CHAPTER Rev 2900
GENERAL PROVISIONS RELATING TO ADMINISTRATION, RETURNS AND TAXPAYER
RECORDS
PART Rev 2901
SCOPE AND APPLICABILITY
Rev
2901.01 Applicability and
Interpretation. The rules in this
chapter have general applicability to all taxes administered by the department
of revenue administration. These rules
are to be construed in conjunction with any department rule relating to a
specific tax administered by the department.
If a department rule relating to a specific tax
conflicts with the rules in this chapter, the requirements in the rule
that is specific to a tax shall govern.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
PART Rev 2902
DEFINITIONS
Rev
2902.01 “Department” means the New
Hampshire department of revenue administration.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2902.02 “Department identification number” means a tax processing number issued
by the department to a taxpayer, pursuant to Rev 2903.01.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2902.03 “Facsimile signature” means an
authorized signature that has been prepared mechanically or reproduced
photographically.
Source. #10885, eff
7-11-15; ss by #13660, eff 6-21-23
Rev
2902.04 “File” means to place a document
in the actual possession of the department by one of the following:
(a)
United States postal service;
(b)
Physical delivery, as provided in Rev 2904.03; or
(c) Electronically if authorized by statute or a
department rule.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13, renumbered by #10885 (from Rev 2902.03); amd by #12907, eff 10-23-19; ss by #13660, eff 6-21-23
Rev
2902.05 “Individual taxpayer
identification number” means a tax processing number issued by the Internal
Revenue Service to individual taxpayers.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13, renumbered by #10885 (from Rev 2902.04); ss
by #13660, eff 6-21-23
Rev
2902.06 “Preparer tax identification
number” means a tax processing number issued by the Internal Revenue Service to
enrolled agents and tax preparers.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13, renumbered by #10885 (from Rev 2902.05); ss
by #13660, eff 6-21-23
Rev
2902.07 “Return” means a department
approved paper tax form or a department authorized
electronic filing that provides sufficient information to calculate tax
liability and meets the requirements of Rev 2904.08.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13, renumbered by #10885 (from Rev 2902.06); ss
by #13660, eff 6-21-23
Rev
2902.08 “Substitute form” means a tax
form or return that is not produced, issued, or published by the department, whether or not computer-generated.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13, renumbered by #10885 (from Rev 2902.07); ss
by #13660, eff 6-21-23
Source. #8389, eff 7-8-05; ss by #10388, eff 7-25-13,
renumbered by #10885 (from Rev 2902.08); ss by #13660, eff 6-21-23
Rev 2902.10 “Taxpayer” means any person, entity, or
association subject to any provision of the tax and revenue rules and laws of
New Hampshire.
Source. #10388, eff 7-25-13 (from Rev 2902.08),
renumbered by #10885 (from Rev 2902.09); ss by #13660, eff 6-21-23
Rev 2902.11 “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. #10388, eff 7-25-13 (from Rev 2902.02),
renumbered by #10885 (from Rev 2902.10); ss by #13660, eff 6-21-23
PART Rev
2903 ADMINISTRATION
Rev
2903.01 Department Identification
Number.
(a) The department shall require a taxpayer to
obtain a department identification number prior to filing any tax form with the
department if:
(1) The
taxpayer does not have a federal employer identification number;
(2) The
taxpayer shares a taxpayer identification number with another taxpayer who is subject
to taxation; or
(3) The taxpayer
is not required to, or cannot obtain:
a. A federal
employer identification number;
b. Social
Security number; or
c. Individual
taxpayer identification number.
(b) In order to obtain a department
identification number, the taxpayer shall complete Form DP-200, “Request for
New Hampshire Department Identification Number (DIN)” and file it with the
department.
(c) Form DP-200 shall be filed at least 30 days
prior to filing a tax form.
(d) The department shall be notified, 30 days
prior to the change, of any changes to the information reported on the Form
DP-200.
Source. #8389, eff
7-8-05; ss by #8990, eff 9-25-07; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2903.02 Confidentiality of Department
Records.
(a) All records and files of the department shall
be confidential and privileged and shall only be disclosed in conformity with
the provisions of RSA 21-J:14.
(b) The department shall only make a disclosure
or allow a representative to act on behalf of the taxpayer if:
(1) A properly
executed power of attorney is on file with the department;
(2) The
taxpayer, an authorized representative of the taxpayer by a power of attorney,
or an authorized employee of the taxpayer is physically present to verbally
authorize such disclosure when the disclosure is occurring; or
(3) The
department is satisfied under the totality of the circumstances that the
representative is duly authorized to act on the taxpayer’s behalf.
(c) For purposes of administering the tax laws of
the state, as assigned by statute and pursuant to the federal social security
act, 42 USCS sec. 405 (c) (2) (C) (i), taxpayers
shall provide their taxpayer identification number or numbers on all tax forms.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev 2903.03 Power
of Attorney.
(a)
For purposes of this section, “signature” means:
(1) An original
ink signature pursuant to Rev 2904.04;
(2) An
electronic signature, as defined in Rev 2904.05(a); or
(3) A facsimile
signature, as defined in Rev 2902.03.
(b) A power of attorney authorizing someone to
act as an agent for a taxpayer shall include the following information:
(1) Name,
mailing address, and taxpayer identification number of the taxpayer granting
the power of attorney;
(2) The name,
mailing address, and telephone number of the person to whom the power of
attorney is granted;
(3) The subject
matter and scope of the authorization for which the power of attorney is granted;
(4) Whether the
person to whom the power of attorney is granted may:
a. Have
authority to receive confidential information and full power to perform all
acts necessary related to the subject matter; or
b. Have
authority to receive or inspect confidential tax information only.
(5) The extent
to which existing grants of powers of attorney are not revoked by the new grant
of power of attorney; and
(6) Such other
information as the department may reasonably require to
establish to the department’s satisfaction that the representative is
duly authorized by the taxpayer.
(c) The taxpayer executing the power of attorney
shall affix his or her signature and date the document.
(d) A power of attorney shall be provided to the
department as follows:
(1) Completing
and filing the department's Form DP-2848 “Power of Attorney”;
(2) Filing electronically though the Granite Tax
Connect web portal located at www.revenue.nh.gov/gtc; or
(3) Submitting
a letter addressed to the department that complies with the requirements of (a)
through (c) above.
