The New Jersey Division of Taxation recently updated Technical Advice Memorandum 2015-1(R), first issued in 2015, regarding the tax treatment of transactions involving convertible virtual currency, such as Bitcoin. The updated TAM states that the state conforms to the federal treatment of convertible virtual currency for Corporation Income Tax and Gross Income Tax purposes. Since virtual currencies are treated as intangible property, the nexus safe harbor provided by PL 86-272 does not apply to a company selling virtual currency to New Jersey customers. Thus, an out-of-state company selling virtual currencies in New Jersey is doing business in the state for corporation business tax purposes. For wages paid in virtual currencies to New Jersey residents, the payor is responsible for income tax withholding, and contractors paid in virtual currency must determine their tax liability based on the fair market value of the virtual currency on the date of payment.