Tax Warrior Chronicles

Update on Federal and State Tax Deadlines

Posted on Wed, Mar 25, 2020

UPDATED April 1, 2020

 

As of April 1, 2020, many states have released guidance to extend their tax filing or payment deadlines to align with IRS Notice 2020-18 or to provide their own extended filing or payment dates, while others are still slow to take action.  Additionally, on March 24, 2020, the IRS has also released information addressing Frequently Asked Questions (FAQs) and on March 27, 2020 the IRS issued Notice 2020-20.  Today’s blog will update you on the most current information available regarding federal, state and select local tax filing and payment deadlines.

 

Note:  In future blog posts, we will begin dissecting the next Coronavirus relief bill that becomes law.   Whatever

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NJ Enacts New SALT Workaround with Entity-Level Tax Election

Posted on Thu, Jan 30, 2020

By: Dan Marques, CPA, MT

 

If at first you don’t succeed, try again.  That appears to be the moto of the NJ Legislature after passing the Pass-Through Business Alternative Income Tax Act (the Act), signed into law by Governor Murphy on January 13, 2020. This is the state’s second attempt to circumvent the $10,000 federal cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act (TCJA).

 

A trip down memory lane

Some may recall NJ’s first attempt to address the SALT cap in May 2018, which called for towns, counties and school districts to set up charitable funds for taxpayers to make contributions in exchange for property tax credits. Under this program, individuals

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Hurricanes Harvey & Irma and their Impact on NY, PA and NJ Residency

Posted on Thu, Sep 14, 2017

By: Elizabeth Pascal, Esq.

 

Over the last three weeks, we witnessed the images of damage caused by Hurricanes Harvey and Irma. Record winds, flooding and power outages will cause many with multiple residences to spend more time at residences outside of Texas and Florida, two states that happen to have no income taxes. Today, our guest author, Elizabeth Pascal, Esq. of Hodgson Russ, spells out the potential impact for NY residents domiciled in Texas and Florida. Later in the post, The Tax Warriors® discuss how those who have homes in Pennsylvania and New Jersey may be similarly affected.

 

Taxpayers who are domiciled in Texas, Florida, and the U.S. Virgin Islands may end up spending

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Law Makes Dying Less Expensive for NJ Residents

Posted on Thu, Mar 09, 2017

By: Nastassja Markham Coletta, JD, LLM

 

New Jersey has long been considered one of the worst states to die in because of its dual death taxes. New Jersey is one of only two states that levies both an inheritance tax and an estate tax. With the enactment of the P.L. 2016, c.57 and subsequent phased repeal of its estate tax, New Jersey is trying to rebrand itself and stop wealthy families and individuals from retiring in more tax-friendly states.

 

The new law increases New Jersey’s estate tax exemption from $675,000 to $2 million for 2017 and eliminates the estate tax as of January 1, 2018.

 

While the estate tax is being phased out, New Jersey’s inheritance tax remains unchanged. There

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NJ Tax Refunds Delayed Due to Anti-Fraud Measures

Posted on Tue, Jul 07, 2015

The IRS is experiencing issues with customer service and collections due to a lack of resources, which for many tax payers has resulted in delayed tax refunds.  It seems that the State of New Jersey is experiencing similar problems.  If you are awaiting a NJ tax refund, you may have recently received a notice from NJ.

 

Individual taxpayers in the Garden State received notices from the NJ Division of Taxation addressing refund and identity theft fraud.  Efforts taken to ensure the protection of taxpayers and the state are causing the delay of refunds. In particular, as many as 125,000 returns expecting refunds have been set aside for screening. Triggers for the Division to pull and delay

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NJ Tax Resolution Program Ends November 17, 2014

Posted on Wed, Sep 24, 2014

If you are behind on paying your New Jersey taxes, a recent announcement from the New Jersey Division of Taxation (the “Division”) may be an opportunity to settle your outstanding tax liabilities. For a limited time, the Division is giving taxpayers the chance to pay a reduced amount to satisfy their outstanding tax liabilities.

 

The Division’s newly announced program is open to individual taxpayers and businesses owing taxes from the years 2005 through 2013. The Division is sending letters to taxpayers who have outstanding tax liabilities. The letter will include a ‘Schedule of Liabilities’ showing the reduced amount that a taxpayer can pay to settle their tax debt.  The reduced amount

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NJ, MD and PA See Changes in Laws That Affect Taxes

Posted on Thu, Aug 28, 2014

Among the tax courts, state legislatures and agendas of Governors around the country, laws that affect taxation in states are in a constant state of motion—ever changing, ever expanding and usually impacting your net worth.  In fact, Ronald Reagan once called state taxation a “the only snowball that could both survive and grow in Hell.”

 

Recently, the states of New Jersey, Maryland and Pennsylvania added some important changes to their laws that may affect those who live, die and/or own a business in these states (not necessarily in that order).

 

NEW JERSEY

The New Jersey Tax Court has ruled that a New Jersey resident S-corporation shareholder's gross income tax credit for taxes paid to

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NJ Makes Revenue-Enhancing Changes to Tax Laws

Posted on Mon, Aug 04, 2014

Throughout his tenure as New Jersey’s governor, Chris Christie has held to his promise to not raise taxes (or sign legislation that would do so) in the Garden State. Recently, however, he signed legislation that expands the definition of operational income for corporate business tax purposes, reduces net operating losses for corporate business tax purposes by the amount of certain types of discharged indebtedness that are excluded from taxable income, prevents a partnership from applying for a refund of any amounts credited to nonresident partners and establishes circumstances when click-through nexus is established for sales and use tax purposes.  Though this is not technically raising

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NJ Gov. Gives Business Tax Breaks via The NJ Economic Opportunity Act

Posted on Thu, Oct 10, 2013

On October 9th, while the two US Senate candidates from New Jersey fiercely attacked each other in their final debate, the business of running the state continued in Trenton.  It’s an election year in New Jersey for a US Senate seat, the Governor’s office, the General Assembly and some Congressional seats.  This is usually the time that roads get paved, babies get kissed and pro-business legislation seems to get signed.  This year is no different.

 

New Jersey Governor Chris Christie has consistently taken a pro-business stance and is always looking for new ways to attract businesses to the state and make it easier for existing businesses to grow. Though he often is in a tussle with his

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No Basis Adjustment Allowed in NJ Until LLP Interest is Fully Liquidated

Posted on Tue, Sep 03, 2013

 

The New Jersey Tax Court recently held that a taxpayer who owned an interest in a partnership could not use prior year unused losses to offset a gain from the sale of the partnership’s only asset.  In the case DiNallo v. Director of Taxation, N.J. Tax Court Case Docket No. 017895-2009, the taxpayer had an interest in a limited liability partnership (“LLP”) whose only asset was land.  In 2004, the LLP sold the land and the partner received a New Jersey K-1 that reported her share of New Jersey gross income for the year.  The partner had received New Jersey K-1s in prior years which indicated losses from this LLP. 

 

For New Jersey gross income tax purposes, any loss in any category of

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