CHAPTER Rev 900 INTEREST AND DIVIDENDS TAX
REVISION NOTE:
Document #9843, effective 12-23-10, adopted Rev 901.09
defining “Usual place of business”, and readopted with amendments, readopted
with amendments and renumbered, or repealed various other rules in Chapter Rev
900. Document #9843 also renumbered, but
did not readopt, various existing rules in Chapter Rev 900 due to the repeal of
other rules. The following rules, which
had been adopted by Document #9658, effective 2-24-10, were repealed by Document
#9843:
Rev 901.06 defining “Debt financed by equity.”
Rev 901.10 defining “Equity.”
Rev 901.20 defining “Total undistributed revenues.”
Rev 903.07 Guaranteed Payments for Use of Capital.
Rev 903.10 Distribution as Compensation for Services
Provided.
Rev 903.11 Support for Claim on Non-Taxable
Distribution.
The following rules were readopted with amendments and
renumbered by Document #9843:
Former Number New
Number
Rev 901.08 defining “Dividends” Rev 901.07 defining “Dividend”.
Rev 901.21 defining “Transferable.” Rev 901.18 defining
“Transferable.”
The source notes
for rules renumbered by Document #9843 indicate the former rule number prior to
renumbering by Document #9843. The
document numbers and effective dates in the source notes prior to Document
#9843 for such rules apply to the rule under that former rule number. The rules which were renumbered, but not
readopted, by Document #9843 do not indicate the new effective date of
12-23-10.
PART
Rev 901 DEFINITIONS
Rev 901.01 “Accumulated
profits” means the total undistributed earnings of the organization from
whatever source derived.
Source. #2758, eff 6-15-84; ss by #2881, eff
10-19-84; ss by #4557, eff 12-28-88; ss by #5947, eff 12-29-94; ss by #6321,
eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658,
eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at chapter heading
for Rev 900); ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 901.02 “Association”
means an unincorporated group of 2 or more persons that is not a legal entity
separate from the persons who compose it.
Source. # 10795, eff 3-11-15; ss by #13433, eff
8-12-22
Rev 901.03 A “beneficial
interest in which is not represented by transferable shares”, as used in RSA
77:3, I(b), means an interest in an organization:
(a) Where the shares,
equitable interests, and all ownership rights are not transferable without
obtaining prior member approval or causing a dissolution of the organization;
and
(b) Which is not a:
(1) Business
trust;
(2) Common
law trust;
(3) Massachusetts trust;
(4) Real
estate investment trust;
(5) Corporation;
(6) Joint
stock company; or
(7) Homeowners
or condominium association.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658,
eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at chapter heading
for Rev 900); ss by #10211, eff 10-24-12; renumbered by #10795 (from Rev
901.02); ss by #13433, eff 8-12-22
Rev 901.04 A “beneficial
interest in which is represented by transferable shares,” as used in RSA 77:4,
III, means an interest in an organization:
(a) Which is a:
(1) Business
trust;
(2) Common
law trust;
(3) Massachusetts trust;
(4) Real
estate investment trust; or
(5) Homeowners
or condominium association;
(b) Where property is
placed in the hands of a trustee, who:
(1) Acts
apart from the beneficiaries; and
(2) Manages
and deals with the property, as principal, for the use and benefit of the beneficiaries
who hold equitable interests; and
(c) Where the shares,
equitable interests, and all ownership rights are freely transferable
without the necessity of securing prior member approval or causing a
dissolution of the organization.
Source. #4557, eff 12-28-88; ss by #5947, eff 12-29-94;
ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658, eff 2-24-10;
ss by #9843, eff 12-23-10 (see Revision Note at chapter heading for Rev 900);
ss by #10211, eff 10-24-12; renumbered by #10795 (from Rev 901.03); ss by
#13433, eff 8-12-22
Rev 901.05 “Capital” as
used in RSA 77:7, means the amount personally invested in the organization by
the shareholders or interest-holders in exchange for their interest in the
organization.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; renumbered by #10795 (from Rev 901.04); ss by #13433, eff 8-12-22
Rev 901.06 “Corporation” means
an artificial person or legal entity created under the laws of incorporation of
any state or foreign country without recognizing the distinctions between types
of corporations such as those drawn in the IRC between S corporations and other
corporations.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658, eff
2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at chapter heading for
Rev 900); ss by #10211, eff 10-24-12; renumbered by #10795 (from
Rev 901.05); ss by #13433, eff 8-12-22
Rev 901.07 “Department”
means the department of revenue administration.
Source. #10211, eff 10-24-12; renumbered by #10795 (from
Rev 901.06);
renumbered by #10795 (from Rev 901.06); ss by #13433,
eff 8-12-22
Rev 901.08 “Distributions”
means a transfer of property from an organization to its shareholders or
interest-holders solely as a result of their ownership interest in such
organization.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; renumbered by
#9658 (from Rev 901.06); renumbered by #9843 (from Rev 901.07) (see Revision
Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12 (from Rev 901.06); renumbered by
#10795 (from Rev 901.07); ss
by #13433, eff 8-12-22
Rev 901.09 “Dividend” means
an amount of property distributed, with respect to their ownership interest,
other than in liquidation of the organization, to shareholders or
interest-holders of an organization from:
(a) Current year profit; or
(b) Accumulated profits of
such entity.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658, eff
2-24-10; ss by #9843, eff 12-23-10 (formerly Rev 901.08) (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff 10-24-12 (from Rev 901.07); renumbered by
#10795 (from Rev 901.08); ss by #13433, eff
8-12-22
Rev 901.10 “Earnings” means
the excess income received by an organization after the payment of its
expenses.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; renumbered by
#9658 (from Rev 901.08); renumbered by #9843 (from Rev 901.09) (see Revision
Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12 (from Rev
901.08);
renumbered by #10795 (from Rev 901.09); ss by #13433,
eff 8-12-22
Rev 901.11 “Fair market
value” means the price property would command if:
(a) Sold by a seller who is
willing, but not compelled, to sell; and
(b) Purchased by a
purchaser who is willing, but not compelled, to purchase.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; renumbered by
#9658 (from Rev 901.09); renumbered by #9843 (from Rev 901.11) (see Revision
Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12 (from Rev
901.09);
renumbered by #10795 (from Rev 901.10); ss by #13433,
eff 8-12-22
Rev 901.12 “Federal
identification number” means:
(a) Social security number;
(b) Federal employer
identification number;
(c) Preparer tax
identification number;
(d) Individual tax
identification number; or
(e) Department
identification number.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; renumbered by
#9658 (from Rev 901.10); renumbered by #9843 (from Rev 901.12) (see Revision
Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12 (from Rev
901.10);
renumbered by #10795 (from Rev 901.11); ss by #13433, eff 8-12-22
Rev 901.13 “Interest” means
the amount of money or other property actually or constructively received as
compensation for the use of money measured at the fair market value of the
property received.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; renumbered by #9658
(from Rev 901.11); renumbered by #9843 (from Rev 901.13) (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff 10-24-12; renumbered by #10795
(from Rev 901.12); ss by #13433, eff 8-12-22
Rev 901.14 “Internal
Revenue Code (IRC)” means the United States Internal Revenue Code of 1986, as
amended.
