FEDERAL/STATE
ELECTRONIC FILING PROGRAM
TABLE
OF CONTENTS
Message
From The Director
Dear
Practitioner:
Welcome
and thank you for your interest in New Jersey's Individual Income
Tax Electronic Filing Program. We look forward to another exciting
and productive year as we work with you to assist New Jersey's
taxpayers in meeting their tax obligations.
As
anticipated, the 1040 e-file mandate established by State law
resulted in a substantial increase in the number of e-filed
returns. One-half of the returns filed in 2007 were filed electronically.
More than 2.2 million NJ-1040 returns were e-filed, and more
than 200,000 were submitted via other electronic filing options.
For
Tax Year 2007 all practitioners who prepared 50 or more TY06
returns will be required to file their clients’ TY07 returns
electronically. Because of this mandate, the New Jersey Division
of Revenue anticipates another substantial increase in the number
of e-filed returns. Electronic filing continues to address several
complex problems experienced by both tax practitioners and taxpayers
filing paper income tax returns with the State of New Jersey.
Here are some examples of the benefits of e-filing:
-
Elimination of character recognition and keypunch errors.
-
Quicker turn-around-time of refunds (two weeks vs. four to
six weeks).
-
Confirmation that the return was received (receipt of an acknowledgment/status
of processing).
-
Ability to quickly identify and correct errors then re-file
rejected returns.
-
Use of the E-File Hotline as a resource to resolve problems.
The
Division of Revenue’s mission is to provide accurate,
efficient, timely and responsive services to the business community,
taxpayers and State government. New Jersey's Individual Income
Tax Electronic Filing Program is essential to attainment of
this mission. In this connection, New Jersey E-File helps us
increase our effectiveness and reduce processing costs. We look
forward to continually improving our electronic government service
programs, and will work in partnership with the practitioner
community to ensure that our services are responsive to the
needs of the New Jersey taxpayers.
Visit
our web site at
www.state.nj.us/treasury/revenue and access the "What's
New" page to learn more about New Jersey's Individual Income
Tax Electronic E-filing Program, the Partnership E-filing program,
and the Division's other electronic service initiatives.
Thank
you for your participation in this program and best wishes for
the continued success of your business.
James J. Fruscione
Director
INTRODUCTION
This
document is for practioners and is available on the
Division of Revenue's web page. This manual includes criteria
for filing, administrative procedures and contact numbers. Tax
Year 2007 (TY07) provides an opportunity for another significant
increase in the number of individual income tax returns filed
electronically.
Paid
preparers who have never participated in the Federal/State Electronic
Filing (E-File) Program before should contact the IRS coordinator
at the Newark, NJ, District Office, since this program includes
both the Federal and State returns. The telephone number for
the Newark office is 973.645.6690. The mailing address is:
IRS/Newark
Attn: Electronic Filing Coordinator
PO Box 668
Newark, NJ 07101-9788
New
or revised for Tax Year 2007
| • |
The
New Jersey E-file mandate has been changed. R.S.54:48-2,
P.L.1992, c.175 and R.S.54:49-4 were amended. Tax Practitioners
who filed 50 or more NJ- 1040 returns in TY06 must e-file
in TY07.
|
| • |
A
$50 Penalty for each return not e-filed will be imposed
on the practitioner. See Taxation for full details: http://www.state.nj.us/treasury/taxation/text/efilemandatetxt.htm
|
| • |
ERO/Practioners
are required to have a valid EFIN issued by the IRS. They
no longer are required to register with New Jersey.
|
| • |
Civil
Union couples - In the past, the filing status chosen
for the Federal and State return was always the same.
With a Civil Union, the Federal 1040 may be 1-Single while
the NJ-1040 has a filing status of 2-Filing Joint return.
