New Jersey Aims to Close Tax Gap From Intercompany Pricing

Businesses that may have engaged in questionable intercompany transactions to lower their tax obligations in New Jersey will have a chance to come in from the cold under a limited transfer pricing initiative.

The New Jersey Division of Taxation called on large businesses with “intercompany pricing issues” (IPI) on previous tax returns to enter settlement negotiations with the division by Sept. 15. They would have an opportunity to close out any pricing issues for open tax years, and make payments for back taxes and interest without penalty. The program is scheduled ...