CHAPTER
Rev 300 BUSINESS PROFITS TAX
Statutory
Authority: RSA 21-J:13, I; 77-A:1,
III(b); 77-A:4-a; 77-A:6, I & IV; 77-A:15, II
PART Rev 301 DEFINITIONS
Rev 301.01 “Adjusted gross business profits” means a
business organization’s gross business profits, as defined in RSA
77-A:1, III, modified by the additions and deductions provided in RSA 77-A:4.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 301.02 “Apportionment” means the division of a
business organization's adjusted gross business profits among the states where
its activities are conducted by use of a formula provided in RSA 77-A:3.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 301.03 “Association” means a group of individuals or
business organizations which:
(a) Transacts business activity;
(b) Perpetuates its period of existence
notwithstanding that its members or participants change; and
(c) Might have been created by a formal
agreement, declaration of trust or other legal arrangement.
Source. #4192, eff 12-23-86; ss by #5490, eff 10-19-92;
ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 301.04 “Base of operation” means:
(a) In the case of transportation property, the
place of more or less permanent nature from which property is regularly directed
or controlled; and
(b) In the case of an employee, the place of more
or less permanent nature from which the employee regularly:
(1)
Starts work and to which he or she customarily returns in order to
receive instructions from the employer;
(2) Communicates with customers or other persons;
or
(3) Performs any other functions necessary to the
exercise of his or her trade or profession.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 301.05 “Business trust” means an organization:
(a) Properly organized as a trust under the laws
of its domicile state; and
(b) Conducting business activity.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6129, eff 11-23-95; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15
Rev 301.06 “Combined
apportionment factors,” as used in RSA 77-A:3, III, means:
(a) For
tax periods ending before December 31, 2022, the summation of the separately
calculated sales, payroll, and property apportionment factors of each business organization
within a combined group; and
(b)
For tax periods ending on or after
December 31, 2022, the summation of the separately calculated sales
apportionment factors of each business organization within a combined group.
Source. #8709, eff 8-25-06; ss by #10758, eff 1-16-15;
ss by #13450, eff 9-23-22
Rev 301.07 “Combined group” means business organizations
whose unitary business is conducted within
and without
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev
301.06); ss by #10758, eff 1-16-15
Rev 301.08 “Combined reporting” means the use of a
single tax return or document to report the taxable business profits of a
combined group of business organizations subject to the business profits tax.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev
301.07); ss by #10758, eff 1-16-15
Rev. 301.09 “Commissioner” means the commissioner of the
Source.
#4192, eff 12-23-86, ss by #5490, eff 10-19-92, ss by #6853, eff 9-23-98; ss by
#8709, eff 8-25-06 (formerly Rev 301.08); ss by #10758, eff 1-16-15
Rev 301.10 “Compensation”, as used in RSA 77-A:3, I(b),
means remuneration, excluding fringe benefits, paid for services rendered
during the tax period including, but not limited to:
(a) Salaries;
(b) Wages;
(c) Bonuses; and
(d) Commissions.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev
301.09); ss by #10758, eff 1-16-15 (from Rev 301.09)
Rev
301.11 “Costs of performance”, as used
in RSA 77-A:3, I(c), means the direct
costs of providing the service or activity
determined in a manner consistent with generally accepted accounting principles
and in accordance with practices prevalent in the trade or business of the
organization.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev
301.10); ss by #10758, eff 1-16-15 (from Rev 301.10); ss by #13177, eff 3-6-21
Rev
301.12 “Delivered to a location in this state” means the
location of the market for the services provided by the taxpayer, without
regard to the location of the property or payroll of the taxpayer.
Source. #13177, eff 3-6-21 (formerly Rev 301.12)
Rev 301.13 “Earned income”, as used in RSA 77-A:4,
III(a), means the net earnings from self-employment as defined in IRC section
1402.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev 301.11);
ss by #10758, eff 1-16-15 (from Rev 301.11) renumbered by #13177 (formerly Rev
301.12)
Rev 301.14 “Eighty/twenty business organization”, as
used in RSA 77-A:1, XV(b), means a separate business organization which
includes all its income in a United States tax return but where 80% or
more of the average of the payroll and property of such business organization
is outside the 50 states and the District of Columbia.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #4438, eff 6-22-88; ss by #5490, eff 10-19-92;
ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 301.12); ss by #10758, eff 1-16-15 (from Rev 301.12) renumbered
by #13177 (formerly Rev 301.13)
Rev 301.15 “Employee” means any person performing
services for a business organization for which compensation is provided except
that it does not include a director of a corporation acting in such capacity or
an independent contractor.
Source. #5910, eff 10-14-94; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06 (formerly Rev 301.13); ss by #10758, eff 1-16-15 (from
Rev 301.13) renumbered by #13177 (formerly Rev 301.14)
Rev 301.16 “Enterprises as are expressly made exempt”,
as referenced in RSA 77-A:1, I, means:
(a) Entities exempt from taxation under section
501 of the IRC; and
(b) Does not mean business organizations which, for federal income tax purposes,
serve as conduits either in whole or in part for the real owners such as, but
not limited to:
(1) Partnerships;
(2) Single member limited liability companies;
(3) Subchapter S corporations;
(4) Qualified subchapter S subsidiaries;
(5) Grantor trusts;
(6) Real estate investment trusts;
(7) Real estate trusts; or
(8) Regulated investment companies.
Source. #4192, eff 12-23-86; ss by #5490, eff 10-19-92;
ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
(from Rev 301.14) renumbered by #13177 (formerly Rev 301.15)
Rev 301.17 “Fringe benefits” means the amounts, other than
salaries or wages, paid or allowed by the employer to, or on behalf of, the
employee for items including, but not limited to:
(a) Medical insurance premiums;
(b) Self-insured medical expenses;
(c) Life insurance premiums;
(d) Employer portion of F.I.C.A.;
(e) Unemployment compensation;
(f) Company discounts;
(g) Employer contributions to pension or profit
sharing plans; or
(h) Education assistance payments.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15 (from Rev 301.15) renumbered by #13177 (formerly Rev 301.16)
Rev 301.18 “Income-producing activity”, as used in RSA
77-A:3, I(c), means:
(a) Transactions and activities directly engaged
in by the business organization for the ultimate purpose of obtaining gain or
profit and shall include, but not be limited to, the following:
(1) The rendering of personal services by employees
or the utilization of tangible and intangible property by the business
organization in performing a service;
(2) The sale, rental, leasing, or other use of
real property;
(3) The sale, rental, leasing, licensing, or
other use of tangible personal property; or
(4) The sale, licensing or other use of intangible
personal property; and
(b) Does not mean:
(1) Transactions
and activities performed for the business organization by independent
contractors or other similar persons or entities; or
(2) The mere holding of a security interest in
intangible property.
Source. #4438, eff 6-22-88; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15 (from Rev 301.16) renumbered by #13177 (formerly Rev 301.17)
Rev 301.19 “Independent contractor” means a person who:
(a) Exercises independent employment;
(b) Contracts to do work for multiple business
organizations that are not related parties;
(c) Holds
himself or herself out to the public as an independent contractor in the
regular course of business; and
(d) Meets one of the following criteria:
(1) Has
been granted independent contractor status by the United States Internal
Revenue Service for federal income tax purposes; or
(2) Works according to his or her own judgment or
methods, without being subject to any employer except as to the results of the
work and, has the right to employ and direct the action of other workers
independently of such employer and freed from any superior authority to say how
the specified work will be done.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss
by #8709, eff 8-25-06; ss by #10758, eff 1-16-15 (from Rev 301.17) renumbered
by #13177 (formerly Rev 301.18)
Rev 301.20 “Interdependence in their functions,” as
referenced in RSA 77-A:1, XIV, means that relationship in which the New
Hampshire entity is an integral part of a larger system where the business done
within the state is dependent upon or contributes to the operation of the
business without the state as demonstrated by such factors as:
(a) Centralized management;
(b) Functional integration; and
(c) Economies of scale.
Source. #5910, eff 10-14-94; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
(from Rev 301.18) renumbered by #13177 (formerly Rev 301.19)
Rev 301.21 “Internal Revenue Code (IRC)” means the United States Internal Revenue Code
as defined in RSA 77-A:1, XX, unless otherwise indicated.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev
301.19) renumbered by #13177 (formerly Rev 301.20)
Rev 301.22 “Net profit from all business activity” as
used in RSA 77-A:1, III(b) and Rev 302.01(c), means the difference between the
total income and total deductions on federal Form 1120-S after making the
modifications required by Rev 302.01(c) (1) and (2).
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev 301.21);
renumbered by #12361 (from Rev 301.22) renumbered by #13177 (formerly Rev 301.21)
Rev 301.23 “Net profit from such business activity” as
used in RSA 77-A:1, III(e), means the amount of net income from business
activity as is determinable under the provisions of the IRC for corporations and
applied within the provisions of RSA 77-A for such business organizations.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; amd by #4438, eff 6-22-88;
ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev
301.22); renumbered by #12361 (from Rev 301.23) renumbered by #13177 (formerly
Rev 301.22)
Rev 301.24 “Partnership” means an unincorporated entity
comprised of 2 or more persons for the purpose of conducting business activity
as co-owners.
Source. #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
(from Rev 301.23); renumbered by #12361 (from Rev 301.24) renumbered by #13177
(formerly Rev 301.23)
Rev 301.25 “Principal New Hampshire business
organization” means an entity designated as the responsible party for filing
all returns, declarations, extensions, or other documents required under the
business profits tax on behalf of a combined group.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 301.26); ss by #10758, eff 1-16-15
(from Rev 301.24);renumbered by #12361 (from Rev 301.25) renumbered by #13177
(formerly Rev 301.24)
Rev 301.26 “Proprietorship”, as used in RSA 77-A:1, III
and Rev 300, means:
(a) The ownership of any unincorporated business
by an individual; and
(b) Does not mean businesses conducted by an
entity such as, but not limited to a:
(1) Partnership; or
(2) Single member limited liability company.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 301.27); ss by #10758, eff 1-16-15
(from Rev 301.25); renumbered by #12361 (from Rev 301.26) renumbered by #13177
(formerly Rev 301.25)
Rev 301.27 “Real and tangible personal property” means
land, buildings, improvements, equipment, merchandise or manufacturing
inventories, leasehold improvements, and other similar property that reflects
the organization's business activities.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; amd by #4438, eff 6-22-88;
ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 301.28); ss by #10758, eff 1-16-15
(from Rev 301.26); renumbered by #12361 (from Rev 301.27) renumbered by #13177
(formerly Rev 301.26)
Rev 301.28 “Regular corporation” means an incorporated
business not governed by Subchapter S of the IRC for filing its federal income
tax returns.
Source. #8709, eff 8-25-06; ss by #10758, eff
1-16-15 (from Rev 301.27); renumbered by #12361
(from Rev 301.28) renumbered by #13177 (formerly Rev 301.27)
Rev 301.29 “Representative” means an employee of a
business organization, or any person
acting on behalf of the business organization. The term does not include
independent contractors as defined in Rev 301.18.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev
301.28); renumbered by #12361 (from Rev 301.29) renumbered by #13177 (formerly
Rev 301.28)
Rev 301.30 “S corporation” means a business
organization, for federal income tax purposes, as defined within section 1361
of the IRC.
Source. #4192, eff 12-23-86; ss by #4438, eff
6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev
301.29); renumbered by #12361 (from Rev 301.30) renumbered by #13177 (formerly
Rev 301.29)
Rev 301.31 “State”, as used in RSA 77-A:3 and RSA 77-A:4,
means:
(a) Any state of the
(b) The
(c) The
(d) A territory or possession of the
(e) Any foreign country or political subdivision
thereof.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev
301.30); renumbered by #12361 (from Rev 301.31) renumbered by #13177 (formerly
Rev 301.30)
Rev 301.32 “Taxpayer identification number” means:
(a)
Social Security number;
(b)
Federal employer identification number;
(c)
Individual taxpayer identification number;
(d)
Preparer tax identification number; or
(e)
Department identification number.
Source. #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15; renumbered by
#12361 (from Rev 301.32) renumbered by #13177 (formerly Rev 301.31)
Rev 301.33 “Taxable in another state” means the
activities of the business organization in another state:
(a) Exceed the parameters enumerated in 15 USC
section 381, P.L. 86-272; and
(b) Are sufficient to create a taxable presence
within that state.
Source. #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15; renumbered by
#12361 (from Rev 301.33) renumbered by #13177 (formerly Rev 301.32)
Rev 301.34 “Unity of operation”, means there is a
centralized executive structure generally directing operations commonly
referred to as staff functions.
Source. #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15 (from Rev
301.32); renumbered by #12361 renumbered by #13177 (formerly Rev 301.33)
Rev 301.35 “Unity of ownership”, as used in RSA 77-A:1,
XIV, means the activities outside the taxing jurisdiction, together with the
in-state activities are owned either
directly or indirectly by the same economic entity or group of economic
entities.
Source. #10758, eff 1-16-15
(from Rev 301.33); renumbered by #12361 (from Rev 301.35) renumbered by #13177
(formerly Rev 301.34)
Rev 301.36 “Unity of use” means there is an executive
authority with control over major policy matters and activities of the business organization.
Source. #10758, eff 1-16-15
(from Rev 301.34); renumbered by #12361 (formerly Rev 301.35) renumbered by
#13177 (formerly Rev 301.35)
PART Rev 302 COMPUTATION OF GROSS BUSINESS PROFITS
Rev 302.01 Business Organizations Filing as S
Corporations for Federal Income Tax Purposes.
(a) A corporation which qualifies and files as an
S corporation, for federal income tax purposes pursuant to sections 1361
through 1379 of the IRC, shall be treated the same as a corporation which files
as a regular corporation for federal income tax purposes.
(b) A corporation qualified as a subchapter S
subsidiary for federal income tax purposes pursuant to section 1361(b) of the
IRC shall:
(1) Be treated as an S corporation as provided in
(a) above, for purposes of the business profits tax;
(2) Maintain sufficiently detailed records to
determine the business profits tax liability of the corporation at the
corporate level; and
(3) File its own business tax return unless it is
part of a combined return.
(c) The following modifications shall be made to
federal Form 1120S to arrive at the net profit from all business activity:
(1) The ordinary income or loss from trade or
business activities on page one of federal Form 1120S shall be increased or
decreased by all necessary adjustments including, but not limited to, on
schedule K of federal Form 1120S for the amounts of:
a. Gross income or loss from real estate rental activities less expenses for such activities;
b. Gross income
or loss from other rental activities less
expenses for such activities;
c. Interest, dividend or royalty income;
d. Short-term and long-term capital gains;
e. Net gain or loss under section 1231 of the IRC; and
f. Any S corporation income, loss or expenses
not included in federal Form 1120S; and
(2) Expenses allowed to a C corporation may be
deducted.
(d) In a year wherein sections of the IRC
pertaining to formation or termination of an S corporation are applicable, and
the business organization is required to file a federal S corporation
short-year return and a federal regular corporation short-year return for the
same tax year, the corporation shall, for purposes of
business profits tax complete and file Form NH-1120, Corporate “Business
Profits Tax Return” with the department.
(e) Form NH-1120 shall be
accompanied by both federal returns.
(f) The method selected to
allocate income between the short S corporation and regular corporation tax years
for federal purposes shall not alter the amount due under RSA 77-A.
(g) A taxpayer shall determine the basis of stock
held in an S corporation for business profits tax purposes by:
(1) Calculating the basis amount as if the stock
were that of a regular corporation; and
(2) Not using basis adjustments which follow
federal conduit rules for taxation of partnership-type interests.
(h) Liquidations of S corporations shall follow
the same rules of the IRC as liquidations of regular
corporations for business profits tax purposes.
(i) No part of this
section shall be construed as allowing a greater deduction from income or
inclusion to income than would be allowable for regular corporations.
Source. #2651, eff 3-22-84; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; amd by #4438, eff 6-22-88;
ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758,
eff 1-16-15
Rev 302.02 Partnerships.
(a) Co-owners of property shall be considered
partners in a business organization if they conduct business activity with the
intent of dividing the profits.
(b) Co-owners of property which is maintained,
kept in repair, rented or leased shall not, in and of itself, create a
partnership.
Source. #4192, eff 12-23-86; ss by #4438, eff
6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15; amd by #12186,
eff 5-25-17
Rev 302.03 Proprietorships.
(a) The gross business profits of a
proprietorship, except
business activity conducted by a single member limited liability company, shall
include:
(1) The total net profit or loss from all
businesses, professions, or farming activities reported by an individual
on his or her federal income tax return;
(2) The total net income or loss from rental
activities reported by an individual on his or her federal income tax return;
(3) The total gain or loss from the disposition of
all business assets owned by an individual on his or her federal income tax
return; and
(4) The amount of an installment gain from the
disposition of all business assets owned by an individual on his or her federal
income tax return.
(b) A proprietorship engaged in business activity
both within and without New Hampshire shall apportion its gross business
profits using the provisions of RSA 77-A:3 and Rev 304.
(c) Where spouses jointly own rental property or
provide services for a business activity, and do not file as a partnership for
federal income tax purposes, the gross business profits from such business
activity shall be reported in its entirety, on a single proprietorship return,
by one of the spouses on a consistent basis.
Source. #4192, eff 12-23-86; ss by #4438, eff
6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15; ss by #12361, eff 8-9-17
Rev 302.04 Use of Separate Accounting. Business organizations shall not determine
their
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; amd
by #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss
by #10758, eff 1-16-15
Rev 302.05 Business Organizations Whose Income or
Expenses are Federally Reportable by the Owners.
(a) Any business organization, whose income or
expenses are reportable by the true owners for federal income tax purposes,
shall include all items of income and expense in its business profits tax
return rather than the return of the shareholder, partner, or other owner.
(b) Any element of income, expense, or both,
required to be reported at the entity level for purposes of the business
profits tax shall be removed from the true owner's business profits tax return.
(c) The tax for the business organization shall be
computed before any distributions, adjustments, or both, resulting from the
application of federal tax law provisions which permit the pass-through of
items of income or expenses to the owners.
(d) A real estate investment trust shall be
subject to the business profits tax on the taxable income of the real estate
investment trust prior to adjustments provided in section 857(b)(2) of
the IRC.
(e) A regulated investment company shall be
subject to the business profits tax on the taxable income of the regulated
investment company prior to the adjustments provided in section
852(b)(2) of the IRC.
(f) A single member limited liability company
shall:
(1) Obtain a New Hampshire taxpayer
identification number, as defined in Rev 301.31 from the department at least 30
days prior to filing any tax documents with the department; and
(2) Determine its gross business profits as
provided in (a) above, in accordance with:
a. RSA 77-A:1, III(a), if the member
is a corporation;
b. RSA 77-A:1, III(c), if the member
is a partnership;
c. RSA 77-A:1, III(d), if the member is a proprietor; and
d. RSA 77-A:1, III(e), if the
member is a trust;
(g) A qualified subchapter S corporation
subsidiary shall determine its gross business profits, as provided in (a) above,
in accordance with RSA 77-A:1, III(b).
(h) A single member limited liability company and
a qualified subchapter S corporation subsidiary shall maintain records, as
provided in RSA 77-A:11, sufficiently detailed to calculate:
(1) Gross
business profits;
(2) Additions and deductions as provided in RSA
77-A:4; and
(3) Apportionment factors as provided in RSA 77-A:3.
Source.
#4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15; ss by #12361, eff 8-9-17
Rev 302.06 Gains or Losses on Sale of Business Assets.
(a) The selling price for the sale or other
disposition of a business asset shall be the sum of:
(1) Money received;
(2) Indebtedness assumed by the buyer or
transferee; and
(3) The fair market value of any property, other
than money, received.
(b) The basis of the business asset sold or exchanged shall be:
(1) Determined using the requirements of the IRC; and
(2) Applied at the entity level.
(c) One hundred per cent of the
recognized gain or loss on the sale, exchange or other disposition of a business
asset shall be included in a business organization's gross business profits.
(d) The recognition and realization of gains or
losses on the sale, exchange, or other disposition of property shall be
determined based upon the requirements of the IRC except where RSA 77-A and these
rules prescribe a different treatment including,
but not limited to, the determination of gain or losses using the federal
provisions relating to consolidated returns.
(e) Property owned by more than one business
organization shall be reported by each business organization in proportion to
its ownership interest on the gain or loss on the sale, exchange or
other disposition of such property.
Source. #3066, eff 7-23-85; ss by #4192, eff
12-23-86; amd by #4438, eff 6-22-88; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 302.07 Installment Method of Reporting Income.
(a) Business organizations reporting their income
under the installment method, for federal income tax purposes, shall report
their income for business profits tax purposes using the same method except as
provided in (f) and (g) below.
(b) Business organizations selling property on an
installment basis shall be considered a business organization until all the
installments have been reported and the total tax paid.
(c) The gross sales price of the property shall be
considered and not the amount received in a particular year for purposes of the
gross business income test.