This exception is only for those NJ returns where a Civil
Union exemption is taken.
|
| • |
EITC
eliminates a NJ gross income limit and relies on the Federal
limits.
|
| • |
EITC
eliminates the qualifying child requirement.
|
| • |
If
the taxpayer wishes to pay an amount greater than the
tax due, especially interest due on a return filed
after April 15, that additional amount must be entered
in special fields created for e-file returns. These fields
do not correspond to any lines or check-offs on the paper
return. They are e-file only.
|
| • |
Line
45 is only for the amount due as calculated in the schedule
NJ-2210.
|
| • |
A
2-digit code must be entered on the NJ-1040 if the NJ
Schedule A is attached. A list of codes is attached to
both the end of this Handbook and the layout.
|
| • |
If
wages and pensions are both equal to 0, then withholding
must also be equal to 0.
|
I.
GENERAL
New
Jersey is again participating in the Joint Federal/State Electronic
Filing Program for individual income tax returns. This handbook
is designed to aid practitioners in the preparation of New Jersey
E-filed Returns for TY07.
If
you have any questions, comments, or suggestions, you may direct
them in writing to:
New
Jersey Division of Revenue
E-File-NJ-1040
PO Box 191
Trenton, NJ 08646-0191
You
may also FAX transmissions to 609.292.1777; send e-mails to
our E-File Coordinator Tim Bachman, or to Anthony Johnson, Assistant
E-file Coordinator; and/or call our hotline at 609.633.1132.
II.
WHO MUST E-FILE FOR TAX YEAR 2007 (E-file Mandate)
The
tax year 2007 electronic filing mandate includes tax practitioners
(firms and individuals) who prepared 50 or more 2006 NJ Income
Tax Resident Returns. For additional details see Taxation’s
web page: http://www.state.nj.us/treasury/taxation/pdf/1040efiling.pdf.
Non-resident, part-year resident, prior-year, amended, and fiduciary
returns are not included in the e-filing mandate. Fiduciary
returns cannot be e-filed.
Practitioners
who filed less than 50 NJ Income Tax Returns (NJ-1040) for 2006
are not required to file electronically, but are strongly encouraged
to do so.
Electronic
filing benefits everyone – taxpayers, practitioners, and
State government. Faster refunds, direct deposit of refunds,
postdated payments (up to April 16, 2008), more accurate processing,
and greater security of sensitive information are just some
of the advantages offered by New Jersey. By electronic filing
State income tax returns, practitioners are providing their
clients with the best possible service.
III.
FORMS
Electronic
Returns
New Jersey accepts both generic and unformatted records for
the NJ-1040/TR-1040, NJ-1040 Part-Year, and Non-Resident returns.
The
generic electronic return provides a basis
for e-filing the NJ-1040 (Income Tax Resident Return), TR-1040
(Tenant Rebate Application), and the NJ-1040NR (Non-resident
Income Tax Return). The NJ-1040 can also be filed as a Part
Year return. Taxpayers may file the NJ-1040 and the TR-1040
together or may file only one of these returns. The TR-1040
cannot be filed with the NJ-1040NR. Under certain circumstances
the filing of additional unformatted forms and/or schedules
is also required.
* The NJ-630 is also a generic record since
it will be sent as a stand-alone form.
New Jersey will accept most returns electronically:
- Refunds,
zero balance returns, balance due returns
- Most
supporting documents, forms and schedules will be accepted.
- The
Schedule B can be summarized.
-
Corrected returns when the initial return rejected
New
Jersey will not accept certain filings electronically:
- Full-year
resident filing a joint return with a part-year resident.
- Full
or part-year resident filing jointly with a non-resident.
-
Amended returns when the initial return was accepted.
- Filings
for estates and/or trusts (NJ-1041).
- NJ-1040
with out-of-country addresses.
- Also,
New Jersey cannot accept more schedules than the amount accepted
by the IRS.
New
Jersey requires the FID/EIN/SSN/STIN or PTIN, the name, address
and city of the paid preparer to be included in the electronic
return. Failure to include the STIN/PTIN/SSN will
cause the return to be rejected. In instances
where the ERO is not the paid preparer, "999999999" should be
entered in the STIN/PTIN field.
Acknowledgment records will be transmitted
to the IRS to be retrieved by software developers and/or transmitters
and forwarded to practitioners.
