I spoke with someone in Kathy Haller's office (Division of
Taxation - 609-292-1434) (she's the official source, but was
late arriving this morning) about some issues revolving
around the changes in the partnership filing fee rules for
investment clubs.

1) How does a club indicate it is exempt from the filing
fee?

By checking "investment club" at the top of NJ-1065 and not
filing PART-100. (Presumably, the state can and will audit
some of these returns to assure that clubs are not illegally
avoiding payment of the filing fee.)


2) If a club paid the filing fee for 2002 because it had
more than $60,000 in assets (old rule), but had less than
$250,000 in assets (new rule), how does it apply for a
refund?

Get a fresh copy of the 2002 PART-100.
http://www.state.nj.us/treasury/taxation/pdf/other_forms/partnership/02part100.pdf

Fill it in showing $0 on lines 1 through 6. On line 7,
enter the amount shown on Line 1 of the original 2002
PART-100. (DO NOT INCLUDE THE INSTALLMENT PAYMENT SHOWN ON
LINE 2 OF THE ORIGINAL PART-100. The installment payment
will be applied or refunded when you file your 2003 return.)

Enter $0 on line 8, and copy the amount from line 7 to line
9.

IMPORTANT: Write "AMENDED" at the top of the PART-100.


3) If a club is subject to the filing fee for 2003 but knows
that it won't be subject in 2004 (it will manage its assets
to keep below the threshold), does it have to make the
installment payment?

Yes. It can recover the installment payment when it files
its 2004 NJ-1065.


4) The exemption threshold is to be adjusted annually for
inflation. What are the 2003 limits?

They haven't been released yet.


Hope this helps everyone.

Ira Smilovitz