(d) Neither the gross selling price nor the
installment proceeds shall be included in gross business income except for the
year of sale for purposes of the gross business income test.
(e) A return reporting the installment income
shall be completed and filed every year, regardless of the amount of each
installment, if the gross sales price exceeded the applicable filing threshold pursuant to
RSA 77-A:6.
(f) The reported installment gain income shall
not be increased or decreased by income from the other business activity if the
filing of a return is due to the reporting of installment income, and the
statutory minimum income level other than for the installment sale has not been
met.
(g) A business organization may elect to report
the entire gain or loss in a single year for business profits tax purposes
although it has not elected, pursuant to section 453(d) of the IRC, by
attaching a completed Form DP-95, “Election to Report Net Gain in a Year of
Sale”, to the business profits tax return if the filing requirement for
subsequent years is solely the result of reporting the gain or loss from the
installment sale to New Hampshire.
(h) The
sale, exchange, or other disposition of an installment obligation by a business
organization shall require the
inclusion of:
(1) The unreported gain or loss in the business
organization’s business profits tax return covering the year the sale, exchange,
or other disposition took place; and
(2) The computation of the gain or loss and the
basis of the obligation in accordance with IRC section 453B.
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss
by #8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13450, eff 9-23-22
Rev 302.08
(a) Amounts received by a business organization
from the state of New Hampshire for the purchase of agricultural land
development rights shall constitute gross business income within the meaning of
RSA 77-A:1, VI, as gross proceeds from the sale of assets used in the trade or
business.
(b) The gain or loss realized from the sale in
(a) above, shall be includible in the gross business profits of a business
organization if such asset is compatible with the underlying business activity.
(c) The gain or loss on the sale of agricultural
land development rights to the state of
(d) The gain or loss on the sale of agricultural
land development rights to the state of
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 302.09 Business Organizations Includible in
Federal Consolidated Return.
(a) Business organizations includible in a
federal consolidated return shall determine their gross business profits
without applying sections 1501 through 1505 of the IRC and the U.S. Department
of the Treasury’s Treasury Regulations 1.1501 et seq.
(b) Business organizations shall compute the
basis of their property, including the stock of subsidiaries, using the basis
provisions contained in the IRC for non-affiliated corporations.
(c) A combined group of business organizations
filing a federal consolidated return shall determine the gross business profits
of each separate business organization in accordance with (a) and (b) above.
(d) The amount of income, expense and gross
business profits determined under (a) above, for each entity shall be added
together and all intergroup activity eliminated to arrive at the gross business
profits of the combined group.
Source. #4438, eff 6-22-88; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 302.10 Business Organizations Includible in a
Combined Return.
(a) Business organizations utilizing combined
reporting, as defined in Rev 301.08, shall determine the gross business profits
of each business organization includible in the combined group as if the
business organizations were not affiliated in accordance with RSA 77-A:1, I and
III.
(b) The amounts of income from each business
organization shall be added and all intergroup activity shall be eliminated to
arrive at the gross business profits of the combined group.
(c) The amounts of deductions from each business
organization shall be added and all intergroup activity shall be eliminated to
arrive at the gross business profits of the combined group.
Source. #4438, eff 6-22-88; ss by #5490, eff 10-19-92;
ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 302.11 Factors Suggesting Unity of Operation. To determine if a centralized executive
structure controls the staff functions indicating unity of operation, the department
shall consider the importance to the business organization of, and the extent
to which, the following factors are controlled by a centralized executive
structure:
(a) Accounting;
(b) Advertising;
(c) Industrial or public relations;
(d) Insurance;
(e) Legal;
(f) Purchasing;
(g) Research and development;
(h) Retirement planning; or
(i) Any other factor commonly referred to as a staff function.
Source. #5355, eff 3-16-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 302.12 Factors Suggesting
Unity of Use. To determine if a centralized
executive authority controls major policy decisions and activities of the
business organization indicating unity of use, the department shall consider
the importance to the business organization of, and the extent to which, the
following factors are overseen or performed by a centralized executive
authority:
(a) Defines and controls the general system for producing profit;
(b) Establishes professional standards to enhance or promote public perception of
the business;
(c) Imposes
and enforces procedures to implement compliance of business activities with
public law and regulations;
(d) Sets standards
of ethical performance;
(e) Controls major policy issues;
(f) Makes budgetary allocations;
(g) Approves major capital expenditures and expansions;
(h) Appoints, assigns or transfers personnel throughout the business;
(i) Coordinates the activities of the affiliated
entities within the general system of operations;
(j) Prepares the financial reports;
(k) Determines and defines required intergroup
transactions including sales, financing, and transfers of goods or services;
(l) Makes
decisions in matters involving intergroup conflicts or problems; or
(m) Any other function managed by a central executive authority.
Source. #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 302.13 Election to Adopt Consolidated Group's
Averaging Convention.
(a) If a New Hampshire business organization is a
member of a federal consolidated group that has utilized a different averaging
convention under section 168(d) of the IRC than would be allowable for the New
Hampshire business organization under a separate entity filing, the New
Hampshire business organization may elect to follow the averaging conventions
of its consolidated group by indicating that choice to the department by
attaching the following statement to its business profits tax return:
“(name of business
organization) hereby elects to adopt the averaging conventions of Internal
Revenue Code section 168(d) utilized by the (name of parent) federal
consolidated group of which it is a part, and hereby attests that its usage
will have no material effect on the tax liabilities of (name of business
organization).”
(b) The business organization's election shall be
disallowed when an audit is performed on returns filed by a business
organization and the audit determines the election resulted in a
material impact upon the business organization's
(c) The averaging convention otherwise required
shall be required for each return so affected in (b) above.
(d) A material impact upon the business
organization’s
Source. #6853, eff 9-23-98; ss by #8709, eff 8-25-06
(formerly Rev 302.11); ss by #10758, eff 1-16-15 (from Rev 302.14)
Rev 302.14 Reasonable Compensation for Employees of a
Corporation.
(a) Reasonable
compensation for an employee of a corporation shall follow IRC section 162 and
related federal authority in
determining the gross business profits of a corporation.
(b) The business organization shall be allowed to
deduct reasonable compensation to an owner employee in determining the gross
business profits of a corporation or other organization permitted a federal
compensation deduction for any owner employee in arriving at its gross business
profits.
Source. #6853, eff 9-23-98; ss by #8709, eff 8-25-06
(formerly Rev 302.12); ss by #10758, eff 1-16-15
Rev 302.15 Professional Limited Liability Companies. A professional limited liability company
conducting business activity in
Source. #8709, eff 8-25-06 (formerly Rev 302.13); ss
by #10758, eff 1-16-15 (formerly Rev 302.16)
PART Rev 303 ADDITIONS AND DEDUCTIONS MADE TO GROSS
BUSINESS PROFITS
Rev 303.01 Compensation for Personal Services of
Proprietor, Partner, or Member.
(a) For purposes of this section, the following
definitions shall apply:
(1) “Actual
personal services” means the services performed by a natural person, who is a
proprietor, partner, or member of an unincorporated business organization, that
are directly related to the operation of the unincorporated business
organization taking the compensation deduction, but not in any capacity for
another business organization;
(2) “Amounts that are fairly attributable to the
actual personal services of the proprietor, partner or member” means the amount
as would be allowed using the standards set forth in section 162(a)(1) of the IRC,
as amended, and Treasury Regulations, administrative rulings, and judicial
cases interpreting such provision;
(3) “Business activity” means “business activity”
as defined in RSA 77-A:1, XII;
(4) “Capital business asset” for purposes of
determining the amount of the addition to the fair and reasonable compensation
deduction allowable under RSA 77-A:4, III(a) means a “capital asset” as defined
in section 1221(a) of the IRC, as
amended, and that the capital business asset is an asset used by the
unincorporated business organization to conduct business activity;
(5)
“Unincorporated business organization” means a proprietorship, partnership, or
limited liability company taxed as a proprietorship or partnership for federal
income tax purposes;
(6) “Gross selling
price as commissions on the sale of business assets” for purposes of
determining the amount of the addition to the fair and reasonable compensation
deduction allowable under RSA 77-A:4, III(a) means the amount received in
exchange for the sale or other disposition of a capital business asset measured
by the sum of:
a. Money received;
b. Indebtedness assumed by the buyer or
transferee; and
c. The fair market value of any property, other
than money, received in exchange for the capital business asset;
(7) “Natural person” means a human being, as well
as a trustee of a grantor trust not recognized as a business organization; and
(8) “Total compensation” means the sum of
compensation, as defined in Rev 301.10, fringe benefits, as defined in Rev
301.16, and any other form of remuneration for all proprietors, partners, or
members rendering actual personal services to the unincorporated business
organization.
(b)
An unincorporated business organization shall be allowed a compensation
deduction for the total compensation that is reasonable and fairly attributable
to its proprietors, partners, or members who render actual personal services to
the unincorporated business organization.
(c)
The compensation deduction shall be determined for each proprietor,
partner, or member who rendered actual personal services to the unincorporated
business organization and shall be allowed for amounts that would be allowable as
reasonable under IRC section 162(a)(1), as amended in the year the deduction is
taken, Treasury Regulation section 1.162-7, administrative rulings and judicial
cases interpreting IRC section 162(a)(1).
(d)
The amount determined in (c) above shall not exceed the amount reported
as earned income, as defined in Rev 301.13, on the federal income tax returns
of the proprietor, partner, or member, but may also include:
(1) An amount not to exceed net income from
rental properties from federal Form 1040, schedule E, federal Form 8825, and
federal Form 4835; and
(2) An amount not to exceed 15 percent of the
gross selling price as commissions on the sale of capital business assets. If
the proprietor, partner, or member acted as the broker or agent for the sale of
capital business assets, the following shall apply:
a. If no other broker or agent representing the
seller was involved in the sale of the capital business asset, a commission not
to exceed 15 percent of the total gross sales price as shown on federal Form
4797, federal Form 6252, federal Form 1065 schedule D, and federal Form 1040
for the sale of business assets; or
b. If the partner, proprietor, or member acts as
a co-broker, the maximum deduction shall be the difference between the amount
determined in a. above and the amounts paid to other brokers or agents.
(e)
If an unincorporated business organization or group of related business
organizations is under audit review by the department and did not elect the
record-keeping safe harbor on the return being audited, the unincorporated
business organization or group of related business organizations may elect the
record-keeping safe harbor during the audit review by filing an amended return
reporting a compensation deduction of up to $75,000 as total compensation for
the tax year under audit review, which the department shall accept as
reasonable.
(f)
The compensation deduction shall not reduce the taxable business profits
of the unincorporated business organization to below zero.
(g)
An unincorporated business organization that deducts the record-keeping
safe harbor amount of up to $75,000 as total compensation for the tax year
shall not be required to keep records as provided under (d), above.
(h)
An unincorporated business organization that deducts in excess of the
record-keeping safe harbor amount of $75,000 as total compensation for the tax
year shall keep such records as are necessary to determine that the
compensation deduction is reasonable under §162(a)(1) of the IRC, as it may be
amended in the year the deduction is taken, and Treasury Regulations,
administrative rules, and judicial decisions rendered thereunder.
(i) A partnership business organization electing
to be taxed as a corporation for federal income tax purposes shall:
(1) Not take a compensation deduction under RSA
77-A:4, III; and
(2) Take a reasonable compensation deduction as
allowed under IRC section 162 when such deduction is:
a. Taken on the entity's federal corporate
return filed with the Internal Revenue Service; and
b. In accordance with Rev 302.14.
(j) Where a proprietor, partner, or member
provides actual personal services for multiple business organizations, the
records of each business organization shall comply with the requirements of (i), above.
(k)
Where a proprietor, partner, or member provides actual personal services
for multiple business organizations, the deduction claimed by each business
organization shall be for the actual personal services rendered to it by the
individual in the capacity of the proprietor, partner, or member of the
specific business organization for which the deduction is taken.
(l)
Remuneration for the actual personal services performed by a spouse
shall be deductible:
(1) As compensation in determining the gross
business profits of the business organization when the spouse is an employee;
or
(2) Under the provisions of RSA 77-A:4, III if
the spouse is not an employee of the business organization and performs the
personal services as a surrogate for the proprietor, partner, or member.
Source. #4192, eff 12-23-86; ss by #4438, eff
6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15; ss by #13552, eff 2-7-23
Rev 303.02 Qualified Research Contributions.
(a) For purposes of RSA 77-A:4, XII(a), the
business organization shall add back to its gross business profits the federally
deducted amount attributable to the specifically contributed items which meet
all requirements of qualified research contributions set forth in RSA 77-A:1,
X.
(b) Each business organization taking a qualified
research contribution under RSA 77-A:4, XII shall attach a document to its business profits tax
return containing the following information:
(1) Name of each donee;
(2) Date of each donation;
(3) Description of each item donated;
(4) Amount deducted under section 170 of the IRC
for the contributed item;
(5) Business organization's basis in the
contributed item;
(6) Total amount of unrealized appreciation for
the contributed item; and
(7) The portion of
the federal contribution carryover attributable to a
(c) The amount listed under (b)(7), above, shall
be utilized to increase the business organization's gross business profits in
subsequent years as the contribution carryover is used to reduce federal
taxable income.
(d) When a contribution becomes a
(1) Be considered fully taken in the year it is
given;
(2) Not be endowed with special federal tax
attributes beyond the scope of the language of RSA 77-A:1, X, such as, but not
limited to, the federal carryover capabilities of unused charitable
contributions; and
(3) Not be carried over to a subsequent business
profits tax return.
Source. #2567, eff 12-28-83; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd
by #6675, eff 1-27-98; ss and moved by #6853, eff 9-23-98 (from Rev 303.03); ss
by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev
303.03 Net Operating Loss Deduction.
(a)
Section 172 of the IRC for purposes of calculating the amount of any net
operating loss deduction allowed under RSA 77-A:4, XIII, shall be followed,
except:
(1) The
carryback of loss required by IRC section 172 (b)(1) is not required for New
Hampshire’s purposes; and
(2) The amount
is limited as provided in (c), (d), and (e), below.
(b) Net operating losses may be carried forward
for 10 years following the loss year.
(c) Business organizations, subject to RSA 77-A:3,
regarding the apportionment of income shall apportion any net operating loss
carried forward using the formula provided in RSA 77-A:3 and Rev 304.
(d) Combined groups with more than one member
subject to RSA 77-A shall:
(1) Calculate
separate apportionment percentages for each business organization as follows:
a. The
denominators used to calculate these percentages shall be the sales, payroll,
and property denominators of the combined group for tax periods ending before
December 31, 2022, and shall be the sales denominator of the combined group for
tax periods ending on or after December 31, 2022; and
b. The
numerators shall be the New Hampshire sales, payroll, and property of each
respective business organization subject to RSA 77-A for tax periods ending before
December 31, 2022, and shall be the sales numerators of each respective
business organization subject to RSA 77-A for tax periods ending on or after
December 31, 2022;
(2) Treat each
business organization’s apportioned share of the combined loss amount as a tax
attribute which remains with that business organization;
(3) Total the
apportioned loss carry forward amounts of each business organization in the
combined group possessing such tax attributes; and
(4) Apply the
result in (3) above as a deduction from the gross business profits of the
combined group after apportionment under RSA 77-A:3 in the taxable period in
which the deduction is to be used.
(e) The
net operating loss carry forward calculated in either (a), (c), or (d) above,
shall be limited as provided in RSA 77-A:4, XIII, (a), (b), (c), (d), and (e)
for each business organization.
(f) The
resulting net operating loss shall be applied to the gross business profits after
apportionment under RSA 77-A:3.
(g)
Business organizations availing themselves of the net operating loss deduction
shall:
(1) Maintain
detailed records that confirm each step in the calculation of the:
a. Net operating loss;
b. Net operating loss carry forward; and
c. Net
operating loss deduction amounts; and
(2) Retain the
federal and state tax returns and the detailed records relating to a net operating
loss for all taxable periods to which the net operating loss relates.
(h) During a department audit of a taxable period
where a New Hampshire net operating loss deduction is taken on a return, within
the statute of limitations, the business organization shall:
(1) Provide the
department with all state and federal tax returns and detailed records with an
impact on the proper calculation of the deduction taken by the business
organization;
(2) Not receive
a refund for a prior year overpayment nor be assessed additional tax liability
for prior year deficiencies resulting from an inquiry that reveals adjustments
to prior taxable period net operating loss calculations would be appropriate in
the liability of the business organization in any of the prior taxable periods
outside the statute of limitations;
(3) Deduct the
appropriate New Hampshire net operating loss deduction in the audit years as if
the extra-statutory year adjustments had been made; and
(4) Adjust the
carry forward amount in the years subsequent to the audit year.
Source.
#2012, eff 5-5-82; amd by #2403, eff 6-27-83;
ss by #2722, eff 5-23-84; ss by #4192, eff 12-23-86; ss by 5355, eff 3-16-92;
ss by #5490, eff 10-19-92; ss and moved by #6853, eff 9-23-98 (from Rev 303.04);
rpld and ss by #8709, eff
8-25-06; amd by #10233, eff 11-21-12; ss by #10758, eff
1-16-15; amd by #12906, eff 10-23-19; ss by #13450,
eff 9-23-22; ss by #13552, eff 2-7-23
Rev 303.04 Interest Income Derived from Notes, Bonds
and Other Securities of the
(a) For purposes of this section, “other securities”
means a long-term indebtedness similar to a bond that can be sold or exchanged
by the owner.
(b) Deposits, such as demand deposits, timed
deposits or certificates of deposits, placed in financial institutions of the
(c) Business organizations shall deduct only
interest which is received directly or indirectly from direct obligations of
the
(d) Business organizations, upon a request from
the department, shall provide documentation showing that the interest was from
a direct obligation of the
(e) The documentation provided in (d) above shall
indicate that the obligation:
(1) Was in writing;
(2) Was interest bearing;
(3) Contained a binding promise by the
(4) Contained specific congressional
authorization pledging the full faith and credit of the
(f) Business
organizations shall deduct that portion of interest from US obligations
represented by gross business profits, net
of business expenses relating to the obligation as provided in RSA 77-A:4, II.
(g) Interest received on obligations from
organizations where the United States guarantees, but is not the principal
obligor of the debt, shall not qualify for the deduction provided in RSA
77-A:4, II.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; amd by #5910, eff 10-14-94; amd by #6026, eff 4-27-95; amd by
#6129, eff 11-23-95; ss and moved by #6853, eff 9-23-98 (from Rev 303.05); ss
by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev
303.05 Sale or Exchange of an
Interest or a Beneficial Interest in a Business Organization.
(a) A business organization that did not, in a
prior tax period, make a required addition to gross business profits for an
increase of the basis of an asset under RSA 77-A:4, XIV, as in effect on June
20, 2016, due to the sale or exchange of an interest or a beneficial interest in
a business organization before January 1, 2016, shall not be allowed:
(1) A deduction against gross business profits in
any subsequent period for depreciation or amortization on the increased basis
in the asset to the extent of the under-reported addition to gross business profits;
and
(2) An increase in the basis of the asset upon disposition
in a subsequent period to the extent of the under-reported addition to gross
business profits.
(b) For sales or exchanges of interests in
business organizations that occur on and after January 1, 2016:
(1) A business organization’s election or nonelection
under RSA 77-A:4, XIV(b) shall be irrevocable upon the filing of the original return
for the tax period in which the sale or exchange of the ownership interest
occurs; and
(2) A business organization shall be deemed to
have made the election available under RSA 77-A:4, XIV(b) if such business organization
includes in adjusted gross business profits the net increase in the basis of
all assets transferred or sold in the tax period in which the sale or exchange
of the ownership interest occurs.
Source. #12186, eff 5-25-17
PART Rev 304 APPORTIONMENT OF ADJUSTED GROSS BUSINESS PROFITS
Rev 304.01 Availability or Requirement of
Apportionment for Business Organization.
(a) A
(1) Its business activities are conducted both
within and without
(2) The business organization's activities were
sufficient in another state for that state to impose a:
a. Net income tax;
b. Franchise tax based upon net income; or
c. Capital stock tax.
(b) A business organization not domiciled in
(1) Its activities within New Hampshire are sufficient
to meet the due process requirements of the New Hampshire constitution in part
1, article 12 and part 2, articles 5 and 6; and
(2) Its in-state activities exceed the protection
of 15 USC Section 381, P.L. 86-272.
(c) A business organization shall not apportion a
portion of its income to another state when:
(1) Its activities
within the other state were not sufficient for that state to impose the taxes
referred in (a)(2) above;
(2) It pays a minimal fee for qualifying to do
business within that state; or
(3) It voluntarily
files and pays a tax referred to in (a)(2), above, which it was not legally required
to do.