Source. #9658, eff 2-24-10; renumbered by #9843 (from
Rev 901.14) (see Revision Note at chapter heading for Rev 900); ss by #10211,
eff 10-24-12 (from Rev 901.12); renumbered by #10795 (from Rev
901.13); ss by #13443, eff 8-12-22
Rev 901.15 “Organization” means:
(a) A corporation;
(b) A business trust;
(c) An estate;
(d) A trust;
(e) A partnership;
(f) An association;
(g) Two or more persons
having a joint or common business interest;
(h) A limited
liability company; or
(i) Any other legal or
commercial form of business other than a sole proprietorship not
organized as a single member limited liability company.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04; ss by #9658, eff 2-24-10 (from Rev 901.12); renumbered by #9843 (from
Rev 901.15) (see Revision Note at chapter heading for Rev 900); ss by #10211,
eff 10-24-12 (from Rev 901.13); renumbered by #10795 (from Rev
901.14); ss by #13443, eff 8-12-22
Rev 901.16 “Part year resident”
means a person who has permanently:
(a) Established residency
in New Hampshire during the year; or
(b) Abandoned residency
in New Hampshire during the year.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04; renumbered by #9658 (from Rev 901.13); renumbered by #9843 (from Rev
901.16) (see Revision Note at chapter heading for Rev 900); ss by #10211, eff
10-24-12 (from Rev 901.14); renumbered by #10795 (from Rev
901.15); ss by #13443, eff 8-12-22
Rev 901.17 “Part year
return” means a return filed by a part year resident.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04; renumbered by #9658 (from Rev 901.14); renumbered by #9843 (from Rev
901.17) (see Revision Note at chapter heading for Rev 900); ss by #10211, eff
10-24-12 (from Rev 901.16); renumbered by #10795 (from Rev
901.16); ss by #13443, eff 8-12-22
Rev 901.18 “Person” means a person as
defined in RSA 21:9.
Source.
#13443, eff 8-12-22
Rev 901.19 “Stock dividend”
as used in RSA 77:4, II and III means a distribution paid to shareholders in
newly issued stock of the same organization.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 901.16); renumbered by #9658 (from Rev 901.15); renumbered by
#9843 (from Rev 901.18) (see Revision Note at chapter heading for Rev 900); ss
by #10211, eff 10-24-12 (from Rev 901.16); renumbered by #10795 (from
Rev 901.17); ss by #13443, eff 8-12-22 (formerly Rev 901.18)
Rev 901.20 “Tax year” means
the calendar year, the fiscal year, or that portion of a year for which the
taxpayer's federal income tax return is filed.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 901.17); renumbered by #9658 (from Rev 901.16); renumbered by
#9843 (from Rev 901.19) (see Revision Note at chapter heading for Rev 900); ss
by #10211, eff 10-24-12 (from Rev 901.17); renumbered by #10795 (from
Rev 901.18); ss by #13443, eff 8-12-22 (formerly Rev 901.19)
Rev 901.21 “Transferable”, as
used in RSA 77:3, I(b), means the ability of a shareholder or interest holder
in an organization to dispose of all rights incidental to his or her equitable
interest without a required approval of the disposition by
another beneficiary, and without dissolution of the organization itself.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 901.18); ss by #9658, eff 2-24-10 (from Rev 901.17); ss by
#9843 (formerly Rev 901.21) (see Revision Note at chapter heading for Rev 900);
ss by #10211, eff 10-24-12 (from Rev 901.18); renumbered by #10795 (from
Rev 901.19); ss by #13443, eff 8-12-22 (formerly Rev 901.20)
Rev 901.22 “Usual
place of business”, as used in RSA 77:14-a and 14-c, means the
primary place of business or a regularly used place of business of an
organization.
Source. #9843, eff 12-23-10 (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff 10-24-12 (from Rev 901.19);
renumbered by #10795 (from Rev 901.20); ss by #13443,
eff 8-12-22 (formerly Rev 901.21)
PART Rev
902 RESIDENCY AND TAXABILITY OF SPECIAL ENTITIES
Rev 902.01 Residency,
Establishment of Intent. An individual’s intent to establish
residency by an ongoing physical presence within New Hampshire which
is not transitory in nature, shall be evidenced by:
(a) Maintaining a home or
other living quarters in New Hampshire;
(b) Spending a greater
percentage of time in New Hampshire than in any other state;
(c) Having family living
with them in New Hampshire;
(d) Advising any federal, state, or
local agency that the individual considers herself or himself a resident
of New Hampshire;
(e) Being employed or
conducting business activity within New Hampshire or at a place to which
the individual can readily commute from New Hampshire; or
(f) Registering to vote
in New Hampshire.
Source. #2228, eff 12-28-82; ss by #2881, eff
10-19-84; ss by #4557, eff 12-28-88; ss by #5947, eff 12-29-94; ss by #6321,
eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev 902.02 Part Year
Residency. A person claiming to be a New Hampshire part year
resident shall provide documentation using the same criteria in Rev 902.01,
above, showing an intent to reside in another state for a portion of the year.
Source. #5947, eff 12-29-94; ss by #6321, eff
8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff 10-24-12; ss by #13443,
eff 8-12-22
Rev 902.03 Absence From
State.
(a) A person being
temporarily absent from his or her state of residence shall not be considered a
part year resident.
(b) A temporary absence
from the state of residence shall exist when a person is in another state or
country on:
(1) An
employment assignment of limited duration after which the person returns to his
or her regular place of employment or another temporary assignment;
(2) Seasonal
trips resulting from a desire to be in a different climate from his or her
state of residence;
(3) Trips
of varied duration visiting friends, relatives, or various parts of the country
or world; or
(4) Other
similar absences where the person does not effect an establishment of
intent to be a New Hampshire resident.
