Instructions for Form BFC-1, BFC-150, BFC-160-A, BFC-160-B, BFC-200-T - New Jersey

This document contains official instructions for Form BFC-1, Form BFC-150, Form BFC-160-A, Form BFC-160-B, and Form BFC-200-T. All forms are released and collected by the New Jersey Department of the Treasury.

Instruction Details:

  • This 16-page document is available for download in PDF;
  • Might not be applicable for the current year. Choose a more recent version;
  • Complete, printable, and free.

Download your copy of the instructions by clicking the link below or browse hundreds of other forms in our library of forms released by the New Jersey Department of the Treasury.

ADVERTISEMENT
ADVERTISEMENT

Download Instructions for Form BFC-1, BFC-150, BFC-160-A, BFC-160-B, BFC-200-T - New Jersey

406 times
Rate (4.5 / 5) 20 votes
NEW JERSEY
2019 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
2019 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
State of New Jersey
D
t
epartment of the
reasury
D
t
ivision of
axation
Dear Taxpayer,
P.L. 2018, c. 48, and P.L. 2018, c. 131, made significant changes to the Corporation Business Tax Act, including the adoption of man-
datory combined filing for combined groups that have common ownership, conduct a unitary business, and have at least one member
corporation subject to the Corporation Business Tax for tax years ending on and after July 31, 2019. Before filing a Form BFC-1, I en-
courage tax professionals and taxpayers to review the information on combined reporting on the Division’s
to ensure that they
website
are filing the correct return.
Note: A banking corporation filing as part of a combined group that uses a fiscal year basis must align its tax year with the combined
group. To do so, the corporation must file a short period return that covers January 1 through the end of the month of the com-
bined group’s group privilege period. In addition, the corporation must notify the Division that it is converting to a fiscal year basis
by checking the box on page 1 of the return indicating that it is filing as a “BFC-1-F Filer.”
A complete list of changes to the New Jersey Corporation Business Tax is detailed in Technical Bulletin,
, Changes to the New
TB-84(R)
Jersey Corporation Business Tax. As you file your return, look for the “New for 2019” graphic throughout the instructions, which high-
lights this year’s tax changes. I also want to provide a quick synopsis of some of the changes that may impact you:
• Net Operating Losses. Net operating losses/net operating loss carryovers now occur on a post-allocation basis. If the taxpayer has
net operating losses from on or before July 31, 2019, those unused unexpired pre-allocation net operating loss carryovers must be
converted to prior net operating loss conversion carryovers using the allocation factor from the taxpayer’s last tax year prior to the
change to post-allocation net operating losses. (Note: Losses incurred on and after July 31, 2019, are calculated on a post-
allocation basis.)
• Dividend Exclusion. The dividend exclusion is now a post-allocation exclusion.
• Market Based Sourcing. Receipts from sales of services will be allocated to New Jersey if the benefit of the service is received in
New Jersey.
If you have questions about filing your return, please visit our
.
website
Sincerely,
John Ficara
Acting Director
Division of Taxation
BFC-1
STATE OF NEW JERSEY
(12/19)
DIVISION OF TAXATION – CORPORATION TAX
INSTRUCTIONS FOR BANKING AND FINANCIAL BUSINESS TAX RETURN
(Form BFC-1 – 2019)
N
: These instructions are applicable only to taxpayers filing on Form BFC-1.
ote
Before You Begin
Corporations Required to File
Please read all instructions carefully before completing returns.
In general, every corporation existing under the laws of the State of
New Jersey is required to file a Corporation Business Tax Return.
Include a complete copy of the federal Form 1120 (or any other
federal corporate return filed) and all related forms and schedules.
In addition, a return must be filed by every foreign corporation that:
Corporations that are part of a federal consolidated group must
1.
Holds a general certificate of authority to do business in this
include a federal income tax return or pro-forma and the consolidat-
State issued by the Secretary of State; or
ing schedules showing the income statement, balance sheets, and
2.
Holds a certificate, license, or other authorization issued by
all other supporting information for the taxpayer.
any other department or agency of this State, authorizing the
company to engage in corporate activity within this State; or
Personal Liability of Officers and Directors
3.
Derives income from this State; or
Any officer or director of any corporation who shall distribute or
4.
Employs or owns capital within this State; or
cause to be distributed any assets in dissolution or liquidation to
the stockholders without having first paid all corporation franchise
5.
Employs or owns property in this State; or
taxes, fees, penalties and interest imposed on said corporation, in
6.
Maintains an office in this State, who, in addition, qualifies as
accordance with N.J.S.A. 14A:6-12, N.J.S.A. 54:50-18 and other
one of the following:
applicable provisions of law, shall be personally liable for said un-
(a) a banking corporation defined at N.J.S.A. 54:10A-36, or
paid taxes, fees, penalties, and interest. Compliance with N.J.S.A.