(d) A business organization shall determine its
immunity under 15 USC Section 381, P.L. 86-272, by comparing its activities
within
(1) Business activities which exceed the
protection of P.L. 86-272 when conducted in
a. Making repairs or providing maintenance;
b. Owning, maintaining, leasing, or otherwise
using any of the following facilities or property:
1. Repair shop;
2. Parts department;
3. Purchasing office;
4. Employment or recruiting office;
5. Warehousing facilities including the use of
public warehouses;
6. Meeting place for directors, officers or
employees;
7. Stock of goods other than samples used
entirely ancillary to the solicitation of orders;
8. Mobile stores such as a truck with a driver
salesman making sales from the vehicle; or
9. Real property, fixtures or equipment of any
kind;
c. Collecting current or delinquent accounts;
d. Installing merchandise or equipment or
supervising such work;
e. Conducting
training programs, seminars or lectures for personnel other than personnel
involved only in the solicitation of sales;
f. Investigating, handling, or otherwise
assisting in resolving customer complaints, other than mediating direct
customer complaints when the sole purpose of such mediation is to ingratiate
the sales personnel with the customer;
g. Approving or accepting customer orders;
h. Providing any kind of technical assistance or
services, such as engineering assistance or services, when one of the purposes
thereof is other than the facilitation of the solicitation of orders;
i. Accepting deposits on customer orders;
j. Picking up or replacing damaged or returned property.
k. Hiring,
training, or supervising personnel, other than personnel involved only in
solicitation;
l. Repossessing property;
m. Providing shipping information and coordinating
deliveries;
n. Maintaining a sample or display room in
excess of 14 days at any one location during the taxable period;
o. Carrying samples for sale, exchange or
distribution in any manner for consideration;
p. Consigning tangible
personal property to any person, including an independent contractor;
q. Using agency stock checks or any other
instruments or process by which sales are made within
r. Maintaining, by any representative, an office
or place of business in the home or otherwise that is publicly attributed to
the business organization or to the agent of the business organization in their
agency status, even if such office is for the exclusive use of soliciting orders;
or
s. Conducting any activity in addition to those
described in Rev 304.01(d)(2) which is not entirely ancillary to the
solicitation of orders, even if such activity helps to increase purchases; and
(2) Business activities which fall within the protection
of P.L. 86-272 when conducted in
a. Soliciting orders for sales by any type of
advertising;
b. Carrying
samples only for display or for distribution without charge or other
consideration;
c. Owning or furnishing motor vehicles to sales
personnel;
d. Submitting inquiries and complaints received
to the home office;
e. Checking of customers' inventories without a
charge for the purpose of a replacement order but not for other purposes such
as quality control;
f. Soliciting orders using an in-state resident
representative of the business organization provided the representative
maintains no in-state sales office or place of business whether in-home or
otherwise that is attributable to the business organization or to the business
organization's agent in his agency capacity;
g. Conducting missionary sales activities;
h. Maintaining a sample or display room for 14
days, or less, at any one location during the taxable period;
i. Recruiting, training, or evaluating sales
personnel, including occasionally using homes, hotels or similar places for
meetings with sales personnel;
j. A representative maintaining an
in-home office that is not:
1. Paid for directly or indirectly by the
business organization;
2. Attributable to the business organization; or
3. Attributable to the business organization's
agents in their agency capacity; or
k. Mediating direct customer complaints when the
purpose thereof is solely for ingratiating the sales personnel with the
customer and facilitating requests for orders.
(e) Independent contractors conducting activities
in
(1) Lose its immunity when the activities
include:
a. Maintaining a consignment inventory of the
organization's products other than for purposes of display; or
b. Entering into any other type of arrangement
extending beyond the solicitation of orders; or
(2) Not lose its immunity when the activities
include:
a. Soliciting and making sales for the business
organization; or
b. Maintaining their own office.
(f) A business organization whose activities do
not exceed the protection of P.L. 86-272, claiming exemption under the federal
law and desiring to commence the 3 year statute of limitation shall:
(1) Indicate on the front page of
their applicable New Hampshire business profits tax return that the business
organization is exempt by typing or clearly printing “exempt under P.L.
86-272”; and
(2) Attaching a
(g) To reconcile the combined reporting method
with the limitations imposed by P.L. 86-272 on states’ taxing jurisdictions, if
any member of a combined group has nexus with New Hampshire, and one member
does not have nexus with New Hampshire or another state the following shall
apply:
(1) An individual business
organization shall be subject to the tax jurisdiction of New Hampshire or
another state for purposes of Rev 304.01 (b) and (c) respectively only on the
basis of the separate activities of that individual business organization and
its representatives; and
(2) A business organization shall not be subject
to the tax jurisdiction of New Hampshire or another state for purposes of Rev
304.01 (b) and (c) respectively, merely because an affiliate of the business
organization conducts business activities in New Hampshire or another state
that are unitary with the individual business organization’s business activities.
Source.
#4192, eff 12-23-86; ss by #4438, eff
6-22-88; ss by #5490, eff 10-19-92; amd by #5910, eff
10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 304.02 Property Factor.
(a) The property factor shall include:
(1) All the real and tangible personal property,
as defined in Rev 301.26;
(2) Property that is used, is available for use,
or is capable of being used, during the taxable period in the regular course of
the trade or business of the business organization;
(3) Property used in the regular course of
business until its permanent withdrawal from use;
(4) Property, in transit with the property being
included in the numerator of the destination state; and
(5) The value of moveable or mobile property, such
as construction equipment and common carrier vehicles, with the value being
determined for purposes of the property factor on the total time or miles
within a state during the period.
(b) Property or equipment under construction
during the tax period, except inventoriable goods in process, shall be excluded
from the property factor until such property is used or available for use by
the business organization in its regular trade or business.
(c) Property, other than inventory, owned by the
business organization shall be valued at its original cost and be the basis of
the property for federal income tax purposes at the time of acquisition, prior
to any federal adjustments, and adjusted by subsequent sale, exchange, abandonment,
or other such disposition.
(d) Inventory,
owned by the business organization, shall be included in the property factor in
accordance with the valuation method used for federal income tax purposes.
(e) Property rented by a business organization
shall be valued at 8 times the net annual rental rate.
(f) The net annual rental rate shall be the annual
rent paid or accrued by the business organization less the aggregate annual
sub-rental rates accrued or received from sub-tenants.
(g) Rent shall be the amount payable for the use
of real or tangible property whether designated as a fixed sum or as a
percentage of sales or profits, and includes any additional amounts due in lieu
of rent such as interest and taxes which are required by the terms of the
lease.
(h) Business organizations renting property in
the regular course of a trade or business shall not deduct such rental income
as sub-rents.
(i) Business
organizations utilizing combined reporting shall:
(1) Determine the property includible in the
property factor after having eliminated all of the inter-group activity; and
(2) Eliminate any intergroup profits from the
valuation of property included in the property apportionment factor.
(j) The beginning and ending average value of owned
property shall be used for the property factor unless material distortions of
the property factor are caused by:
(1) Fluctuations in values existing during the
period; or
(2) The acquisition or disposition of significant
property during the period.
(k) Material distortions shall exist in instances
where the property factor computed using monthly averages is 25% greater or
lesser than the property factor computed using the beginning and ending average.
(l) Business organizations having material
distortions caused by the use of a beginning and ending average value shall
calculate the value of their property for apportionment purposes using a
monthly average.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; amd by #4438, eff 6-22-88;
ss by #5490, eff 10-19-92; amd by #5910, eff
10-14-94; ss by #6853, eff
9-23-98; ss by #8709, eff 8-25-06 (formerly Rev 304.03); ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15; ss by #12361, eff 8-9-17
Rev 304.03 Payroll Factor.
(a) The total amount of compensation paid to
employees shall be determined based on:
(1) The basis of the business organization's
method of accounting; or
(2) The wages reported on the various state unemployment
tax returns.
(b) The method selected under paragraph (a) above
shall be used in a consistent manner.
(c) Business organizations making a change under
(a) above from one method to another, shall make all adjustments required in
order to prevent the inclusion of the identical wages in the payroll factor for
more than one taxable period.
(d) An employer and employee relationship shall
exist before compensation is included in the payroll apportionment
factor.
(e) The employer and employee relationship shall
exist when the individual for whom the services are to be performed has the
right to:
(1) Control and direct the individual performing
the activities in areas greater than the overall results of the work; or
(2) Determine the methods and individuals used in
performing the activity.
(f) Payment made to, or on behalf of, independent
contractors shall not be includible in a business organization's payroll
apportionment factor.
(g) A designation of employee or independent
contractor adopted by the individuals not factually supported shall not change
the relationship that actually exists for purposes of RSA 77-A:3, I(b).
(h) Business organizations includible in a
combined group shall eliminate all intergroup payments for the use of
another group member's employees with only the compensation actually paid to
the employee being included.
(i) An employee's
compensation shall be included in a state's numerator when:
(1) The employee's base of operations is located
in that state;
(2) The employee's activities are controlled from
within that state in instances where there is no base of operations; or
(3) That state is the employee's state of residency
in instances where:
a. There is no base of operations; and
b. The location from which the employee's
activities are controlled cannot be determined.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06 (formerly Rev 304.04); ss by #10758, eff 1-16-15
Rev
304.04 Sales Factor. For taxable periods ending before December 31,
2021:
(a) Income producing activity shall include any:
(1) Transaction, procedure, or operation directly
engaged in by a business organization resulting in a separately identifiable
item of income; or
(2) Activity which creates an obligation of a
particular customer to pay specific consideration to the business organization.
(b)
The sales factor shall include:
(1) Sales less returns and allowances;
(2) Dividends not eligible for the dividend
deduction under RSA 77-A:4, or the factor relief provided in RSA 77-A:3, II(b);
(3) Interest;
(4) Rents;
(5) Royalties;
(6)
Capital gain income;
(7) Net gains or losses; and
(8) Other income unless the other income is
properly includible as a reduction of an expense or allowance.
(c) The sales factor numerator for separate
business organizations and all members of a combined group shall include the
sum of:
(1) Sales of tangible personal property,
regardless of the conditions of sale delivered in New Hampshire, other than to
the United States government;
(2) Sales of tangible personal property
originating in New Hampshire to a purchaser in another state in which the
business organization is not taxable or subject to tax;
(3) Sales of tangible personal property
originating in New Hampshire and delivered to the United States government in
any state;
(4) Interest on receivables where the debtor or
the encumbered property is located in New Hampshire;
(5)
Gross receipts from the lease, rental, or other use of real or personal property
located in New Hampshire;
(6) Gross receipts from the licensing or other
use of intangible property when such property is used within New Hampshire;
(7) Gains or losses from the sale of property
located in New Hampshire;
(8) Capital gains from the sale of business
assets located within New Hampshire;
(9) Dividend income received by business
organizations domiciled in New Hampshire;
(10) Gross receipts for the rendering of personal
services when the services are performed in New Hampshire; and
(11) Other income which is earned in New
Hampshire.
(d) The rental, lease, licensing, or other use of
tangible or intangible personal property in New Hampshire shall be considered a
separate and distinct income producing activity within New Hampshire.
(e) Business organizations utilizing combined
reporting shall determine the costs of performance as used in RSA 77-A:3, I (c)
and Rev 301.11 for each business organization on a separate entity basis.
(f) When an income producing activity results
from the use of personal property within and without New Hampshire during the
taxable period, gross receipts attributable to New Hampshire shall be measured
by one of the following ratios:
(1) Where the amount of time is the most
appropriate measure under the specific facts and circumstances of the business
organization’s activities, the time the property was used in New Hampshire as
compared to the total time of use of the property everywhere during that
taxable period; or
(2) Where distance is the most appropriate
measure under the specific facts and circumstances of the business organization’s
activities, the distance traveled or covered in New Hampshire as compared to
the total distance traveled or covered everywhere during the taxable period.
(g) Personal services performed in New Hampshire
shall be a separate income producing activity performed in New Hampshire unless
the business organization demonstrates the activity performed in New Hampshire
is completely dependent upon activities performed by the business organization
in one or more other states.
(h) The rendering of personal services shall be
attributed to New Hampshire if the activity:
(1) Is completely performed in New Hampshire; or
(2) Performed in New Hampshire is a dependent
component of a service performed both within and without New Hampshire and a
greater proportion of the costs directly associated with performing such
service are incurred in New Hampshire.
(i) Costs of
performance shall be determined on a separate entity basis consistent with the
separate entity treatment provided in RSA 77-A:1, I notwithstanding that the
taxpayer files a combined report.
(j) In determining the costs directly associated
with the performance of the service in (h) above, the business organization shall
allocate all compensation costs, including benefits, of personnel rendering the
service based on the amount of time spent rendering the service in New Hampshire
as compared to the time spent in rendering the service outside New Hampshire.
(k) Expenses incurred in obtaining or retaining
customers or clients, including contract negotiations, shall not be costs
directly associated with the performance of the service.
(l)
The sales price shall include all
interest, carrying charge or time-price differential charges, and excise taxes
passed on to the buyer or included as part of the selling price of the product.
(m) Business organizations includible in a combined
group shall eliminate all intergroup transactions with other members of the
combined group for both the numerator and denominator of the sales factor.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 304.05); ss by #10758, eff 1-16-15;
ss by #13177, eff 3-6-21
Rev
304.041 Sales Factor. For taxable
periods ending on or after December 31, 2021:
(a) The sales factor shall include:
(1) Sales less returns and allowances;
(2) Dividends not eligible for the dividend
deduction under RSA 77-A:4, or the factor relief provided in RSA 77-A:3, II(b);
(3)
Interest;
(4) Rents;
(5) Royalties;
(6) Capital gain net income;
(7) Net gains or losses; and
(8) Other income unless the other income is
properly includible as a reduction of an expense or allowance.
(b) The sales factor numerator for separate
business organizations and all members of a combined group shall include the
sum of:
(1) Sales of tangible personal property,
regardless of the conditions of sale delivered in New Hampshire, other than to
the United States government;
(2) Sales of tangible personal property
originating in New Hampshire to a purchaser in another state in which the
business organization is not taxable or subject to tax;
(3) Sales of tangible personal property
originating in New Hampshire and delivered to the United States government in
any state;
(4) Ordinary net gains or losses and capital gains
from the sale of real or tangible property, if and to the extent the property
is located in this state;
(5)
Ordinary net gains or losses and capital gains from the sale of intangible
property, if and to the extent the property is used in this state;
(6) Sales, rental, lease, licensing, or other use
of real property, if and to the extent the property is located in this state;
(7)
Rental, lease, licensing, or other use
of tangible personal property, if and to the extent the property is located in this
state;
(8) Sales of services, if and to the extent the
service is delivered to a location in this state;
(9) Sale, rental, lease, license, or other use of
intangible property, if and to the extent the property is used in this state;
(10) Interest income, if and to the extent the
debtor or encumbered property is located in this state;
(11) Dividend income, if and to the extent the
business organization’s commercial domicile is in this state; and
(12) Other income, if and to the extent the income
is derived from sources in this state.
(c)
In the case of the delivery of a service
to a customer by in-person means, the service shall be considered delivered in
New Hampshire if and to the extent that the customer receives the service in
New Hampshire.
(d)
In the case of the delivery of a service
to a customer by electronic transmission, the service shall be considered delivered
in New Hampshire if and to the extent that the taxpayer’s customer receives the
service in New Hampshire.
(e)
In the case of the delivery of a service
by electronic transmission, where the service is delivered electronically to
end users or other third-party recipients through or on behalf of the customer,
the service shall be considered delivered in New Hampshire if and to the extent
that the end users or other third-party recipients are in New Hampshire.
(f)
In the case of the delivery of a
professional service to a customer other than by in-person means, the service shall
be considered delivered in New Hampshire if and to the extent that the customer
receives the benefit of the service in New Hampshire.
(g)
In the case of sales other than sales of
tangible personal property, if the state or states of assignment cannot be
determined, the state or states of assignment shall be reasonably approximated.
Methods to reasonably approximate such sales shall include, but not be limited
to, multiplying such sales by a percentage that equals the ratio that the
population of New Hampshire bears to the combined total population of every state
within the United States where such business organization is taxable or subject
to tax. The need, and methodology used,
for reasonable approximation shall be determined on a separate entity basis
consistent with the separate
entity treatment provided in RSA 77-A:1, I, notwithstanding that a combined
report is filed.
(h)
In the case of sales other than sales of
tangible personal property, if the taxpayer is not taxable in a state to which
a sale is assigned, or if the state of assignment cannot be determined or
reasonably approximated, such sale shall be excluded from the denominator of
the sales factor.
(i) The sales price
shall include all interest, carrying charges or time-price differential charges,
and excise taxes passed on to the buyer or included as part of the selling
price of the product.
(j) Business organizations includible in a combined
group shall eliminate all intergroup transactions with other members of the
combined group for both the numerator and denominator of the sales factor.
Source.
#13177, eff 3-6-21
Rev 304.05 Business Organizations Seeking a Modification
of Apportionment Provisions.
(a) A business organization shall petition the
commissioner in writing by separate cover for approval prior to using the
modified apportionment formula provided in RSA 77-A:3.
(b) The petition for use of the modification of
the apportionment formula shall:
(1) Be mailed to:
Commissioner
New Hampshire Department
of Revenue Administration
(2) Set forth a complete statement of the facts
relating to the request including:
a. For all interested parties:
i. Full names and addresses;
ii. Taxpayer identification numbers; and
iii. Department license numbers, if any;
b. A full and precise statement of the necessity
for the modification;
c. A detailed description of the business
activity which necessitates the modification; and
d. Evidence supporting the business organization's
petition including:
i. Court decisions on the matter; and
ii. True copies of all contracts, deeds, agreements,
instruments, or other documents demonstrating the necessity of the
modification;
(3) Reference to the statutory provisions relating
to the subject of the petition;
(4) A description of the modified formula proposed
by the business organization; and
(5) A statement whether or not, to the best of
the petitioner's knowledge, the modification is the subject of prior petition
requests of a similar or identical factual nature.
(c) The information in the
petition shall be reviewed by the commissioner’s designee, to determine whether
the requested modification measures the activity being conducted in
(d) A petitioner may appeal the department’s written determination and
request a hearing on the petition in the same manner as an adjudicative
proceeding involving the administration, assessment, or refund of taxes
governed by Rev 200.
(e) An
appeal shall be filed, pursuant
to Rev 200, within 60 days of the notice of the determination of the
commissioner’s designee.
(f) The use of a separate accounting result which
differs from the standard apportionment result shall not prove the need for, or
the acceptability of, a modified apportionment formula.
(g) If the commissioner disapproves a petition,
no return shall be considered filed by the business organization until a proper
apportionment schedule is submitted to the department.
(h) The use of a modified apportionment formula by
a business organization without prior written approval or final hearing order
of the commissioner shall:
(1) Constitute a willful violation of RSA 77-A:3;
and
(2) Not be considered filed for purposes of RSA
77-A:6, RSA 77-A:1, VII; and Rev 307 until such approval has been obtained from
or ordered by the commissioner.
(i) A copy of the
commissioner's approval letter shall be attached to all subsequent returns
filed.
Source. #4192, eff 12-23-86; ss by #4438, eff
6-22-88; ss by #5490, eff 10-19-92; amd by #5910, eff
10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev
304.06); ss by #10758, eff 1-16-15
Rev 304.06 Use of Special Industry Apportionment
Provisions. Paragraphs (a) through (f)
shall apply to taxable periods ending before December 31, 2021, and paragraph (g)
shall apply to taxable periods ending on or after December 31, 2021 as follows:
(a) A business organization, which is not a member
of a combined group, may elect to use one of the industry specific
apportionment provisions in Rev 304.07 through Rev 304.11, provided more than
50% of the business organization’s:
(1) Gross receipts for the taxable period are from
sources relating to the industry identified by the rule; and
(2) Total assets on the last day of the taxable
period are commonly related to the industry identified by the rule.
(b) A business organization, which is a member of
a combined group, may elect to use one of the industry specific apportionment
provisions in Rev 304.07 through Rev 304.11 provided more than 50% of the
combined group’s:
(1) Gross receipts for the taxable period are from
sources relating to the industry identified by the rule; and
(2) Total assets on the last day of the taxable
period are commonly related to the industry identified by the rule.
(c) The business organization or group of business
organizations electing to use the industry specific apportionment provisions
contained in Rev 304.07 through Rev 304.11 shall continue to use the
apportionment provisions until:
(1) The department grants, in writing, a request
made to the department to change the method used; and
(2) The department approves of a change in the
apportionment method upon a showing that the business organizations:
a. No longer meets the requirements to use
special industry apportionment provisions; or
b. Circumstances have changed so that the use of
special industry apportionment provisions no longer accurately reflects the
business organization’s business activity in New Hampshire.
(d) Unless otherwise indicated, the industry
specific apportionment provision elected by the business organization shall
apply in its entirety.
(e) If the business organization considers the
formula in the industry specific apportionment provisions in Rev 304.07 through
Rev 304.11 to not accurately reflect the business organization’s business
activity in New Hampshire, the business organization may petition for
modification to the formula pursuant to Rev 304.05.