Source. #4557, eff 12-28-88; ss by #5947, eff 12-29-94;
ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff 10-24-12;
ss by #13443, eff 8-12-22
Rev 902.04 New
Hampshire Resident Or Inhabitant. Any individual claiming
to be an inhabitant or resident of New Hampshire to any state agency or
political subdivision of New Hampshire, shall be deemed an inhabitant or
resident of New Hampshire for purposes of taxation of income unless the
individual can prove, by a preponderance of evidence, that he or she is an
actual resident of another jurisdiction.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev 902.05 Treatment of
Mutual Funds and Their Investors. The taxation of mutual funds
and their investors under RSA 77, except such funds that are qualified
investment companies under RSA 77-A:1, XXI, and their holders, shall be
determined by the status of the investor’s shares or interests as either:
(a) Shares which are
transferable, in which case:
(1) The
mutual fund shall not be subject to the tax; and
(2) The
individual investors shall be taxable and required to file tax returns; or
(b) Shares which are not
transferable, in which case:
(1) The
mutual fund shall be taxable and required to file tax returns; and
(2) The
individual investors shall not be subject to the tax as to the interest and
dividend income received by the fund until distributed.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04 (from Rev 902.04);
ss by #10211, eff 10-24-12; ss by #13443, eff 8-12-22
Rev 902.06 Mutual Funds.
(a) Mutual funds shall be
presumed:
(1) To
be organizations incorporated under the laws of New Hampshire or some
other state of the United States; and
(2) Comprised
of ownership interests that are represented by transferable shares.
(b) Mutual funds not
taxable under the provisions of (a) above shall not be required to:
(1) File
a return;
(2) Pay
a tax; or
(3) Use
the allocation of income provisions of RSA 77:12 or RSA 77:14-c.
(c) Investors in mutual
funds shall be taxed if they are:
(1) New
Hampshire residents; or
(2) Executors,
deriving their appointment from a court of this state within the scope of RSA 77:3,
I(c).
(d) Amounts received from
mutual funds by investors, which are reported and taxed federally as
dividends, shall be taxable dividends except for:
(1) New
Hampshire direct or municipal obligations;
(2) Direct
obligations of the United States Government; and
(3) Capital
gains realized by the investor through the sale of his or her interest in a
mutual fund.
(e) Amounts received from
mutual funds by investors on all investments in New
Hampshire direct or municipal obligations, and direct obligations of the
United States Government shall be deemed to be an investment by the investor in
such New Hampshire direct or municipal obligations and United States
Government obligations and shall not be considered taxable dividends.
(f) Investors receiving
distributions from mutual funds that invest in New Hampshire direct or
municipal obligations, and direct United States obligations and other
types of investments shall not include as taxable dividends any amount:
(1) Reported
to the investor by the mutual fund as interest from New
Hampshire direct or municipal obligations and direct obligations of the
United States Government;
(2) Determined
by multiplying the total amount received by a fraction:
a. The
numerator of which shall be the amount of interest on New Hampshire direct or municipal
obligations and direct obligations of the United States Government received by
the mutual fund; and
b. The denominator of which shall be the total
amount of income received by the mutual fund from all activities; or
(3) Determined
by multiplying the total amount received by the mutual fund's percentage of assets
invested in New Hampshire direct or municipal obligations and direct
obligations of the United States Government.
(g) To rebut the
presumption of its organizational status, under (a) above, a mutual fund shall
present documentary evidence in a majority of the categories listed in (h)
below, with respect to its organizational and operational structure.
(h) The categories evidencing
non-corporate structure shall be the absence of:
(1) Limited liability
where an investor may lose more than his or her investment in that organization;
(2) Continuity of
life, where the organization holding the funds shall not survive after:
a. The
sale of shares by interest holders; or
b. The
death of interest holders;
(3) The
right of the mutual fund to sue and be sued as an entity;
(4) Property ownership,
where assets are held in the name of all investors rather than in the fund
name; or
(5) Dividends,
where profits of the fund are not divided ratably among investors.
(i) In instances where
mutual funds are taxable under the provisions of (g) above, the distributions to
investors in the mutual fund shall not be taxable dividends. Such mutual funds
shall:
(1) File
a return; and
(2) Apportion
the income.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04 (from Rev 902.05);
ss by #9658, eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff 10-24-12; amd by #10795, eff
3-11-15; ss by #13443, eff 8-12-22
Rev 902.07 Partnerships,
LLCs, Associations and Trust Beneficiaries.
(a) The interest and
dividends tax shall be applied at the:
(1) Entity
level for partnerships, LLCs, or associations when:
a. The
entity has a usual place of business within New Hampshire;
b. Any
partner, member, or owner is an inhabitant or resident of New
Hampshire; and
c. The ownership interest
is not represented by transferable shares;
(2) Owner
level for partnerships, LLCs, or associations when:
a. The
entity does not have a usual place of business within New Hampshire;
b. One
or more of the partners, members, or owners are inhabitants or residents of New
Hampshire; and
c. The ownership interest
is not represented by transferable shares;
(3) Beneficiary
level for trusts not treated as grantor trusts under section 671 of the IRC
when:
a. The income received
by the trust is reported by, and taxed federally as interest and dividends to,
trust beneficiaries; and
b. One or more
of the trust beneficiaries are inhabitants or residents of New Hampshire; or
(4) Grantor
level for trusts treated as grantor trusts under section 671 of the IRC when the
grantor is an inhabitant or resident of New Hampshire.
(b) The amount of taxable
interest and dividend income shall be determined as follows:
(1) All
interest and dividends received, which would be taxable if received by a
resident individual, shall be taxable to a partnership, LLC, or
association if:
a. The
beneficial interest of the partnership, LLC, or association is composed of non-transferable
shares;
b. The
partnership’s, LLC’s, or association’s usual place of business is in New Hampshire; and
c. All
of the partnership’s, LLC’s, or association’s interest holders are residents or
inhabitants of New Hampshire;
(2) A
pro-rata portion of the interest and dividends received, which would be taxable
if received by a resident individual, shall be taxable to a partnership, LLC,
or association if:
a. The
beneficial interest of the partnership, LLC, or association is composed of non-transferable
shares;
b. The
partnership’s, LLC’s, or association’s usual place of business is in New Hampshire;
and
c. Some
of the partnership’s, LLC’s, or association’s interest holders are residents or
inhabitants of New Hampshire;
(3) When
a partnership, LLC, or association is not taxable as an entity and it
has beneficial interests composed of non-transferable shares with some
interest holders being residents or inhabitants of New Hampshire, then:
a. The
interest and dividend income subject to tax shall be:
1. Reported
by the resident interest holders; and
2. Imposed
on the portion of the distribution which represents interest or dividends
received by the entity; and
b. The
portion of the distribution that represents interest and dividends shall be determined
by multiplying the amount of the actual distribution received by a fraction:
1. The
numerator of which shall be the total interest and dividend income received by
the entity; and
2. The
denominator of which shall be the total amount of gross income received by the
entity; or
(4) For
trusts not treated as grantor trusts under section 671 of the IRC where income
received by the trust is reported by, and taxed federally as interest and
dividends to, trust beneficiaries when one or more of the trust beneficiaries
are residents or inhabitants of New Hampshire, then:
a. The
interest and dividend income subject to tax shall be:
1. Reported
by the resident beneficiaries; and
2. Imposed
on the portion of the distribution which represents interest or dividends
received by the trust excluding any deductions used in the computation of the
distributive gross income; and
b. The
portion of the distribution that represents interest and dividends shall be determined
by multiplying the amount of the actual distribution received by a fraction:
1. The
numerator of which shall be the total interest and dividend income received by
the beneficiary; and
2. The
denominator of which shall be the total amount of gross income received by the
beneficiary.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04 (from Rev 902.06);
ss by #9658, eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff 10-24-12; ss by #10795, eff
3-11-15; ss by #13443, eff 8-12-22
Rev 902.08 Accounting
Method For Determination of Accumulated Profits.
