Date: October 18, 2023Attorney: Martin D. Hauptman

Important Update for Former BFC-1 Filers: Transition to CBT-100

The New Jersey Division of Taxation has issued new guidance for former BFC-1 filers, outlining crucial steps to ensure a smooth transition to the codes used for corporations filing CBT-100. This change impacts electronic payment submissions and how overpayments or prior-year payments are handled.

Transitioning Electronic Payment Codes

Former BFC-1 filers are required to update the codes used for electronic payments to align with those used by corporations filing CBT-100. This adjustment is essential to maintain compliance with New Jersey’s tax regulations.

Handling Overpayments and Prior-Year Payments

For taxpayers who have overpayments from previously filed BFC-1 returns or have made payments under the BFC account during the tax year, specific actions must be taken before filing the tax return:

  1. Prepare a Spreadsheet: Create a spreadsheet containing the following information:
    • Corporation’s name and Federal Employer Identification Number (FEIN).
    • Amount of overpayment from prior BFC-1 returns.
    • Any other payments that need to be transferred, including payment dates and amounts.
  2. Submit the Spreadsheet: Send the prepared spreadsheet to the New Jersey Division of Taxation, Contract Admin. Unit, at P.O. Box 245, Trenton, NJ 08695-0245.

By following these steps, former BFC-1 filers can ensure a seamless transition to the CBT-100 filing process and the correct handling of overpayments and prior-year payments.

This guidance is crucial for businesses and individuals who were previously filing under the BFC-1 category, as it ensures compliance with the latest tax requirements in New Jersey. Be sure to take the necessary actions outlined in this update to avoid any issues during tax filing.

BFC-1 Returns Being Replaced with Form CBT-100, 09/28/2023.