Reed Smith Client Alerts

Through a series of Executive Orders and legislative action, New Jersey has extended the statute of limitations for refund claims and assessments until at least April 1, 2022 in light of COVID-19.1 For calendar year corporate taxpayers, this extension provides additional time to file refund claims for 2015 and 2016.

Last week, the Division of Taxation updated its COVID-19 guidance, stating that the deadlines for filing a refund claim under the Sales and Use Tax Act, the Gross Income Tax Act, and the State Uniform Tax Procedure Law have been extended until April 1, 2022 with respect to claims that would have otherwise been due on or after March 9, 2020 and before April 1, 2022.2

As a result of the extension, taxpayers that file on a calendar year basis will be able to file corporation business tax (CBT) refund claims for 2015 and 2016 until at least April 1.

A copy of Governor Murphy’s latest Executive Order clarifying various statutory deadlines is available at The Division’s COVID-19 guidance is available at

Here is a summary of some potential CBT refund opportunities that you may want to consider before the April 1 deadline:

  • Sourcing of service receipts. Prior to 2019, the statute provided that taxpayers should source service receipts to New Jersey if the service was performed in New Jersey.3 Yet, because of a Division regulation—the so-called 25:50:25 Rule—and case law, there are certain circumstances in which a taxpayer’s service receipts can be sourced using a blended factor (half market/half performance).4