State Law Changes Affect Partnerships, S Corporations

Tax partner Bryan Bloom authored an article for NJBIZ titled “State Law Changes Affect Partnerships, S Corporations,” examining the outcome of New Jersey legislature passing Assembly Bill 4295, including significant changes to New Jersey tax laws.

Bloom explains that the legislation ended COVID-19-related tax extensions of the statute of limitations, eliminated the requirement that corporations affirmatively and separately elect New Jersey S corporation status, and conformed New Jersey rules on partnership audits to the federal adjustments and the multistate tax commission’s model law.

The author notes that the Multistate Tax Commission has promoted a model statute for states to adopt the federal partnership audit regime, which New Jersey has adopted in the new bill for handling partnership audits.