Understanding the CBT-2553 is essential for New Jersey corporations pursuing an S corporation election or Qualified Subchapter S Subsidiary (QSSS) designation. The New Jersey Division of Taxation reviews each application and grants this election to eligible business entities, allowing them to benefit from pass-through tax treatment at the state level. This guide covers who needs to file, what the application requires, and key deadlines to keep in mind.
The CBT-2553 election applies to these categories of New Jersey business entities:
A complete CBT-2553 application includes the following information for each owner and the corporation:
The Division of Taxation requires the CBT-2553 to be filed by the 15th day of the fourth month of the tax year for which the election is intended. If a corporation misses this deadline, a late election application may be available under certain relief provisions. Once the election is accepted, it remains in effect until the corporation revokes it or loses eligibility under New Jersey law. An updated guidance document on late election relief is published periodically by the Division of Taxation on its official website.
How does the CBT-2553 differ from the federal S corporation election?
The federal S corporation election is a separate process handled by the IRS using the IRS 2553 election document. New Jersey corporations must complete both the federal and state elections to receive S corporation tax treatment at each level. The CBT-2553 is the New Jersey Division of Taxation's specific application for state-level election recognition.
Is the most updated CBT-2553 available online?
Yes. The updated CBT-2553 is available on this page for online completion and download. This guide is reviewed periodically to reflect any changes issued by the New Jersey Division of Taxation. Corporations that need to revoke an existing election may also find the NJ CBT-2553-R revocation document useful.
What happens to personal data submitted with the CBT-2553?
Business and personal information included in the election application is processed under New Jersey state information privacy policy guidelines. The Division of Taxation uses this data exclusively for tax administration. Contact the Division of Taxation directly for details about its data retention and privacy policy practices.
| Question | Answer |
|---|---|
| Form Name | Cbt 2553 Form |
| Form Length | 4 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 1 min |
| Other names | where 2553 form, form cbt 2553, new jersey cbt 2553, new jersey form 2553 |
