above the
income does not exceed $4,166 per month.
average predominant prime rate. Interest is imposed
(b) MINIMUM TAX: The minimum tax is assessed based on
each month or fraction thereof on the unpaid balance of
the New Jersey Gross Receipts as follows:
tax from the original due date to the date of payment.
At the end of each calendar year, any tax, penalties,
and interest remaining due will become part of the bal-
New Jersey Gross Receipts
Minimum Tax
ance on which interest will be charged. The interest
Less than $100,000
$500
rates assessed by the Division of Taxation are pub-
$100,000 or more but less than $250,000
$750
lished in the quarterly issues of the New Jersey State
$250,000 or more but less than $500,000
$1,000
Tax News. See “Tax Forms and Information” on Page
$500,000 or more but less than $1,000,000
$1,500
13 for information on obtaining copies of the newsletter.
$1,000,000 or more
$2,000
NOTE: The average predominant prime rate is the rate
as determined by the Board of Governors of the
provided, however, that for a taxpayer that is a member of
Federal Reserve System, quoted by commercial banks
an affiliated or controlled group (as per Sections 1504 or
to large businesses on December 1st of the calendar
1563 of the Internal Revenue Code of 1986), which has a
year immediately preceding the calendar year in which
total payroll of $5,000,000 or more for the return period,
payment was due or as redetermined by the Director in
the minimum tax shall be $2,000. Tax periods of less than
accordance with N.J.S.A. 54:48-2.
12 months are subject to the higher minimum tax if the pro-
rated total payroll exceeds $416,667 per month. Total pay-
(2) Insufficiency Penalty – If the amount paid with the
roll refers to the total payroll of the affiliated group rather
Tentative Return, Form BFC-200-T, is less than 90% of
than the total New Jersey payroll of a single corporation.
the tax liability computed on Form BFC-1, or in the case
Taxpayers that are members of an affiliated or controlled
of a taxpayer whose preceding return covered a full 12
group must submit a schedule of payroll per member and
month period, is less than the amount of the tax com-
a copy of the taxpayer’s Federal Affiliations Schedule,
puted at the rates applicable to the current accounting
- 2 -
Form 851, with the return. Refer to Schedule A-GR for the
provided. Federal S Corporations must also submit a copy of
determination of New Jersey gross receipts.
the corresponding federal income tax return. For New Jersey
tax purposes, each such corporation will be taxed on the basis
The minimum tax cannot be prorated. Zero (0) returns
of its entire net income in the same manner and to the same
are not permitted
extent as if no federal income tax election were permissible or
had been made. Refer to instruction 8.
12. WHO MAY BE SUBJECT TO TAX: Any domestic or foreign
corporation, joint-stock company or association, and any busi-
(a) (1) GENERAL: Where the corporation has filed a federal
ness conducted by a trustee or trustees wherein interest or
income tax return on its own separate basis, the figures
ownership is evidenced by a certificate of interest or owner-
shown at Lines 1 to 28 must be the same as Lines 1 to
ship or similar written instrument is subject to tax.
This
28 on Page 1, U.S. Federal Income Tax Return, Form
includes limited partnership associations organized pursuant
1120.
to N.J.S.A. 42:3-1 et seq. and foreign limited partnership
(2) Where the corporation has not filed a separate federal
associations. No new limited partnership associations shall
income tax return, or where the figures shown at Lines
be formed in New Jersey after September 21, 1988. In gener-
1 to 28 are not the same as Lines 1 to 28 respectively,
al, limited liability companies are required to file for New
on Page 1, U.S. Federal Income Tax Return, taxpayer
Jersey purposes in the same manner that they report for fed-
must explain and reconcile on rider.
eral purposes.