(a) Corporate
organizations, including S corporations, shall compute the amount of their
accumulated profits in conformity with the provisions of the IRC, as amended,
for the calculation of earnings and profits.
(b) Partnerships, limited
liability companies, associations, or trusts composed of transferable shares
may elect to continuously calculate their accumulated profits in a manner:
(1) Consistent with
the calculation of corporate earnings and profits under the IRC, as amended; or
(2) Which
conforms in all respects to generally accepted accounting principles.
(c) The partnership,
limited liability company, association, or trust shall maintain records
showing:
(1) The
method selected in (b) above; and
(2) The
calculation of the current year and accumulated profits.
(d) If an organization does
not maintain records showing the calculation of accumulated profits and a
distribution is made to the shareholders or interest holders, the department shall
presume there are adequate accumulated profits to treat the distribution as a
dividend.
(e) The accumulated profits
of a partnership shall be reduced by the amount of compensation paid to the partners
and deducted under RSA 77-A:4 if the partnership’s accounting records provide
evidence as to:
(1) The
amount of such compensation deducted; and
(2) The
partnership’s filing of a business profits tax return for all years in which
the partnership’s profits are reduced by such deduction.
(f) The accumulated profits
of a limited liability company taxed as a partnership or proprietorship shall
be:
(1) Reduced
by the amount of compensation paid to any member who is a natural person; and
(2) Deducted
under RSA 77-A:4 if the limited liability company’s accounting records provide
evidence as to:
a. The
amount of such compensation deducted; and
b. The
limited liability company’s filing of a business profits tax return for all
years in which the limited liability company’s profits are reduced by such a
deduction.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04);
ss by #9658, eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev 902.09 Mixed-Share Organizations. With
respect to organizations composed of a mixture of share types, the tax
status of such organizations and the holders of equity interests in such
organizations, shall be determined as follows:
(a) When the majority of
the outstanding equity interest in the organization is composed of transferable
shares:
(1) Each
share shall be deemed a transferable share;
(2) The
organization shall not be subject to tax under RSA 77; and
(3) The
distributions of profits to any equity interest holder shall be considered a
dividend subject to the interest and dividends tax; or
(b) When the majority of
the outstanding equity interest in the organization is composed of
non-transferable shares:
(1) Each
share shall be deemed a non-transferable share;
(2) The
organization shall be subject to tax under RSA 77; and
(3) The
distribution of profits to any equity interest holder shall not be considered a
dividend subject to the interest and dividends tax.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04);
ss by #9658, eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at
chapter heading for Rev 900); ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
PART Rev 903 INCLUSIONS AND EXCLUSIONS TO INCOME
Rev 903.01 Forgiveness
of Debt. Forgiveness, in whole or in part, of a shareholder's or
interest-holder's debt by the organization shall be a dividend to the
shareholder or interest-holder for purposes of the interest and dividends tax
to the extent of that organization's accumulated profits.
Source. #2228, eff 12-28-82; ss by #2881, eff
10-19-84; ss by #4557, eff 12-28-88; ss by #5947, eff 12-29-94; ss by #6321,
eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev 903.02 Mutual Fund
Dividends. The automatic reinvestment of mutual fund dividends
shall:
(a) Not be considered a
stock dividend; and
(b) Be fully taxable in the
year credited to the shareholder's account.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev
903.03 Measurement of Non-Cash Distributions. In
instances where property, other than cash, is distributed as a dividend, the
computation of the dividend amount received by the shareholder shall be:
(a) Determined by the
property's fair market value as of the date of the distribution;
(b) Limited to the amount
of the organization's accumulated profits; and
(c) Reduced by the amount
of any of the organization's liabilities assumed by the shareholder in
connection with such distribution.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev 903.04 Deemed
Interest.
(a) When an amount of
property is actually received by a taxpayer and is not classified as interest,
but the nature of the transaction, the relatedness of the parties, or both,
indicates that the payment of interest was actually intended and was paid, then
an amount of interest shall be:
(1) Deemed
by the department to have been paid; and
(2) Calculated
at the fair market value, for the money that was loaned based on the facts and circumstances
of the specific taxpayer.
(b) Interest deemed paid
shall include:
(1) The
difference between the amount received at maturity and the actual purchase
price of a discounted bond less any amount previously reported on such bond by
the taxpayer;
(2) The
difference between the discount price paid for a non-interest bearing bond and
either:
a. The
bond's face value if sold at maturity; or
b. The
amount received upon its sale prior to maturity; and
(3) The
unpaid interest on bonds paying periodic interest when the bond is sold by the taxpayer
between interest payment dates since the selling price includes the earned but
unpaid interest.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
(a) All
property transferred from an organization to a shareholder or interest-holder
with respect to the shareholder's or interest-holder's ownership interest from
the accumulated profits of the organization;
(b) All
personal expenditures made by an organization on behalf of a shareholder or
interest-holder which have not been properly reported as compensation or loans
for federal income tax purposes;
(c) Forgiveness
of a shareholder or interest-holder's indebtedness to the organization; and
(d) The
automatic re-investment of property distributed from current year’s
or accumulated profits into additional stock.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658, eff
2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at chapter heading for
Rev 900); ss by #10211, eff 10-24-12; ss by #13443, eff 8-12-22
Rev 903.06 Sequence of Distributions. All
actual distributions shall be presumed to be sequentially made from:
(a) The current year profit
of the organization;
(b) The organization’s
accumulated profits; and
(c) The capital of the
organization.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #9658, eff
2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at chapter heading for
Rev 900); ss by #10211, eff 10-24-12; ss by #13443, eff 8-12-22
Rev 903.07 Post-Termination
Distributions of Federally Recognized S Corporations.