(f) If the commissioner determines that the
formula in the industry specific apportionment provisions in Rev 304.07 through
Rev 304.11 do not accurately reflect the business organization’s business
activity in New Hampshire, the commissioner shall propose a modification to the
formula. Should the business organization disagree with the proposed
modification, the commissioner shall, pursuant to RSA 77-A:3, II(a), enforce
such modification when the dispute is unable to be resolved through the process
outlined in Rev 308.03.
(g) A business organization or combined group
shall use one of the industry specific apportionment provisions in Rev 304.07
through Rev 304.11, provided more than 50% of the business organization’s or
combined group’s:
(1) Gross receipts for the taxable period are from
sources relating to the industry identified by the rule; and
(2) Total assets on the last day of the taxable
period are commonly related to the industry
identified by the
rule.
(h) For taxable periods ending
on or after December 31, 2022, a business organization or combined group shall exclusively use
the sales factor when utilizing one of the industry specific apportionment
provisions referenced in paragraph (g) above, without regard to the property or
payroll factor provisions.
Source. #5910, eff 10-14-94; ss by #6853, eff
9-23-98; ss by #6962, eff 3-25-99; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15; ss by #13177, eff 3-6-21; ss by #13450, eff 9-23-22
Rev 304.07 Adjustments Required to Apportionment
Factors for Airline Industries.
(a) For purposes of this section,
the following definitions shall apply:
(1) “Aircraft ready for flight” means aircraft
which are:
a. Owned or acquired through
rental or lease;
b. In the possession of the
business organization; and
c. Available for service on the
business organization's routes or charters;
(2) “Commercial airlines” means business
organizations which operate aircraft in the income producing activity of
carrying passengers or cargo for remuneration;
(3) “Cost of aircraft by type” means the average
original cost, as calculated by the business organization, by type of aircraft
ready for flight;
(4) “Departures” means all takeoffs whether they
are regularly scheduled service or charter flights that occur during the
taxable period excluding takeoffs where the sole purpose of the departure is
the maintenance or ferrying of the aircraft;
(5) “Mobile payroll” means the total compensation
determined in accordance with Rev 304.034 for flight crew and maintenance
facility personnel;
(6) “Mobile property” means:
a. Aircraft;
b. Engines;
c. Transmissions;
d. Electronic components; or
e. Other parts of an aircraft
capitalized or inventoried for federal income tax purposes or which generally
move from location to location in the organization's route system;
(7) “NH departures” means departures occurring
from within the geographical confines of New Hampshire;
(8) “Non-mobile payroll” means the total
compensation determined in accordance with Rev 304.03 for all employees of the
business organization other than flight crew and maintenance facility
personnel;
(9) “Non-mobile property” means tangible personal
property used in the operation of a commercial airline and permanently located
at a particular place of business;
(10) “Non-transportation sales” means all receipts
of the business organization other than those classified as transportation
sales; and
(11) “Transportation sales” means the receipts
from transporting passengers, freight or mail and the sale of products or services
associated with such transportation such as, but not limited to, liquor sales,
and audio headset or pet crate rentals.
(b) Commercial airlines shall apportion their
income to New Hampshire using the apportionment provisions contained in
RSA 77-A:3 and Rev 304.02, Rev
304.03, Rev 304.04, and Rev 304.041, subject to the
adjustments in paragraphs (c), (d), and (e), below.
(c) The property factor's
components shall be calculated utilizing the following provisions:
(1) The factor shall be the sum of average New
Hampshire mobile property and average New Hampshire non-mobile property,
divided by the sum of average mobile property everywhere and average non-mobile
property everywhere;
(2) Average New Hampshire non-mobile property,
and average non-mobile property everywhere shall be calculated using the
provisions of Rev 304.02;
(3) Average mobile property everywhere shall include
the average value, as provided in Rev 304.02 (j), of all mobile property owned,
rented and used by the business organization except that aircraft ready for
flight shall be included based on the cost of aircraft by type;
(4) Average New Hampshire mobile property shall
equal average mobile property everywhere:
a. Multiplied by
b. Divided by total departures;
and
c. Departures of aircraft shall be
weighted based upon the cost of aircraft by type; and
(5) The property factor shall be expressed by the
formula as follows:
|
Mobile Property Everywhere |
X |
NH Departures -------------------- Total Departures |
= |
NH Mobile
Property |
|
|
|
|
|
|
|
Average NH Mobile Property |
+ |
|
|
Total Average NH
Property |
|
------------------------------------------------------------------------------- |
= |
--------------- |
||
|
Average |
+ |
Average
Non-Mobile Property Everywhere |
|
Total Average
Property Everywhere |
(d) The payroll factor's components shall be
calculated utilizing the following provisions:
(1) The factor shall be the sum of New Hampshire
mobile payroll and New Hampshire non-mobile payroll, divided by the sum of
mobile payroll everywhere and non-mobile payroll everywhere;
(2) New Hampshire non-mobile payroll, and
non-mobile payroll everywhere shall be calculated using the provisions of Rev
304.03;
(3) Mobile payroll everywhere shall include the
total compensation of the business organization's flight crews and maintenance
facility personnel;
(4) New Hampshire mobile payroll shall equal
mobile payroll everywhere:
a. Multiplied by
b. Divided by total departures;
and
c. Departures of aircraft shall be
weighted based upon the cost of aircraft by type; and
(5) The payroll factor
shall be expressed by formula as follows:
|
Mobile Payroll Everywhere |
X |
NH Departures -------------------- Total Departures |
= |
NH |
|
|
|
|
|
|
|
NH |
+ |
NH Non-Mobile
Payroll |
|
Total NH Payroll |
|
--------------------------------------------------------------------------------- |
= |
--------------- |
||
|
Mobile Payroll Everywhere |
+ |
Non-Mobile
Payroll Everywhere |
|
Total Payroll
Everywhere |
(e) The
sales factor's components shall be calculated utilizing the following provisions:
(1) The sales factor shall be the sum of New
Hampshire transportation sales and New Hampshire non-transportation sales,
divided by the sum of transportation sales everywhere and non-transportation
sales everywhere;
(2)
New Hampshire non-transportation sales
and non-transportation sales everywhere shall be calculated using the
provisions of Rev 304.04 and Rev 304.041;
(3) Transportation sales everywhere shall include
the total transportation sales of the business organization;
(4) New Hampshire transportation sales shall
include the receipts from all passengers and cargo enplaned in New Hampshire;
and
(5) The sales factor shall be expressed by
formula as follows:
|
|
|
|
|
|
|
NH
Transportation Sales |
|
NH Non-Transportation
Sales |
|
Total NH Sales |
|
-------------------------- |
+ |
--------------------------------- |
= |
--------------- |
|
Transportation
Sales Everywhere |
|
Non-Transportation
Sales Everywhere |
|
Total Sales Everywhere |
(f) The business organization shall maintain the
records necessary to substantiate the departures by type of aircraft and the
receipts for passengers and cargo that enplaned in New Hampshire and
everywhere.
Source. #5910, eff 10-14-94; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13177, eff 3-6-21
Rev 304.08 Adjustments Required To Apportionment
Factors For Printing and Publishing Industries.
(a) For purposes of this section, the following
definitions shall apply:
(1) “Outer-jurisdictional property” means
tangible personal property, such as orbiting satellites and undersea
transmission cables, which are not physically located in any particular state,
that are:
a. Owned or rented by the business
organization; and
b. Used in the business of:
1. Publishing;
2. Licensing;
3. Selling; or
4. Otherwise distributing printed material;
(2) “Print” or “printed material” means the
physical or digital embodiment or printed version of any thought or expression including,
without limitation:
a. A play;
b. A story;
c. An article;
d. A column; or
e. Other literary, commercial,
educational, artistic or other written or printed work and may take the form
of:
1. A book;
2. A newspaper;
3. A magazine;
4. A periodical;
5. A trade journal; or
6. Any other form of printed matter contained on
any medium or property;
(3) “Purchaser” or “subscriber” means:
a. The individual
location of the:
1. Residence;
2. Business; or
3. Other outlet which is the final recipient of
the print or printed material; and
b. Not a wholesaler or other distributor of print or
printed material; and
(4) “Terrestrial facility” means any:
a. Telephone line;
b. Cable;
c. Fiber optic;
d. Microwave transmission or reception
equipment;
e. Earth station;
f. Satellite dish; or
g. Antennae or other relay system
or device that is used to:
1. Receive;
2. Transmit;
3. Relay; or
4. Carry any data, voice, image, or other
information transmitted from or by any outer-jurisdictional property to the
ultimate recipient thereof.
(b) Business organizations having income derived
from the publishing, sale, licensing, or other distribution of books, newspapers,
magazines, periodicals, trade journals, or other printed material, shall
apportion their income to New Hampshire using the apportionment
provisions contained in RSA 77-A:3, Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.041, subject to the adjustments
in paragraphs (c), (d), and (e), below.
(c) The property factor's components shall be
calculated utilizing the following provisions:
(1) The property factor shall be the sum of
average New Hampshire outer-jurisdictional property and average New Hampshire
non-outer jurisdictional property, divided by the sum of average
outer-jurisdictional property everywhere and average non-outer jurisdictional
property everywhere;
(2) Average
(3) Average outer-jurisdictional property everywhere shall include the average value, as
provided in Rev 304.02(j), of all outer-jurisdictional
property owned, rented, and used by the business organization;
(4) Average New Hampshire outer-jurisdictional
property shall equal average outer-jurisdictional property everywhere:
a. Multiplied by the number of
uplinks and downlinks used during the taxable period to transmit from New
Hampshire and to receive in New Hampshire any data, voice, image, or other
information; and
b. Divided by the total number of
uplinks and downlinks the business organization used for transmissions
everywhere;
(5) Should information requested in (c)(4) above
not be available or should such measurement of activity not be applicable to
the type of outer-jurisdictional property used by the business organization,
the average New Hampshire outer-jurisdictional property shall be calculated as
follows:
a. Multiplied by the amount of time,
in terms of hours and minutes of use or such other measurement of use of
outer-jurisdictional property used during the taxable period to transmit from
New Hampshire and to receive in New Hampshire any data, voice, image, or other
information; and
b. Divided by the total amount of
time or other measurement of use that was used for transmissions everywhere;
(6) Outer-jurisdictional property shall be
considered to have been used by the business organization in its business activities within
New Hampshire when such property, wherever located, has been employed by the
business organization in any manner in the following functions:
a. The publication, sale,
licensing, or other distribution of books, newspapers, magazines, or other
printed material; and
b. Transmission of any data,
voice, image, or other information to or from New Hampshire, through an earth
station or terrestrial facility located in New Hampshire; and
(7) The property factor shall be expressed by
formula as follows:
|
Average NH Outer-Jurisdictional Property |
+ |
Average NH
Non-Outer Jurisdictional Property |
|
Total Average NH Property |
|
-------------------------------------------------------------------------------------- |
= |
--------------- |
||
|
Average
Outer-Jurisdictional Property
Everywhere |
+ |
Non Outer-Jurisdictional Property
Everywhere |
|
Total Average
Property Everywhere |
(d) The payroll factor shall be calculated in
accordance with Rev 304.03.
(e) The sales factor's components shall be
calculated in the following manner:
(1) The sales factor shall be the sum of New
Hampshire print or printed material sales and New Hampshire non-print or
non-printed material sales, divided by the sum of print or printed material
sales everywhere and non-print or non-printed material sales everywhere;
(2) New Hampshire non-print or non-printed
material sales, and non-print or non-printed material sales everywhere, shall
be calculated using the provisions of Rev 304.04 and Rev 304.041;
(3) Print or printed material sales everywhere shall
include all receipts from advertising and the sale, rental, or other use of the
business organization's printed materials or customer lists;
(4) New Hampshire print or printed material sales
for each publication shall be equal to the receipts calculated in (e)(3) above:
a. Multiplied by the business organization's in-state circulation to
purchasers and subscribers of its printed material; and
b. Divided by its total
circulation to purchasers and subscribers everywhere;
(5) In the event the purchaser or subscriber is
the United States government or the business organization is not taxable in a
state, the gross receipts from all sources associated with the printed
materials, shall be included in the numerator of the sales factor of New
Hampshire if the printed material or other property is shipped from an
in-state:
a. Office;
b. Store;
c. Warehouse;
d. Factory; or
e. Other place of storage or
business;
(6) The method used to determine the circulation
of a publication shall be used consistently between the numerator and the
denominator and from year to year; and
(7) The sales factor shall be expressed by
formula as follows:
|
NH Print or
Printed Material Sales |
+ |
NH Non-Print or
Non-Printed Material Sales |
|
Total NH Sales |
|
|
----------------------------------------------------------------------------------------- |
= |
---------------- |
|||
|
Print or Printed
Material Sales Everywhere |
+ |
Non-Print or
Non-Printed Material Sales Everywhere |
|
Total Sales Everywhere |
|
Source. #5910, eff 10-14-94; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13177, eff 3-6-21
Rev 304.09 Adjustments Required to Apportionment Factors
For Television and Radio Broadcasting Industries.
(a)
For purposes of
this section, the following definitions shall apply:
(1)
“Broadcast” means the transmission of radio programming by an electronic
signal conducted by:
a. Radio waves;
b. Microwaves;
c. Wires;
d. Lines;
e. Coaxial cables;
f. Wave guides;
g. Fiber optics; or
h. Other conduits of communications;
(2)
“Film” means performances or productions
telecast, live or otherwise, including, but not limited to:
a. News;
b. Sporting events;
c. Plays;
d. Stories; and
e. Other literary,
commercial, educational, or artistic works, in the format of a motion picture,
a videotape, video disc, or other medium;
(3)
“Outer-jurisdictional property” means tangible personal property, such
as orbiting satellites, undersea transmission cables, which are not physically
located in any particular state, that are:
a. Owned or rented by the business organization;
and
b. Used in the business of
1. Telecasting;
or
2. Broadcasting;
(4)
“Placed into service” means when the film is
first telecast to the primary audience for which the film was created;
(5) “Radio” means
performances or productions broadcast, live or otherwise, on radio, including,
but not limited to:
a. News;
b. Sporting events;
c. Plays;
d. Stories; or
e. Other literary, commercial, educational, or
artistic works, in the format of an audiotape, disc, or other medium;
(6) “Rent”
means the payments or consideration such as, but not limited to, license fees
provided for the broadcast or other use of television or radio programming;
(7) “Subscriber”
means the individual location of the residence or other outlet which is the
ultimate recipient of the transmission;
(8) “Tangible personal property” means property
other than:
a. Real estate;
b. Film; or
c. Radio programming; and
(9) “Telecast” means the transmission of
television programming by an electronic signal conducted by:
a. Radio waves;
b. Microwaves;
c. Wires;
d. Lines;
e. Coaxial cables;
f. Wave guides;
g. Fiber optics; or
h. Other conduits of communications.
(b)
Business organizations shall apportion their income to New Hampshire
using the apportionment provisions contained in RSA 77-A:3, Rev 304.02, Rev
304.03, Rev 304.04, and Rev 304.041,
subject to the adjustments in (f), (g), (h), and (i)
below.
(c) Each
episode of a series of films produced for television shall constitute a
separate film notwithstanding that the series relates to the same principal
subject and is produced during one or more television seasons.
(d) Each episode of a series of radio programming
produced for radio broadcast shall constitute separate radio programming notwithstanding that the series relates
to the same principal subject and is produced during one or more taxable
periods.
(e)
A film shall not be placed in service merely
because it is:
(1) Completed
and therefore in a condition or state of readiness and availability for
telecast;
(2) Telecast to
prospective sponsors or purchasers; or
(3) Shown in
preview before a select audience.
(f)
The property factor for television and radio broadcasters shall be:
(1) The sum of
New Hampshire programming property and New Hampshire non-programming property,
divided by the sum of total programming property and total non-programming
property; and
(2) The
components calculated in accordance with the provisions of Rev 304.02, and in
the following manner:
a. Total non-programming property shall include
all real and tangible personal property other than outer-jurisdictional and
film or radio programming property owned, rented, or employed by the business
organization;
b. New Hampshire non-programming property shall
include all real and tangible personal property other than outer-jurisdictional
and film or radio programming property owned, rented, or employed by the
business organization in New Hampshire;
c. Total programming property shall be the
average cost, determined as provided in Rev 304.02(j), of all
outer-jurisdictional and film or radio programming property owned, rented, and
used by the business organization;
d. New Hampshire programming property shall be
the average costs, determined as provided in Rev 304.02(j), of all
outer-jurisdictional and film or radio programming property owned, rented, and
used by the business organization in New Hampshire;
e.
1. The average
cost of outer-jurisdictional property everywhere:
i.
Multiplied by the amount of use, in hours and minutes or other
comparable form of measurement, of outer-jurisdictional property during the
taxable period to transmit from New Hampshire and to receive in New Hampshire
any data, voice, image, or other
information; and
ii. Divided by the total amount of time or other
comparable measurement that outer-jurisdictional property was used for
transmissions everywhere;
2. The original
cost of audio or video cassettes, discs or similar media containing film or radio programming and
intended for sale or rental by the business organization for home viewing or
listening within New Hampshire; and
3. To the
extent the business organization licenses or otherwise permits others to
manufacture or distribute audio or video cassettes, disc, or other media
containing film or radio programming for home viewing or listening, the
license, royalty, or other fees reviewed by the business organization
capitalized at a rate of 8 times the gross receipts derived there from during the
taxable period; and
f.
The property factor shall be expressed by formula as follows:
|
|
|
|
|
|
|
Average NH Outer-Jurisdictional & Programming
Property |
+ |
|
|
Total Average NH Property |
|
----------------------------------------------------------------------------- |
= |
--------------- |
||
|
Average Outer-Jurisdictional & Programming
Property Everywhere |
+ |
Average Non- Outer Jurisdictional &
Non-Programming Property Everywhere |
|
Total Average Everywhere Property |
(g)
The payroll factor shall be calculated in
accordance with Rev 304.03.
(h)
The sales factor shall be the sum of New
Hampshire programming sales and New Hampshire non-programming sales, divided by
the sum of programming sales everywhere and non-programming sales everywhere.
(i) The sales factor
components shall be calculated in the following manner:
(1)
Non-programming sales, both everywhere and in New Hampshire, shall be
calculated using the provisions of Rev 304.04 and Rev 304.041;
(2) Programming
sales everywhere shall include all receipts from advertising and the sale,
rental or other use of the business organization’s film or radio programming or
customer lists; and
(3) New
Hampshire programming sales shall equal programming sales everywhere:
a. Multiplied by the business organization’s
in-state audience; and
b.
Divided by the business organization’s total audience everywhere;
(4) The method
used to determine the audience shall be used consistently to determine both
in-state audience and total audience, and used consistently from year to year;
and
(5) The sales
factor shall be expressed by formula as follows:
|
NH Programming Sales |
+ |
NH Non-Programming Sales |
|
Total NH Sales |
|
------------------------------------------------------------------------------------- |
= |
---------------- |
||
|
Programming Sales Everywhere |
+ |
Non-Programming Sales Everywhere |
|
Total Everywhere Sales |
Source.
#6129, eff 11-23-98; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06;
ss by #10758, eff 1-16-15; amd by #12906, eff 10-23-19;
ss by #13177, eff 3-6-21
Rev
304.10 Adjustments Required to Apportionment Factors For
Financial Institutions.