(e) A power of attorney completed as provided in
(d)(1) or (d)(3) above, shall be filed with the department by:
(1) Mailing or
delivering the power of attorney to:
New Hampshire Department of Revenue Administration
Audit Division
P.O. Box 1388
Concord, NH 03302-1388;
(2) Sending the
power of attorney to a current employee of the department by facsimile; or
(3) E-mailing
the power of attorney to POA@dra.nh.gov.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #10885, eff 7-11-15; amd by #12026, eff 10-28-16; ss by #13126-B, eff 10-24-20; ss
by #13660, eff 6-21-23
Rev
2903.04 “Check-the-Box” Limited Power
of Attorney.
(a)
The “Check-the-Box” limited power of attorney shall grant the department
the authority to discuss the tax form with the tax preparer identified on the
tax form.
(b) A taxpayer may indicate such authorization
by:
(1) Checking
the POA box; and
(2) Providing
the information requested on the tax form.
(c) The limited power of attorney shall not:
(1) Authorize
the preparer to act as an agent for the taxpayer as provided for in Rev
2903.02; or
(2) Constitute
a revocation of any previous power of attorney granted by the taxpayer.
(d) The taxpayer, executing the power of
attorney, shall sign and date the tax form.
(e) The tax preparer shall sign and date the tax
form.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2903.05 Partial Payments.
(a)
Notwithstanding (d) below, payments made in an amount less than the
total amount due shall be applied to the taxpayer's liability for the oldest
tax period first until paid in full then to any liability for subsequent tax
periods until the taxpayer’s liability for all tax periods is paid in full.
(b) When applying partial payments in accordance
with (a) above, the department shall apply such payments in the following
sequence within each tax period:
(1) First,
against the penalties assessed under RSA 21-J or RSA 78-B:7, and protested
check fees assessed under the provisions of RSA 6:11-a;
(2) Second,
against interest assessed under RSA 21-J; and
(3) Third,
against tax due as assessed in accordance with the specific tax statutes
administered by the department.
(c) Interest shall continue to accrue on any tax
liability remaining unpaid until the total outstanding tax liability has been
paid in full.
(d) A taxpayer may request in writing to apply a
partial payment to a particular tax period or tax type, which the department
shall apply in accordance with the taxpayer’s written request and not in
accordance with (a) above.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2903.06 Minimum Payment; Return to be
Filed. If the amount due is less
than $1.00, the taxpayer shall file the return but may omit the payment.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2903.07 Offset of Refund or Credit.
The following shall apply to all taxes administered by the department:
(a) Refunds or credits for taxes, penalties, or
interest paid by a taxpayer shall first be applied to, and offset against, any
taxes, penalties, or interest the taxpayer owes the department.
(b) Application and offset pursuant to (a) above
shall be made as provided in Rev 2903.05(a) and (b) and the balance remaining,
if any, shall be refunded.
(c) Refunds of tax shall accrue interest,
pursuant to RSA 21-J:28, until the date the department applies such refund
according to paragraph (a), above, or refunds any remaining balance.
(d) No interest shall accrue on any:
(1) Refund of
penalties or interest paid by the taxpayer; or
(2) Credit.
(e) The department shall provide the taxpayer with
a statement explaining the application of any refund or credit made according
to this section.
Source. #8389, eff
7-8-05; ss by #10096, eff 3-3-12; amd by #10164, eff 7-27-12; ss by #10388, eff
7-25-13; amd by #12907, eff 10-23-19; ss by #13126-B,
eff 10-24-20; ss by #13660, eff 6-21-23
PART Rev 2904
GENERAL REQUIREMENTS FOR TAX FORMS
Rev
2904.01 Applicability and
Interpretation.
(a)
The rules in this part shall have general applicability to all tax
forms.
(b) These rules shall be construed in conjunction
with any rule that sets forth the requirements of a specific form.
(c) If a department rule or statute sets forth
specific requirements for a form that conflicts with the rules in this part,
the requirements in the rule or statute that is specific to a form or tax shall
govern.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2904.02 Department Address. The department's physical location and
mailing address, unless otherwise designated for specific purposes, shall be as
follows:
(a) The physical location shall be:
New Hampshire Department of Revenue Administration
Governor Hugh J. Gallen Office Park South
109 Pleasant Street
Medical and Surgical Building
Concord, New Hampshire 03301; and
(b) The mailing address shall be:
New Hampshire Department of Revenue Administration
P.O. Box 457
Concord, New Hampshire 03302-0457.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2904.03 Uniform Document Filing
Information.
(a)
A document shall be considered filed with the department when it is:
(1) Placed in
the United States mail addressed to the department with a postmark affixed by
the United States Postal Service;
(2) Received by
a delivery service in accordance with Rev 2904.03 (d) below;
(3)
Hand-delivered to the department; or
(4) Received
electronically, if authorized by statute or department rule, as evidenced by
the department’s issuance of a confirmation number or notice.
(b) A document, other than a power of attorney as
described in Rev 2903.03(d)(1) and (3), transmitted by facsimile shall not be
considered filed.
(c) Documents transmitted by means of the United
States mail shall be deemed filed on the date mailed provided that at least one
of the following conditions is met:
(1) There is a
legible date shown by the post office cancellation mark stamped on the envelope
or wrapper containing the document;
(2) The person
filing the document can present a United States registered mail, certified
mail, or certificate of mail record indicating the date the document was mailed;
(3) If the
document has been received by the department but the cancellation mark is
illegible, erroneous, or omitted, the taxpayer presents other competent proof,
such as credible, sworn witness testimony, that the document was properly
addressed and timely mailed; or
(4) If mailed
but not received by the department, the taxpayer presents:
a. Other
competent proof, such as credible, sworn witness testimony, that the document
was properly addressed and timely mailed; and
b. Provides the department with a copy of the document
within 30 days after the department provides written notification to the
taxpayer that the document has not been received.
(d) Documents transmitted by a delivery system
shall be deemed filed on the date:
(1) They are
received by a delivery service, provided the delivery service:
a. Is available
to the general public;
b. Offers
services equivalent to first class, registered and certified mail in a manner
as timely and reliable as the United States Postal Service;
c. Either:
1. Affixes a
date stamp to the package or envelope in which the documents or payments are
placed indicating the date on which the items were received from the taxpayer
and the date on which it is to be delivered to the department; or
2. Records
electronically within its computer data base, the date on which the documents
or payments were received from the taxpayer and the date on which the items
were delivered to the department; and
d. Makes
available to the taxpayer, upon request, a notarized statement indicating the
date the documents or payments were received by the delivery service and the
date the items were delivered to the department; or
(2) They are
received by the department in instances where:
a. The postmark
is affixed by a postage meter operated by the delivery business or someone
other than the United States Postal Service;
b. The
documents are delivered to the department by the taxpayer; or
c. The taxpayer
uses a delivery service or messenger, other than one in compliance with the
provisions of (d)(1) above, to deliver the documents to the department.
