New Jersey has been aggressively asserting nexus for years. Some times successfully. (See Lanco, Inc. v. Director.) Sometimes with mixed results. (See Quark, Inc. v. Director and AccuZIP, Inc. v. Director.) For the 2002–2010 tax years, the downsides of nexus are sometimes huge: In those years, nexus exposure can run into tens of millions of dollars for taxpayers. (See General Engines, Inc. v. Director and Pfizer, Inc. v. Director.) Meanwhile, the Division continues to stretch the lookback period for taxpayers that do not voluntarily come forward. (See Praxair Technology, Inc. v. Director.) And the Division's VDA program has become miserly. Adding to taxpayer worries are amnesty penalties. But those penalties have recently been called into question by the courts.
If your company is facing decisions related to New Jersey nexus, we can help evaluate the risks and the options available. Our team has done dozens of New Jersey VDAs and closing agreements and can help you negotiate the best deal possible. Contact David J. Gutowski,
(215.851.8874) or Kyle O. Sollie,
(215.851.8852) for help.
Click on the links below to view some of the relevant nexus-related documents from Reed Smith's State Tax library. To view more documents and publications from our library, and for a description of Reed Smith's New Jersey State Tax Practice, please visit www.reedsmith.com/njtax.
- Comment to NJ Div. of Taxation Regarding Proposed Economic Nexus Regulation, David J. Gutowski on behalf of COST
- TAM-6: Foreign Corporations Subject to Tax, NJ Div. of Taxation
- Quark, Inc. & AccuZIP, Inc. v. Director, Div. of Taxation (August 13, 2009) - Decision
- Accuzip, Inc. v. Director, Division of Taxation - Transcript of Proceedings
- Quark, Inc., v. Director, Division of Taxation - Transcript of Proceedings
- Reed Smith Teleseminar - Software Tax Cases in NJ and CA (21 Nov 2008)
- New Jersey Tax Court: ‘No Reasonable Cause’ for IHC to Not File Returns
- Praxair Technology, Inc. v. Director, Division of Taxation - Decision
- Lanco, Throwout, and FIN 48 Pose Multiple Headaches for Passive Investment Companies in New Jersey
- Lanco, Inc., v. Director, Division of Taxation - Transcript of Proceedings