Paper
Returns
The
Division of Taxation’s Systems and Technology provides
approval for all other paper return formats and can be reached
at 609.633.3878 or by writing to:
NEW
JERSEY DIVISION OF TAXATION
FORMS SECTION ATTN: ANNE WYSOCKI
P.O. BOX 269
TRENTON, NEW JERSEY 08695-0269
The NJ-8879 may be kept by the ERO for his/her record. It is
not to be sent to New Jersey.
IV.
ACCEPTANCE INTO THE E-FILE PROGRAM
New
Jersey obtains registration information from the IRS registration
file for EROs. One should not attempt to file returns electronically
until an identification number (EFIN) from the IRS has been
received and made available to New Jersey.
New
participants in the e-file program should contact the IRS, since
Federal registration is required. All required identification
numbers are issued by the IRS. (New Jersey does not issue EFINs
or ETINs.) There is an IRS deadline for filing applications,
but there is no deadline for New Jersey.
V.
REGISTRATION
Transmitters
Transmitters
who have not previously registered with New Jersey must submit
a properly completed registration form for TY07. It is important
that all ETIN numbers be registered. New Jersey does not require
transmitters to register on a yearly basis. Transmitters should
not provide their customers with New Jersey registration forms
with a pre-filled ETIN .
Transmitters are required to pass testing each year.
Electronic
Return Originators (EROs)
Practitioners
need to have the IRS assign them an EFIN. Practitioners/EROs
do not need to register with New Jersey. We will check the EFIN
with the IRS database.
Software
developer FIDs, Transmitter ETINs, and ERO/Practitioner EFINs
are verified. ID numbers appearing in electronic returns that
are not registered with New Jersey will cause the return to reject.
| Glosary: |
| FID |
Federal
Identification Number |
| ETIN |
Electronic
Transmitters Identification Number |
| ERO |
Electronic
Return Originator |
| EFIN |
Electronic
Filers Identification Number |
| SSN |
Social
Security Number |
| PTIN |
Preparer
ID (may be used by the paid tax preparer in lieu of their
SSN) |
| STIN |
Preparer
ID (may be used by the volunteer tax preparer in lieu of
their SSN) |
There
is no requirement to be bonded to participate in New Jersey's
Program.
VI.
DIRECT DEPOSIT - DIRECT DEBIT
New
Jersey offers both Direct Deposit for refunds and Direct Debit
for payment of balances due. They can be made to either a checking
or savings account. Use of direct deposit speeds up the refund
process. Use of a direct debit aids the taxpayers in quickly
meeting their tax obligations.
Direct
Debit amount must be for the full
tax amount due. It must equal the amount in line 54,
Amount You Owe. New Jersey will allow taxpayers who choose Direct
Debit as their method of payment to select the date the funds
will be withdrawn from their savings or checking account. Taxpayers
can file their returns in January and not have the payment withdrawn
from their account until as late as Monday April 15, 2008. They
may not choose a date after April 15, 2008. Returns filed after
the 16th will have the direct debit made on the day after the
return is processed. If the date chosen is in the past, the
debit will process as soon as the return is processed. If the
date chosen is a bank holiday or a weekend, the debit will process
on the following business day.
Returns
filed after the 16th will have the direct debit made on the
day after the return is processed. If the date chosen is in
the past, the debit will process as soon as the return is processed
and posted. If the date chosen is a bank holiday or a weekend,
the debit will process on the following business day.
Direct
Deposit will be made as soon as the approved
NJ-1040 is processed. If the data required for direct deposit
is inaccurate or incomplete, the error code 0299 / field 024
will be issued. If that is the only error, the return will process
but the refund will be issued by check.