(e) Documents delivered by a delivery service or
messenger, other than one in compliance with the provisions of Rev
2904.03(d)(1) above, documents physically delivered to the department, and
documents transmitted through the United States mail which do not meet the
requirements of Rev 2904.03(c), above, shall be considered filed on the date
received by the department.
(f) Documents shall be timely filed when the date
that they are deemed filed pursuant to this rule occurs on or before the due
date for filing.
(g) Returns filed after the statutory prescribed
filing date shall be subject to interest as prescribed in RSA 21-J:28 and
penalties as prescribed in RSA 21-J:31 and 21-J:33.
(h) 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.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2904.04 Signatures. With the exception of
electronic signatures pursuant to Rev 2904.05, all tax forms requiring a
signature shall be:
(a) Signed in blue or black ink by:
(1) The
taxpayer, and if applicable, the taxpayer’s spouse;
(2) A corporate
officer;
(3) A court
appointed receiver;
(4) A trustee
in bankruptcy;
(5) An assignee
for the benefit of creditors, duly appointed in accordance with state law and in
control of property of the business organization;
(6) The
executor or administrator of the estate of the deceased taxpayer;
(7) A trustee of
an irrevocable trust acting in accordance with the terms of the trust;
(8) Joint tenants;
(9) A guardian
or individual acting as the taxpayer’s attorney-in-fact pursuant to a power of
attorney; or
(10) If the
form was prepared by someone other than the taxpayer, the preparer of the form;
and
(b) Dated.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2904.05 Electronic Signatures.
(a)
“Electronic signature” means:
(1) The name and taxpayer identification number of the
taxpayer when transmitted as part of a tax form filed electronically either by
the taxpayer or at the taxpayer’s direction, pursuant to Rev 2904.03; or
(2) An electronic symbol or process attached to, or logically
associated with, a document and executed or adopted by a person, or other
signatory identified in Rev 2904.04(a)(1) – (10), with the intent to sign the
document. This shall include, but not limited to, signatures processed through
DocuSign or DotLoop.
(b) “Electronic” means relating to technology
having electrical, digital, wireless, or similar capabilities, including but
not limited to the use of the Internet and the filing of tax forms by computer
technology.
(c) The use of an electronic signature pursuant
to this rule shall have the same legal effect as a signature in blue or black
ink, pursuant to Rev 2904.04(a), on a paper tax form.
(d) An electronic signature shall be attributed to
a taxpayer if the record or signature was the certified and declared act of the
taxpayer or other signatory identified in Rev 2904.04(a)(1)-(10). A certified and declared act shall occur when
the taxpayer or other signatory identified in Rev 2904.04(a)(1)-(10) certifies
and declares that the electronic signature was actually
signed by the taxpayer or other signatory identified in Rev
2904.04(a)(1)-(10) and that the electronic signature is valid.
(e) The department shall reject any tax forms or
documents submitted with an electronic signature in violation of this rule.
(f) A tax form or document submitted to the
department with an electronic signature shall be retained by the taxpayer in
its original form in accordance with the time period
for record retention provisions in Rev 2906.12.
Source. #9930, eff
5-26-11; ss by #10388, eff 7-25-13; amd by#12907, eff
10-23-19; ss by #13660, eff 6-21-23
Rev
2904.06 Alternative Methods of
Signatures for Preparers.
(a) Preparers may sign original returns, amended
returns, and requests for filing extensions by means of a:
(1) Rubber stamp;
(2) Mechanical
device; or
(3) Computer
software program.
(b) The alternative methods in (a) above shall
include either:
(1) A facsimile
of the signer’s signature; or
(2) The
signer’s printed name.
(c) Signers shall not affix a facsimile signature
other than their own.
(d)
Returns, amended returns, and request for extensions shall be filed in
accordance with Rev. 2904.03.
(e) Signatures shall otherwise comply with Rev 2904.04
or Rev 2904.05.
(f) The use of an alternative method of signing
shall have the same legal effect as a handwritten signature.
(g) The department shall reject any returns,
amended returns, or requests for extensions utilizing an alternative method of
signature that is in violation of this rule.
Source. #8389, eff
7-8-05; renumbered by #9930 (from Rev 2904.05); ss by #10388, eff 7-25-13; ss
by #13660, eff 6-21-23
Rev
2904.07 Alternative Methods of
Signatures for Authorized Agents.
(a)
In order to be permitted to use an alternative method of signature, the
authorized agent shall file a written request for approval of the use of an
alternative method for signing 30 days prior to the date of filing the return,
amended return or request for extension.
(b) Written requests for approval of the use of
an alternative method for signing shall include the following:
(1) Taxpayer
name, address, and taxpayer identification number;
(2) Authorized
agent’s name, address, and taxpayer identification number; and
(3) A copy of a
power of attorney authorizing the agent to file the return or extension on
behalf of the taxpayer.
(c) The department shall deny approval if the
agent fails to provide the information in accordance with (a) and (b) above.
(d) Upon receipt of approval from the department,
authorized agents may sign original returns, amended returns, and requests for
filing extensions by means of a:
(1) Rubber stamp;
(2) Mechanical
device; or
(3) Computer
software program.
(e) The alternative methods in (d) above shall
include either:
(1) A facsimile
of the signer’s signature; or
(2) The
signer’s printed name.
(f) Signers shall not affix a facsimile signature
other than their own.
(g) Returns, amended returns, and request for
extensions shall be filed in accordance with Rev. 2904.03.
(h) Signatures shall otherwise comply with Rev
2904.04 or Rev 2904.05.
(i) The use of an
alternative method of signing shall have the same legal effect as a handwritten
signature.
(j) The department shall reject any returns, amended
returns, or requests for extensions utilizing an alternative method of
signature that is in violation of this rule.