(b) a financial corporation defined at N.J.A.C. 18:7-1.16.
54:50-13 is also required in the case of certain mergers, consolida-
Note: Taxpayer must complete Schedule A-7 and submit it
tions and dissolutions.
attached to the BFC-1.
Distortion of Net Income
A foreign corporation that is a partner of a New Jersey partnership
The Director is authorized to adjust and redetermine items of gross
is deemed subject to tax in the State and must file a return.
receipts and expenses as may be necessary to make a fair and
reasonable determination of tax payable under the Corporation
WHO MAY BE SUBJECT TO TAX: Any domestic or foreign
Business Tax Act. For details regarding the conditions under
corporation, joint-stock company or association, and any business
which this authority may be exercised, refer to regulation N.J.A.C.
conducted by a trustee or trustees wherein interest or ownership
18:7-5.10.
is evidenced by a certificate of interest or ownership or similar
written instrument is subject to tax. This includes limited partnership
Accounting Method
associations organized pursuant to N.J.S.A. 42:3-1 et seq. and
The return must be completed using the same method of account-
foreign limited partnership associations. No new limited partner-
ing, cash, accrual or other basis, that was employed in the taxpay-
ship associations shall be formed in New Jersey after September
er’s federal income tax return.
21, 1988. In general, limited liability companies are required to file
for New Jersey purposes in the same manner that they report for
Riders
federal purposes.
If space is insufficient, include riders in the same form as the origi-
Corporations Claiming Nexus Immunity. Foreign corporations
nal printed sheets. The riders must be numbered and clearly list the
that meet the filing requirements and whose income is immune
schedule(s) and line(s) of each corresponding rider item.
from tax pursuant to Public Law 86-272, must obtain and complete
Schedule N, Nexus - Immune Activity Declaration, and all of the
Federal/State Tax Agreement
schedules from the BFC-1. In addition, taxpayers must include a
The New Jersey Division of Taxation and the Internal Revenue
copy of the
. P.L. 86-272 filers are not subject to
Nexus Questionnaire
Service participate in a Federal/State program for the mutual ex-
the surtax imposed by N.J.S.A. 54:10A-5.41, and will enter zero on
change of tax information to verify the accuracy and consistency of
Page 1, line 5. These corporations must remit the minimum tax with
information reported on federal and New Jersey tax returns.
the BFC-1.
Tax Prepares
Out-of-Business Corporations. Corporations that are “out of
Tax preparers who fail to sign the return and provide their assigned
business” but have not dissolved or withdrawn their authority to do
tax identification number shall be liable for a $25 penalty for each
business in New Jersey, are still obligated to file a return. A disso-
failure. If the tax preparer is not self-employed, the name of the tax
lution or withdrawal date must be established on or before the last
preparer’s employer and the employer’s tax identification number
day of the current taxable period in order to avoid having to file a
should also be provided.
return for the next taxable period.
- 1 -
www.nj.gov/treasury/taxation
New Corporations. Every New Jersey Banking or Financial
31, 2019. Groups of companies that have common ownership and
Corporation acquires a taxable status under the New Jersey
are engaged in a unitary business, where at least one member of
Corporation Business Tax Act beginning on the date of its incor-
the group is subject to the New Jersey Corporation Business Tax,
poration, regardless of whether it had assets or conducted any
are required to calculate their tax liability on a combined basis on
business activities.
Form CBT-100U, Combined Corporation Business Tax Return.
A tax return must be filed for each fiscal period, or part thereof, be-
A member of a combined group filing a New Jersey combined
ginning on the date of incorporation in New Jersey. No return may
return does not have to file a separate return for the privilege
cover a period exceeding twelve (12) months, even by a day. The
period or portion of the privilege period thereof that the taxpayer
appropriate due dates will be found in the schedule of due dates
was included as a member of the combined return. A combined
shown in paragraph (a) above.
group member with business operations that are independent of the
unitary business activity of the combined group must report such
A newly chartered banking corporation or a newly authorized
income on Schedule X. Schedule X is submitted with the combined
foreign financial corporation that did not commence doing business
return. The member will not complete a separate return.
in New Jersey during the period covered by its first return must file
Form CBT-100 as a regular corporation. All others must file returns
Visit the Division’s
for information about combined
website
on Form BFC-1.
reporting.
S Corporations. Every corporation that elects to be a New Jersey
Note: A taxpayer that has nexus with New Jersey that is part of a
S corporation must file a “New Jersey S Corporation or New Jersey
combined group or affiliated group, but excluded from the
QSSS Election” (Form CBT-2553) within one calendar month sub-
New Jersey combined return must file a separate return.
