Fillable Form A-5052-Tc - Estimated Summary Tax Return (Page 3 of 3) in pdf

A-5052-TC

Page 3

(5-11, R-15)

INSTRUCTIONS FOR COMPLETING FORM A-5052

1. This form must be filed with the Application for Tax Clearance Certificate unless taxpayer complies with instruction #8 of

Procedure for Dissolution (Form A-5033).

2. This form must be completed before a Tax Clearance Certificate may be issued. It is to be completed on an estimated basis, for

the current period from the close of the last accounting period for which a return is required to be filed with the Division to the

proposed date of dissolution, merger, withdrawal, etc.

3. There must be annexed to the Estimated Summary Tax Return an affidavit of a corporate officer covering the following items:

(a) Computation of taxpayer’s actual entire net income from the close of its last accounting period for which a return is required

to be filed with the Division to the latest practicable data.

(b) Explanation of taxpayer’s method of computing estimated entire net income between such latest practicable date and the

proposed date of filing such Certificate with the Division of Revenue, Business Liquidations.

(c) A statement indicating whether taxpayer has realized or anticipates a gain on the sale, transfer, exchange, or conversion of

any capital or other assets, other than normal sales of inventories, for the period covered by this return. The actual or

estimated amount of such gains and the extent to which such gains have been included by the taxpayer in estimating its net

income for the period covered by this return must be indicated.

4. Upon receipt of this form and the application for tax clearance certificate, the taxpayer will be advised of any additional data

required and of the amount of any additional payment that must be submitted before the Tax Clearance Certificate can be issued.

Upon completion of our audit, after receipt of final return, any tax found to have been overpaid will be refunded.

5. Computation of Estimated Corporation Business Tax

(a) The tax rate is 9.0% (.09) on adjusted entire net income or such portion thereof as may be allocable to New Jersey. For

taxpayers with entire net income of $100,000 or less, the tax rate is 7.5% (.075). For accounting periods beginning on or after

January 1, 2002, if entire net income is $50,000 or less, the tax rate is 6.5% (.065).

(b) Minimum Tax:

(1) For the tax periods beginning on or after January 1, 2002, the minimum tax is $500, provided however that for a taxpayer

that is a member of an affiliated or controlled group (as per section 1504 or 1563 of the Internal Revenue Code of 1986)

which has a total payroll of $5,000,000 or more for the return period, the minimum tax shall be $2,000. Tax periods of

less than 12 months are subject to the higher minimum tax if the prorated total payroll exceeds $416,667 per month. The

minimum tax cannot be prorated.

(2) For the tax periods beginning on or after January 1, 2006, the minimum tax is based on New Jersey Gross Receipts as

follows (except for corporations that are members of affiliated groups with total payroll of $5,000,000 or more, whose

minimum tax is $2,000 annually - see 5(b)(1) above).

New Jersey Gross Receipts

Minimum Tax

Less than $100,000

$500

$100,000 or more but less than $250,000

$750

$250,000 or more but less than $500,000

$1,000

$500,000 or more but less than $1,000,000

$1,500

$1,000,000 or more

$2,000

(c) If the taxpayer is subject to the Alternative Minimum Assessment, refer to the instructions included in the Corporation

Business Tax Return (CBT-100) to compute the AMA. CBT Return and instructions can be accessed on the Division’s

website at

The maximum AMA for a taxpayer is $5,000,000 for a privilege period. The AMA threshold limit is $20,000,000 for an

affiliated group of five or more members.

(d) Tax Rates for New Jersey S Corporations:

(1) For a taxpayer that has entire net income in excess of $100,000 for the privilege periods ending on or after July 1, 2001

but on or before June 30, 2006, the tax rate shall be 1.33% and for the privilege periods ending on or after July 1, 2006

but on or before June 30, 2007, the tax rate shall be 0.67%; and

(2) For a taxpayer that has entire net income of $100,000 or less or the privilege periods ending on or after July 1, 2001,

there shall be no rate of tax imposed. However, minimum tax shall apply. See 5(b) above.

(3) The tax rate is 9% (.09) of entire net income that is subject to Federal income taxation or such portion thereof as may be

allocable to New Jersey. For a taxpayer that has entire income of $100,000 or less, the tax rate is 7.5% (.075) and if the

entire income is $50,000 or less, the tax rate is 6.5% (.065).

(4) The tax rate on the net pro rata share of the S Corporation income allocated to New Jersey for the nonconsenting

shareholders is 8.97%.

6. Signature

Taxpayers who fail to sign the return shall have their applications rejected and returned causing delay in issuing tax clearance

certificates and eventual dissolution, withdrawal or merger proceedings. Tax prepares who fail to sign the return or provide their

assigned tax identification number will be liable for $25.00 penalty for each such failure.

Form A-5052-Tc - Estimated Summary Tax Return Page 3

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