(a) Distributions made by S
corporations from the accumulated adjustment account, or the previously taxed
income categories shall be a dividend.
(b) Distributions made by S
corporations from the earnings and profits of the corporation accumulated prior
to the S corporation election being made shall follow the provision in Rev
902.08(a).
(c) Upon termination of S
corporation status, distributions to shareholders shall be taxable dividends
upon receipt by the shareholder, either directly or indirectly.
(d) In instances of
indirect receipt of distributions, the department shall deem amounts to have been
received by the shareholder at the time when evidence of the transfer is
acknowledged by a reduction in the accumulated adjustments account.
(e) Decreases in the amount
of loans to a shareholder of an S corporation with a corresponding reduction in
the S corporation accumulated adjustment account shall be considered a dividend
as if:
(1) The
S corporation had distributed money as a dividend to the shareholder; and
(2) The
shareholder had returned the money to the corporation in a full or partial payment
of an outstanding loan.
(f) Increases in the amount
of loans from a shareholder of an S corporation with a corresponding reduction
in the accumulated adjustment account shall be considered a dividend as if:
(1) The
corporation had distributed money as a dividend to the shareholder; and
(2) The
shareholder had returned the money to the corporation as a loan from the
shareholder to the corporation.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; renumbered by
#9658 (from Rev 903.07); renumbered by #9843 (from Rev 903.08) (see Revision
Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12; ss by #13443,
eff 8-12-22
Rev 903.08 Liability For
Part-Year Residency.
(a) Part-year residents
shall be liable for the tax upon that portion of income earned when they were a
resident of New Hampshire.
(b) The taxable portion
of such income in (a) above shall be:
(1) Determined
by multiplying the annual taxable income received by a fraction:
a. The
numerator of which shall be the number of days during which the person was a resident
of New Hampshire; and
b. The
denominator of which shall be 365 days of the year; or
(2) Determined
by providing convincing evidence such as:
a. A
document indicating the date of record for a dividend received;
b. A
dated check stub or remittance advice when the income was actually received by the
resident; or
c. A
copy of a bank statement or passbook showing the date the amount was posted.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04;
renumbered by #9658 (from Rev 903.08); renumbered by #9843 (from Rev 903.09)
(see Revision Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12;
ss by #13443, eff 8-12-22
Rev 903.09 Deductions
for Trust Beneficiary Income. Deductions used in the computation
of distributive gross income to trust beneficiaries shall not be added back
when calculating the portion of the distribution subject to tax under RSA 77.
Source. #10795, eff 3-11-15; ss by #13443, eff
8-12-22
PART
Rev 904 EXEMPTIONS
Rev 904.01 Part-Year
Returns. When a taxpayer is a resident of New
Hampshire for less than a full 12 month period, the taxpayer shall:
(a) Determine their taxable
income, based on the total amount of interest and dividend income received for
the entire tax year; and
(b) Be entitled to full
exemption amounts provided by RSA 77:5.
Source. #1814, eff 9-20-8l; ss by #2228, eff
12-28-82; ss by #2881, eff 10-19-84; ss by #4557, eff 12-28-88; ss by #5947,
eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137,
eff 8-10-04; ss by #10211, eff 10-24-12; ss by #13443, eff 8-12-22
Rev 904.02 Blind
Taxpayers.
(a) Persons claiming an exemption
under the provisions of RSA 77:5, III shall be considered qualified if they
have written certification that they are legally blind from the department of
education.
(b) Taxpayers claiming this
status shall have the certification available for review by department
personnel upon audit of their tax return.
Source. #1814, eff 9-20-8l; ss by #2228, eff
12-28-82; ss by #2881, eff 10-19-84; ss by #4557, eff 12-28-88; ss by #5947,
eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137,
eff 8-10-04; ss by #10211, eff 10-24-12; ss by #13443, eff 8-12-22
Rev 904.03 Persons with
Disabilities.
(a) Persons claiming an
exemption under the provisions of RSA 77:5, IV shall be considered qualified if
they:
(1) Have
secured social security or veterans affairs certification that they are
disabled;
(2) Provide
a doctor’s affidavit they are unable to work; and
(3) Provide
a birth certificate as proof of age.
(b) Taxpayers claiming this
status shall have the documents available for review by department personnel
upon audit of their tax return.
Source. #1814, eff 9-20-8l; ss by #2228, eff
12-28-82; ss by #2881, eff 10-19-84; ss by #4557, eff 12-28-88; ss by #5947,
eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137,
eff 8-10-04; ss by #10211, eff 10-24-12; ss by #13443, eff 8-12-22
Rev 904.04 Exemption For
Trust Income Designated For Contribution to Charities. The
portion of a trust's income required to be donated by the trust document to a
charity which is exempt from taxation pursuant to RSA 77:8, shall be exempt
from taxation to the donor trust, provided that the funds donated are actually
used in the charitable function of the donee.
Source. #4557, eff 12-28-88; ss by #5947, eff
12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13443, eff 8-12-22
Rev 904.05 Education Tax
Credit.
(a) A taxpayer granted an
education tax credit under RSA 77-G may use the amount approved against its
interest and dividends tax liability for the tax year during which the
corresponding donation was made, after receiving a Form ED-03, “Education Tax
Credit Scholarship Receipt.”
(b) No portion of the
education tax credit which is not used to offset the taxpayer’s liability under
the interest and dividends tax, the business profits tax, or the business
enterprise tax, for the tax year during which the corresponding donation was
made, shall be carried forward against the interest and dividends tax.
(c) Every taxpayer using an
education tax credit against its interest and dividends tax liability shall
attach a copy of the Form ED-03 to its interest and dividends tax return, in
accordance with Rev 3204.01(c).
Source. #12883, eff 9-27-19; ss by #13443, eff
8-12-22
PART Rev 905 ESTIMATED TAX, PAYMENTS AND OVERPAYMENTS
Rev 905.01 Payments of
Liabilities.
(a) When a taxpayer has a
payment due with any document, such payment shall be filed with the document
unless the tax liability is under one dollar.
(b) Taxpayers may make
payments using any of the following methods:
(1) Electronic
payment using internet e-file;
(2) Check
made payable to the state of New Hampshire; or
(3) Cash.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04;
ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 905.02 Estimated
Taxes.