sequent to the federal S corporation filing requirement.
Former Member of Combined Group. A taxpayer that was a
Combinable Captive Insurance Companies. Combin-
member of a combined group filing a New Jersey combined return
able captive insurance companies are no longer exempt
for part of the group privilege period and subsequently departs the
from the Corporation Business Tax. If the combinable
combined group to file on a separate entity basis, must report the
captive insurance company is not included as a member of a
income for months subsequent to departing the combined group
combined group filing a New Jersey Combined Corporation
on a separate return (Form BFC-1) unless the taxpayer joined a
Business Tax Return, Form CBT-100U, they must file a New Jersey
second combined group that files a New Jersey combined return.
Separate Corporation Business Tax Return, Form CBT-100.
The taxpayer filing a separate return would not report the income
on Form BFC-1 for the months during which the member was part
Note: A regular captive insurance company that does not meet
of the combined group. If determining what amount of income is
the definition of a combinable captive insurance company
attributable to the portions of the twelve-month period are for the
in N.J.S.A. 54:10A-4(y) is still exempt from the Corporation
periods before and after departing a combined group, the taxpayer
Business Tax.
must pro-rate their income/losses and receipts.
Financial Business Corporations. Corporations that qualify as
When to File
financial businesses, those which derive 75% of their gross income
from the financial activities enumerated at N.J.A.C. 18:7-1.16(a)1
2019 Accounting Periods and Due Dates
through (a)7, must file the New Jersey Corporation Business Tax
The 2019 Corporation Business Tax Return should only be used
Return for Banking and Financial Business, Form BFC-1.
for accounting periods ending on and after July 31, 2019, through
June 30, 2020.
Note: Banking Corporations and Financial Business Corporations
that do not qualify to file Form BFC-1 must complete Form
Every corporation which incorporates, qualifies, or otherwise
CBT-100.
acquires a taxable status in New Jersey and which has adopted
a fiscal year other than December 31, shall advise the Division of
Professional Corporations. Corporations formed under N.J.S.A.
Taxation promptly of the date of such accounting period. If no such
14A:17-1 et seq. or any similar laws of a possession or territory
advice is received on or before April 15, 2020, the taxpayer will be
of the US, a state, or political subdivision thereof, must complete
deemed “delinquent” if no return is filed on or before April 15, 2020.
Schedule PC. Examples of licensed professionals include certified
public accountants, architects, optometrists, professional engineers,
Calendar or fiscal accounting year is the same accounting period
land surveyors, land planners, chiropractors, physical therapists,
that the taxpayer is required to report to the United States Treasury
registered professional nurses, dentists, osteopaths, physicians
Department for federal income tax purposes. All accounting periods
and surgeons, doctors of medicine, doctors of dentistry, podiatrists,
must end on the last day of the month, except that taxpayers may
chiropodists, veterinarians and, attorneys.
use the same 52-53 week accounting year that is used for federal
income tax purposes. See N.J.A.C. 18:7-2.3. Returns for prior tax
Inactive Corporations. Inactive corporations that, during the
years are available on the Division’s
.
website
period covered by the return, did not conduct any business, did
not have any income, receipts or expenses, and did not own any
BFC-1-F Filers. A banking corporation filing as part of a
assets, must complete the Certification of Inactivity section on page
combined group that uses a fiscal year basis must align its
1. Payment for the related minimum tax liability and the installment
tax year with the combined group. To do so, the corpora-
payment (if applicable) must be submitted electronically. See the
tion must file a short period return that covers January 1 through
Page 1 section for more information.
the end of the month of the combined group’s group privilege
period. In addition, the corporation must notify the Division that it is
Combined Reporting
converting to a fiscal year basis by checking the box on page 1 of
New Jersey enacted mandatory combined reporting for
the return indicating that it is filing as a “BFC-1-F Filer.”
unitary businesses for tax years ending on and after July
- 2 -
www.nj.gov/treasury/taxation
For more information, see Technical Bulletin
, Banking
• If the 2019 total tax liability is $500 or less, installment pay-
TB-91
Corporations and Combined Returns.
ments may be made as indicated above OR in lieu of making
installment payments, the taxpayer may make a payment of 50%
Calendar Year Filers. Most banking corporations must report on a
of the 2019 total tax liability.
calendar year basis (see N.J.S.A. 54:10A-34).
How to Pay
Make remittance payable to “State of New Jersey – BFC.” Send
Fiscal Year Filers. Financial corporations can report on a fiscal
payments to the address listed on the form being remitted.
year basis. If the due date falls on a weekend or a legal holiday, the
return and payment are due on the following business day. The due