(a)
For purposes of this section, the following definitions shall apply:
(1) “Billing address” means the location indicated
in the books and records of the business organization on the first day of the
taxable year, or on such later date in the taxable period when the customer
relationship began, as the address where any notice, statement, or bill
relating to a customer's account is mailed to the customer;
(2) “Borrower or credit cardholder located in New
Hampshire” means:
a. An individual or business organization
engaged in a trade or business which maintains its commercial domicile in New
Hampshire; or
b. An individual who is not engaged in a trade
or business but whose billing address is in New Hampshire;
(3) “Commercial domicile” means, for businesses
organized under the laws of:
a. The United States, the place from which the
trade or business is principally managed and directed; or
b. A foreign country, the Commonwealth of Puerto
Rico, any territory or possession of the United States, the state of the United
States, or the District of Columbia to which the greatest number of employees,
as defined in Rev 301.14, are regularly
connected or out of which they are working, irrespective of where the services
of such employees are performed, as of the last day of the taxable year;
(4) “Credit card” means a card or other medium
entitling its holder to credit by virtue of its use to purchase goods or
services from businesses;
(5) “Credit card issuer's reimbursement fee” means
the fee a business organization receives from a merchant's bank because one of
the persons to whom the business organization has issued a credit card has charged
merchandise or services to the credit card;
(6) “Finance lease” means any lease transaction,
including any that are classified as a direct financing lease or leverage lease
under generally accepted accounting principles or any other lease that is accounted
for as a financing by a lessor under generally accepted accounting principles
which is the functional equivalent of an extension of credit and that transfers
substantially all of the benefits and risks incident to the ownership of
property to the lessee;
(7) “Financial
institution” means:
a. Any corporation or other business entity
registered under:
1. State law as a bank holding company;
2. The Federal Bank Holding Company Act of 1956,
as amended; or
3. The Federal National Housing Act, as amended,
as a savings and loan holding company;
b. A national bank organized and existing as a national
bank association pursuant to the National Bank Act, 12 U.S.C. 21 et seq.;
c. A savings association or federal savings bank
as defined in the Federal Deposit Insurance Act, 12 U.S.C. 1813(b)(1);
d. Any bank or thrift institution incorporated
or organized under the laws of any state;
e. Any corporation organized under the
provisions of 12 U.S.C. 611 to 631;
f. Any agency or branch of a foreign depository
as defined in 12 U.S.C. 3101;
g. A production credit association organized
under the Federal Farm Credit Act of 1933, all of whose stock held by the Federal
Production Credit Corporation has been retired;
h. Any corporation, other than an insurance
company, whose voting stock is more than 50% owned, directly or indirectly, by
any person or business entity described in subsections a. through g. above;
i. A corporation or other business entity which
during the current taxable period and the previous 2 taxable periods derived an
average of 50% of its total gross income for financial accounting purposes from
finance leases;
j. Any other person or business entity, other
than an insurance company, a real estate broker, a securities dealer, or other
similar business entities, which derive more than 50% of their gross income
excluding non-recurring and extraordinary items from activities that a person
described in subsections a. through i. above is
authorized to transact; and
k. Any person or business entity having more
than 50% of its total gross business income derived from or attributable to the
issuance and maintenance of credit cards to consumers provided that such credit
card can be used by the consumer to purchase goods and services from organizations
other than the card issuer;
(8) “Gross rents” means:
a. The actual sum of money or other
consideration payable for the use or possession of property except:
1. Reasonable amounts payable as separate
charges for water and electric service furnished by the lessor;
2. Reasonable amounts payable as service charges
for janitorial services furnished by the lessor;
3. Reasonable amounts payable for storage,
provided such amounts are payable for space not designated for use by and not
under the control of the taxpayer; and
4. That portion of any rental payment applicable
to the space subleased from the taxpayer and not used by the taxpayer;
b. Any amount payable for the use or possession
of real property and tangible property whether designated as a fixed sum
of money or as a percentage of receipts, profits, or otherwise; and
c. Any amount payable as additional rent or in
lieu of rent, such as interest, taxes, insurance, repairs, or any other amount
required to be paid by the terms of a lease or other arrangement, including the
amount of amortization or depreciation allowed in computing the taxable income
base for the taxable year of any improvement to real property made by or on
behalf of the business organization which reverts to the owner or lessor upon
termination of a lease or other arrangement;
(9) “Loan” means any extension of credit resulting
from direct negotiations between the business organization and its customers
and:
a. Includes:
1. Participation;
2. Syndications;
3. Leases treated as loans for federal income
tax purposes; and
4. The purchase, in whole or in part, of such extension
of credit from another business organization; and
b. Excludes:
1. Properties treated as loans under section 595
of the IRC;
2. Futures or forward contracts;
3. Options;
4. Notional principal contracts such as swaps;
5. Credit card receivables, including purchased
credit card relationships;
6. Non-interest bearing balances due from
depository institutions;
7. Cash items in the process of collection;
8. Federal funds sold;
9. Securities purchased under agreements to
resell;
10. Assets held in a trading account;
11. Securities; and
12. Interests in a
real estate mortgage investment conduit (REMIC), or other mortgage-backed or
asset-backed security;
(10) “Loan secured by real property” means 50% or
more of the aggregate value of the collateral used to secure a loan or other
obligation, when valued at fair market value as of the time the original loan
or obligation was incurred, was real property;
(11) “Merchant discount” means the fee, or
negotiated discount, charged to a merchant by the business organization for the
privilege of participating in a program whereby a credit card is accepted in
payment for merchandise or services sold to the card holder;
(12) “Participation”
means an extension of credit in which an undivided ownership interest is held
on a pro rata basis in a single loan or pool of loans and the related
collateral by the credit originator and any other lenders who have purchased a
portion of such loan or pool of loans whether or not known to the borrower;
(13) “Person” means an individual, estate, trust,
partnership, corporation, and any other business entity;
(14) “Real and tangible property” means assets:
a. On which the taxpayer may claim depreciation
for federal income tax purposes;
b. To which the taxpayer holds legal title and on
which no other person may claim depreciation for federal income tax purposes or
could claim depreciation if subject to federal income taxation; or
c. That have not been acquired in lieu of, or
pursuant to, a foreclosure;
(15) “Regular place of business” means an office where
the business organization conducts business in a regular and systematic manner
and is continuously maintained, occupied, and used by employees of the business
organization;
(16) “Syndication” means an extension of credit in
which 2 or more persons fund the credit extension and each person is at risk at
a specified:
a. Percentage of the total extension of credit;
or
b. Dollar amount;
(17) “Taxable” means:
a. A business organization, as defined in RSA
77-A:1, I., subject in another state to:
1. A net income tax, a franchise tax measured by
net income;
2. A franchise tax for the privilege of doing
business; or
3. A corporate
stock tax including a bank shares tax, a single business tax, or an earned
surplus tax, or any tax which is imposed upon or measured by net income; or
b. Another state has jurisdiction to subject the
business organization to any of such taxes regardless of whether, the state
does or does not impose such taxes; and
(18) “Transportation property” means:
a. Vehicles and vessels capable of moving under
their own power; and
b. Equipment or containers attached to the
vehicle or vessel.
(b)
Financial institutions shall apportion their income to New Hampshire
using the apportionment provisions contained in RSA 77-A:3 and Rev 304.02, Rev
304.03, Rev 304.04, and Rev 304.041, subject to the adjustments in paragraphs
(c), (d), and (e), below.
(c)
The property factor's components shall be calculated utilizing the
following provision:
(1) The property factor
shall include only property the income or expenses of which are included, or
would have been included if not fully depreciated or expensed, in the
computation of the apportionable income tax base for the taxable period;
(2) The property factor shall be the sum of the
value of the real and tangible property and the intangible property components;
(3) The real and tangible property component
shall be calculated using the provision of Rev 304.02;
(4) The intangible
property component shall include the average value of the business
organization's loans and credit card receivables;
(5) Intangible property shall be determined to be
located in New Hampshire when it is properly assigned to a regular place of
business of the business organization within New Hampshire, based upon the
preponderance of substantive contacts relating to the loans having occurred in
New Hampshire;
(6) Substantive contacts shall occur when one or
more of the following activities are conducted by employees connected with, or
working out of the business organization's regular place of business in New
Hampshire, regardless of where the services of such employee were actually
performed:
a. Solicitation of the customer by an employee or
the customer initiation of contact with the business organization at its
regular place of business;
b. Investigation of the customer's credit-worthiness
and the degree of risk involved in making the particular loan;
c. Negotiation between the employee of the
business organization and the customer regarding the terms of the loan such as
the:
1. Amount;
2. Duration;
3. Interest rate;
4. Frequency of repayment;
5. Currency denomination; and
6. Security requirements;
d. Approval of the agreement by the employees or
directors of the business organization; and
e. Administering the account by performing
services such as:
1. Bookkeeping;
2. Collecting payments;
3. Corresponding with the customer; or
4. Proceeding against the customer in the case
of default;
(7) The intangible property included under
paragraph (4) above shall be valued in the following manner:
a. Loans shall be valued at their outstanding
principal balance, without regard to any reserve for bad debts;
b. Credit card receivables shall be valued at
their outstanding principal balance, without regard to any reserve for bad
debts, with the exception that credit card receivables which are written-off in
whole or in part for federal income tax purposes shall not be included in the
principal balance to the extent of the portion that is written-off; and
c. Loans, when written off in whole or in part,
shall not be included in the total to the extent of the portion that is written
off for:
1. Federal income tax purposes; or
2. Regulatory purposes through a specifically
allocated reserve pursuant to regulatory or financial accounting guidelines;
(8) Loans properly assigned to New Hampshire shall,
absent any change of material fact, remain assigned to New Hampshire for the
length of the original term of the loan;
(9) Upon completion of the original term of loans
referenced in (8), above, they may be properly assigned to another state if
said loans have a preponderance of substantive contact to a regular place of
business there; and
(10) Credit card receivables shall be treated as loans
and subject to the provisions of (c)(6) above, for purposes of determining the
location of credit card receivables.
(d) The payroll factor shall be
calculated in accordance with Rev 304.03.
(e) The sales factor shall be
calculated utilizing the following provisions in lieu of the provisions
contained in Rev 304.04 and Rev 304.041:
(1) The sales factor shall be a fraction, as follows:
a. The numerator shall be the receipts from the
lease, sublease, rental, or sub-rental of real property located in New
Hampshire, and the lease or rental of tangible personal property, other than transportation
equipment, located in New Hampshire when it is first placed in service by the
lessee owned by the business organization in New Hampshire during the taxable
year; and
b. The denominator shall be the receipts of the
business organization within and without New Hampshire during the taxable period;
(2) The sales factor numerator and denominator
shall be calculated in a consistent manner from year-to-year, and include those
receipts described herein which constitute income and are included in the
computation of the apportionable income base for the taxable period;
(3) Receipts from the lease or rental of
transportation property owned by the business organization shall be:
a. Included in the numerator to the extent that
the property is used in New Hampshire; and
b. Calculated in the following manner:
1. The amount of receipts from the lease or
rental of aircraft to be included in the numerator of New Hampshire's sales
factor shall be determined by multiplying all the receipts from the lease or
rental of the aircraft by a fraction, as follows:
(i) The numerator
shall be the number of landings of the aircraft in New Hampshire; and
(ii) The denominator shall be the total number of
landings of the aircraft;
2. Motor vehicles shall be included in the
numerator of the state in which they are registered and deemed to be used
wholly within such state; and
3. If the extent of the use of any
transportation property within New Hampshire cannot be determined, the property
shall be deemed to be used wholly in the state in which the property has its
principal base of operations;
(4) The numerator shall include interest and
fees, or penalties in the nature of interest, from loans secured by real
property if, at the time the original agreement is made, the following shall
apply:
a. The property is entirely located within New
Hampshire;
b. The property is located both within New
Hampshire and one or more other states, and more than 50% of the fair
market value of the real property is located within New Hampshire; or
c. More than 50% of the fair market value of the
real property is not located within any one state, and the borrower is located
in New Hampshire;
(5) Interest and fees or penalties in the nature
of interest from loans not secured by real property shall be included in the
numerator if the borrower is located in New Hampshire;
(6) Net gains from the sale of loans, including
income recorded under the coupon stripping rules of section 1286 of the IRC,
shall be included in the numerator utilizing the following provisions:
a. The amount of net gains, but not less than
zero, from the sale of loans secured by real property included in the numerator
shall be determined by multiplying such net gains by a fraction, as follows:
1. The numerator shall be the amount included in
the numerator of the sales factor pursuant to (4) above; and
2. The denominator shall be the total amount of
interest and fees, or penalties in the nature of interest, from loans secured
by real property; and
b. The amount of net gains, but not less than
zero, from the sale of loans not secured by real property included in the
numerator shall be determined by multiplying such net gains by a fraction, as
follows:
1. The numerator shall be the amount included in
the numerator of the sales factor pursuant to (5) above; and
2. The denominator shall be the total amount of
interest and fees, or penalties in the nature of interest, from loans not
secured by real property;
(7) The numerator shall include interest and fees
or penalties in the nature of interest from credit card receivables and
receipts from fees, such as annual fees, charged to cardholders if the billing
address of the cardholder is in New Hampshire;
(8) The amount of net gains, but not less than
zero, from the sale of credit card receivables included in the numerator shall
be determined by multiplying such net gains by a fraction, as follows:
a. The numerator shall be the amount included in
the numerator of the sales factor pursuant to (7) above; and
b. The denominator shall be the business
organization's total amount of interest and fees or penalties in the nature of
interest from credit card receivables and fees charged to card holders;
(9) The numerator shall include all credit card
issuer's reimbursement fees multiplied by a fraction, as follows:
a. The numerator shall be the amount included in
the numerator of the sales factor pursuant to (7) above; and
b. The denominator shall be the business
organization's total amount of interest and fees or penalties in the nature of
interest from credit card receivables and fees charged to card holders;
(10)
The numerator shall include receipts from merchant discount if the
commercial domicile of the merchant is in New Hampshire;
(11) Receipts from merchant discount, referenced
in (10), above, shall:
a. Be computed net of any cardholder charge
backs; and
b. Not be reduced by any interchange transaction
fees or by any issuer's reimbursement fees paid to another for charges made by
its card holders;
(12) The numerator shall include receipts from loan servicing fees
utilizing the following provisions:
a. For loan servicing fees derived from loans
secured by real property, the total amount of such fees shall be multiplied by
a fraction, as follows:
1. The numerator shall be the amount included in
the numerator of the receipts factor pursuant to (4) above; and
2. The denominator shall be the total amount of
interest and fees, or penalties in the nature of interest, from loans secured
by real property;
b. For loan servicing fees derived from loans
not secured by real property, the total amount of such fees shall be multiplied
by a fraction, as follows:
1. The numerator shall be the amount included in
the numerator of the receipts factor pursuant to (9) above; and
2. The denominator shall be the total amount of
interest and fees, or penalties in the nature of interest, from loans not
secured by real property; and
c. For circumstances in which the business
organization receives loan servicing fees for servicing either the secured or
the unsecured loans of another business organization, the numerator shall
include such fees if the borrower is located in New Hampshire;
(13) The
numerator shall include all sales not otherwise apportioned under this section utilizing the
provisions of Rev 304.04 and Rev 304.041;
(14) The sales factor shall include interest,
dividends, net gains not less than zero, and other income from investment
assets and activities and trading assets and activities in accordance with the
following provisions:
a. Investment assets and activities and trading
assets and activities shall include, but are not limited to the following:
1. Investment securities;
2. Trading account assets;
3. Federal funds;
4. Securities purchased and sold under
agreements to resell or repurchase;
5. Options;
6. Future contracts;
7. Forward contracts;
8. Notional principal contracts such as swaps;
9. Equities; and
10. Foreign currency transactions;
b. The sales factor shall include the
amount by which:
1. Interest from federal funds sold and securities
purchased under resale agreements exceeds interest expense on federal funds
purchased and securities sold under repurchase agreements; and
2. Interest, dividends, gains, and other income
from trading assets and activities, including but not limited to assets and
activities in the matched book, in the arbitrage book, and foreign currency transactions,
exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and
losses from such assets and activities;
c. The sales factor:
1. Numerator shall include interest, dividends,
net gains, but not less than zero, and other income utilizing the following
provisions for:
(i) Investment assets and activities and from trading assets
and activities described in a. above, the total amount of such income shall be
multiplied by a fraction, as follows:
i. The numerator
shall be the average value of such assets which are properly assigned to a
regular place of business of the business organization within New Hampshire;
and
ii. The denominator shall be the average value of
all such assets;
(ii) Federal funds sold and purchased and from securities
purchased under resale agreements and securities sold under repurchase agreements
described in b. above, the amount of excess interest shall be multiplied by a
fraction, as follows:
i. The numerator
shall be the average value of federal funds sold and securities purchased under
agreements to resell which are properly assigned to a regular place of business
of the business organization within New Hampshire; and
ii. The denominator shall be the average value of
all such funds and such securities; and
(iii) Trading assets and activities described in c.
above, excluding amounts described in (i) or (ii),
above, the amount of the excess income shall be multiplied by a fraction, as
follows:
i. The numerator shall be the average value of
such trading assets which are properly assigned to a regular place of business
of the business organization within New Hampshire; and
ii. The denominator shall be the average value of
all such assets; and
2. Average value shall be determined using the
provisions of Rev 304.02(j);
d. If the provisions of c. above do not equitably reflect the
business organization for business done in this state a modified procedure
shall be:
1. Required by the commissioner in lieu of using
the provisions enumerated in c. above, in accordance with RSA 77-A:3, II (a);
or
2. Requested by the business organization for
all subsequent returns utilizing the provisions of Rev 304.05;
e. If using a modified procedure pursuant to d. above,
the modified procedure shall be calculated as follows:
1. The numerator shall include interest,
dividends, net gains not less than zero and other income utilizing the
following provisions for:
(i)
Investment assets and activities and from trading assets and activities
described in a. above, the total amount of such income shall be multiplied by
the following fraction:
i. A numerator
consisting of the gross income from such assets and activities assigned to a
regular place of business of the taxpayer within New Hampshire; and
ii. A denominator
consisting of the gross income from all assets and activities;
(ii) Federal funds sold and purchased from
securities purchased under resale agreements, and securities sold under
repurchase agreements described in b., above, the amount of excess interest
shall be multiplied by the following fraction:
i. A numerator consisting of the gross income
from funds and securities assigned to a
regular place of business of the business organization within New Hampshire;
and
ii. A denominator consisting of the gross income
from all such funds and such securities; and
(iii) Trading assets and activities described in c.
above, excluding amounts described in (i) or (ii)
above, the amount of the excess income shall be multiplied by the following:
i. A
numerator consisting of the gross income from trading assets and
activities assigned to a regular place of business of the business organization
within New Hampshire; and
ii. A denominator consisting of the gross income
from all such assets and activities;
f. Investment asset or activity, or trading asset
or activity, shall be presumed to occur at the commercial domicile of the
business organization;
g. The business organization may rebut the
presumption in f. above, by demonstrating that:
1. The day-to-day decisions regarding the asset
or activity occurred at a regular place of business outside New Hampshire; and
2. Where the day-to-day decisions regarding an
investment asset or activity or trading asset or activity occur at more than
one regular place of business, one of which is in New Hampshire, that the
investment or trading policies or guidelines concerning such decisions were
made outside New Hampshire; and
h. All receipts assigned under (14) to a
state where the taxpayer is not taxable shall be included in the
numerator of the sales factor, if the business organization's commercial domicile
is in New Hampshire; and
(15) The numerator shall include receipts from the
sales of tangible personal property not otherwise apportioned under this
section utilizing the provisions of Rev 304.04 and Rev 304.041.
Source. #6675, eff 1-27-98; renumbered by #6853
(formerly Rev 304.09), EXPIRED: 1-27-06
New.
#8709, eff 8-25-06; ss by #10758, eff
1-16-15; ss by #13177, eff 3-6-21; ss by #13450, eff 9-23-22
Rev 304.11 Adjustments Required To Apportionment
Factors For Transportation Industries Other Than Airlines, Communication And Energy
Companies.
(a) For purposes of this section, the following
definitions shall apply:
(1) “Commercial transportation
company” means any business organization:
a. Other than an airline, or communication or
energy company, that is paid to transport packages, materials, equipment,
freight, mail, or other products from one point to another for a customer; or
b. That transports individuals for a fee, other
than the organization’s employees, from one point to another;
(2) “Mobile payroll” means the total compensation
for vehicle drivers and any service personnel such as tour guides,
conductors, or other attendants determined in accordance with Rev 304.03(a);
(3) “Mobile property” means
any vehicles used by a commercial transportation company for transporting:
a. Passengers;
b. Packages;
c.
Materials;
d. Equipment;
e. Freight;
f. Mail or other products; or
g.
Any related equipment that generally moves from location to location within the
organization's transportation system;
(4) “Non-mobile payroll” means the total
compensation determined in accordance with Rev 304.03 for all employees of the business
organization, other than vehicle drivers and any service personnel;
(5) “Non-mobile property” means:
a. Fixed tangible personal property used in the
operation of a commercial transportation company; and
b. Located at a particular place of business;
(6) “Non-transportation income” means all
receipts of the business organization other than those classified as
transportation income;
(7) “Revenue miles” means the distance passengers,
packages, materials, equipment, freight, mail, or other products were
transported for a fee; and
(8) “Transportation income” means:
a. The receipts from transporting passengers,
packages, materials, equipment, freight, mail, or other products; and
b.
The sale of products or services associated with such transportation such as
food, beverages, liquor,
magazines, or insurance for loss or damage.
(b) Commercial transportation companies shall apportion
their income to New Hampshire using the apportionment provisions contained in
RSA 77-A:3, Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.041, subject to the
adjustments in (c), (d), and (e), below.
