Tax Notes Newsletter Two Voluntary Disclosure Initiatives Available for New Jersey Taxpayers Due by May 15, 2014 Sandy Weinberg, Principal, Director of State and Local Taxation Intangible Asset Nexus Companies that own intangible assets and derive income from the use of those assets in New Jersey can now comply, penalty free, with corporation business tax reporting and payment obligations they may have missed in the past. However, the New Jersey Division of Taxation (“the Division”) has announced that the opportunity only runs through May 15, 2014. The Division noted that it continues to discover non-filing companies that have nexus with New Jersey as a result of deriving income from the use of intangible assets in the state. “Often, the intangible assets have been ‘embedded’ into companies with other business operations beyond merely owning intellectual property.” Corporations deriving income from the use of intangible assets in New Jersey are required to file New Jersey Corporate Business Tax Returns and pay the appropriate tax due. In addition to the standard procedures for voluntary disclosure agreements (VDAs), the following also apply: Look-back period will be limited to periods beginning after July 1, 2010 Taxpayer must file all required returns and remit payment of the full tax liability within 45 days of the execution of its VDA The Division will waive all penalties Taxpayer must remit interest within 30 days of assessment All returns will be subject to routine audit with Sandy Weinberg Principal sweinberg@odpkf. com 203.323.2400