The
most common error is incorrect data in the direct deposit refund
type section. If this field is left "blank" the refund will
be issued as a paper check and mailed to the taxpayer even though
the rest of the direct deposit data fields are correct.
| Caution: |
Do not
use any dashes, slashes, and/or blank spaces in the account
numbers. This could jeopardize processing of direct deposits
and direct debits, resulting in potential penalties and/or
interest if payments/deposits are held up or not made at
all. |
VII. "STATE-ONLY" PROGRAM
New
Jersey is a participant in the IRS "State-Only" Program. We
accept New Jersey State returns forwarded without the corresponding
Federal return through the Fed/State program. This includes
resident, non-resident, and part-year resident returns. In addition,
New Jersey accepts the e-file retransmission of a previously
rejected NJ state return. Please contact your software developer
to verify whether you can resubmit rejected returns.
* The New Jersey Application for an Extension,
NJ-630 is a State-Only e-filing.
VIII.
MONITORING AND SUSPENSION OF PRIVILEGES
New
Jersey monitors all parties involved in the electronic filing
process. All entities involved in this process are subject to
the rules and regulations set forth in this document, as well
as the laws, statutes, rules, and regulations that relate to
New Jersey Income Tax. Failure to comply with program mandates
will result in warnings and/or suspension from the program.
Electronically filed returns from suspended entities will not
be accepted.
IX.
PROVIDING DOCUMENTS TO TAXPAYERS
EROs
must furnish taxpayers with documentation of all New Jersey
forms filed on their behalf. These should include, but not be
limited to, a properly completed NJ-1040, NJ-1040/TR-1040 and
NJ-1040NR. Also, EROs should advise taxpayers to retain their
copies of W-2s, 1099s, and any documents that were used to prepare
returns.
X.
CONTACTING THE DIVISION
EROs
and Transmitters
Technical
calls dealing with transmissions, acknowledgment records, testing,
etc., should be directed to the Division of Revenue at 609.633.1132.
| Note: |
This
phone number is not for tax questions and is not to be
given out to the general public. this means that software
developers and EROs should not provide this number to
taxpayers. This number exists exclusively to provide assistance
to software developers and EROs. |
Practitioners
Practitioners
have a special phone number that they can utilize when calling
the Division of Taxation on tax related matters. They should
use that number.
Taxpayers
The
phone number below is provided for taxpayers who have inquiries
regarding their returns. All such inquiries should go through
the New Jersey Division of Taxation Call Center at 609.292.6400.
The phone number for automated refund information is 1.800.323.4400.
XI.
FEDERAL/STATE ELECTRONIC BULLETIN BOARD
The
IRS has established a bulletin board (the BBS) for the electronic
filing program. As with most bulletin board services, the cost
of the call is yours, but information is readily available from
the IRS, various posting states, etc. To access the BBS, call
859.292.0137.
The
Division of Revenue has also established a home page on the
Internet at http://www.state.nj.us/treasury/revenue.
This site is used to post information relating to the E-File
Program, as well as a wide variety of other topics.
XII.
EXTENSIONS
In
certain circumstances, New Jersey will allow electronic returns
to be filed beyond the normal deadline of April 15, 2008. An
extension will only be accepted if it has been properly requested.
Extensions require either the filing of form NJ-630, Application
for Extension of Time to File New Jersey Gross Income Tax Return
or filing a request for a Federal Extension.
If
a direct debit payment is to be included, the NJ-630 should
be used.
The
NJ-630 can be filed on the New Jersey Division of Taxation web
page at: http://www.state.nj.us/treasury/taxation/text/onlinetxt.htm
XIII.
STATE ACKNOWLEDGMENTS
State
Acknowledgements
The
Internal Revenue Service provides State Acknowledgement service
on its Front End Processing System EMS (Electronic Management
System). The State of New Jersey will send their Acknowledgements
to EMS for trading partners to pick up, when they pick up their
Federal Acknowledgements. New Jersey will store the Global Transaction
(GTX) Key provided by the IRS for use by our help desk. If a
State Acknowledgement file needs to be re-hung, the ERO will
contact the Trading Partner who will contact the State of New
Jersey to look up the GTX Key. If a trading partner has a question
about the file, they should contact the state.
New
Jersey acknowledges all electronic returns received. Clients
receive acknowledgments from both the IRS and the State of New
Jersey. It should be noted that a Federal acknowledgment does
not extend to the corresponding State return. A Federal acknowledgment
means only that the State portion has been made available to
that State.