Source. #8389, eff
7-8-05, renumbered by #9930 (from Rev 2904.06); ss by #10388, eff 7-25-13; ss
by #13660, eff 6-21-23
Rev
2904.08 Uniform Standards for Tax
Forms.
(a)
Taxpayers and tax preparers shall use the tax forms prescribed and
provided by the department, except as provided in Rev 2904.09.
(b) Unless pre-printed on the tax form by the
department or submitted electronically, the taxpayer shall provide the following
information on all tax forms submitted to the department:
(1) The
taxpayer’s name, address, and taxpayer identification number;
(2) Spouse’s
name, if applicable, and taxpayer identification number;
(3) The tax
preparer’s name and preparer tax identification number, if other than the taxpayer;
(4) A mark
indicating whether any of the following are applicable:
a. An initial
return, when the return is the first return that has ever been filed with New Hampshire;
b. An amended
return, when the return is the second or additional return that has been filed
for any one tax period; or
c. A final
return when the taxpayer is no longer subject to taxation in New Hampshire and
should be removed from the department’s mailing list; and
(5) When the
tax form is for other than a calendar year, the beginning and ending dates for
the period for which the form is filed.
(c) All white spaces marked “for office use only”
shall be left blank.
(d) Checks, bank checks, or money orders shall be
made payable to the “State of New Hampshire.”
(e) Tax returns shall include all information
necessary to support the taxpayer’s calculation of:
(1) Tax liability;
(2) Payments made;
(3) Credits applied;
(4) Applicable penalties;
(5) Balance
due; and
(6) Credit or
refund.
(f)
Pertinent documentation to support the taxpayer’s calculations shall be
submitted with the applicable tax form, unless the taxpayer is requested to
submit it separately, such as in response to an audit or department request for
additional information.
(g) Pertinent documentation shall include, but
not be limited to the following:
(1) All numeric
data required to calculate the taxpayer’s tax liability;
(2) U.S.
federal income tax returns and schedules when the New Hampshire tax return
utilizes federal taxable income as a component in calculating taxable income;
(3) All New Hampshire
schedules or facsimiles thereof that are required to support any element on a
tax return;
(4) Case citations for any court decision that
supports the taxpayer’s position when not specifically supported by New Hampshire
statute, rule, or court decision and copies of any unpublished decisions;
(5) Supporting documents for any adjustments made that
are not specifically included in New Hampshire statutes, rules
or tax returns; and
(6) Any additional documentation that the taxpayer
wishes to provide regarding the tax calculation or positions taken on the
return.
(h) If a return, the taxpayer shall sign a
statement declaring:
“Under penalties of perjury, I declare that I have
examined this return and to the best of my belief it is true, correct and complete.”
(i) If prepared by a
person other than the taxpayer, the preparer shall sign a statement declaring:
“Based on all information of which I have knowledge,
under penalties of perjury, I declare that I have examined this return and to
the best of my belief it is true, correct and complete.”
(j) The department shall reject forms that are in
violation of this rule.
Source. #8389, eff
7-8-05, renumbered by #9930 (from Rev 2904.07); ss by #10388, eff 7-25-13; ss
by #13660, eff 6-21-23
Rev
2904.09 Substitute Form Standards and
Approvals.
(a)
The department shall approve for filing substitute forms, other than 2D
barcode forms, if they:
(1) Have a paper
size of 8 ½ inches by 11 inches;
(2) Have a
paper color of white;
(3) Have a
paper orientation of portrait;
(4) Display all
font type in Courier or Courier New with a font size of 12 point 10 pitch;
(5) Contain all
of the information, general and line-by-line instructions appearing on the
forms provided by the department;
(6) Display the vendor’s ID number as a human-readable
number half-embedded within a 1D barcode at the top of each form;
(7) Include a
“For DRA Use Only” box 1 inch high by 2 inches wide in the top right corner, if
it appears on the forms provided by the department;
(8) Include a
“For DRA Use Only” box 2 inches high by 1 ½ inches wide in the bottom left
corner, if it appears on the forms provided by the department;
(9) Display the
form number in the top center and bottom left corners of the form, if it
appears on the forms provided by the department;
(10) Display
the tax year in the top center of the form, if it appears on the forms provided
by the department;
(11) Clearly
spell out “New Hampshire Department of Revenue Administration” in the upper
left corner of the form and the form title in the top center of the form;
(12) Display
the New Hampshire state seal in the upper left corner of the form; and
(13) Contain
the correct mail to and check payable information appearing on the forms
provided by the department.
(b) The department shall approve for filing
substitute forms with 2D barcodes if they:
(1) Meet all of
the specifications in (a) above;
(2) Meet the
following additional specifications:
a. Anchor
placements shall be ½ inch from the edge of the paper to the center of the anchor;
b. 2D barcode
data shall be formatted as provided by the department;
c. Numeric
fields shall only contain the characters 0-9 with the exception of using a dash
(-) to indicate a negative number;
d. 2D barcode
shall be placed on the form in the same location as on the forms provided by
the department; and
e. Field
placement shall be the same as on the forms provided by the department; and
(3) Are
submitted with the following filing scenarios:
a. A scenario
with all data fields maximized by either alpha, such as “X,” or numeric, such
as “9,” characters for each character space with no leading or trailing spaces;
and
b. A scenario
with sample data entered from each applicable test case provided by the
department.
(c) To obtain department approval of substitute
forms, other than 2D barcode forms, vendors shall file with the department by
e-mail to eformsdevelopment@dra.nh.gov prior to distribution or release of the
substitute forms the following:
(1) No later
than November 15th annually:
a. A list of
all substitute tax forms for the following year that the vendor intends to
produce; and
b. The expected
release date of each substitute form; and
(2) After
filing the information in (1) above, an electronic copy of the substitute tax
forms and instructions that the vendor intends to produce.
(d) To obtain department approval of substitute
forms with 2D barcodes vendors shall file with the department by e-mail to
eformsdevelopment@dra.nh.gov prior to distribution or release of the substitute
forms the following:
(1) No later
than November 15th annually, a completed Form LOI, Letter of Intent, which can
be found by accessing the department’s website at www.revenue.nh.gov/forms; and
(2) After filing the information in (1) above, an
electronic copy of the substitute tax forms that the vendor intends to produce.
(e) Substitute form inquiries shall be addressed
to E-Forms Development:
(1) In writing
at:
New Hampshire Department of Revenue Administration
E-Forms Development
P.O. Box 457
Concord, NH 03302-0457; or
(2) By e-mail
at eformsdevelopment@dra.nh.gov.
