A combined group is a group of companies that have a common ownership (N.J.S.A. 54:10A-4(aa)) and are engaged in a unitary business (N.J.S.A.. 54:10A-4(gg)), if at least one company is subject to New Jersey Corporation Business Tax (N.J.S.A. 54:10A-4(z)). For information on what business entities must be included in a combined group and what business entities are not included in a combined group, see Technical Bulletin TB-86(R) .
The managerial member is a member of the combined group that acts as the agent on behalf of the combined group. The managerial member is required to address all tax matters including, but not limited to: filing/amending tax returns, filing extensions, and making estimated tax payments and/or any tax liability payment on behalf of its taxable members. The managerial member is also responsible for responding to notices and assessments for its combined group. (N.J.S.A. 54:10A-4.10)
Note: Even though the managerial member is responsible for making payments on behalf of the combined group, all the taxable members are jointly and severally liable for the tax due.
If the combined group has a common parent corporation and that common parent corporation is a taxable group member, the common parent corporation must register as the managerial member. If the common parent member is not a taxable member, the combined group must designate a taxable member as its managerial member. The election is for ten tax years.
How the managerial member is determined:
- Is your corporation the common parent corporation and a taxable member of the combined group?
Has your corporation been designated as the managerial member of the combined group?
- Yes. As the common parent corporation and a taxable member of the combined group, you are the group's managerial member and must register as such.
- No. Continue to Question 2.
Did you answer no to BOTH of the questions above?
- Yes. Because the common parent corporation is not a taxable member of your combined group, one of the taxable members must serve as the managerial member. As the designated member, you must register to be the managerial member.
- No. Continue to Question 3.
- If you answered no to both of the questions above, you are not the managerial member. The managerial member of the combined group must complete the registration.
The managerial member (N.J.S.A. 54:10A-4(cc)) of each combined group must register with the New Jersey Division of Revenue and Enterprise Services (DORES). See Managerial Member Registration/Change.
Once the combined group has Determined the Managerial Member,
that member must register with the New Jersey Division of Revenue and Enterprise Services (DORES).
To register as the managerial member of a combined group for Corporation Business Tax purposes, login to Online Registration Change Service using the taxpayer's current New Jersey identification number and corporation business tax PIN. Check the box 'Register as the Managerial Member of a Unitary Combined Group,' and follow the onscreen prompts. Note: Your corporation business tax PIN is printed on the Welcome Letter you received when you first registered your business. In most cases, it is the same 4-digit PIN used to submit other New Jersey tax payments and returns either online or by phone (e.g., withholding tax returns (Forms NJ-927/NJ-500 or Form NJ-927-W) or sales and use tax returns (Forms ST-50/51)). If you need help obtaining your PIN, Contact Us.
Registration will generate a New Jersey identification number specific to combined reporting. This unique identification number will serve as the combined group’s tax identification number. The managerial member will use it to file the combined return on behalf of the group. The identification number will also serve as the number to which payments will be applied. The managerial member’s preexisting tax identification number cannot be used as the primary identification number for the combined group filing. Also, a company’s Federal Employer Identification Number cannot be used to file any return or payment for the combined group.
Please allow two business days after receipt of unitary ID number and PIN before using the new ID number to submit returns or payments on behalf of the combined group. In order for the payments to be properly applied to the combined group’s account, they must be submitted through the managerial member’s assigned NU number.
Note: The managerial member is responsible for making payments and filing returns on behalf of the group but all the taxable members are jointly and severally liable for any tax due.
Changing Registration Information or Managerial Member
Once registered, the managerial member can make changes to the account through the Online Registration Change Service. Log in using the unitary ID number and PIN that was assigned when the managerial member registered the combined group. The ID number will begin with the letters 'NU' and the PIN must be the same PIN that was assigned to the managerial member when the NU number was assigned. This system will allow the managerial member to:
- Change the Address
- Add/Update Electronic Funds Transfer Information
- Change the Managerial Member
- End the Unitary Combined Group
The onscreen prompts will guide you through changes.
Note: In order to change the managerial member, you will need the current managerial member's ID number and the ID number and information of the member that will be assuming the role of managerial member
If a combined group has members that have overpayments from a previously filed or return or that made payments under their own account, the managerial member for that combined group can take the following steps to merge the funds before filing the tax return.
Provide a spreadsheet showing:
- The managerial member's name and new identification number (begins NU), and
- The member from which the payment is being transferred (including the name and federal identification number), and
- The amount of overpayment from previously filed return to be applied to the combined account, and
- Payments to be transferred. Include the date and amount of each payment that was made on a separate entity basis. The amount and the date on which the payment was submitted must be an exact match in order for the Division to transfer the funds from the member's account to the managerial member's account.
A sample spreadsheet is available online. Send the information using one of the following methods:
Mail – New Jersey Division of Taxation, Managerial Member Request, PO Box 266, Trenton, NJ 08695-0266
Fax – 609-633-6444
Email – Please use a secure email account and send to NewJerseyBusinessTax@treas.nj.gov.
Include a cover letter with a contact name and phone number in the event that the Division needs additional information or clarification.
Note: The combined return (Form CBT-100U) will contain a form for the managerial member to provide the information at the time of filing if the combined group is not ready to submit it in advance.