N.J. Admin. Code § 18:7-17.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:7-17.6 - Credit or refund

(a) As of the date the Division of Taxation receives the payment, the amount of tax paid by a partnership pursuant to N.J.A.C. 18:7-17.5 shall be credited to accounts of its nonresident partners in proportion to each nonresident partner's share of allocated entire net income and the rate for that partner class set forth in N.J.A.C. 18:7-17.5.

(b) Each payment amount credited will be deemed to have been paid by the respective partner for the privilege period of the partner.

(c) A nonresident noncorporate partner and a nonresident corporate partner may claim a credit on their own New Jersey returns for the amount of tax allocated to them by the partnership. Any excess tax payments may be refunded to the partner.

(d) Since partners may wish to claim a credit or refund for tax payments made on their behalf by a partnership, there may be an advantage if certain partnerships issue Form NJ-K1's as soon as possible after the close of the tax period.

(e) Example: A partnership has a fiscal year ending on January 31. The partnership tax payment on behalf of foreign partners is due May 15. The amount of payment on behalf of partners will not be credited to the accounts of partners until the date received by the Division of Taxation.

1. Accordingly, a calendar year partner, whose first quarter estimated payment is due by April 15 cannot take a credit against its April 15 estimated payment, for the partnership's May 15 tax payment that has not yet been received by the Division.

(f) Payments remitted on unauthorized or improperly prepared returns will be credited on the date the Division of Taxation is able to post the payment properly.

N.J. Admin. Code § 18:7-17.6

Amended by 49 N.J.R. 1694(a), effective 6/19/2017