September 2000


By Mark H. Levin

New Jersey recently reversed its long-standing position regarding the New York City Unincorporated Business Tax (UBT) and the Philadelphia Business Privilege Tax (BPT). Previously, New Jersey had not considered the UBT and BPT as income taxes imposed on the individual proprietor’s business income or an individual partner’s distributive share of the partnership’s business income. Thus, neither the UBT nor the BPT could be included in New Jersey’s calculation of the credit for taxes paid to other jurisdictions.

Effective February 28, New Jersey treats both taxes as income taxes, which allows taxpayers to include the UBT and the BPT in New Jersey’s calculation of the credit for taxes paid to other jurisdictions, thus preventing the same income from double taxation.

The New Jersey Division of Taxation will accept amended returns received within the three-year statutory period. The credit for the UBT and the BPT will also be allowed for all cases pending before the New Jersey Tax Court and the Conference and Appeals Branch to the extent that the matter involved denied the taxpayer a New Jersey gross income tax credit for the UBT or BPT.

Mark H. Levin, CPA, is a state and local tax manager with H.J. Behrman & Company LLP, New York City, and a member of the NYSSCPA’s New York State, Municipal, and Local Taxation Committee.

State and Local Editor:
Barry H. Horowitz, CPA
Eisner & Lubin LLP

Interstate Editor:
Nicholas Nesi, CPA
BDO Seidman LLP

Contributing Editors:
Henry Goldwasser, CPA
M.R. Weiser & Co. LLP

Steven M. Kaplan, CPA
Kahn, Hoffman, Nonenmacher & Hochman, LLP

John J. Fielding, CPA
PricewaterhouseCoopers LLP

Warren Weinstock, CPA
Marks Paneth Shron LLP

The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.

©2009 The New York State Society of CPAs. Legal Notices

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