(c) The property factor's components shall be calculated
utilizing the following provisions:
(1) The property factor shall be the sum of
average New Hampshire mobile property and average New Hampshire non-mobile
property, divided by the sum of average mobile property everywhere and average
non-mobile property everywhere;
(2) Average New Hampshire non-mobile property,
and average non-mobile property everywhere shall be calculated using the
provisions of Rev 304.02;
(3) Average mobile property everywhere shall
include the average value, as provided in Rev 304.02 (j), of all mobile
property owned, rented, and used by the business organization;
(4) Average New Hampshire mobile property shall
equal average mobile property everywhere:
a. Multiplied by New Hampshire revenue miles;
and
b. Divided by total revenue miles; and
(5) The property factor shall be expressed by formula
as follows:
|
Average Mobile Property Everywhere |
X |
NH Revenue Miles --------------------------- Total Revenue
Miles |
= |
Average NH
Mobile Property |
|
Average NH |
+ |
|
|
Total |
|
--------------------------------------------------------------------------------- |
= |
---------------------------------- |
||
|
Average |
+ |
Average
Non-Mobile Property Everywhere |
|
Total Average
Property Everywhere |
(d) The payroll factor's components shall be
calculated utilizing the following provisions:
(1) The payroll factor shall be the sum of
New Hampshire mobile payroll and New Hampshire non-mobile payroll, divided by the
sum of mobile payroll everywhere and non-mobile payroll everywhere;
(2) New Hampshire non-mobile payroll, and
non-mobile payroll everywhere, shall be calculated using the provisions of Rev
304.03;
(3) Mobile payroll everywhere shall include the total
compensation of the business organization for vehicle drivers and any service
personnel such as tour guides, conductors or other attendants;
(4) New Hampshire mobile payroll shall equal
mobile payroll everywhere:
a. Multiplied by New Hampshire revenue miles;
b. Divided by total revenue miles; and
(5) The payroll factor shall be expressed by
formula as follows:
|
Mobile Payroll Everywhere |
X |
NH Revenue Miles ---------------------------- Total Revenue
Miles |
= |
NH |
|
NH Payroll |
+ |
NH Non-Mobile
Payroll |
|
Total NH Payroll |
|
------------------------------------------------------------------------------------ |
= |
------------------------------- |
||
|
Mobile Payroll
Everywhere |
+ |
Non-Mobile
Payroll Everywhere |
|
Total Payroll Everywhere |
(e) The
sales factor's components shall be calculated utilizing the following
provisions:
(1) The sales factor shall be the sum of New
Hampshire transportation income and
(2) New Hampshire non-transportation income and
non-transportation income everywhere shall be calculated using the provisions
of Rev 304.04 and Rev 304.041;
(3) Transportation income everywhere shall
include the total transportation income of the business organization;
(4) New Hampshire transportation income shall
equal transportation income everywhere:
a. Multiplied by New Hampshire revenue miles;
and
b. Divided by total revenue miles; and
(5) The sales factor shall be expressed by formula
as follows:
|
Transportation Income
Everywhere |
X |
NH Revenue Miles ------------------------- Total Revenue
Miles |
= |
NH
Transportation Income |
|
NH
Transportation Income |
+ |
NH
Non-Transportation Sales |
|
Total NH Sales |
|
--------------------------------------------------------------------------------------- |
= |
----------------------------- |
||
|
Transportation Income
Everywhere |
+ |
Non-Transportation
Sales Everywhere |
|
Total Everywhere
Sales |
(f) The business organization shall maintain the
records necessary to substantiate the revenue miles and the receipts for all
passengers, packages, materials, equipment, freight, mail, or other products
when the transportation service commences or terminates in New Hampshire.
Source. #6853, eff 9-23-98 (formerly Rev 304.10); ss by
#8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13177, eff 3-6-21
Rev 304.12. Factor Relief.
(a) A business organization shall apportion any
gross business profits derived from one or both of the following sources as
foreign dividends under RSA 77-A:3, II(b):
(1) Subpart F inclusions under the IRC; and
(2) Global intangible low-taxed income under the IRC
net of the deduction provided in RSA 77-A:4, XIX; and
(b) For purposes of RSA 77-A:3, II(b)(5), the
resulting percentage shall not be applied to any actual distributions of
foreign dividends that are or have previously been included in gross business profits
and subject to business profits tax as global intangible low-taxed income to
the extent substantiated by contemporaneous books and records.
Source. #13040, eff 4-22-20
PART
Rev 305 COMPUTATION OF TAX, ESTIMATED
TAX, PAYMENTS AND REFUNDS
Rev 305.01 Payments of Liabilities.
(a) Where a business organization has a payment
due with any document, such payment shall be submitted:
(1) With the document when the business organization
is not:
a. Statutorily required to participate in the
electronic funds transfer program; or
b. Voluntarily participating in the electronic
funds transfer program in accordance with Rev 2500; or
(2) Separately from the document by means of an
electronic funds transfer as provided RSA 21-J:3, XXI and Rev 2500 in instances
where the business organization is:
a. Statutorily required to participate in the
program; or
b. Voluntarily participating in the program in
accordance with Rev 2500.
(b) A business organization with a tax liability
under one dollar shall not be required to remit payment, however, the return shall
be completed and filed.
Source.
#2012, eff 5-5-82; ss by #2722, eff
5-23-84; amd by 3101, eff 8-20-85; ss by #4192, eff
12-23-86; amd by #4320, eff 10-2-87; ss by #5490, eff
10-19-92; ss by #6853, eff
9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 305.02 Estimated Taxes.
(a) Every business organization having an annual
projected tax liability in excess of $200 shall:
(1) Complete and file the appropriate estimated
quarterly tax payment form for the appropriate type of entity; and
(2) Make 4 payments of 25% on or before the fifteenth
day of the tax year’s:
a. Fourth month;
b. Sixth month;
c. Ninth month; and
d. Twelfth month.
(b) When an annual projected tax liability in
excess of $200 is determined in a quarter subsequent to the first quarter, the
estimated tax payment shall equal the cumulative amount payable as of that
quarter as if the liability had been determined in the first quarter.
(c) Estimated tax liabilities of a combined group
shall be:
(1) Determined for the combined group as a whole;
and
(2) Paid by the
principal New Hampshire business organization in accordance with the provisions
of (a) and (b) above.
Source.
#2012, eff 5-5-82; rpld
by #2722, eff 5-23-84; ss by #4192, eff 12-23-86; ss by #4785, eff 3-21-90; ss
by #4890, eff 7-31-90; ss by #5490, eff 10-19-92; amd
by #5910, eff
10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 305.03 Application of an Overpayment.
(a) An overpayment of tax, verified by the
department, shall be treated in the following sequence:
(1) Applied to offset any other tax liability of
the business organization or the water’s edge combined group, as defined in RSA
77-A:1, XV, in accordance with RSA 21-J:28-a, IV;
(2) Refunded to the taxpayer if requested by the
taxpayer;
(3) Credited to subsequent tax liability in accordance
with RSA 77-A:7, I(b); or
(4) A combination of (a)(2) and (a)(3), above, if
indicated by the business organization or the water’s edge combined group.
(b) A business organization not required to file
a tax return, which incorrectly files and make a payment of estimated taxes,
shall request a refund by:
(1) Completing and filing Form BT-SUMMARY with
the department to request a refund pursuant to RSA 21-J:29, I(b); or
(2) Submitting a written request:
a. To the department at:
New Hampshire Department of Revenue
Administration
Taxpayer Services Division
PO Box 3306
109 Pleasant Street
Concord, NH 03302-3306; and
b. Which includes the following:
1. Name
and mailing address;
2.
Taxpayer identification number;
3. The
type of entity for the business organization;
4. The
reason the estimated tax payment was not
required to be made;
5. The
tax year for which the estimated tax payment was made;
6. The
amount of the estimated tax payment; and
7.
Preparer’s dated signature.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd
by #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss
by #10758, eff 1-16-15; ss by #13126-B, eff 10-24-20; ss by #13450, eff9-23-22
PART Rev 306 CREDITS ALLOWABLE AGAINST TAX LIABILITY
Rev 306.01 Insurance Premium Tax Credit.
(a) A business organization subject to the tax imposed
under RSA 400-A shall be allowed a credit against its business profits tax liability
for the premium tax liability paid under RSA 400-A:32.
(b) The credit shall:
(1) Be determined on the basis of the actual
tax liability included on the business organization's reports required under
RSA 400-A:32, I, and
(2) Not be determined upon estimated taxes
required by RSA 400-A:32, II.
(c) Other fees or charges assessed by the
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; rpld by #5910, eff 10-14-94; ss by #6853, eff
9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 306.02 Community Development Finance Authority
Investment Tax Credit.
(a) A business organization qualified for the
credit under RSA 162-L:10 shall be allowed a credit against its business profit
tax liability for the amount available based on its contributions.
(b) Any amount of the investment tax credit
applied first against the business enterprise tax shall be considered:
(1) Business enterprise tax paid; and
(2) Not available as a credit against the
business profits tax except to the extent that it is a credit against the
business enterprise tax.
(c) A copy of the credit awarded from the
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 306.03 Economic Revitalization Zone Tax Credit.
(a) A business organization qualified for the
credit under RSA 162-N shall be allowed a credit against its business profits
tax liability for the amount available as determined in accordance with RSA
162-N:6, subject to the limitation provided in RSA 162-N:5.
(b) Any unused amount of the credit shall be
allowed as a credit against the business organization’s business enterprise tax
and shall be considered business enterprise tax paid.
(c) Any unused portion of the credit or an portion
of the credit limited pursuant to RSA 162-N:5, may be carried forward and
allowed against business profits tax or business enterprise tax due for 5
taxable periods from the taxable period in which the tax was paid.
(d) Any carried-forward amount of the credit applied
first against the business enterprise tax shall be considered:
(1) Business enterprise tax paid; and
(2) Not available as a credit against the
business profits tax except to the extent that it is a credit against the
business enterprise tax.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd
by #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss
by #10758, eff 1-16-15
Rev 306.04 Timing of Credit Where Tax Years Differ. Where the tax period for the business profits
tax is different than the tax periods for the taxes referred to in Rev 306.01,
a business organization shall be allowed the credit for the tax period that
ends within the tax period for business profits tax purposes.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; rpld by #5910, eff 10-14-94; ss by #6853,
eff 9-23-98; ss by #8709, eff 8-25-06 (formerly Rev 306.03); ss by #10758, eff
1-16-15
Rev 306.05 Excess Credits.
(a) Credits provided by RSA 400-A shall:
(1) Be used to offset the current year business
profits tax liability;
(2) Not be refundable; and
(3) Not be carried forward or backward to another
taxable period.
(b) Credits provided by RSA 77-E shall be:
(1) Used to offset the current year business
profits tax liability;
(2) Carried forward to the subsequent 5 taxable
periods when the credits are accumulated during tax periods ending before
December 31, 2014 and exceed the current year business profits tax liability;
and
(3) Carried forward to the subsequent 10 taxable
periods when the credits are accumulated during tax periods ending on or after
December 31, 2014 and exceed the current year business profits tax liability.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 306.04); ss by #10758, eff 1-16-15
Rev 306.06 Application of
Credits to Business Organizations Included in a Combined Group.
(a) The
credits enumerated in RSA 77-A:5 and this section shall apply against the
business profits tax liability of the individual member of the combined group,
as calculated in (b) or (c) below.
(b) To
determine its business profits tax liability for tax periods ending before December 31,
2022, the individual member of the combined group shall:
(1) Determine
a combined nexus group denominator for the property, payroll, and sales factors
by adding the property, payroll and sales factor numerators of the individual
members of the combined group subject to tax under RSA 77-A;
(2) Determine
an individual apportionment percentage for each member of the combined group
subject to tax under RSA 77-A by dividing such member’s individual New Hampshire
property, payroll and sales factor numerators by the combined nexus group denominators
determined in (1) above, dividing the total by 3; and
(3) Apply
the individual apportionment percentage, determined in (b)(2), above, to the
business profits tax liability of the combined group as determined in
accordance with the provisions of RSA 77-A.
(c) To determine its business profits tax
liability for tax periods ending on or after December 31, 2022, the individual
member of the combined group shall:
(1) Determine
a combined nexus group denominator for the sales factor by adding the sales
factor numerators of the individual members of the combined group subject to
tax under RSA 77-A;
(2) Determine
an individual apportionment percentage for each member of the combined group
subject to tax under RSA 77-A by dividing such member’s individual New
Hampshire sales factor numerator by the combined nexus group sales factor
denominator determined in (1) above; and
(3) Apply the
individual apportionment percentage, determined in (c)(2), above, to the business
profits tax liability of the combined group as determined in accordance with
the provisions of RSA 77-A.
Source.
#4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06 (formerly Rev 306.05); ss by #10758, eff 1-16-15; ss by #13450, eff
9-23-22
Rev 306.07 Education Tax Credit.
(a)
A business organization granted an education tax credit under RSA 77-G may
use the amount approved against its business profits tax liability for the taxable
period during which the corresponding donation was made and up to 5 succeeding
taxable periods as provided in (c) below, after receiving a Form ED-03,
“Education Tax Credit Scholarship Receipt.”
(b)
No portion of the education tax credit used against the business
enterprise tax shall be considered taxes paid pursuant to RSA 77-E for purposes
of the credit against the business profits tax under RSA 77-A:5, X.
(c)
Any portion of the education tax credit which is not used to offset the
business organization’s liability under the business profits tax, the business enterprise
tax, or the interest and dividends tax, for the taxable period during which the
corresponding donation was made, may be carried forward and allowed against the
business profits tax, the business enterprise tax, or both, for no more than 5
succeeding taxable periods, but shall not exceed $1,000,000 in any given
taxable period. No portion of the education
tax credit shall be carried forward against the interest and dividends tax.
(d)
Every business organization using an education tax credit against its
liability under the business profits tax or the business enterprise tax shall
attach a copy of each applicable Form ED-03 to its business tax return, in
accordance with Rev 3204.01(e).
Source. #10231, eff 11-21-12; ss by #10758, eff
1-16-15; ss by #12883, eff 9-27-19
PART Rev 307 RETURNS, DECLARATIONS, AND EXTENSIONS
Rev 307.01 Uniform Filing Information.
(a) Returns, extensions and declarations shall be
considered timely filed pursuant to Rev 2904.03.
(b) Returns filed after the prescribed filing
date defined in RSA 77-A:1, VII, shall be subject to interest prescribed in RSA
21-J:28 and penalties prescribed in RSA 21-J:31 and 21-J:33.
(c) Business organizations failing to receive tax
forms from the department shall not be relieved of their obligation to prepare
and file a timely return, declaration, or extension request.
(d) A business organization or member of a
combined group failing to attach or submit state or federal schedules or forms
with their business profits tax return as required by Rev 307 shall be:
(1) Deemed to have failed to file a return as
required under RSA 77-A:6;
(2) Subject to any penalties provided by law; and
(3) Denied any refund or credit carryover request
related to the incomplete return.
(e) All returns, declarations or other documents
containing monetary values filed with the department may be prepared by
rounding off to the nearest whole dollar.
(f) A business organization, other than a single
member entity, electing under the U.S. Department of the Treasury's Treasury Decision
8697 to be taxed as a corporation or partnership for federal income tax purposes
shall:
(1) Comply with all of the federal income tax
regulations relating to such election;
(2) Complete and file its New Hampshire business
profits tax and business enterprise tax returns based on the entity type selected
for federal income tax purposes; and
(3) Attach:
a. A copy of federal Form 8832 if required to be
filed with the U.S. Internal Revenue Service; or
b. A statement to the
(g) A single member entity, such as a single
member limited liability company, electing for federal income tax purposes the
provisions under the U.S. Department of the Treasury's Treasury Decision 8697
shall:
(1) Not include the income or expenses of the entity
within the member's business profits tax return as provided under RSA 77-A:1,
I; and
(2) Complete and file its business tax returns
using:
a.
b.
c.
d.
e. Form NH 1120-WE, Combined “Business Profits
Tax Return”, if the member is part of a combined group.
(h) When a single member limited liability
company commences business activities in New Hampshire, and the business
organization does not have a taxpayer employer identification number, the
single member limited liability company shall request an identification number
at least 30 days prior to filing any tax documents with the department, using
Form DP-200, “Request For Department Identification Number (DIN),” for use in
filing all its tax documents with the department.
Source.
#4192, eff 12-23-86; ss by #5490, eff
10-19-92; amd by #6675, eff 1-27-98; ss by #6853, eff
9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 307.02 Corporate Returns and Declarations.
(a) Regular corporations, except S corporations, qualified
subchapter S subsidiaries, members of a combined group conducting a unitary
business, and members of an affiliated group filing a federal consolidated income
tax return, shall:
(1) Report their business activity by completing
and filing Form NH-1120; and
(2) Attach a clear and legible copy of pages one
through 5 and federal Form 1125-A of the federal corporation income tax return
as filed with the United States Internal Revenue Service with schedules supporting
totals included on any specific line of such federal return.
(b) S corporations and qualified subchapter S subsidiaries,
except members of a combined group conducting a unitary business, shall:
(1) Report their business activity by completing
and filing Form NH-1120 accompanied by Form DP-120, “Computation of S
Corporation Gross Business Profits”, schedule showing the adjustments required by
Rev 302.01;
(2) Attach a clear and legible copy of pages one
through 5 and federal Form 1125-A of the federal income tax return as filed
with the United States Internal Revenue Service with schedules supporting
totals included on any specific line of such federal return.
(c) Regular corporations, except members of a
combined group, that are members of an affiliated group filing a federal consolidated
return shall:
(1) Comply with the uniform standards for forms
described in Rev 2904.08;
(2) Report their business activity by completing
and filing Form NH-1120 accompanied by a schedule adjusting the “separate
taxable income” as that term is used in Treasury Regulation 1.1502-12 to the
taxable income of a separate nonaffiliated corporation;
(3) Attach a clear and legible copy of pages one
through 5 and federal Form 1125-A of the federal consolidated income tax
return with the consolidating schedules as filed with the United States
Internal Revenue Service; and
(4) Attach a federal Form 851 to the return.
(d) Associations or other business organizations,
except members of a combined group conducting a unitary business, required to
file a federal corporate tax return shall:
(1) Report their business activity using Form
NH-1120; and
(2) Attach a clear and legible copy of pages one
through 5 of the federal corporation income tax return as filed with the United
States Internal Revenue Service with schedules supporting totals included on
any specific line of such federal return.
(e) Single member limited liability companies
required to complete and file a corporate business profits tax return under the
provision of Rev 307.01(g) (2) shall attach a clear and legible copy of
pages one through 5 of the federal corporate income tax return as filed with
the United States Internal Revenue Service and detailed schedules for each
entity supporting totals included on any specific line of such federal return.
(f) Corporate business organizations required to
pay estimated taxes as provided in RSA 77-A:6, II shall complete and file Form
NH-1120-ES, “Estimated Corporate Business Tax” quarterly payment form with payment
on or before the 15th day of the fourth, sixth, ninth and twelfth months of the
taxable period to which they relate.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd
by #6179, eff 1-30-96; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by
#10758, eff 1-16-15
Rev 307.03 Partnership Returns and Declarations.
(a) Partnerships or other business organizations
that are required to file a federal partnership return, except members of a
combined group conducting a unitary business, shall:
(1) Report their business activity by completing
and filing Form NH-1065, accompanied by Form DP-120-P, “Computation of
Partnership Gross Business Profits”; and
(2) Attach a clear and legible copy of pages one
through 5 and federal Form 1125-A of the federal partnership return as filed
with the United States Internal Revenue Service and schedules
supporting any total amount included on any specific line of such federal
return.
(b) Partnerships not required under
(1) File the business activity of the partnership
at the partnership level on Form NH-1065, accompanied by a completed Form DP-120-P;
and
(2) Attach a clear and legible copy of the
schedules included in the partner's individual federal income tax return.
(c) Single member limited liability companies
required to complete and file a partnership business profits tax return under
Rev 307.01(g) (2) shall attach a clear and legible copy of pages one through 5
of the federal income tax return as filed with the United States Internal
Revenue Service and detailed schedules supporting totals included on any
specific line of such federal return.
(d) Partnership business organizations required
to pay estimated taxes as provided in RSA 77-A:6, II shall complete and file
Form NH-1065-ES “Estimated Partnership Business Tax” quarterly payment form with
payment on or before the 15th day of the fourth, sixth, ninth and twelfth month
of the taxable period to which they relate.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84; amd by 4007, eff 2-28-86; ss by #4192, eff 12-23-86; ss by
#5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by
#10758, eff 1-16-15
Rev 307.04 Proprietorship Returns and Declarations.
(a) Proprietors, except members of a combined
group conducting a unitary business, shall:
(1) Report their business activity by completing
and filing Form NH–1040; and
(2) Attach a clear and legible copy of the following
applicable schedules or forms as filed with the United States Internal Revenue
Service with federal Form 1040:
a. Schedule C, Profit or Loss From Business;
b. Schedule D, Capital Gains and Losses;
c. Schedule E, Supplemental Income and Loss;
d. Federal Form 4797, Sales of Business
Property;
e. Federal Form 6252, Installment Sale Income;
and
f. Any other federal form required by the United
States Internal Revenue Service.
(b) Married proprietors filing a federal
individual income tax return jointly shall:
(1) Not file a New Hampshire individual business
profits tax return jointly or offset the profit and losses of each proprietor;
(2) Report their respective gross business
profits, additions and deductions, and taxable business profits using Form
NH-1040;
(3) Not divide the income, expenses, additions
and deductions of a single proprietorship between the 2 spouses;
(4) Calculate their respective:
a. Apportionment factors; and
b. Business profits tax; and
(5) Make all estimated payments using the names
and social security numbers as shown on the business profits tax return as
filed.