(f) The department shall review all substitute
form submittals and notify the vendor within 15 business days of receiving the
electronic copy of the substitute tax form or forms whether the submittal has
been approved or requires further information or changes before an approval can
be issued, including a detailed notification of the further information or
changes required for approval.
(g) A vendor who receives notice from the
department pursuant to (f) above that certain further information or changes
are required before an approval can be issued shall have 15 business days to
provide the department with the requested information or changes.
(h) A substitute form, including a 2D barcode
form and non-2D barcode form, that has not been approved by the department, but
is included in the release of a product, shall have a prominent notice on the
form stating that it has not been approved by the department for filing and
shall not be filed.
Source. #8389, eff
7-8-05, renumbered by #9930 (from Rev 2904.08); ss by #10388, eff 7-25-13; ss
by #13660, eff 6-21-23
PART Rev 2905
MISCELLANEOUS FORMS
Rev
2905.01 Form DP-9, Small Business
Corporations (“S” Corp) Information Report.
“S” corporations, shall complete and file annually by May 1, Form DP-9,
small business corporations (“S” Corp) information report, to report all
dividends distributed to New Hampshire residents.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2905.02 Form DP 2210/2220, Exceptions
and Penalty for the Underpayment of Estimated Tax.
(a) Form DP 2210/2220, exceptions
and penalties for the underpayment of estimated tax shall be completed and
filed by taxpayers who have underpaid estimated taxes due to determine the
penalty, or the application of the exceptions.
(b) Form DP 2210/2220 shall be attached to the
tax return if there is an underpayment of estimated taxes.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13 (from Rev 2905.03); ss by #13660, eff 6-21-23
PART Rev 2906
RECORDKEEPING AND RETENTION REQUIREMENTS
Rev 2906.01 Applicability and Interpretation. The rules in this Part shall have specific applicability
to all recordkeeping and retention requirements with respect to all taxes
administered by the department. The
applicability of these rules is limited to the subjects of recordkeeping and
retention requirements.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2906.02 Definitions. For purposes of this Part, the following
definitions shall apply:
(a)
“Database management system” means a software system that controls,
relates, retrieves, and provides accessibility to data stored in a database;
(b)
“Electronic data interchange” means the computer to computer
exchange of business transactions in a standardized structured electronic
format;
(c) “Hardcopy” means any documents, records,
reports, or other data printed on paper;
(d) “Legibility” means the quality of a letter or
numeral that enables the observer to identify it positively and quickly to the
exclusion of all other letters or numerals;
(e) “Machine sensible record” means a collection
of related information in an electronic format intended for use by a
computer. The term does not include
hardcopy records that are created or recorded on paper or stored in or by an imaging;
(f) “Readability” means the quality of a group of
letters or numerals being recognizable as words or complete numbers;
(g) “Storage-only imaging system” means a system
of computer hardware and software that provides for the storage, retention, and
retrieval of documents originally created on paper. The term does not include any system, or part
of a system, that manipulates or processes any information or data contained on
the document in any manner other than to reproduce the document in hardcopy or
as an optical image; and
(h) “Taxpayer” means any person required to
maintain records under the provisions of the taxes administered by the department
where such person receives or creates records which are maintained or generated
through various computer, electronic, and imaging processes and systems.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2906.03 General Recordkeeping
Requirements.
(a)
A taxpayer shall maintain all records necessary to make
a determination of the correct tax liability with respect to all taxes
administered by the department.
(b) If required records are retained in both
machine-sensible and hardcopy formats, the taxpayer shall, upon request of the
department, make the records available to the department in machine-sensible
format.
(c) Nothing in this rule shall:
(1) Be
construed to prohibit a taxpayer from demonstrating tax compliance with
traditional hardcopy documents or reproductions thereof, in whole or in part, whether or not such taxpayer also has retained or has the
capability to retain records on electronic or other storage media in accordance
with this rule; or
(2) Relieve the
taxpayer of the obligation to comply with (b), above.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2906.04 Recordkeeping Requirements For Machine-Sensible Records.
(a) Machine-sensible records used to establish
tax compliance shall contain sufficient transaction-level detail information so
that the details underlying the machine-sensible records can be identified and
made available to the department upon request.
(b) A taxpayer may discard duplicated records and
redundant information provided its responsibilities under (a) above are met.
(c) At the time of an examination, the retained
records shall be capable of being retrieved and converted to a standard
electronic record format.
(d) Taxpayers shall not be required to construct
machine-sensible records other than those created in the ordinary course of
business.
(e) The following specific documentation shall be
required for retained machine-sensible records:
(1) Record
formats or layouts;
(2) Field
definitions including the meaning of all codes used to represent information;
(3) File
descriptions such as, but not limited to, the data set name;
(4) Detailed
charts of accounts and account descriptions;
(5) Flowcharts
for the system and its programs;
(6) Source listings of programs including those which provide
formulas and account deviations from which the retained files were created; and
(7) Evidence
that the retained records reconcile to the accounting records and to the tax
returns.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2906.05 Access To
Machine-Sensible Records.
(a) When the taxpayer maintains machine-sensible
records, the taxpayer’s computer hardware or software shall accommodate the
extraction and conversion of retained machine-sensible records.
(b) For taxpayers who maintain machine sensible
records, the department shall consult with the taxpayer and access records by
one or more of the following methods:
(1) The
taxpayer provides the department with the hardware, software, and personnel
resources to access the machine sensible records;
(2) The
taxpayer arranges for a third party to provide the hardware, software, and
personnel resources necessary to access the machine sensible records;
(3) The
taxpayer converts the machine sensible records to a standard record format
specified by the department, including copies of files, on a magnetic medium
that is agreeable to the taxpayer and department; or
(4) The
taxpayer and the department agree on other means of providing access to the
machine sensible records.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13 (from Rev 2906.08); ss by #13660, eff 6-21-23
Rev
2906.06 Recordkeeping Requirements For Electronic Data Interchange.
(a) Where a taxpayer uses electronic data
interchange processes and technology, the level of record detail, in combination
with other records related to the transactions shall:
(1) Be
equivalent to that contained in an acceptable paper record as described in Rev
2906.03; and
(2) Contain the
following information:
a. Vendor name;
b. Invoice date;
c. Product description;
d. Quantity purchased;
e. Price;
f. Amount of
tax and indication of tax status;
g. Shipping
detail; and
h. Information
material to the transaction.