(3) CONSOLIDATED RETURNS ARE NOT PERMITTED:
13. CORPORATIONS REQUIRED TO FILE THIS RETURN:
A corporation which is included in a consolidated fed-
Every corporation existing under the laws of the State of New
eral income tax return must complete Lines 1 to 39 on
Jersey, and every foreign corporation which (1) holds a gen-
its own separate basis without consolidation with any
eral Certificate of Authority to do business in this State issued
other corporation.
by the Secretary of State; or (2) holds a certificate, license or
(b) Lines 8 and 9: Add a rider or schedules showing the
other authorization issued by any other State department or
same information shown on Federal Form 1120, schedule
agency, authorizing the company to engage in corporate activ-
D, and/or Form 4797. Gains and losses resulting from the
ity within this State; or (3) derives income in this State; or (4)
disposition of property where a Section 179 expense
employs or owns capital within this State; or (5) employs or
deduction was passed through to S Corp shareholders are
owns property in this State; or (6) maintains an office in this
not reported on Federal Form 4797, and should be report-
State, who, in addition, qualifies as one of the following: (a) a
ed on Schedule A, Line 10. If a sale of shares of stock or
banking corporation defined at N.J.S.A. 54:10A-36, or (b) a
partnership interest resulted in a taxable transfer of a con-
financial corporation defined at N.J.A.C. 18:7-1.16. Taxpayer
trolling interest in certain commercial real property under
must complete Schedule A-6 and submit it attached to the
N.J.S.A. 54:15C-1, please so indicate on a rider.
BFC-1. See instruction 22. A foreign corporation that is a
partner of a New Jersey partnership is deemed doing busi-
(c) Line 28: This line must agree with Line 28, Page 1 of the
ness in the State and should file a return.
taxpayer’s unconsolidated Federal Form 1120 or 1120-A,
whichever is applicable.
14. SIGNATURE: Each return must be signed by an officer of the
corporation authorized to act to the effect that the statements
(d) Line 29: Include any interest income that was not taxable
contained therein are true. The fact that an individual’s name
for federal income tax purposes, and was not included in
is signed on the return shall be prima facie evidence that such
total income reported on Line 28, Schedule A.
individual is authorized to sign the return on behalf of the cor-
(e) Line 30: Enter the total amount of interest deducted on
poration. Tax preparers who fail to sign the return or provide
Schedule A that was paid to related members and report-
their assigned tax identification number shall be liable for a
ed on Schedule G, Part I.
$25.00 penalty for each such failure. If the tax preparer is not
(f) Line 31: Enter the total taxes paid or accrued to the
self-employed, the name of the tax preparer’s employer and
United States, a possession or territory of the United
the employer’s tax identification number should also be pro-
States, a state, a political subdivision thereof, or the
vided. In the case of a corporation in liquidation or in the
District of Columbia, or to any foreign country, state,
hands of a receiver or trustee, certification shall be made by
province, territory or subdivisions thereof, on or measured
the person responsible for the conduct of the affairs of such
by profits or income, business presence or business
corporation.
activity, including any foreign withholding tax, or any sales
15. FINAL DETERMINATION OF NET INCOME BY FEDERAL
and use tax paid by a utility vendor, taken as a deduction
GOVERNMENT: Any change made by the Internal Revenue
in Schedule A and reflected in Line 28. Refer to instruction
Service which is attributable to the net income of the taxpayer
30.
corporation, whether the change is made on examination of
(g) Line 32: Enter the depreciation and other adjustments
Corporation Income Tax Return Form 1120, Form 1120S, or
from Schedule S. Refer to instruction 43.
any other form used for reporting income for federal tax pur-
poses or any stockholder’s return in which the taxpayer’s net
(h) Line 33(a):
DEDUCTION FOR IRS SECTION 78
income or any portion thereof is reported, is required to be
GROSS- UP: The portion of any IRS Section 78 gross-up
reported to the Division on an amended return within ninety
included in dividend income on Line 4, Schedule A that is
(90) days. Refer to instruction 49.
not excluded from entire net income on Line 37, may be
treated as deduction. Attach a copy of Federal Foreign
FEDERAL/STATE TAX AGREEMENT:
The New Jersey
Tax Credit Form 1118.
Division of Taxation and the Internal Revenue Service have
entered into a Federal/State agreement for the mutual
Line 33(b): Report amounts of (1) adjustments not other-
exchange of tax information to verify the accuracy and con-
wise specifically provided for, (2) gross income, less
sistency of information reported on federal and New Jersey
deductions and expenses in connection therewith, from
tax returns.
sources outside the United States, not included in federal
taxable income, and (3) the add back of any deductions for
16. SCHEDULE A – COMPUTATION OF ENTIRE NET INCOME:
research and experimental expenditures, to the extent that
Every taxpayer must complete this schedule on the form
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Download Instructions for Form Bfc-1 - Corporation Business Tax Return for Banking and Financial Corporations 2017

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