I think Wiles needs to check to see if his client submitted a completed NJ form 1080-E to the S-corp authorizing his participation in composite filing. If so, the client may be out of luck as that income is taxed at the highest rate and I believe he waives the right to file to recover over payment on that share of income. (contrary to my earlier opinion)
Is this important? I have a NJ partnership client with an NR partner. The partnership pays about $2500 in NJ tax on behalf of the partner. We recover about $2000 of that by filing an NR personal return. The top rate withholding by NJ is a b*tch.
ELECTION TO PARTICIPATE
Every participating member must make the election to be part
of the composite return in writing each year by filing Form NJ1080- E with the filing entity. The elections must be maintained
in the filing entity’s files. When filed, the composite return must
include a list of the members who are participating, as well as a
list of those who have not elected, or are not qualified, to participate in the composite return. The list must include each member’s
name, address, and federal identification number. A qualified electing nonresident participant cannot revoke an election to be included in the composite return or make an election to be included in the
composite return after April 15 following the close of the taxable
year.
Retired, no salvage value.