New Jersey Division of Taxation has announced a voluntary disclosure initiative for media and media content companies. The initiative, which runs through November 15, 2011, is designed to allow companies that derive revenue from advertising, subscriptions and syndications, and licensing of consumer products to “come into compliance” with the New Jersey Corporation Business Tax.
The key aspects of the initiative include the following:
- A look back period of four tax years (the current tax year and the three pervious tax years)
- Tax, interest and the 5% Amnesty penalty will be assessed, but all late filing penalties will be waived
- A business cannot have more than 10% of its total receipts from licensing intangible property
- Specific rules apply on how advertising revenue, subscription and syndication revenue, and licensing revenue will be assigned to the sales fraction for apportionment purposes
- Eligible media and media content companies who do not participate in the initiative will be ineligible for the Division of Taxation’s general voluntary disclosure program
If you are considering applying for the initiative, it is important that you contact your tax advisor immediately.
Melinda Fellner Bramwit contributed to this post.