(b) Codes may be used to identify some or all of the data elements, provided that the taxpayer shall
provide a method which allows the department to interpret the coded
information.
(c) The taxpayer may capture the information
necessary to satisfy the provisions of (a) and (b) above at any level within
the accounting system.
(d) The taxpayer shall not be required to retain
the original electronic data interchange transaction records provided the audit
trail, authenticity, and integrity of the retained records can be established
in accordance with Rev 2906.08.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13 (from Rev 2906.05); ss by #13660, eff 6-21-23
Rev
2906.07 Requirements for Electronic
Data Processing Systems. The requirements
for an electronic data processing accounting system shall be the same as that
of a manual accounting system, in that an adequately designed accounting system
incorporates methods and records that satisfy the requirements of this Part.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13 (from Rev 2906.06); ss by #13660, eff 6-21-23
Rev
2906.08 Business Process Information.
(a)
The taxpayer shall provide a description of the business process that
created the retained records upon the request of the department.
(b) The business process description shall
include the relationship between:
(1) The records
and the tax documents prepared by the taxpayer; and
(2) The
measures employed to ensure the integrity of the records.
(c) The taxpayer shall be capable of
demonstrating:
(1) The
functions being performed as they relate to the flow of data through the system;
(2) The
internal controls used to ensure accurate and reliable processing; and
(3) The
internal controls used to prevent unauthorized addition, alteration, or
deletion of retained records.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13 (from Rev 2906.07); ss by #13660, eff 6-21-23
Rev
2906.09 Data Base Management Systems
and Taxpayer Responsibility.
(a)
A taxpayer with a data base management system shall comply with Rev
2906.04 through Rev 2906.08 if:
(1) The
taxpayer creates a file solely for the use of the department;
(2) The
taxpayer creates and retains a file that contains the transaction-level detail
from the data base management system that meets the requirements of Rev 2906.04
through Rev 2906.08; and
(3) The
taxpayer documents the process that created the separate file to show the
relationship between the file and the original record.
(b) A taxpayer who contracts with a third party
to provide custodial or management services of the records shall not relieve
the taxpayer of its responsibilities under this rule.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13 ss by #13660, eff 6-21-23
Rev
2906.10 Alternative Storage Media.
(a) Taxpayers may store and retain records by:
(1) Converting
hardcopy documents received or produced in the normal course of business and
required to be retained under this rule to other storage-only imaging systems;
and
(2) Discard the
original hard copy documents, provided the conditions of this section are met.
(b) Documents which may be stored on storage-only
imaging systems shall include, but not be limited to:
(1) General
books of account;
(2) Journals;
(3) Voucher registers;
(4) General and
subsidiary ledgers; and
(5) Supporting
records of details such as:
a. Sales invoices;
b. Purchase invoices;
c. Exemption
certificates; and
d. Credit
memoranda.
(c) Taxpayers converting hardcopy documents to
storage-only imaging systems shall:
(1) Document
procedures for converting the hardcopy documents to the storage-only imaging
system to be maintained and made available on request by the department;
(2) Contain
sufficient description to allow an original document to be followed through the
conversion system as well as establish internal procedures for inspection and
quality assurance;
(3) Establish
procedures for:
a. The effective identification, processing, storage,
and preservation of the stored documents; and
b. Making them
available for the period they are required to be retained under Rev 2906.12;
(4) Provide
personnel and facilities and equipment for reading, locating, and reproducing
any documents maintained on the storage-only imaging system upon request of the
department;
(5) Provide
legible images so that a person with normal vision can discern the content of
the documents when displayed on such equipment or reproduced on paper;
(6) Maintain
and arrange all data in a manner that permits the location of any particular record; and
(7) Have no
substantial evidence that the storage-only imaging system lacks authenticity or
integrity.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2906.11 Hardcopy Recordkeeping
Requirements.
(a)
Except as otherwise provided in this section, the provisions of this
Part shall not relieve taxpayers of the responsibility to retain hardcopy
records that are created or received in the ordinary course of business as
required by existing statute and rule.
(b) Hardcopy records may be retained on a recordkeeping
medium as provided in Rev 2906.10.
(c) The taxpayer shall not be required to create
hardcopy records if such records are not produced or received in the ordinary
course of transacting business such as when the taxpayer uses electronic data interchange
technology.
(d) Hardcopy records generated at the time of a
transaction using a credit or debit card shall be retained unless all the
details necessary to determine correct tax liability relating to the
transaction are subsequently received and retained by the taxpayer in
accordance with this rule.
(e) Computer printouts that are created for
validation, control, or other temporary purposes shall not need to be retained.
(f) Nothing in this section shall prevent the
department from requesting hardcopy printouts in lieu of retained machine-sensible
records at the time of examination.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
Rev
2906.12 Time Period For Record Retention.
The records and information to be retained under this Part shall be
retained for:
(a) A period of 3 years from the due date of the
return or date filed, whichever is later, unless the retention of the data is
required for a longer period of time as a result of:
(1) An extension
of the statute of limitations on the assessment of taxes;
(2) The commencement
of an adjudicative proceeding involving the parties; or
(3) The
completion of any litigation in which the data may be relevant; and
(b) The specific period required under the
statute or rule pertaining to a tax administered by the department, if longer
than the period specified in (a) above.
Source. #8389, eff
7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23
PART Rev 2907
LIEN PROCEDURES
Rev
2907.01 Definitions.
(a) “Delinquent taxpayer” means a taxpayer who
fails to pay any taxes administered by the department which are outstanding, in
an aggregate amount of 500 dollars or more including any associated interest,
penalties, or costs. “Delinquent taxpayer” shall also include, but not limited
to:
(1) An
operator, as defined in RSA 78-A:3, IV, who has failed to remit to the
department meals and rentals tax collected pursuant to RSA 78-A:8, in an amount
of 500 dollars or more, including associated interest and penalties; or
(2) Any
taxpayer, other than as specified in (1) above, who has failed to pay any tax
administered by the department, in an amount of 1,000 dollars or more,
including associated interest and penalties.