An
acceptance from New Jersey does not imply that the return, in
its entirety, is correct. It acknowledges only that the return
conforms to the required standards for electronic filing. New
Jersey acknowledgments will be transmitted to the IRS System
for retrieval.
If
not using direct debit, payments with the voucher 1040-V should
be forwarded along with the accompanying payment vouchers to
the following address:
State
of New Jersey
Division of Taxation
Revenue Processing Center
P.O. BOX 111
Trenton, New Jersey 08646-0111
XIV.
PINs (Personal Identification Numbers)
E-filed
New Jersey returns are accepted without a PIN.
We
encourage but do not mandate the use of a PIN (i.e., entry of
a Federal Self-select or Practitioner PIN). Use of the PIN simplifies
and accelerates the filing process. The NJ record layout contains
fields for the entry of a primary PIN and a spouse PIN
XV.
SIGNATURE DOCUMENTS
NJ
Division of Taxation no longer requires any signature document
for any e-filed New Jersey return. Practitioners may choose
to maintain a signed copy of an NJ-8879 or similar document
in their records. The form NJ-8879 is not to be
mailed to the State of New Jersey.
| Remember:
|
- The
State of New Jersey does not require the use of a signature
document for New Jersey Gross Income Tax returns filed
electronically. http://www.state.nj.us/treasury/taxation/text/nottaxpracttxt.htm
-
Practitioners are not required to retain the form NJ-8879,
NJ E-file Signature Authorization or the form NJ-8453,
State of New Jersey Individual Income Tax Declaration
for Electronic Filing.
-
Practitioners have the option to use and retain copies
of form NJ 8879 as a document to confirm that their
client has reviewed their return and attests to its
accuracy.
|
XVI.
TY07 E-FILE CALENDAR
The following dates relate to the coming E-file tax season:
| Return
period |
January
1, 2007 - December 31, 2007 |
| Deadline
to register |
None,
(but must register prior to transmitting) |
| Begin
live transmissions |
Friday,
January 11, 2008* |
| Last
date for timely filing |
Monday,
April 15, 2008 |
| Last
date for late transmissions |
Monday,
October 20, 2008 |
*
Due to possible changes in the IRS systems caused by the AMT
patch,
this starting
date may be changed.
.
XVII.
MISCELLANEOUS CONTACTS, TELEPHONE NUMBERS, AND MAILING
ADDRESSES
The
following numbers are provided for your information:
| Alcoholic
Beverage Tax |
609.984.4121
|
| Client
Registration |
609.292.1730
|
| Corporate
Mergers, Dissolutions |
609.292.9292
|
| Corporate
Tax Liens |
609.292.9292
|
| Director's
Office - Revenue |
609.984.3997
|
| Director's
Office - Taxation |
609.292.5185
|
| Electronic
Filing Program (E-file) |
609.633.1132
|
| Electronic
Funds Transfer (EFT) |
609.984.9830
|
| Forms
- Tax Fax |
609.826.4500
|
| Forms
- Tax Talk |
800.323.4400
(Touch-tone
phones in NJ only) |
| Inheritance
Tax |
609.292.5033
|
| IRS
E-file Washington DC |
800.829.1040
|
| IRS
Newark |
973.645.6690
|
| Local
Property Tax |
609.292.7221
|
| Motor
Fuels Tax Refunds |
609.588.3688
|
| Public
Utility Tax |
609.584.4337
|
| Recorded
Tax Topics |
800.323.4400
(Touch-tone
phones in NJ only)
|
| Speaker
Programs |
609.984.4101 |
| Tax
Call Center |
609.292.6400
|
| Tax
Cheats |
609.292.6400
|
The
following URLs and e-mail addresses are also provided for you
information.