(c) Individuals who, for federal income tax
purposes, report a pro-rata share of partnership income and expenses shall:
(1) Not include such items in their business
profits tax returns; and
(2) Follow the provisions of Rev 307.03(b) in
reporting such income for state tax purposes.
(d) Proprietorship business organizations
required to pay estimated taxes, as provided in RSA 77-A:6, II, shall complete
and file Form NH-1040-ES “Estimated Proprietorship Business Tax” quarterly
payment form with payment on or before the 15th day of the fourth, sixth, ninth,
and twelfth months of the taxable period to which they relate.
(e) Spouses jointly owning rental property shall:
(1) Be presumed to be a single proprietorship
subject to the minimum filing requirement provided in RSA 77-A:6, I; and
(2) Divide the income derived from such property
among more than one proprietorship for purposes of determining the filing
requirements if they can demonstrate to the department, by a preponderance of
the evidence, that more than one separate and distinct proprietorship exists.
(f) Single member limited liability companies
required to file a proprietorship business profits tax return under Rev
307.01(g)(2) shall attach a clear and legible copy of the individual federal
income tax schedules referred to in (a)(2) above, relating to the single member
limited liability company and
detailed schedules supporting totals included on any specific line of such
federal schedule.
(g) When a taxpayer dies during the tax year, or
during the filing period following the end of the tax year but before the tax
return has been filed, a return shall be completed and filed:
(1) By the executor, administrator, or the person
who succeeds to ownership of the entity filing the proprietorship return; and
(2) Accompanied by a completed Form NH-1310, “Statement
of Claimant to Refund Due a Deceased Taxpayer” if a refund is due a deceased
taxpayer.
Source.
#2012, eff 5-5-82; ss by #2722, eff
5-23-84; ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd by #6675, eff 1-27-98; ss by #6853, eff 9-23-98; ss by
#8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13450, eff 9-23-22
Rev 307.05 Fiduciary Returns and Declarations.
(a) Trusts, estates, or other fiduciary-type
organizations, except members of a combined group conducting a unitary business,
shall report their business activity by completing and filing Form NH-1041.
(b) Single member limited liability companies
required to complete and file a Form NH 1041, under the provision of Rev
307.01(g)(2) shall attach a clear and legible copy of the federal fiduciary
income tax return as filed with the United States Internal Revenue Service and
detailed schedules supporting totals included on any specific line of such
federal schedule.
(c) Fiduciary business organizations required to
pay estimated taxes as provided in RSA 77-A:6, II shall complete and file Form
NH-1041-ES, “Estimated Fiduciary Business Tax” quarterly payment form with
payment on or before the 15th day of the fourth, sixth, ninth, and twelfth
month of the taxable period to which they relate.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 307.06 Miscellaneous Business Organizations.
(a) Any business organization conducting business
activity within New Hampshire not falling within the parameters of Rev 307.01
through Rev 307.05 or Rev 307.07 shall complete and file:
(1) Form NH-1120; and
(2) A statement of income and expenses using provisions
of the IRC for corporations in effect for business profits tax purposes for the
taxable period.
(b) A business profits tax return required by
paragraph (a), above, shall be completed and filed on or before the 15th day of
the fourth month following the close of the business organization's taxable period.
(c) Declarations of estimated taxes shall follow
the provisions of Rev 307.02(f).
Source. #4192, eff 12-23-86; amd
by #4438, eff 6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss
by #8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #12186, eff 5-25-17
Rev 307.07 Members of a Combined Group.
(a) The principal New Hampshire business organization
shall file a combined return on behalf of all members of a combined group by:
(1) Complying with the uniform standards for
forms described in Rev 2904.08;
(2) Completing and filing Form NH-1120-WE, with
all required schedules regardless of the composition of the combined group; and
(3) Attaching a clear and legible copy of:
a. Pages one through 5 and federal Form 1125-A
of the
federal consolidated income tax return(s) with the consolidating
schedules as filed with the United States Internal Revenue Service when members of the group are
included in a federal consolidated income tax return; and
b. Pages one through 5 and federal Form 1125-A
of the federal income tax return(s) as filed with the United States Internal Revenue Service and schedules
supporting totals included on any specific line of such federal return, when members
of the group are not included in a
federal consolidated income tax return described in (a) above.
(b) The designated principal New Hampshire
business organization, as described in Rev 301.24 shall notify the commissioner of any change in
the status or composition of the combined group by attaching a statement to
each combined return when a change occurs specifying the changes taken place
since the previous taxable period.
(c) All transactions between business organizations
included in the combined return shall be eliminated rather than offset for
purposes of income, expenses and apportionment factors.
(d) A combined return shall be completed and
filed by the 15th day of the fourth month following the expiration of the
taxable period of the principal New Hampshire business organization.
(e) Any member of the group not having the same taxable
period as the principal New Hampshire business organization shall convert its
income and expenses to the taxable period of the principal New Hampshire business
organization for use in both the tax base and apportionment factors in the
following manner:
(1) The business organizations
converting their taxable period shall use the months corresponding to the fiscal
period of the principal New Hampshire business organization from their 2 fiscal
years overlapping the required taxable period;
(2) The taxable
income of the converting business organizations shall be determined in accordance
with the method of accounting used for federal income tax purposes; and
(3) Any intergroup activity shall be removed from
the tax base and apportionment factors of all business organizations included
in the combined return in all years a combined return is filed regardless of
the timing of its inclusion in the federal income tax return of the particular
business organization.
(f) All business organizations conducting a unitary
business shall be included in a combined return unless the required affiliation
schedule has been prepared and submitted with Form NH-1120-WE.
(g) A principal New Hampshire business
organization shall complete and file Form 1120-WE.
(h) A principal New Hampshire business
organization may request extensions of time for filing combined returns in (g)
above, provided the request is
made in accordance with Rev 307.09.
(i) The principal New
Hampshire business organization required to pay estimated taxes on the combined
net income of the combined group, as provided in RSA 77-A:6, II, shall complete
and file Form NH-1120-ES, with payment on or before the 15th day of the fourth,
sixth, ninth, and twelfth month of the taxable period to which they relate.
(j) For purposes of the exception provisions for
overseas business organizations in RSA 77-A:1, XV, the business organization
shall effect the certification required by the statute when a person authorized
to sign returns on behalf of the company and members of the combined group
signs the certification statement on Form BT-SUMMARY, “Business Tax Return
Summary”.
(k) A company which does not qualify as a principal
New Hampshire business organization may elect to file a combined return on behalf
of the combined group by:
(1) Complying with the uniform standards for forms
described in Rev 2904.08;
(2) Completing the return with the name of the
company included in the name and address sections of Form NH-1120-WE, Form
BET-80-WE, “Business Enterprise Tax Apportionment for Individual Nexus Members
of a Combined Group” and Form BT-SUMMARY;
(3) Signing the tax returns by a person
authorized to sign returns on behalf of the company and members of the combined
group which signature shall indicate agreement by the company to:
a. Assume the responsibility for the timely
filing, on behalf of the combined group, for the following business tax
returns:
1. Form NH-1120-WE;
2. Form BET-80-WE; and
3. Form BT-SUMMARY;
b. Assume the responsibility for the timely
payment of all business profits and business enterprise tax, including any
required extensions and estimated payments; and
c. Allow the department to assess against and
collect from the company, or any member of the combined group having a taxable
presence in New Hampshire, taxes, interest, penalties or other charges that
might be assessed against any member of the combined group for all tax years in
which the return is filed by the company;
(4) Agreeing to advise the department’s audit division,
at least 60 days before terminating the election and providing the name of the
business organization that shall be filing future returns on behalf of the combined
group, by letter at:
New Hampshire
Department of Revenue Administration
Audit Division
P O Box 1388
Concord, NH 03302-1388;
and
(5) Complying with all of the statutes and rules
that apply to the filing of a combined return.
Source. #4192, eff 12-23-86; ss by #5490, eff 10-19-92;
amd by #5910, eff 10-14-94; amd
by #6179, eff 1-30-96; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by
#10758, eff 1-16-15; ss by #12186, eff 5-25-17; ss by #12361, eff 8-9-17; amd by #12494, eff 3-21-18
Rev 307.08 Qualified Investment Company Election
& Reporting.
(a) For purposes of this section, the following
definitions shall apply:
(1) “Qualified Investment Company (QIC)” means a qualified
investment company as defined in RSA 77-A:1, XXI.
(2) “
(3) “Taxable period” means taxable period as defined
in RSA 77-A:1, V.
(b)
A business organization that meets the definition of a QIC and elects
QIC status for New Hampshire business tax purposes shall complete and file a
Form AU-207 “Qualified Investment Company (QIC) Election” on or before the fifteenth
day of the third month of the taxable period pursuant to RSA 77-A:5-b.
(c)
An election filed pursuant to (b) above shall remain effective until:
(1) The election is revoked pursuant to RSA
77-A:5-b, V(a) and the revocation is filed with the department; or
(2) The entity ceases to qualify as a QIC as
provided in RSA 77-A:1, XXI.
(d)
A revocation, pursuant to (c)(1) above, shall be filed with the
department on or before the fifteenth day of the third month of the taxable period
to be effective for that taxable period, otherwise, the revocation shall be
effective for the following taxable period.
(e)
A business organization that has properly elected QIC status shall
annually complete and file Form AU-208 “Qualified Investment Company (QIC)
Report,” or the QIC federal income tax return, on or before 30 days following
the filing of the QIC’s federal income tax return with the United States
Internal Revenue Service for the tax period.
(f)
If the governing instrument of a New Hampshire investment trust creates
one or more series trusts, as provided
in RSA 293-B:8, II(d), each series trust shall elect to be treated as a QIC by:
(1) The parent company and each series trust
filing a Form AU-207; or
(2) The parent company filing a single Form
AU-207, with an attached schedule identifying each series trust, including a
separate taxpayer identification number for each series.
(g)
Each series trust, pursuant to (f)(1) above, that files a Form AU-207,
shall annually complete and file a Form AU-208, or the QIC federal income tax return,
on or before 30 days following the filing of the QIC’s federal income tax return
with the United States Internal Revenue Service for the tax period.
(h)
Each parent organization that files a Form AU-207, pursuant to (f)(2)
above, shall annually complete and file a Form AU-208, or the QIC federal
income tax return, on or before 30 days following the filing of the QIC’s
federal income tax return with the United States Internal Revenue Service for the
tax period.
Source. #10758, eff 1-16-15
Rev 307.09 Extension of Time to File Returns.
(a) A business organization shall be granted an
automatic 7 month extension of time to file a return provided the business organization
has paid 100% of the tax determined to be due by the prescribed payment date.
(b) A business organization which has not paid
the tax determined to be due through estimated payments shall pay the additional
amount due on or before the prescribed payment date by completing and filing
Form BT-EXT, “Payment Form and Application for 7-Month Extension of Time to
File Business Tax Return”.
(c) Extensions shall be automatically denied for non compliance with (a) and (b) above.
(d) An extension of time for filing a business
profits tax return shall not extend the time for the payment of the tax.
(e) Payments not made by the prescribed payment
date shall be subject to the interest and penalty provisions of RSA 21-J.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15 (from Rev 307.08)
Rev
307.10 Amended Tax Returns.
(a) Business organizations amending an original
business profits tax return for other than an United States
Internal Revenue Service audit change shall file a regular
(b) Amended business profits tax returns not
requesting a refund or credit shall be filed within 3 years of the prescribed
filing date for the original return as provided by RSA 21-J:29(a).
(c) Amended business profits tax returns
requesting a refund or credit shall be filed within whichever is the later date
as provided by RSA 21-J:29,I(b).
(d) Business organizations shall attach a copy of
the appropriate federal income tax return to the amended business profits tax
return.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15 (from Rev 307.09)
Rev 307.11 Corrections Resulting From
(a) Business organizations shall report all federal
audit changes as provided in RSA 77-A:10 when filing the appropriate Form
DP-87, “Report of Change
for IRS Adjustment Only”, in accordance with (d)-(g) below, by attaching a
clear and legible copy of the federal revenue agent's report, closing agreement
and court decision where applicable.
(b) For purposes of this section, federal audit
changes shall have been finally determined when:
(1) The business organization has:
a. Made payment on any additional income tax
liability resulting from the federal audit; and
b. Not filed a petition for redetermination or
claim for refund for the portions of the audit on which payment was made;
(2) The business organization has received a refund
from the U.S. Department of the Treasury resulting from the federal audit;
(3) The business organization has signed federal
Form 870 or other United States Internal Revenue Service form consenting to the
deficiency or accepting any over-assessment;
(4) The business organization's time period for filing
its federal petition for redetermination to the
(5) The business organization enters into a closing
agreement with the United States Internal Revenue Service as provided in
section 7121 of the IRC as amended; or
(6) A decision from the U.S. Tax Court, U.S.
(c) Notwithstanding paragraph (b), any federal
audit that results in a refund that is referred to the Joint Committee on
Taxation of the U.S. Congress shall be deemed finally determined when the
business organization has received such refund from the U.S. Department of
Treasury.
(d) A separate Form DP-87, shall be prepared for:
(1) Each business organization; and
(2) Each year affected by the federal audit.
(e) Form DP-87 shall be submitted under separate
cover.
(f) Payment of any additional liability shall
accompany Form DP-87.
(g) The principal New Hampshire business organization
shall complete and file Form DP-87 on behalf of all members of the combined
group included within a combined return covering the years of the federal audit.
(h) The statute of limitations shall only be
opened for a federal audit change on a return for the items of income, expense
and apportionment that are directly affected by the specific changes within the
federal revenue agent’s report, closing agreement or court decision.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15 (from Rev 307.10); amd by #12979, eff 1-23-20
Rev 307.12 Short Period Returns.
(a)
Short period returns shall be filed following the close of the business
organization's taxable period as defined in RSA 77-A:1, V, by:
(1) The 15th day of the third month for partnerships;
and
(2) The 15th day of the fourth month for combined
groups and all other entities.
(b)
An extension of time to file a short period return may be requested by
submitting a letter accompanied by the
payment of 100% of the tax determined to be due
prior to the due dates referred to in (a) above, indicating the length
of additional time required to file the return.
(c) The request for an extension shall be mailed
to:
New Hampshire
Department of Revenue Administration
Taxpayer Services
Division
P.O. Box 637
Concord, NH
03302-0637.
Source.
#4192, eff 12-23-86; ss by #5490, eff 10-19-92;
ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15 (from
Rev 307.11); ss by #12186, eff 5-25-17; ss by #12361, eff 8-9-17; amd by #12494, eff 3-21-18
Rev 307.13 Qualified Regenerative Manufacturing
Companies.
(a) For
purposes of this section, the following definitions shall apply:
(1) “Active regenerative
manufacturing business” means “active regenerative manufacturing business” as
defined in RSA 77-A:1, XXX(c); and
(2) “Qualified
regenerative manufacturing company (QRMC)” means “qualified regenerative manufacturing company” as defined in RSA 77-A:1,
XXX. The term does not include a
combined group.
(b) To elect to be treated as a QRMC with respect
to any taxable period, an enterprise shall:
(1) Complete and file Form AU-209, “Qualified
Regenerative Manufacturing Company (QRMC) Election,” with the department on or before
the fifteenth day of the third month immediately following the end of the taxable
period; and
(2) Conduct
active regenerative manufacturing business for at least 75 percent of its
business activities over the course of the taxable period, in accordance with
(e) below.
(c) The election provided in (b)(1) above shall
be effective for the taxable period for which it is made and for all succeeding
taxable periods until:
(1) The
enterprise revokes the election pursuant to RSA 77-A:5-c, VI(a), including by
filing the revocation with the department;
(2) The
enterprise ceases to satisfy the requirements of (b)(2) above; or
(3) The election
expires pursuant to RSA 77-A:5-c, II.
(d) The enterprise shall file the revocation
provided in (c)(1) above with the department on or before the fifteenth day of
the third month of the taxable period to be effective for such taxable period. If the revocation is filed after the
fifteenth day of the third month of the taxable period, it shall be effective for
the following taxable period.
(e) Subject to (f) below, the enterprise shall only
satisfy the requirements of (b)(2) above if the following fraction equals at least
75 percent for the taxable period:
(1) The
numerator of the fraction is the total compensation paid by the enterprise to
employees for active regenerative manufacturing business during the taxable
period; and
(2) The denominator of the fraction is the total
compensation paid by the enterprise to employees for all business activities during
the taxable period.
(f) If an employee conducts any business activity
other than active regenerative manufacturing business during the taxable
period, the enterprise shall allocate the compensation paid to the employee based
on the amount of time the employee spent conducting active regenerative
manufacturing business as compared to all other business activities during the
taxable period.
(g) The amount of compensation paid to employees shall
be determined in accordance with Rev 301.10 and Rev 304.03(a)-(h).
(h) Every enterprise electing treatment as a QRMC
shall, with respect to each taxable period, complete and file one of the following
with the department on or before 30 days following the enterprise’s filing of its
federal income tax return with the Internal Revenue Service:
(1) Form AU-210,
“Qualified Regenerative Manufacturing Company (QRMC) Report”; or
(2) A “Cover Sheet
for QRMC Federal Return,” including a copy of its federal income tax return as
filed with the Internal Revenue Service.
(i) In the case of a
combined group which would otherwise include an enterprise electing treatment
as a QRMC, the combined group shall:
(1) Determine
its taxable business profits as if the enterprise did not exist, including, but
not limited to, by excluding the business activities and apportionment factors
of the enterprise; and
(2) Disregard all
transactions between any member of the combined group and the QRMC that would
result in the transfer of income from the combined group to the QRMC, so that
any such income shall continue to be recognized as income of the combined group,
and not the QRMC.
(j) Every enterprise electing treatment as a QRMC
shall keep such records as may be necessary to substantiate QRMC status,
including, but not limited to, the amount of compensation paid to employees and
whether the allocation required by (f) above is reasonable, in accordance with
RSA 77-A:11.
Source.
#12730, eff 2-21-19
PART Rev 308 ADMINISTRATION
Rev 308.01 Taxpayer
Records and Information.
(a) Every business organization shall:
(1) Maintain all accounting, financial, or general
information necessary to establish the amount of gross income, deductions,
credits, or any other information required to be shown on any return, schedule,
or attachment required under RSA 77-A and any department rules adopted to
implement the business profits tax such as, but not limited to:
a. General ledger;
b. Cash receipts records;
c. Cash disbursements records;
d. Sales records;
e. Payroll records;
f. Bank statements with all enclosures;
g. Paid and unpaid invoices from vendors;
h.
Correspondence, contracts, or other agreements;
i. Federal tax returns and all schedules
attached or required to be attached thereto;
j. State and local tax returns and all schedules
attached or required to be attached thereto
for
all jurisdictions in which the business organization has activities; and
k. Any electronic records maintained by the
taxpayer; and
(2) Retain such records for a minimum period of 3
years from the date the returns were filed with the department or until the
completion of all:
a. Audits commenced by the department;
b. Administrative appeals pending before the
department; and
c. Judicial proceedings pending between the
business organization and the department.
(b) Every business organization shall provide the
commissioner or the commissioner’s authorized designee access to:
(1) All records or information necessary to
establish the amount of gross income, deductions, credits, or other information
required to be shown on any return, schedule, or attachment required under RSA
77-A and any department rules adopted to implement the business profits tax;
(2) Key company personnel for interviews where
applicable upon advance notice and at times during the regular business day;
(3) Minutes of meetings for the business
organization’s:
a. Board of directors;
b. Audit committee;
c. Compensation committee;
d. Finance committee; and
e. Other similar
committees or subcommittees of the board, where applicable;
(4) Consolidated or separate federal income tax
returns and all related schedules and exhibits as filed with the United States
Internal Revenue Service including federal Form 5471 or other similar document
for each year under audit;
(5) Annual financial statements, notes, and supporting
schedules, including consolidating work papers for each year under audit;
(6) A reconciliation between net income from
financial statements and net income per books on federal Form Schedule M as filed
with the United States Internal Revenue Service for each year under audit;
(7) A reconciliation between the business
organization’s gross business profits and the IRC as described in RSA 77-A:1,
XX;
(8) Schedules of
sales, payrolls, and properties by state and documentation to support the
respective apportionment factor for each year under audit;
(9) Federal unemployment and withholding returns
filed with the United States Internal Revenue Service for each year under
audit;
(10) A New Hampshire unemployment return as filed
with the New Hampshire department of employment security for each year under
audit;
(11) Schedules of income taxes, franchise taxes
based on income, and capital stock taxes listing the state, type of tax, and
amount for each year under audit;
(12) Complete
state tax returns for states other than New Hampshire where business is
conducted;
(13) Any listing of any key officers or employees
who have substantial knowledge of and access to documentation on:
a. Pricing policies;
b. Profit centers or other methods of allocating
income and expense among related parties;
c. Methods of factor determination; and
d. Other data to establish a business
organization's proper tax liability;
(14) Any records or information to establish that
uncontrolled market prices were used for all intergroup activity between
members of a combined group and any overseas business organization;
(15)
Company policy and procedure manuals and any other information used to
establish the operational policies of the business organization; and
(16) Any electronic records statements, including
but not limited to accounting software.