Source. #10680, eff
10-2-14; amd by #12907, eff 10-23-19; ss by #13660,
eff 6-21-23
Rev
2907.02 Real Property Liens. The department shall cause a lien to be
recorded in the registry of deeds of the county in which any real property is
situated, against the real property of a delinquent taxpayer when:
(a) The delinquent taxpayer is 90 days past due
in his or her payment obligation;
(b) The delinquent taxpayer is a business
organization, as defined in RSA 77-A:1, I, that has ceased to carry on a
business activity within the state; or
(c) There is evidence that the delinquent taxpayer
has or intends to liquidate assets or move property out of the state in order to avoid becoming subject to the lien procedures
outlined in RSA 21-J:28-c and RSA 21-J:8, II.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2907.03 Personal Property Liens.
(a) When the department records a lien pursuant
to Rev 2907.02, the department shall also record a lien against the tangible
and intangible personal property of the delinquent taxpayer with the office of
the secretary of state in accordance with RSA 454-B.
(b) If a lien has been filed pursuant to (a)
above, the department shall distrain the personal property of the delinquent
taxpayer pursuant to RSA 21-J:28-d and RSA 80.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2907.04 Lien Renewal. Pursuant to RSA 21-J:28-c, IV, the department
shall renew a lien prior to the lien’s expiration to determine if the taxpayer
continues to owe the original liability and any associated interest, penalties,
and costs, including, but not limited to, lien and attorney’s fees.
Notwithstanding an expiration, the department may refile a lien for which the
statute of limitations has not expired.
Source. #10680, eff
10-2-14; ss by #12907, eff 10-23-19; ss by #13660, eff 6-21-23
Rev
2907.05 Lien Priority. Pursuant to RSA 21-J:8, II, the department’s
liens shall take first priority over all other liens
except first and second mortgages.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2907.06 Lien Release.
(a)
The department shall release a lien when the taxpayer is no longer
delinquent in his or her payment of the original liability and any associated
interest, penalties and costs, including, but not
limited to, lien and attorney’s fees.
(b) The department shall release the lien by
completing a lien release and mailing it to the taxpayer.
(c) The taxpayer shall be responsible for
recording the lien release with the appropriate county registry(s) and at the
office of the secretary of state, and paying all
associated recording fees.
Source. #10680, eff
10-2-14; amd by #12907, eff 10-23-19; ss by #13660,
eff 6-21-23
Rev
2907.07 Lien Fees. There shall be added to the liability to which
a lien relates an amount equal to $25 per taxpayer per lien recording, both at
the time of the original filing and renewal, if applicable, of such lien.
Source. #12907, eff
10-23-19; ss by #13660, eff 6-21-23
PART Rev 2908
WRITTEN INSTALLMENT PAYMENT AGREEMENTS WITH THE COLLECTIONS DIVISION
Rev
2908.01 Definitions.
(a)
“Installment payment agreement” means a written agreement between a
taxpayer and the department pursuant to which the department agrees to allow
the taxpayer to pay taxes, interest, and penalties owed by the taxpayer to the
department over a period of time greater than 30 days.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2908.02 Requesting an Installment
Payment Agreement.
(a) A taxpayer who owes unpaid taxes, interest,
and penalties to the department may request an installment payment agreement by
completing a “Request for Installment Payment Agreement” electronically through
the Granite Tax Connect portal located at www.revenue.nh.gov/gtc, or by
completing and mailing Form CD-400, “Request for Installment Payment Agreement”
and delivering the agreement to the department.
(b) A
“Request for Installment Payment Agreement” shall be accompanied by the first
proposed installment payment, which shall be immediately applied to the
taxpayer’s tax obligation in accordance with Rev 2903.05(a) and (b).
(c) A taxpayer shall continue to make the
proposed regular installment payments as specified by the taxpayer on the
“Request for Installment Payment Agreement” while his or her request is pending
before the department. Automatic debits shall not commence until the request is
approved by the department and therefore, prior to approval of the request,
proposed regular installment payments shall be made electronically or by mail
to the department until such time as approval is received.
(d) A “Request for Installment Payment Agreement”
shall contain the dated signature of the taxpayer as provided in Rev 2904.04 or
the electronic signature of the taxpayer as provided in Rev 2904.05 to confirm
that the submission is a declaration of the inability to pay taxes owed to the
department in full within the next 30 days and to declare that the signatory is
authorized to submit the request on behalf of the taxpayer, if signed by an individual
other than the taxpayer.
Source. #10680, eff 10-2-14;
ss by #13126-B, eff 10-24-20; ss by #13660, eff 6-21-23
Rev
2908.03 Evaluating an Installment
Payment Agreement Request. A taxpayer’s
installment payment agreement request shall be granted if the department
determines, after considering the following factors, that the agreement meets
the criteria in RSA 21-J:43:
(a) The taxpayer’s inability to pay taxes owed to
the department in full within the next 30 days;
(b) The taxpayer’s income and creditworthiness as
it relates to the terms of the installment payment agreement requested;
(c) Whether the taxpayer is compliant with their
return filing obligation for all taxes administered by the department;
(d) Whether an installment payment agreement
facilitates the collection of owed taxes, interest, and penalties by the
department; and
(e) Whether the installment payment agreement
suggested by the taxpayer represents a genuine attempt to satisfy the tax
obligation owed to the department in a timely and reasonable manner, taking
into consideration the resources of the taxpayer and the total amount owed.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2908.04 Response to a Request for an
Installment Payment Agreement.
(a) Within 30 days of the department’s receipt of
a “Request for Installment Payment Agreement”, the department shall request
from the taxpayer any additional information required to evaluate the request.
(b) Within 60 days of the department’s receipt of
a “Request for Installment Payment Agreement”, or the receipt of the additional
information requested in accordance with (a) above, whichever is later, the
department shall, pursuant to Rev 2908.03:
(1) Grant the
request; or
(2) Deny the
installment payment agreement request by setting forth the reasons for such
denial.
Source. #10680, eff
10-2-14; ss by #13126-B, eff 10-24-20; ss by #13660, eff 6-21-23
Rev
2908.05 Installment Payment Agreement.
(a) When the department grants a “Request for
Installment Payment Agreement”, the department shall deliver an installment
payment agreement to the taxpayer.
(b) If the taxpayer wishes to enter into the
installment payment agreement the taxpayer shall sign and date the agreement as
provided in Rev 2904.04 and return the original to the department or
electronically sign and date the agreement as provided in Rev 2904.05
Source. #10680, eff
10-2-14; ss by #13126-B, eff 10-24-20; ss by #13660, eff 6-21-23
Rev
2908.06 Making Installment Payments. When a taxpayer remits an installment payment
pursuant to an installment payment agreement, the taxpayer shall:
(a) Remit the installment payment electronically
pursuant to Rev 2500; or
(b) Remit the installment payment to the
department accompanied by the Payment Voucher form.