Some
of the more common mailing addresses:
| EFT |
NJ
Division of Revenue
EFT Group
P.O. Box 191
Trenton, NJ 08646-0191 |
|
| E-File |
NJ
Division of Revenue
E-file
P.O. Box 191
Trenton, NJ 08646-0191 |
|
| Forms |
NJ
Division of Taxation
P.O. Box 269
Trenton, NJ 08695-0269
Attn: Taxpayer Forms Service |
|
| NJ
Package X |
Package
X has been discontinued for tax year 2007 and after.
http://www.state.nj.us/treasury/taxation/njx07.htm |
|
| State
Tax News |
NJ
Division of Taxation
P.O. Box 281
Trenton, NJ 08695-0281 |
|
| Tax
Cheats |
NJ
Division of Taxation
Compliance Activity
P.O. Box 245
Trenton, NJ 08695-0245 |
XVIII.
ABBREVIATIONS
EROs
are asked to use a certain set of abbreviations. The following
is a list of preferred abbreviations:
| WORD
|
ABBREVIATION
|
|
WORD
|
ABBREVIATION
|
| And
|
& |
|
North |
N |
| Air
Force Base |
AFB |
|
Northeast
|
NE |
| Apartment |
APT |
|
Northwest
|
NW |
| Avenue
|
AVE |
|
One-Half |
1/2 |
| Boulevard
|
BLVD |
|
Parkway |
PKY |
| Building |
BLDG |
|
Place |
PL |
| Care
of, or In Care of |
C/O |
|
Post
Office Box |
PO Box |
| Circle |
CIR |
|
Route,
Rte. |
RT |
| Court
|
CT |
|
Road |
RD |
| Drive
|
DR |
|
Rural
Delivery |
RD |
| East
|
E |
|
Rural
Route |
RR |
| Fort |
FT |
|
South |
S |
| General
Delivery |
GEN DEL |
|
Southeast |
SE |
| Heights
|
HTS |
|
Southwest |
SW |
| Highway |
HWY |
|
Square |
SQ |
| Island |
IS |
|
Street |
ST |
| Lane
|
LN |
|
Terrace |
TER |
| Junction
|
JCT |
|
West |
W |
| Lodge |
LDG |
|
|
|
XIX.
REMINDERS
| Remember:
|
Generally
your software will require you to indicate if you want
to create a State return to accompany the Federal return.
The New Jersey return will only be created if you respond
to the prompt.
If
there are any questions or concerns about this program,
the Division of Revenue can be contacted at 609.633.1132.
|
XX.
LIST OF CODES FOR CREDITS TO OTHER JURISDICTIONS
|
State/City |
Code
|
|
State/City |
Code
|
| Multiple
States |
00
|
|
Nebraska |
27
|
| Alabama |
01 |
|
Nevada |
28 |
| Alaska |
02 |
|
New
Hampshire |
29 |
| Arizona |
03 |
|
New
Jersey |
30 |
| Arkansas |
04 |
|
New
Mexico |
31 |
| California |
05 |
|
New
York |
32 |
| Colorado |
06 |
|
North
Carolina |
33 |
| Connecticut |
07 |
|
North
Dakota |
34 |
| Delaware |
08 |
|
Ohio |
35 |
| Florida |
09
|
|
Oklahoma |
36 |
| Georgia |
10
|
|
Oregon |
37 |
| Hawaii |
11 |
|
Pennsylvania |
38 |
| Idaho |
12 |
|
Rhode
Island |
39 |
| Illinois |
13 |
|
South
Carolina |
40 |
| Indiana |
14 |
|
South
Dakota |
41 |
| Iowa |
15 |
|
Tennessee |
42 |
| Kansas |
16 |
|
Texas |
43 |
| Kentucky |
17 |
|
Utah |
44 |
| Louisiana |
18 |
|
Vermont |
45 |
| Maine |
19 |
|
Virgina |
46 |
| Maryland |
20
|
|
ashington |
47 |
| Massachusetts |
21 |
|
West
Virgina |
48 |
| Michigan |
22 |
|
Wisconsin |
49 |
| Minnesota |
23 |
|
Wyoming |
50
|
| Mississippi |
24 |
|
Washington
DC |
51 |
| Missouri |
25 |
|
Philadelphia |
52 |
| Montana |
26 |
|
ther |
53 |
|