(c) Every business organization having overseas
business organizations or foreign dividends from unitary sources shall maintain
the financial records necessary to verify:
(1) That 80% or more of the dividend payor's
average payroll and property is assignable to a location outside the 50 states
or territory or possession of the United States and the District of Columbia;
(2) The amount of dividend paid by each payor;
(3) The taxable income of the payor based upon
United States tax standards;
(4) The foreign apportionment factor information
for each dividend payor as required under Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.041; and
(5) Any additional information supporting Form
NH-1120-WE Combined Business Profits Tax Return and affiliated schedules.
Source. #4192, eff 12-23-86; ss by #5490, eff
10-19-92; amd by #6179, eff 1-30-96; ss by #6853, eff
9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13177, eff
3-6-21
Rev 308.02 Confidentiality of Department Records.
(a) All business profits tax returns and
information shall be confidential pursuant to Rev 2903.02.
(b) A power of attorney shall be submitted to the
department prior to, or in conjunction with, a request for information or any
discussion with the department regarding the business organization or the
organization's business affairs.
Source. #2012, eff 5-5-82; ss by #2722, eff 5-23-84;
ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 308.03
Informal Pre-Assessment Conference.
(a) The purpose of an informal pre-assessment
conference shall be to discuss the audit findings with taxpayers and the department’s
audit division in an effort to reach an agreement on the issues of facts, audit
results, or both.
(b) At the conclusion of an audit, when the facts
and circumstances of the audit review indicate to the department that an
informal pre-assessment conference would benefit both the state and the business
organization, the business organization may request and the department’s audit
division shall provide an informal pre-assessment conference for the business
organization, or its authorized representative.
(c) The department’s
audit division shall notify the business organization or the authorized
representative by mail of:
(1) The date, time and location for the informal
conference; and
(2) The advance information that the business
organization or its authorized representative shall be required to provide to
the department’s audit division.
(d) The information specified in (c)(2), above,
shall include:
(1)
The name, address and taxpayer
identification number of the taxpayer;
(2) An outline of the areas of agreement and
disagreement;
(3) Documentation in support of the business
organization’s position such as, but not limited to:
a. Citations of supporting case law;
b. Statutory or regulatory provisions; and
c. Documents or correspondence from unrelated
parties;
(4) Responses to any outstanding questions raised
by the department’s auditor during the audit; and
(5) The names of the individuals who shall
participate in the informal conference on behalf of the business organization.
(e)
Upon completing a review of material provided during the informal conference,
the department’s audit division shall determine the appropriate disposition of the
audit or review, notification of which shall begin the period for formal appeal
to the commissioner under RSA 21-J:28-b and Rev 200.
Source. #3040, eff 6-26-85; ss by #4192, eff
12-23-86; amd by #5355, eff 3-16-92; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 308.04 Payroll
and Property Information. For
taxable periods ending on or after December 31, 2022, business organizations
and combined groups shall continue to report payroll and property factors to
the department for informational purposes when
filing returns under RSA 77-A:6, I, I-a, and IV.
Source. #13450, eff 9-23-22
PART Rev 309 CERTIFICATIONS
Rev 309.01 Request for Certifications of Good
Standing, Dissolution, or Withdrawal.
(a) The issuance of certification statements for
good standing, dissolution, or withdrawal shall be subject to the following requirements:
(1) Taxpayers shall complete and file Form AU-22,
“Certification Request Form” and mailed to:
New Hampshire
Department of Revenue Administration
Taxpayer Services
Division
(2) Certification statements shall be mailed to
the business organization unless the request authorizes the department
to send the certification statements to someone other than the business
organization;
(3) The non-refundable fees under RSA 77-A:18 for
the certification statements referred to in this section shall not be used to
offset any outstanding tax liability;
(4) The non-refundable fees paid for the certification
statements referred to in this section shall be considered fully expended when:
a. The requested certification statements are
issued to the business organization; or
b. The business
organization or its authorized representative is notified that the department
is unable to issue the required certification statements and the reasons why it
cannot do so;
(5) All checks for the fees shall be made payable
to the state of
(6) If a request for the
certification statement is signed by someone other than a corporate officer,
general partner, managing member or the proprietor, the request shall be accompanied
by a power of attorney authorizing someone to act as an agent for a taxpayer as
prescribed in Rev 2903.03.
Source. #4192, eff 12-23-86; ss by #4668, eff 8-25-89,
Interim, EXPIRED: 12-23-89
New. #4735, eff 1-23-90; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
Rev 309.02 Certification of Good Standing.
(a) Business organizations requesting the issuance
of a certification statement of good standing from the department shall submit
to the department:
(1) A completed Form AU-22, signed by a corporate
officer, general partner, managing member, proprietor, or a duly authorized
representative; and
(2) Payment of the fee established by RSA 77-A:18,
III.
(b) The certification statement of good standing
shall be issued within 30 days of the later of receiving:
(1) The request; or
(2) All the required returns and documents from
the business organization.
Source. #4192, eff 12-23-86; ss by #5490, eff 10-19-92;
ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15
Rev 309.03 Certification of Dissolution.
(a) Business organizations which are dissolving
and seeking a certification statement of dissolution shall submit to the department:
(1) A complete Form AU-22, signed by a corporate
officer, general partner, managing member, proprietor, or a duly authorized representative;
(2) Payment of the fee established by RSA 77-A:18,
I(b); and
(3) The following information:
a. A final
b. A clear and legible copy of federal Form 966,
“Corporate Dissolution or Liquidation”;
c. Clear and legible copies of any federal Forms
4797, 6252, and any other schedules that are required to show the breakdown of the
sale of assets;
d. A copy of the corporate minutes adopting the
liquidation, describing the disposition of the
corporate assets; and
e. A copy of the plan of liquidation, if one
exists.
(b) The department shall issue the requested
dissolution certification statement or a letter of denial with the reasons for the
denial within 60 days of the later of receiving:
(1) The request; or
(2) All the required returns and documentation
from the business organization.
Source. #4438, eff
6-22-88; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15
Rev 309.04 Certification for Withdrawal.
(a) Business organizations seeking a
certification statement for withdrawal shall submit to the department:
(1) A letter signed by a corporate officer,
general partner a managing member, proprietor, or their duly authorized representative;
and
(2) Payment of the fee established by RSA
77-A:18, II.
(b) The business organization shall provide:
(1) An explanation for the withdrawal;
(2) A copy of federal Form 966 if a plan of
liquidation has been adopted; and
(3) A final
(c) The department shall issue the requested
withdrawal certification statement or a letter of denial with the reasons for
the denial within 60 days of the later of receiving:
(1) The request; or
(2) All the required returns and documents from
the business organization.
Source. #4438, eff 6-22-88; ss by #5490, eff
10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff
1-16-15
PART Rev 310 APPLICATION OF PENALTIES
Rev 310.01 Substantial Understatement of Tax.
(a) The department shall assess the 25% penalty
for understatement of tax, provided by RSA 21-J:33-a, on returns where the
understatement exceeds the greater of 10% of the correct tax liability or
$5,000 unless the business organization meets one of the following exceptions:
(1) The business organization adequately
disclosed the relevant facts regarding the tax treatment of the item generating
the understatement; or
(2) The business organization had substantial
authority for its tax treatment of such item.
(b) A business organization shall have adequately
disclosed the tax treatment of an item on the return or in a statement attached
to the front of the return if all of the following criteria are met:
(1) The statement contains a prominent caption
identifying the statement as a disclosure of the tax treatment for the substantial
understatement penalty provided in RSA 21-J:33-a;
(2) The item for which the disclosure is made is
clearly identified;
(3) The dollar amount of the item is disclosed;
and
(4) The statement contains those facts affecting
the tax treatment of the item that reasonably will apprise the department of
the nature of the potential controversy or a concise description of the legal
issues presented by the facts in question.
(c) A business organization shall have
substantial authority for the tax treatment of an item if the weight of the authorities
supporting the treatment of the item is substantial in relation to the weight
of the authorities supporting the position of the department.
(d) Substantial authority, shall be considered as
the following authoritative sources:
(1) For items applying specifically to the
application of the business profits tax:
a. Any
b.
c. Declaratory rulings issued by the department
to the business organization;
d. Department technical information releases;
e. Superior court and board of tax and land
appeals decisions;
f. Federal District Court and First Circuit
Court of Appeals decisions;
g.
h. Legislative committee reports specifying
legislative intent; and
i. Written advice from the department issued to
the business organization about the tax treatment of the item in question; and
(2) For items arriving at federal taxable income
before any state required adjustments:
a. IRC and other statutory provisions;
b. Temporary and final U.S. Department of the
Treasury regulations;
c. Federal or state court cases;
d. United States
Internal Revenue Service or U.S. Department of the Treasury administrative
pronouncements including revenue rulings and revenue procedures;
e. Tax treaties and related regulations, as well
as the U.S. Department of the Treasury or other official explanation of such
treaties;
f. Congressional intent as reflected in
committee reports, joint explanatory statements of managers included in the
conference committee reports and floor statements made by the bill's managers
prior to enactment;
g. Controlling precedent of the
h. Technical advice memoranda, ruling or determination
letters issued to the business organization or in which the business organization
is named;
i. An affirmative statement in a U.S. Internal
Revenue Service agent's report with respect to the business organization's
prior taxable periods; and
j. Any other source which was accepted by the United
States Internal Revenue Service as substantial authority.
(e) The following shall not be considered
authoritative sources:
(1) Opinions reached by tax professionals;
(2) Tax publication opinions or narrative
statements; and
(3) Articles contained in professional or tax
periodicals.
(f) The existence of substantial authority for a
particular item shall be determined as of the date the return containing the
item was filed, or, as of the last day of the taxable period to which the
return relates, whichever is later.
(g) The penalty shall be applied to the net
understatement determined by reducing the understatement, as defined in RSA 21-J:33-a,
III, by the portion of the understatement for which the business organization
had substantial authority or had adequately disclosed the position taken on the
return.
Source. #5355, eff 3-16-92, EXPIRED: 3-16-98
New.
#6853, eff 9-23-98; ss by #8709, eff
8-25-06; ss by #10758, eff 1-16-15
Rev 310.02 Understatement of Taxpayer's Liability by
Tax Preparer.
(a) For purposes of RSA 21-J:33-b, I,
“substantial portion” means any instance where the efforts of the tax preparer
have affected more than 25% of the business organization's tax liability.
(b) An individual or company providing more than
typing, reproducing, or other mechanical assistance shall be deemed to be a tax
preparer when the individual or company uses computer software which make determinations
about the applicability of tax laws or the characterizations of income and the
allowability of deductions or credits.
(c) The penalty provided in RSA 21-J:33-b, III
shall be assessed when any part of an understatement of tax is the result of a
tax preparer's willful neglect or intentional disregard of the statute or departmental
rules unless the business organization has adequately disclosed the tax treatment
of an item on the return in a written statement as provided in Rev 310.01(b).
(d) A tax preparer shall be deemed to have acted
with willful neglect or intentional disregard when the preparer fails to:
(1) Comply with a statutory provision as interpreted
in an opinion of the
(2) Comply with a department rule prescribing the
appropriate tax treatment of an item contained in the business profits tax
return; or
(3) Follow a statute, rule or court decision that
addresses the proper tax treatment of an item or issue.
(e) The penalty provided in RSA 21-J:33-b, IV
shall be applied when any part of an understatement of tax is the result of a
tax preparer's willful attempt to understate the business organization's tax
liability.
(f) A tax preparer shall be deemed to have made a
willful attempt to understate a tax liability of a business organization by:
(1) Disregarding or misstating information
furnished by the business organization, or other person in an attempt to wrongfully
reduce the tax liability; or
(2) Not making inquiries of the business organization
or other person when the information provided is incorrect or incomplete, and the
tax preparer knows or should have known that the information was incorrect or
incomplete.
(g) If it is established in an adjudicative proceeding
decision or a judicial decision that there was no understatement of liability
and, if previously paid by the tax preparer, the understatement penalty imposed
by RSA 21-J:33-b shall be abated and refunded.
(h) The refund of the understatement penalty
shall be made without any consideration of any period of limitation for the
issuance of a refund.
Source. #5355, eff 3-16-92; amd
by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8609, eff 8-25-06; ss
by #10758, eff 1-16-15
Rev 310.03 Aiding and Abetting an Understatement of
Tax Liability.
(a) The penalty provided in RSA 21-J:33-c shall
be assessed against any person who assists in, procures or advises in the
preparation of any return or other document in connection with the business
profits tax or departmental rules if the person knows that:
(1) The information provided shall be used in the
preparation of any material document; and
(2) If used, the information shall result in an
understatement penalty of tax liability.
(b) The understatement penalty shall not be assessed
in instances where the business organization adequately disclosed the relevant
facts regarding the tax treatment of the item in the manner provided in Rev
310.01 (b).
(c) If, in an adjudicative proceeding decision or
a judicial decision, it is established that there was no understatement penalty
of liability and if previously paid by the tax preparer, then the
understatement penalty imposed by RSA 21-J:33-c shall be abated and refunded.
(d) The refund of the understatement penalty shall
be made without any consideration of any period of limitation for the issuance
of a refund.
Source. #5355, eff 3-16-92, EXPIRED: 3-16-98
New. #6853, eff 9-23-98; ss by #8709, eff 8-25-06;
ss by #10758, eff 1-16-15
PART
Rev 311 BUSINESS PROFITS TAX FORMS
Rev 311.01 Availability of Forms and Returns. All business profits tax forms may be
obtained:
(a) Online at www.revenue.nh.gov;
(b) By calling the telephone forms line at 603-230-5001;
or
(c) By writing to:
New Hampshire
Department of Revenue Administration
Taxpayer Services
Division
Source. #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
rpld by #8709, eff 8-25-06
New. #8709, eff 8-25-06 (from Rev 311.02);
ss by #10758, eff 1-16-15
Rev 311.02
Form BT-EXT, “Payment Form and
Application for 7-Month Extension of Time to File Business Tax Return”.
(a) Business organizations that have not paid
100% of their tax liability and need an extension to file their business
profits tax return shall:
(1) Pay the remainder of their tax liability; and
(2) Complete and file Form BT-EXT, in accordance
with RSA 77-A:9.
(b) Business organizations that have paid 100% of
their tax liability and need an extension to file their business profits tax
return, shall receive an automatic 7-month extension to file their tax returns
without completing Form BT-EXT.
(c) A granted extension of time shall extend the
due date of the return, but shall not extend the due date of any payment.
Source. #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06 (formerly Rev 311.10); ss by #10758, eff 1-16-15
Rev
311.03 Form BT-SUMMARY, “Business Tax
Return Summary”.
(a) Form BT-SUMMARY, “Business Tax Return Summary”,
shall be completed and filed by business organizations to report all business
profits tax liabilities, interest, penalties and payments to the department.
(b) Form BT-SUMMARY shall be accompanied by the
applicable business profits tax and business enterprise tax returns and copies
of the federal Forms and schedules used to support the information being reported
by business organizations other than proprietorships.
(c) Proprietorships shall complete and file Form
BT-SUMMARY for each spouse with all applicable business tax returns that
include their taxable business profits.
Source. #5490, eff 10-19-92; ss by #6853, eff 9-23-98;
ss by #8709, eff 8-25-06 (formerly Rev 311.11); ss by #10758, eff 1-16-15
Rev
311.04 Form DP-87, “Report of Change for
IRS Adjustment Only”.
(a) Form DP-87, “Report of Change for IRS
Adjustment Only”, shall be completed and submitted by a combined group, corporation,
partnership, proprietorship or fiduciary business organization for any change
in the amount of its
(b) A separate Form DP-87 shall be prepared for
each year to which a federal change applies.
(c) Each Form DP-87 shall be accompanied by:
(1) A copy or copies of the federal change form
or forms;
(2) The details of the federal changes, as to
items and by entity; and
(3) The payment of any additional tax, interest,
and penalties.
(d) Each Form DP-87 shall be submitted under separate
cover.
Source. #5490, eff 10-19-92; amd
by #6129, eff 11-23-95; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06
(formerly Rev 311.03); ss by #10758, eff 1-16-15
Rev
311.05 – 311.27 - REPEALED
Source. #5490, eff 10-19-92; amd
by #6179, eff 1-30-96; ss by #6853, eff 9-23-98; rpld
by #8709, eff 8-25-06
APPENDIX
|
Rule |
|
|
Rev 301.01 –
301.36 |
RSA 21-J:13, I;
RSA 77-A:15 |
|
Rev 301.11 |
RSA 77-A:3 |
|
Rev 301.12 |
RSA 77-A:3 |
|
|
|
|
Rev 302.01 |
RSA 21-J:13, I;
RSA 77-A:1, III(b); RSA 77-:15, II |
|
Rev 302.02 |
RSA 21-J:13, I;
RSA 77-A:1, I; RSA 77-A:15, II |
|
Rev 302.03 |
RSA 21-J:13, I; RSA
77-A:1, III(d); RSA 77-A:15, II |
|
Rev 302.04 |
RSA 21-J:13, I;
RSA 77-A:1, XII |
|
Rev 302.05-302.09 |
RSA 21-J:13, I;
RSA 77-A:15, II |
|
Rev 302.07 |
RSA 21-J:13, I;
RSA 77-A:15; RSA 77-A:6 |
|
Rev 302.10-302.13 |
RSA 77-A:1, III;
RSA 77-A:1, XIV; RSA 77-A:6, IV; RSA 77-A:15, II |
|
Rev 302.14-302.15 |
RSA 21-J:13, I; RSA
77-A:1, III; RSA 77-A:15, II |
|
|
|
|
Rev 303.01 |
RSA 21-J:13, I;
RSA 77-A:4, III |
|
Rev 303.02 |
RSA 77-A;1, X; RSA
77-A: XII |
|
Rev 303.03 |
RSA 77-A:4,
XIII; RSA 77-A:15, II |
|
Rev 303.04 |
RSA 77-A:4, II |
|
Rev 303.05 |
RSA 77-A:4, XIV |
|
|
|
|
Rev 304.01-301.11 |
RSA 21-J:13, I;
RSA 77-A:3; RSA 77-A:15, II |
|
Rev 304.12 |
RSA 77-A:1,
XX(o); RSA 77-A:3, II(b); RSA 77-A:4, XIX; RSA 77-A:15, II |
|
|
|
|
Rev 305.01 – 305.02 |
RSA 21-J:13, I; RSA
77-A:15 |
|
Rev 305.03 |
RSA 77-A:7, I(b); RSA 77-A:15, II; RSA 21-J:28-a |
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Rev 306.01 |
RSA 77-A:5, III;
RSA 77-A: 5, X |
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Rev 306.02 |
RSA 162-L:10; RSA
77-A:5, XI |
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Rev 306.03 |
RSA 162-N; RSA 21-J:13,
I; RSA 77-A:15 |
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Rev 306.04 –
306.06 |
RSA 21-J:13, I;
RSA 77-A:15 |
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Rev
306.07 |
RSA
77-A:5, XV; RSA 77-G:3; RSA 77-G:4, II; RSA
77-G:6, I(f) |
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Rev 307.01 –
307.05 |
RSA 21-J:13, I;
RSA 77-A:15 |
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Rev 307.04 |
RSA 21-J:13, I;
RSA 77-A:6 |
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Rev 307.06 |
RSA 21-J:13, I; RSA
77-A:6, I; RSA 77-A:15, II |
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Rev 307.07 |
RSA 21-J:13, I;
RSA 77-A:6, I; RSA 77-A:15, II |
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Rev 307.08 –
307.10 |
RSA 21-J:13, I;
RSA 77:15 |
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Rev 307.11 |
RSA 77-A:10 |
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Rev 307.12 |
RSA 21-J:13, I;
RSA 77-A:6, I; RSA 77-A:15, II |
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Rev 307.13 |
RSA 77-A:1, I,
XXX; RSA 77-A:5-c; RSA 77-A:15, II |
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Rev 308.01 |
RSA 77-A:11 |
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Rev 308.02 |
RSA 21-J:14 |
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Rev 308.03 |
RSA 21-J:13, I;
RSA 77-A:15 |
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Rev 308.04 |
RSA 77-A:3, I,
(b) |
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Rev 309.01 –
309. 04 |
RSA 77-A:18 |
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Rev 310.01 |
RSA 21-J:13, I;
RSA 77-A:15; RSA 21-J:33-a |
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Rev 310.02 |
RSA 21-J:13, I;
RSA 77-A:15; RSA 21-J:33-b |
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Rev 310.03 |
RSA 21-J:13, I;
RSA 77-A:15; RSA 21-J:33-c |
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Rev 311.01 |
RSA 77-A:6 |
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Rev 311.02 |
RSA 77-A:9 |
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Rev 311.03 |
RSA 77-A:6 |
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Rev 311.04 |
RSA 77-A:10 |