Tax return payments must be forwarded with the return to: Division
dates for returns and payments for financial corporations are as
of Taxation – BFC, Revenue Processing Center, PO Box 247,
follows:
Trenton, NJ 08646-0247.
If accounting
July 31,
Aug. 31,
Sept. 30,
Oct. 31,
Nov. 30,
Dec. 31,
MAKE A SEPARATE REMITTANCE FOR EACH RETURN. Do not
period ends on:
2019
2019
2019
2019
2019
2019
remit the tax for two or more returns in one check.
Due date for
Nov. 15,
Dec. 15,
Jan. 15,
Feb. 15,
Mar. 15,
Apr. 15,
filing is:
2019
2019
2020
2020
2020
2020
To make payments electronically, go to the Division of Taxation’s
If accounting
Jan. 31,
Feb. 28,
Mar. 31,
Apr. 30,
May 31,
June 30,
period ends on:
2020
2020
2020
2020
2020
2020
website www.nj.gov/treasury/taxation and select “Make a Payment.”
Due date for
May 15,
June 15,
July 15,
Aug. 15,
Sept. 15,
Oct. 15,
Taxpayers who do not have access to the Internet may call the
filing is:
2020
2020
2020
2020
2020
2020
Division’s Customer Service Center at 609-292-6400.
Note: The start of the 2019 filing season was delayed due to
Taxpayers with a prior year liability of $10,000 or more in any tax
clarifying language changes to the Corporation Business Tax
are required to make their payments for all taxes by Electronic
statutes. Information on affected due dates is available on
Funds Transfer (EFT). For information or to enroll in the program,
the Division of Taxation’s
.
website
visit the Division of Revenue and Enterprise Services’ website at
www.nj.gov/treasury/revenue/eft1.shtml, call 609-984-9830, fax
The ending month of the accounting period for federal returns and
609-292-1777, or write to NJ Division of Revenue and Enterprise
New Jersey returns must match, however, the tax return year for
Services, EFT Section, PO Box 191, Trenton, NJ 08646-0191.
the federal and State returns may differ. (i.e., a tax year ending
8/31/19 may be filed on a 2018 federal Form 1120; the same tax
N
: Taxpayers who are required to remit payments by EFT can
ote
year must be filed on a 2019 NJ BFC-1.)
satisfy the EFT requirement by making e-check or credit card
payments.
Extension of Time to File
Corporations will automatically receive a six-month extension only if
Penalties and Interest
they have paid at least 90% of the tax liability and timely filed Form
Submit the completed BFC-200-T with payment of the
BFC-200-T.
Insufficiency Penalty. If the amount paid with the Tentative
total amount due as reflected on line 8. The tentative return must
Return, Form BFC-200-T, is less than 90% of the tax liability com-
be postmarked on or before the original due date of the tax return.
puted on Form BFC-1, or in the case of a taxpayer whose preced-
If a request for extension is duly made, it will be granted by the
ing return covered a full 12-month period, is less than the amount of
Division. Approved extensions will not be confirmed in writing.
the tax computed at the rates applicable to the current accounting
year but on the basis of the facts shown and the law applicable to
An extension of time is granted only to file your New Jersey
the preceding accounting year, the taxpayer may be liable for a
Corporation Business Tax return. There is no extension of time to
penalty of 5% per month or fraction thereof not to exceed 25% of
pay the tax due. The Division will notify you only if we deny your
the amount of underpayment from the original due date to the date
extension request, but not until after you actually file your return.
of actual payment.
Penalties and interest are imposed whenever tax is paid after the
original due date.
Late Filing Penalty. 5% per month or fraction thereof on the
amount of underpayment not to exceed 25% of that underpayment,
Note: An extension payment must include any applicable profes-
except if no return has been filed within 30 days of the date on
sional Corporation (PC) fees and/or installment payments.
which the first notice of delinquency in filing the return was sent, the
penalty shall accrue at 5% per month or fraction thereof of the total
tax liability not to exceed 25% of such tax liability. Also, a penalty of
Payment of Tax
$100 for each month the return is delinquent may be imposed.
The balance of tax due must be paid in full by the original due date
of the return.
Late Payment Penalty. 5% of the balance of tax due paid after the
due date for filing the return may be imposed.
In addition, corporations are required to make installment payments
of estimated tax. The requirement for making these payments is
Interest. 3% above the average predominant prime rate for every
based on the amount of the total tax liability shown on the most
month or part of a month the tax is unpaid, compounded annually.
recent return.
At the end of each calendar year, any tax, penalties and interest
remaining due will become part of the balance on which interest will
• If the 2019 total tax liability is greater than $500, the tax-
be charged. The interest rates assessed by the Division of Taxation
payer must make installment payments towards 2020. These
are published
online.
payments are remitted on Form
and are due on or
BFC-150
before the 15th day of the 4th, 6th, 9th and 12th months of the
tax year. Taxpayers with gross receipts greater than or equal to
$50,000,000 must make installment payments on the 15th day
of the 4th, 6th, and 12th months of the tax year.
- 3 -
www.nj.gov/treasury/taxation
Page of 16