(a) In accordance
with RSA 77:18 II and III(a), every taxpayer having an annual projected tax
liability in excess of $500 shall make 4 payments of, estimated interest and
dividends tax.
b) The filing dates shall
be:
(1) For
calendar year filers:
a. On
or before the fifteenth day of the fourth, sixth, and ninth months for the tax
year; and
b. On
or before the fifteenth day of the first month of the subsequent calendar year;
and
(2) For
fiscal year filers on or before the fifteenth day of the fourth, sixth, ninth
and twelfth months for the tax year.
(c) When an annually projected
tax liability in excess of $500 is determined in a quarter subsequent to the
first quarter, the initial estimated tax payment shall equal the cumulative
amount payable as of that quarter as if the liability had been determined in
the first quarter.
Source. #1726, eff 3-4-81; amd by #1793, eff 8-16-81;
amd by #1938, eff 1-31-82; ss by #2228, eff 12-28-82; amd by #2589, eff
1-20-84; ss by #2881, eff 10-19-84; ss by #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947,
eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137,
eff 8-10-04; ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 905.03 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 taxpayer;
(2) Credited to the estimated tax
for the following year, if indicated by the taxpayer;
(3) Refunded to the
taxpayer, or such other individual or organization that the department shall determine
has a demonstrated legal or equitable interest in such refund as evidenced by
satisfactory documentation that the department shall request in accordance with
paragraph (b), below; or
(4) A
combination of (2) and (3), above, if indicated by the taxpayer.
(b) When a refund is
requested by an individual or organization other than the taxpayer, the
individual or organization requesting the refund shall submit such documents
and evidence that the department shall request substantiating the reason the
taxpayer is not able to request the refund directly and establish to the
department’s satisfaction the requesting individual or organization’s right to
the refund.
(c) If the taxpayer incorrectly files and makes
payment of estimated taxes, but is not required to file a tax return, a written
request for refund shall be mailed to:
New Hampshire
Department of Revenue Administration
109 Pleasant
Street
P.O. Box 2072
Concord, NH 03302-2072;
and
(d) A request for refund in this section
shall include:
(1) Taxpayer
name and mailing address;
(2) Federal
identification number;
(3) Type
of filer, if applicable;
(4) The
reason why the estimated tax payment was not required;
(5) The
tax year the estimated tax payment was made;
(6) The
amount of the estimated tax payment; and
(7) Taxpayer’s
dated signature in ink or in subsection (b), above, the requesting individual or organization’s
dated signature in ink.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04; ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 905.04 Uniform
Filing Information.
(a) Returns and payment forms shall
be considered timely filed when postmarked by the United States Postal Service
on or before the due date.
(b) The date indicated on a
postmark affixed by a postage meter operated by the taxpayer or someone other
than the United States Postal Service shall not meet the requirements of RSA
80:55.
(c) Returns filed after the
prescribed filing date shall be subject to interest and penalties.
(d) Taxpayers who fail 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.
(e) Forms may be obtained
by contacting the department by:
(1) Accessing
the department’s web site at www.revenue.nh.gov;
(2) Telephoning
the Forms Line at (603) 230-5001; or
(3) Writing
to:
New Hampshire
Department of Revenue Administration
109 Pleasant
Street
P.O. Box 3306
Concord, NH 03302-
3306.
(f) All returns,
declarations or other documents containing monetary values filed with the
department may be prepared by rounding off to the nearest whole dollar.
(g) Returns filed
electronically using internet e-file shall be considered timely filed if
received on or before the due date of the return.
(h) Returns or payments
made by e-file and subsequently cancelled by e-file prior to the due date of
the return shall not be considered timely filed.
Source. #8137, eff 8-10-04; ss by #10211, eff
10-24-12; ss by #13433, eff 8-12-22
PART Rev
906 RETURNS, DECLARATIONS, AND EXTENSIONS
Rev 906.01 Estimated Tax
Payments.
(a) Calendar year filers
required to pay estimated taxes, shall complete and file Form DP-10-ES,
estimated interest and dividends tax, with the department, and payment, on or
before April 15, June 15, and September 15 of the calendar year and the final
estimated payment on or before January 15 of the subsequent calendar year.
(b) Fiscal year filers
required to pay estimated taxes, shall complete and file Form DP-10-ES
estimated interest and dividends tax, with the department, and payment, on or
before the fifteenth day of the fourth, sixth, ninth, and twelfth months of the
taxable period.
Source. #1793, eff 8-16-81; ss by #2228, eff
12-28-82; ss by #2881, eff 10-19-84; ss by #4557, eff 12-28-88; ss by #5071,
eff 2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff
8-22-96; ss by #8137, eff 8-10-04 (from Rev 906.04); ss by #10211, eff 10-24-12;
ss by #13433, eff 8-12-22
Rev 906.02 Form DP-10,
Interest and Dividends Tax Return.
(a) Form
DP-10, interest and dividends tax return, shall be completed and filed by
taxpayers subject to the interest and dividends tax to report their income to
the department on the 15th day of the 4th month
following the end of the taxable period.
(b) Form
DP-10 shall be filed if the taxpayer has received interest and dividend income
exceeding the provisions of RSA 77:18, IV even though there is no tax due
because of the additional exemptions provided under RSA 77:5.
(c) A
joint interest and dividends tax return shall be filed if the taxpayer and spouse
are both residents and file a joint federal return with the Internal Revenue
Service.
(d) If
one spouse is not a resident, the resident spouse shall file a return alone and
report his or her interest and dividend income, and 50% of the interest, or dividends,
or both from jointly held investments.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 906.05); ss by #10211, eff 10-24-12; ss by #13433, eff
8-12-22
Rev 906.03 Form
DP-10-ES, Estimated Interest and Dividends Tax. Form DP-10 ES,
shall be completed and filed by taxpayers subject to the interest and dividends
tax to make quarterly payments of the estimated tax due for the current taxable
year.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 906.06); ss by #10211, eff 10-24-12; ss by #13433, eff
8-12-22
Rev 906.04 Form DP-59-A,
Payment Form and Application for 7 Month Extension of Time to File
Interest and Dividends Tax Return.
(a) Form DP-59-A shall be
filed by any individual or joint filer, partnership, fiduciary or limited
liability company, to make payment and apply for an extension of time for
filing an interest and dividends tax return when 100% of the tax liability has
not been paid by the due date through estimated payments or a credit from a
previous year.
(b) Taxpayers shall file
form DP-59-A with the department on or before the due date of the return when:
(1) The
previously filed estimates did not meet or exceed 100% of the tax determined to
be due; or
(2) The
taxpayer does not wish to file the payment using the department’s internet
e-file payment option.
