New Jersey law contains a little-known, one-sentence provision with substantial implications for companies contesting corporate tax assessments in the New Jersey Tax Court: Filing a Tax Court complaint for one tax year causes the statute of limitations period for assessing additional tax for all subsequent open years to remain open—with no defined closing date—for any issues contested in the Tax Court complaint.

In their article for State Tax Notes, Sutherland attorneys Leah Robinson and Open Weaver Banks discuss how New Jersey corporate taxpayers may inadvertently waive the statute of limitations period for assessment by filing a Tax Court complaint. They also review implications for the law and suggest ways it could be best applied.

View the full article.