N.J. Stat. § 54:50-47

Current through L. 2024, c. 62.

Section 54:50-47 - Definitions

As used in sections 6 through 12 of P.L.2022, c.133 (C.54:50-47 through C.54:50-53):

"Administrative adjustment request" means an administrative adjustment request filed by a partnership under section 6227 of the federal Internal Revenue Code (26 U.S.C. s.6227).

"Allocation factor" means the allocation factor as required on the New Jersey Gross Income Tax Business Allocation Schedule NJ-NR-A.

"Audited partnership" means a partnership subject to a partnership-level audit resulting in a federal adjustment.

"Corporate partner" means a partner that is a corporation subject to tax pursuant to section 2 of P.L. 1945, c. 162 (C.54:10A-2) or is subject to the requirements of section 12 of P.L.2002, c.40 (C.54:10A-15.11).

"Director" means the Director of the Division of Taxation in the Department of the Treasury.

"Direct partner" means a partner that holds an interest directly in a partnership or pass-through entity.

"Exempt partner" means a partner that is exempt from taxation under section 3 of P.L. 1945, c.162 (C.54:10A-3).

"Federal adjustment" means a change to an item or amount determined under the federal Internal Revenue Code that is used by a taxpayer to compute tax owed under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or Corporation Business Tax Act (1945), P.L. 1945, c.162 (C.54:10A-1 et seq.), whether that change results from action by the Internal Revenue Service, including a partnership-level audit, or the filing of an amended federal return, federal refund claim, or an administrative adjustment request by the taxpayer. A federal adjustment is positive to the extent that it increases State taxable income as determined under N.J.S. 54A:5-1 or subsection (k) of section 4 of P.L. 1945, c.162 (C.54:10A-4) and is negative to the extent that it decreases State taxable income as determined under N.J.S. 54A:5-1 or subsection (k) of section 4 of P.L. 1945, c.162 (C.54:10A-4).

"Federal Adjustments Report" includes methods or forms required by N.J.S. 54A:8-7 or section 13 of P.L. 1945, c.162 (C.54:10A-13) for use by a taxpayer to report final federal adjustments, including an amended New Jersey tax return, information return, or a uniform multistate report.

"Federal partnership representative" means the person the partnership designates for the taxable year as the partnership's representative, or the person the Internal Revenue Service has appointed to act as the federal partnership representative, pursuant to section 6223(a) of the federal Internal Revenue Code (26 U.S.C. s.6223(a)).

"Final determination date" means the following:

a. Except as provided in b. and c. below, if the federal adjustment arises from an Internal Revenue Service audit or other action by the Internal Revenue Service, the final determination date is the first day on which no federal adjustments arising from that audit or other action remain to be finally determined, whether by Internal Revenue Service decision with respect to which all rights of appeal have been waived or exhausted, by agreement, or, if appealed or contested, by a final decision with respect to which all rights of appeal have been waived or exhausted. For agreements required to be signed by the Internal Revenue Service and the taxpayer, the final determination date is the date on which the last party signed the agreement.

b. For federal adjustments arising from an Internal Revenue Service audit or other action by the Internal Revenue Service, if the taxpayer filed as a member of a composite return Form NJ-1080(c) or as a member of a combined group filing a combined return for corporation business tax purposes, the final determination date means the first day on which no related federal adjustments arising from that audit remain to be finally determined, as described in a. above for the entire group.

c. If the federal adjustment results from filing an amended federal return, a federal refund claim, or an administrative adjustment request, or if it is a federal adjustment reported on an amended federal return or other similar report filed pursuant to 6225(c) of the federal Internal Revenue Code (26 U.S.C. s.6225(c)), the final determination date means the day on which the amended return, refund claim, administrative adjustment request, or other similar report was filed.

"Final federal adjustment" means a federal adjustment after the final determination date for that federal adjustment has passed.

"Indirect partner" means a partner in a partnership or pass-through entity that itself holds an interest directly, or through another indirect partner, in a partnership, or pass-through entity.

"Nonresident partner" means an individual, trust, or estate partner that is not a resident partner.

"Partner" means a person that holds an interest directly or indirectly in a partnership or other pass-through entity.

"Partnership" means an entity subject to taxation under subchapter K of the federal Internal Revenue Code or is otherwise taxed as a partnership for federal income tax purposes.

"Partnership-level audit" means an examination by the Internal Revenue Service at the partnership-level pursuant to Subchapter C of Title 26, Subtitle F, Chapter 63 of the federal Internal Revenue Code, as enacted by the Bipartisan Budget Act of 2015, Pub.L. 114-74, which results in federal adjustments.

"Pass-through entity" means an entity not taxed as a C corporation.

"Reallocation adjustment" means a federal adjustment resulting from a partnership-level audit or an administrative adjustment request that changes the shares of one or more items of partnership income, gain, loss, expense, or credit allocated to direct partners. A positive reallocation adjustment means the portion of a reallocation adjustment that would increase federal income for one or more direct partners, and a negative reallocation adjustment means the portion of a reallocation adjustment that would decrease federal income for one or more direct partners pursuant to regulations promulgated under section 6225 of the federal Internal Revenue Code (26 U.S.C. s.6225)

"Resident partner" means an individual, trust, or estate partner that is a resident of New Jersey under subsections (m) and (o) of N.J.S. 54A:1-2 for the relevant tax period.

"Reviewed year" means the taxable year of a partnership that is subject to a partnership-level audit from which federal adjustments arise.

"Taxpayer" means the same as defined under subsection (l) of N.J.S. 54A:1-2 or subsection (h) of section 4 of P.L. 1945, c.162 (C.54:10A-4) and, unless the context clearly indicates otherwise, includes a partnership subject to a partnership-level audit or a partnership that has made an administrative adjustment request, as well as a tiered partner of that partnership.

"Tiered partner" means any partner that is a partnership or pass-through entity.

To the extent terms used in this section are not defined in this section or elsewhere in chapter 9 of Title 54A of the New Jersey Statutes, the definition of such terms shall conform as closely as possible to the terminology used in the amendments to the federal Internal Revenue Code pertaining to the comprehensive partnership audit regime as contained in the Bipartisan Budget Act of 2015, Pub. L. 114-74, as amended, and this section shall be so interpreted.

N.J.S. § 54:50-47

Added by L. 2022, c. 133, s. 6, eff. 12/22/2022.