• Taxpayer’s Addback Exception Upheld
  • September 15, 2010 | Authors: Michele Borens; Jeffrey A. Friedman; Stephen P. Kranz; Marc A. Simonetti; Eric S. Tresh
  • Law Firms: Sutherland Asbill & Brennan LLP - Washington Office ; Sutherland Asbill & Brennan LLP - New York Office ; Sutherland Asbill & Brennan LLP - Atlanta Office
  • On August 31, 2010, the New Jersey Tax Court upheld a taxpayer’s “unreasonable exception” from the New Jersey related party addback statute. With the growth of related party addback provisions (22 jurisdictions currently impose related party addback provisions), the ability to qualify for exceptions from addback requirements is growing in importance. While a few cases have been decided in other states, (e.g., VFJ Ventures, Inc. (Alabama) and Family Dollar Stores of Ohio, Inc. (Ohio)), Beneficial New Jersey, Inc. is the first New Jersey case to address the related party addback.