CBT-160-B: Underpayment of Estimated Corporation Business Tax on Gross Receipts of $50 million or more (2024)
New Jersey · NJ Division of Taxation · Used for tax years 2024
New Jersey Form CBT-160-B helps corporations with total gross receipts of $50 million or more determine whether they paid enough estimated Corporation Business Tax for 2024. It calculates installment underpayments, checks exceptions to interest charges, and figures any installmen
Who files this form
Corporations with total gross receipts of $50 million or more should use Form CBT-160-B. This includes separate and combined filers.
Use it to determine whether you paid enough estimated Corporation Business Tax and whether you owe interest for an underpayment. If you use the form to calculate interest or show that you qualify for an exception, submit it with Form CBT-100, CBT-100S, or CBT-100U.
When it's due
For the 2024 tax year:
- Enter estimated-tax installment dates that fall on the 15th day of the fourth, sixth, and 12th months of your tax year.
- For the interest calculation, use the payment date or the 15th day of the fifth month after the close of your tax year, whichever is earlier.
The form says to submit CBT-160-B with your tax return, but does not state a separate filing deadline.
What you'll need
Have these returns and details available to complete the form:
- Your 2024 Form CBT-100, CBT-100S, or CBT-100U. Line 1 uses page 1, line 6 of CBT-100, line 4 of CBT-100S, or line 5 of CBT-100U.
- Your corresponding 2023 return. Line 3 uses the same line numbers from that year's return.
- Your name as shown on the return, Federal ID Number, and Unitary ID Number, if applicable.
- Estimated-tax payment amounts, credits, and payment dates for each installment period.
- If claiming an exception, the prior-year return facts or tax information for the months used in the annualized-tax calculation.
If you made more than one payment for an installment, include a separate computation for that installment.
How to file
- Complete Part I, lines 1 through 9, to check for an underpayment in each of the three payment periods.
- If line 9 shows an underpayment, complete Part II to check whether an exception applies.
- If neither exception applies for a payment period, complete Part III to calculate interest.
- Enter the total interest from line 18 on page 1, line 12 of CBT-100 or CBT-100S, or page 1, line 14 of CBT-100U.
- Submit CBT-160-B with your CBT-100, CBT-100S, or CBT-100U when using it to calculate interest or claim an exception.
Banking and financial corporations are subject to electronic filing requirements for all tax filings and payments beginning with privilege periods ending on and after July 31, 2023. The instructions direct these corporations to the Division's website for more information.
The text does not provide a mailing address or specific electronic submission steps for this form.
Common mistakes
Do not overlook the note about Corporate Transit Fee relief. No penalties or interest will be imposed on an underpayment resulting from that fee during its first year of enactment.
If those charges are assessed, the instructions say to contact the Division in writing at the address on the notice and request an abatement due to the law change.
Questions people ask
Does every underpayment result in interest?
No. For a payment period, you do not owe interest if your payments were made on time and equal or exceed the amount required under either exception in Part II.
What are the two exceptions?
Exception I uses the facts and applicable law from the prior-year return, but applies current-year rates. Exception II uses annualized tax for the months preceding an installment date.
What if my prior-year return covered less than a full year?
For Exception I, annualize the prior return by dividing taxable net income by the number of whole months covered by that return, then multiplying by 12.
How is underpayment interest calculated?
The annual interest rate is 3% above the average predominant prime rate. Interest applies for each month or fraction of a month the underpayment exists, so part of a month counts as a full month. Changes in the prime rate must be reflected in the calculation. The Division publishes its assessed interest rates on its website.