![]() What Are the Tax Implications of New Jersey C Corporations Versus S Corporations? To revoke the New Jersey C corporation election, it must submitted by shareholders holding greater than 50% of stock on the day the revocation is made.Know that the New Jersey C corporation election is effective for the tax year for which you timely make the election and for each succeeding tax year, until revoked. ![]() The New Jersey corporate tax return for calendar year taxpayers is due April 15 each year, and the extended due date is October 15. You can make opt-out election at any time during the tax year applicable, or at any time on or before the due date or extended due date of the S corporation’s tax return.Timely remit a New Jersey S status opt-out, effective for tax years beginning after December 22, 2022.Receive consent of 100% of your shareholders.If you wish to be taxed as a New Jersey C corporation you must do the following: ![]() How Can Your Federal S Corporation Maintain New Jersey C Corporation Status?įor federal S corporations that would like to continue or newly elect New Jersey C corporation tax status, the new law provides an opt-out provision. If you previously did not separately elect New Jersey S status and think you may want to continue to be treated as a New Jersey C Corporation, you must carefully consider the impact of this new law. While this change is welcome by most practitioners and taxpayers, this is a significant shift that may catch many by surprise. Effective for tax years beginning after December 22, 2022, if a New Jersey taxpayer has made a valid federal S corporation election, they are automatically treated as an S corporation for New Jersey CBT and gross income taxes. Entities that did not comply were automatically treated as a C corporation for New Jersey Corporation Business Taxes (CBT). New Jersey, however, has required a separate state election. Historically, most states have recognized the federal S corporation election. 4295 on December 22, 2022, New Jersey became the latest state to amend their tax laws to automatically conform to the federal S corporation election. ![]()
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