(c) An extension shall be
rejected if:
(1) The
amount submitted was not 100% of the balance due; or
(2) The
application was submitted after the due date for filing the return.
(d) The commissioner or
authorized representative shall terminate an extension if the payment received
with the extension was returned by the financial institution.
Source. #4557, eff 12-28-88; ss by #4917, eff
8-21-90; ss by #5071, eff 2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff
8-22-96; ss by #8137, eff 8-10-04 (from Rev 906.07); ss by #10211, eff 10-24-12;
ss by #13433, eff 8-12-22
Rev 906.05 Form DP-87
ID, Interest and Dividend Tax Report of Change for IRS Adjustment Only.
(a) Any individual or joint
filer, partnership, limited liability company or fiduciary liable for the
interest and dividend tax shall report on Form DP-87 ID all federal audit
changes within 6 months after such changes have been finally determined by the
Internal Revenue Service.
(b) Federal audit changes
shall have finally been determined when:
(1) The
taxpayer 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
taxpayer has signed any Internal Revenue Service form consenting to the
deficiency or accepting any over-assessment;
(3) The
time period for filing a federal petition for redetermination to the United
States Tax Court has expired;
(4) The
taxpayer enters into a closing agreement with the Internal Revenue Service; or
(5) There
is a final decision from:
a. United
States Tax Court;
b. United
States District Court;
c. United
States Court of Appeals;
d. United
States Court of Claims; or
e. United
States Supreme Court.
(c) A copy of the federal
change report shall be attached to Form DP-87 ID.
(d) A separate report of
change shall be prepared for each taxpayer and for each year affected by the
federal audit.
(e) Form DP-87 ID shall
be submitted under separate cover.
(f) Payment of any
additional liability shall accompany Form DP-87 ID.
(g) A taxpayer shall
complete and file Form DP-87 ID by providing the same information requested in
Form DP-10 with the new numbers due to the IRS changes.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 906.08); ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 906.06 Amended Tax
Returns and Claims For Refund.
(a) Any individual, joint
filer, partnership, limited liability company, or fiduciary amending an
original interest and dividends tax return or claiming a refund of taxes
previously paid shall:
(1) File
Form DP-10, interest and dividends tax return, for the particular tax year; and
(2) Check
off the box entitled “Amended Return”.
(b) Claims for a refund or
amended interest and dividends tax returns, other than those filed on constitutional
grounds, shall be filed:
(1) Within
3 years of the original due date of the tax; or
(2) Within
2 years from the date the tax was paid, whichever is later.
(c) The 2-year provision in
(b)(2), above, shall not apply if the payment was the result of an assessment
or demand for payment initiated by the department.
(d) Claims for a refund or
amended returns that are filed based on a claim that the statute is
unconstitutional shall be filed, pursuant to RSA 21-J:29, within 120 days of
the due date of the tax and not the due date of the return.
Source. #4557, eff 12-28-88; ss by #5071, eff
2-21-91; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff
8-10-04 (from Rev 906.09); ss by #10211, eff 10-24-12; ss by #13433, eff
8-12-22
PART
Rev 907 ADMINISTRATION
Rev 907.01 Pre-Assessment
Conference.
(a) The purpose of an
informal pre-assessment conference shall be for the taxpayer to discuss audit
findings with audit management personnel in an effort to reach an agreement on
the issues of fact or audit results.
(b) At the conclusion of an
audit, if the facts and circumstances indicate to the department that an
informal pre-assessment conference would benefit both the state and the
taxpayer, the audit division shall provide an informal pre-assessment
conference for the taxpayer, or his authorized representative.
(c) The department shall
notify the taxpayer or authorized representative by mail of:
(1) The
date, time and location for the conference; and
(2) The
advance information that the taxpayer or authorized representative shall be
required to provide the division.
(d) The information
required by (c), above, shall include:
(1) The
name, address, and identification number of the taxpayer;
(2) An
outline of the areas of agreement and disagreement;
(3) Documentation
in support of taxpayer’s position such as:
a. Citations
of supporting case law;
b. Statutory
or regulatory provisions; or
c. Documents
or correspondence from unrelated parties;
(4) Responses
to any outstanding questions raised by the auditor during the audit; and
(5) The names of
the individuals who shall participate in the conference on behalf of the taxpayer.
(e) Upon completing the
review of material provided during the pre-assessment conference, the audit
division shall issue a tax notice, notice of refund, or no change letter which
shall begin the period for formal appeal to the commissioner under RSA 21-J:28-b
and Rev 200.
Source.
#2881, eff 10-19-84; ss by #4557, eff 12-28-88; ss by #5947, eff 12-29-94; ss
by #6321, eff 8-22-96; ss by #8137, eff 8-10-04 (formerly Rev 907.03); ss by
#10211, eff
10-24-12; ss by #13433, eff 8-12-22
PART
Rev 908 PENALTIES
Rev 908.01 Substantial
Understatement of Tax.
(a) The
department shall assess the 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 taxpayer:
(1) Adequately disclosed the relevant facts
regarding the tax treatment of the item generating the understatement; or
(2) Had substantial authority for its tax
treatment of such item.
(b) A
taxpayer 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 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 underpayment penalty;
(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 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) In
determining whether a taxpayer has substantial authority, the department shall
consider the following as being authoritative sources:
(1) For items applying specifically to the
interest and dividends tax:
a. Interest and dividends tax law and any
other New Hampshire statutes that have a bearing on the tax statutes;
b. Rules adopted by the department;
c. Declaratory rulings requested by and
issued to the taxpayer;
d. Technical information releases issued by
the department;
e. Decisions of New Hampshire superior
court and board of tax and land appeals;
f. Federal District Court and First Circuit
Court of Appeals decisions;
g. United States and New Hampshire supreme
court decisions;
h. Legislative committee reports specifying
legislative intent; and
i. Written advice from the department
issued to the taxpayer about the tax treatment of the item in question; and
(2) For items that are considered corporate
dividends, distributions in liquidation of corporation or returns of capital
from corporations for federal income tax purposes:
a. IRC and other statutory provisions;
b. Temporary and final United States
Treasury regulations;
c. Federal district, appeals or tax court
cases;
d. Internal Revenue Service or United
States Department of the Treasury administrative pronouncements including
revenue rulings and revenue procedures;
e. Tax treaties and related regulations, as well as
the United States 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 United
States Court of Appeals to which the taxpayer has a right of appeal;
h. Technical advice memoranda, ruling or
determination letter issued to the taxpayer or in which the taxpayer is named;
i. An affirmative statement in a revenue
agent's report with respect to the taxpayer’s prior taxable periods; and
j. Any other source which was accepted by
the Internal Revenue Service as substantial authority;
(d) A
taxpayer shall have substantial authority for the tax treatment of an item only
if the weight of the authorities supporting the treatment of the item by the
taxpayer is substantial in relation to the weight of the authorities supporting
the position of the department;
(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 any 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; and
(g) The
penalty shall be applied to the net understatement determined by reducing the
understatement by the portion of the understatement for which the taxpayer had
substantial authority or had adequately disclosed the position taken on the
return.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04;
ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 908.02 Understatement
of Taxpayer’s Liability by Tax Preparer.
