Charles Jones Blog


I want to provide some background concerning a question that we receive from customers regarding turn time for a New Jersey Franchise Tax Search, which identifies if a domestic or foreign corporation transacting business in New Jersey has actually paid its franchise taxes. Uncovering this information is important as unpaid franchise taxes constitute a lien on all of the corporation's property for a period of ten years, which is computed from the first day of the year in which the tax is due and payable. However, the lien is imposed on the first day of the year following the year in which the tax is due. Therefore, the accuracy and timeliness of this information is important to those involved in the business transaction.

If you are a customer of New Jersey Franchise Tax Searches, you may have experienced a turn time anywhere from one week to ten weeks. This turn time is not isolated to Signature.

Franchise tax data is supplied to us by the Division of Taxation at the State of New Jersey.  Once an order is placed with us, we perform some preliminary research to obtain information that we supply to the State with our request, in order to help facilitate getting the franchise tax data for our customer.

Once we request the data from the State, the State assigns the request to a tax auditor. The auditor must do more research in order to determine if any franchise taxes are outstanding. The timing of this part of the process can vary depending on work volume and priorities.

While our request is pending with the State, we keep an eye on the status and make inquiries if necessary. Sometimes a customer may question the data furnished by the State, or we may notice furnished information that could possibly be incorrect. We work with both the customer and the State and will refer our client to the Division of Taxation if needed.

While patience can be key, we do our best to make the Franchise Tax Search process as fast as possible for our customers. Do you have any questions about Franchise Tax Searches? We’d be happy to discuss them with you.

The information provided is for informative purposes only and is not intended to be legal advice or a legal opinion. For legal advice, please consult an attorney.

Mark McAteer

New Jersey Corporate Services Supervisor

 

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