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New Jersey

Change the managerial member on Form CBT-100U

The state of New Jersey requires the managerial member to be the entity with nexus.
The NJ managerial member must be an entity that has nexus in the state as the principal reporting entity (or parent return). For this situation, you can create a new TopCon binder in order to meet the state's e-filing requirements.
To change the managerial manager on New Jersey's combined return, Form CBT-100U:
  1. Create a new TopCon binder.
  2. In this new TopCon binder, go to Binder Properties, and then Members.
  3. Select Set as parent for the NJ parent.
  4. Next go to Tax Accounting System (TAS), Consolidate, and consolidate the binder. This step updates the member listing, including the parent line in Organizer, Consolidated Returns, Step 1 - What to Consolidate, Consolidated Return list.
  5. Now you can verify the parent and all other binders are ordered correctly before moving on to the next step. The parent entity is the managing member and should have nexus in NJ.
  6. Next go to Organizer, Consolidated Returns, Step 4 - Review Preconsol Checklist, Out of balance and compute pending.
  7. Select Compute all Subsidiaries Now to give the system a chance to pick up all member details.
  8. Go to Organizer, Consolidated Returns, Step 5 - Consolidate!, and then Consolidation section.
  9. Select Consolidate.
  10. Next review the state setup by going to Organizer, States, State and City Activation/Consolidation, and then Column C.
  11. Set both Allocation & Apportionment and New Jersey to Combine.
  12. Next right-click/select the cell in column A for A&A and NJ and select Subview to ensure all members have both A&A and NJ marked Activate.
  13. Select Subview for column E (entity type) to ensure each entity has the correct entity type. The parent should be set to 2 (for parent), the other members should be set to 3 (for subsidiary), and the elimination should be set to 4. No entity should have a 1 (single company) assigned.
  14. Go to Organizer, States, New Jersey, Combined Return Information.
  15. In Combined Report Options, check Filing combined Form 100U and select Transfer to all.
  16. Complete all other required information and select Transfer to all as needed, including the filing method default.
  17. In Member Options, make the required selections and select Transfer to all for each item.
  18. For item 2 (If member does not have nexus with New Jersey, check box), use subview to make sure all entities without nexus have this option selected, including the elimination binder.
  19. Reconsolidate the return.
    note
    If any of these items change, the NJ area of the TopCon must be reset by deleting the state in Organizer, States, State and City Activation/Consolidation, State and City Activation/Consolidation, and then Delete. Once the state was removed, began back at step 14.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1120 Corporation
  • State: New Jersey
  • Subject: Consolidations

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