Composite Return Instructions - 2011 (Page 2 of 6) in pdf

WHERE TO FILE

AMENDED RETURNS

Mail Form NJ-1080-C to:

An amended Form NJ-1080-C must be filed if an amended

State of New Jersey

Federal return is filed for any filing entity, or if the Internal Revenue

Division of Taxation

Service changes or corrects any item of income, gain or loss

Revenue Processing Center

previously reported. The amended New Jersey return shall be filed

PO Box 188

within 90 days of the date the amended Federal form is filed or, in

Trenton, New Jersey 08646-0188

the case of a federal Audit, within 90 days after the final

determination of the change. To amend the original composite

return, use a blank Form NJ-1080-C for the tax year that is to be

ESTIMATED TAX

If the filing entity has filed a composite return in the previous

amended and write “Amended” across the top. Complete the form

years and the amount estimated to be the total income tax liability for

by entering the correct information and attach an explanation of the

the composite return for the current tax year exceeds $400, the filing

changes.

An amended composite return should also be filed if the filing

entity must file a declaration of estimated tax and make quarterly

estimated tax payments using Form NJ-1040-ES. Instructions for

entity issues amended or corrected information returns (e.g. Form

computing the estimated tax and making the payments are included

W-2, Federal Schedule K-1, etc.) which affect Total New Jersey

with that form. Failure to file a Declaration of Estimated Tax or pay

Taxable Income (Line 17).

all or part of an underpayment will result in interest charges on the

PENALTIES AND INTEREST CHARGES

underpayment.

Penalty and interest should be included with the payment of any

tax due.

UNDERPAYMENT OF ESTIMATED TAX

The Division may impose the following:

If the filing entity failed to make the required estimated tax

Late filing penalty: 5% per month (or fraction of a month) up

payments as described above, the entity must complete Form NJ-

to a maximum of 25% of the outstanding tax liability when a

2210, Underpayment of Estimated Tax by Individuals. Completing

return is filed after the due date or extended due date. Also, a

Form NJ-2210 will determine if interest on the underpayment is due

penalty of $100 per month for each month the return is late may

and if so, will calculate the amount. If you complete and enclose

be imposed.

Form NJ-2210 with your return, check the box below Line 18.

Late payment penalty: 5% of the outstanding tax balance may

NOTE: Credit will not be given on the composite return for

be imposed.

estimated tax payments made by any of the qualified electing

nonresident participants.

Interest: 3% above the prime rate for every month or fraction

of a month the tax is unpaid, compounded annually. At the end

ACCOUNTING METHOD

of each calendar year, any tax, penalties and interest remaining

The accounting method used for Form NJ-1080-C must be the

due (unpaid) will become part of the balance on which interest

same as the accounting method used by the participants for Federal

is charged.

income tax purposes.

SIGNATURES

ACCOUNTING PERIODS

Form NJ-1080-C is not considered to be a return unless it is

The accounting period for a nonresident composite return is the

signed and dated. If the filing entity is a general partnership, a

calendar year.

limited partnership, or a limited liability partnership, the return must

be signed by a general partner or the partner designated for tax

FORMS AND ASSISTANCE

matters. If the filing entity is an electing New Jersey S Corporation

Forms are available by calling 1-800-323-4400 or by writing to

the return must be signed by an officer of the corporation; if a limited

the New Jersey Division of Taxation, 50 Barrack Street, PO Box

liability company, by an authorized member; if an estate, by the

269, Trenton, NJ 08695-0269, Attention: Forms Distribution Center.

executor or administrator; if a trust, by a trustee. If a receiver, trustee

You can have forms faxed to you at any time by faxing the requested

in bankruptcy, or assignee controls the organization’s property or

form number to TaxFax at 1-609-588-4500, or call that number for

business, that person must sign the return. If the filing entity is a

facsimile instructions. You may also request forms by accessing the

professional athletic team the return must be signed as required

Division’s home page on the Internet at:

above depending on the type of entity.

Anyone who prepares a composite return for a fee must sign the

Assistance is available by calling the Division’s Customer

return as a “Paid Preparer” and must enter his or her social security

Service Center at 609-292-6400.

number. The company or corporation name and Federal Employer

A composite return, Form 1080C, must be paper-filed. The

Identification Number, must be included, if applicable. The preparer

directory information for a composite return filed on behalf of 25 or

required to sign the composite return must sign it by hand; signature

more participants MUST be submitted on diskette or re-writable CD.

stamps or labels are not acceptable. If someone prepares the

return at no charge, the paid preparer’s area need not be completed.

ROUNDING OFF WHOLE DOLLARS

A tax preparer who fails to sign the return or provide a correct tax

The money items on the return and schedules may be shown in

identification number may incur a $25 penalty for each omission.

whole dollars. This means that any amount under 50 cents may be

eliminated and amounts of 50 cents or more should be increased to

the next higher dollar.

- 2 -

Composite Return Instructions - 2011 Page 2

Related Articles

Related forms

Related Categories