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NJ
Division of Taxation |
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| PART-160 PARTNERSHIP UNDERPAYMENT OF ESTIMATED TAX |
| Purpose of Form |
| This Form PART-160 is used by partnerships to determine whether they paid enough estimated tax, whether they are subject to an interest charge for underpayment of estimated tax, and if so, the amount of interest. |
| How to Use This Form |
| Complete Part I of Form PART-160 to find out if you have an underpayment for any of the four payment periods. If you have an underpayment on Line 9 (Column a, b, c or d), go to Part II, Exceptions. If you cannot meet either of the exceptions for a payment period, go to Part III, Installment Interest Due. If you are using Form PART-160 either to compute the interest on underpayment of estimated tax or to show that you qualify for any exception, attach Form PART-160 to your tax return, Form PART-100. |
| Part I - How to Compute Your Underpayment | ||
| Complete Lines 1 through 9 in Part I. The instructions for most of these lines are on the form itself. Follow the instructions below for the lines indicated. | ||
| Line 1 - | Enter in Column (a) the total of lines 3 and 4 from Form PART-100. | |
| Line 7(b) - | Enter any overpayment shown on Line 9 that is more than the total of all earlier underpayments. | |
| Line 9 - | If Line 9 shows an underpayment, complete Part II to see if either of the exceptions apply. | |
| Part II - Exceptions | |||
| You will not have to pay interest if all of your tax payments (Part II, Line 10) were made on time and are equal to or more than either of the amounts computed as explained by the exceptions (Lines 11 and 12) for the same payment period (Column a, b, c or d). | |||
| Exception I - Tax Based on Prior Year's Return Using Current Year's Rates | |||
| This exception applies if the amount the partnership paid is equal to or more than the tax computed by using the current year's rates but based on the facts shown on the prior year's return and the law that applies to the prior year. If the prior year return covered a period of less than a year, the prior return must be annualized by dividing the taxable net income by the number of whole months covered by the short period return and multiplying by 12. | |||
| Exception II - Tax Based on Annualized Tax | |||
| This exception applies if the estimated tax paid was equal to or more than 90% of the amount the partnership would owe if its estimated tax was based on a tax computed from annualizing tax for the months preceding an installment date. | |||
| A partnership may annualize its tax as follows: | |||
| a. | For the first 3 months if the installment was required to be paid in the 4th month. | ||
| b. | For the first 3 months or for the first 5 months if the installment was required to be paid in the 6th month. | ||
| c. | For the first 6 months or for the first 8 months if the installment was required to be paid in the 9th month. | ||
| d. | For the first 9 months or for the first 12 months if the installment was required to be paid in the 1st month succeeding the close of your tax period. | ||
| Part III - Installment Interest Due |
| If no exception applies, complete Lines 13 through 18. |
| A payment of estimated tax on or before any installment date is considered a payment of any previous underpayment only to the extent the payment is more than the amount of the current installment as figured on Line 6. If the partnership made more than one payment for an installment, attach a separate computation for that installment. |
| Interest is computed on the amount of the underpayment from the installment due date to the date of payment or the original due date of the final tax return, whichever is earlier. The annual interest rate is 3% above the average predominant prime rate and is imposed each month or fraction thereof the underpayment exists. Changes in the average predominant prime rate must be reflected in the interest calculation. The interest rates assessed by the Division of Taxation are published in the quarterly issues of the New Jersey State Tax News. |
| The average predominant prime rate is the rate as determined by the Board of Governors of the Federal Reserve System, quoted by commercial banks to large businesses on December 1st of the calendar year immediately preceding the calendar year in which payment was due or as redetermined by the Director in accordance with N.J.S.A. 54:48-2. |
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Note: Round amounts to the nearest whole dollar. BUTTON DESCRIPTIONS Calculate: To validate and calculate lines 17a, 17b, 17c, and 17c into Line 18. Submit Installment Interest and Return Part-100: Performs Calculate and returns Line 18 value to Part-100 Line 6. Return Part-100 Without Update: Returns to Part-100 without updating Part-100 Line 6. Reset: To clear all entries. Return to Filing and Payment Options: To return to Partnership - Filing and Payment Options page. Help: To view any of the help pages. Logout: To exit the program. |