Resolving New Jersey Throwout Cases Without Waiting For the Courts' Ultimate Resolution in Whirlpool and Pfizer

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Last month, New Jersey's Appellate Division held that the state's throwout rule is not facially unconstitutional. This decision in Whirlpool and Pfizer means that the case likely will proceed to the New Jersey Supreme Court and, unless the high court reverses, eventually back to the New Jersey Tax Court, where each taxpayer will be forced to argue that the throwout rule is unconstitutional as applied to its particular case. But other taxpayers do not have to wait for the ultimate outcome of this litigation to address their particular concerns with throwout. In this article, authors Kyle O. Sollie and David J. Gutowski, of Reed Smith LLP, explain steps taxpayers can take now to reduce their throwout liability.

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