(a) For the 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 taxpayer 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 makes determinations about the applicability of tax laws
or the characterization 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 taxpayer shall have adequately
disclosed the tax treatment of an item on the return or in a statement attached
to the front of the return.
(d) 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 preparer’s willful attempt to understate the taxpayer’s tax
liability.
(e) A tax preparer shall
have willfully attempted to understate a tax liability of a taxpayer in the
following instances:
(1) The
preparer disregards or misstates information furnished by the taxpayer or other
person in an attempt to wrongfully reduce the tax liability; or
(2) The
preparer does not make inquiries of the taxpayer or other person when the information
provided is incorrect or incomplete, and the preparer knows or should have known
that the information was incorrect or incomplete.
(f) If, in an adjudicative proceeding
or a judicial decision, it is established there was no understatement of liability
and, if previously paid by the preparer, the penalty imposed by RSA 21-J:33-b
shall be abated and refunded.
(g) The refund of the
penalty shall be made without any consideration of any period of limitation for
the issuance of a refund.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04;
ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
Rev 908.03 Aiding and
Abetting an Understatement of Tax Liability.
(a) 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 makes determinations about the applicability of tax laws or the
characterization of income and the allowability of deductions or credits.
(b) The penalty provided in
RSA 21-J:33-c shall be assessed against any person who aids, assists in,
procures, or advises in the preparation of any return or other document in connection
with the interest and dividends tax law or departmental rules if:
(1) The
person knows that the information provided will be used in the preparation of
any material document; and
(2) The
person knows that if used, the information will result in an understatement of
tax liability.
(c) The penalty shall not
be assessed in instances where the taxpayer adequately disclosed the relevant
facts regarding the tax treatment of the item in the manner provided in Rev
908.01(b).
(d) If, in an adjudicative
proceeding or a judicial decision, it is established that there was no
understatement of liability and if previously paid by the preparer, then the
penalty imposed by RSA 21-J:33-c shall be abated and refunded.
(e) The
refund of the penalty shall be made without any consideration of any period of
limitation for the issuance of a refund.
Source. #6321, eff 8-22-96; ss by #8137, eff 8-10-04;
ss by #10211, eff 10-24-12; ss by #13433, eff 8-12-22
APPENDIX
RULE |
STATUTE |
|
|
Rev 901.01 |
RSA 77:4 |
Rev 901.02 |
RSA 77:3, I(b) |
Rev 901.03 |
RSA 77:4, III |
Rev 901.04 |
RSA 21-J:13, RSA
77:7 |
Rev 901.05 |
RSA 21-J:13, I |
Rev 901.06 |
RSA 21-J:13, I |
Rev 901.07 |
RSA 77-A:4, RSA
77:1-a, II(c) |
Rev 901.08 |
RSA 77:4 |
Rev 901.01 |
RSA 77:4 |
Rev 901.12 |
RSA 21-J:13, I |
Rev 901.13 |
RSA 21-J:13, I |
Rev 901.14 -
901.17 |
RSA 21-J:13, I,
RSA 77:5 |
Rev 901.18 |
RSA 21-J:13, I |
Rev 901.19 |
RSA 21-J:13, I |
Rev 901.20 |
RSA 77:14-a; RSA
77:14-c |
|
|
Rev 902.01 –
902.04 |
RSA 21-J:13, I |
Rev 902.05 |
RSA 21-J:13, I,
RSA 77:12, RSA 77:16, RSA 77:3, I-II, RSA 77:4, II; RSA 77:17 |
Rev 902.06 |
RSA 21-J:13, I,
RSA 77:12 |
Rev 902.06(c) |
RSA 21-J:13, I,
RSA 77:3 |
Rev 902.07 |
RSA 21-J:13, I,
RSA 77:10; RSA 77:14a-d |
Rev 902.08 |
RSA 21-J:13, I |
Rev 902.09 |
RSA 21-J:13, I |
|
|
Rev 903.01 |
RSA 21-J:13, I |
Rev 903.02 |
RSA 21-J:13, I |
Rev 903.03 |
RSA 21-J:13, I |
Rev 903.04 |
RSA 21-J:13, I |
Rev 903.05 |
RSA 21-J:13, I |
Rev 903.06 |
RSA 21-J:13, I |
Rev 903.07 |
RSA 21-J:13, I |
Rev 903.08 |
RSA 21-J:13, I |
Rev 903.09 |
RSA 21-J:13, I;
RSA 77:10 |
|
|
Rev 904.01 |
RSA 21-J:13, I,
RSA 77:3, I, RSA 77:18, IV, RSA 77:5 |
Rev 904.02 |
RSA 21-J:13, I,
RSA 77:5, III |
Rev 904.03 |
RSA 21-J:13, I |
Rev 904.04 |
RSA 21-J:13 ,I,
RSA 77:8 |
Rev 904.05 |
RSA 77:18, V;
RSA 77-G:3; RSA 77-G:6, I(f) |
|
|
Rev 905.01 |
RSA 21-J:13, I |
Rev 905.02 |
RSA 21-J:13, I,
RSA 77:18, II & III |
Rev 905.03 |
RSA 21-J:13, I,
RSA 21-J:28-a,IV |
Rev 905.04 |
RSA 21-J:13, I |
|
|
Rev 906.01 |
RSA 21-J:13, I,
RSA 77:1, RSA 21-J:28, 31 and 33 |
Rev 906.02 –
906.03 |
RSA 21-J:13, I |
Rev 906.04 |
RSA 21-J:13, I,
RSA 77:18, II |
Rev 906.05 |
RSA 21-J:13, I,
RSA 77:5 |
Rev 906.06 |
RSA 21-J:13, I,
RSA 77:18 |
|
|
Rev 907.01 |
RSA 21-J:13, I |
|
|
Rev 908.01 |
RSA 21-J:13, I,
RSA 21-J:33-a |
Rev 908.02 |
RSA 21-J:13, I,
RSA 21-J:33-b, I III & IV |
Rev 908.03 |
RSA 21-J:13, I,
RSA 21-J:33-c |