Source. #10680, eff
10-2-14; ss by #13126-B, eff 10-24-20; ss by #13660, eff 6-21-23
Rev
2908.07 Modification or Termination
of an Agreement.
(a) The department shall modify or terminate an
installment payment agreement if it determines:
(1) That the financial condition of the taxpayer has
sufficiently changed;
(2) That the taxpayer has not complied with the terms
of the installment payment agreement;
(3) That the
installment payment agreement was not made in accordance with these rules; or
(4) That the
taxpayer made material misrepresentations or falsifications of information in
the Request for the Installment Payment Agreement.
(b) The
department shall give written notice to the taxpayer at least 30 days before
the action terminating or modifying the installment payment agreement.
Source. #10680, eff 10-2-14; ss by #13660, eff 6-21-23
PART Rev 2909
SETTLEMENT AGREEMENTS WITH THE COLLECTIONS DIVISION
Rev
2909.01 Definitions.
(a) “Settlement agreement” means a written
agreement between a taxpayer and the department’s collection’s division where
the department agrees to accept some amount less than the full amount of taxes,
interest, and penalties owed by the taxpayer to the department in full
settlement of the taxpayer’s tax obligation to the department.
(b) “Settlement agreement offer” means a
taxpayer’s submission of a completed Form CD-410, “Settlement Agreement Offer”,
to the department’s collection’s division in order to
obtain a settlement agreement
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2909.02 Form CD-410, “Settlement
Agreement Offer.
(a) A taxpayer who owes unpaid taxes, interest,
and penalties to the department may offer to settle the unpaid obligation with
the department’s collections division for an amount less than the full amount
of taxes, interest and penalties owed, by completing Form CD-410, and
delivering the form to the department accompanied by copies of any outstanding
tax notices, copies of the two most recent monthly bank statements for each
bank account identified on Form CD-410, a copy of the most recent financial
statement, if the taxpayer is a business, and a copy of the most recent Federal
1040 tax return, if the taxpayer is an individual.
(b) When evaluating a taxpayer’s settlement
agreement offer pursuant to RSA 21-J:3, XVI, the collections division shall
consider the following:
(1) The
taxpayer’s unwillingness or inability to pay taxes, interest, and penalties
owed to the department in full within a reasonable time period;
(2) Whether the
settlement agreement offer represents the maximum recovery the department is
likely to achieve from the taxpayer;
(3) The administrative
costs to collect payment from the taxpayer;
(4) Whether the
taxpayer is compliant with their return filing obligation for all taxes
administered by the department;
(5) The
taxpayer’s history of settlement agreements and abatement requests with the
department; and
(6) Whether the
settlement agreement offer represents a genuine attempt to settle the unpaid
tax obligation in a fair and reasonable manner, taking into consideration the
resources of the taxpayer and the total amount owed.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
Rev
2909.03 Response to Form CD-410,
“Settlement Agreement Offer”.
(a) Within 60 days of the department’s receipt of
a completed Form CD-410, the department shall request from the taxpayer any
additional information required to evaluate the settlement agreement offer.
(b) Within 60 days of the department’s receipt of
a completed Form CD-410, or the receipt of the additional information requested
in accordance with (a) above, whichever is later, the department shall,
pursuant to Rev 2909.02 (b):
(1) Accept the
settlement agreement offer; or
(2) Reject the
settlement agreement offer by setting forth the reasons for such rejection.
Source. #10680, eff
10-2-14; ss by #13660, eff 6-21-23
PART Rev 2910
VOLUNTARY DISCLOSURE PROGRAM
Rev
2910.01 Definitions. For purposes of this part, the following definitions
shall apply:
(a) “Look-back period” means the 3 most recently
completed full tax years and the incomplete current tax year;
(b) “MTC disclosure program” means the voluntary
disclosure program administered by the Multistate Tax Commission;
(c) “Program” means the voluntary disclosure
program administered by the department pursuant to RSA 21-J:3, XXXII;
(d) “Taxpayer” means a corporation, estate,
individual, limited liability company, partnership, trust
or any other entity, which is required to pay or collect any tax administered
by the department, and includes an affiliate of the entity, or a member of a
unitary business, of which the entity is a member; and
(e) “Tax year” means a calendar year, a fiscal
year, or that portion of a year for which the taxpayer files its federal income
tax return.
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
Rev
2910.02 Anonymity.
(a) A taxpayer may remain anonymous to the
department while requesting to participate in the program by coming forward through
a representative.
(b) A taxpayer coming forward through a
representative to request to participate in the program shall remain anonymous
until the time when the taxpayer signs the voluntary disclosure agreement.
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
Rev
2910.03 Confidentiality. The department shall not disclose the
existence or terms of a voluntary disclosure agreement to any other state or
the United States Internal Revenue Service, notwithstanding compacts for the
exchange of information.
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
Rev
2910.04 Request to Participate.
(a) A taxpayer shall request in writing that the
department allow the taxpayer to participate in the program.
(b) The written request to participate in the
program shall include the following information:
(1) The name
and contact information of the taxpayer or the taxpayer’s representative, if applicable;
(2) A
description of the taxpayer’s activities in New Hampshire, including whether
the taxpayer is an affiliate of another entity or a member of a unitary business;
(3) The
taxpayer’s tax year end;
(4) The tax
type(s) the taxpayer is requesting to voluntarily disclose;
(5) The
reason(s) the taxpayer failed to pay its tax liability;
(6) The
taxpayer’s estimated tax liability for each tax type for the look-back period;
and
(7) A statement
declaring that the taxpayer is not ineligible to participate in the program
pursuant to Rev 2910.05.
(c) The taxpayer shall submit the written request
to participate in the program by mail to the attention of the audit division
at:
New Hampshire Department of Revenue Administration
Audit Division
PO Box 1388
Concord, NH
03302-1388.
(d) As an alternative to (c) above, a taxpayer
may request to participate in the program through the MTC disclosure program at
http://www.mtc.gov/Nexus-Program/Multistate-Voluntary-Disclosure-Program.
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
Rev
2910.05 Ineligibility.
(a) The department shall deny a taxpayer’s
written request to participate in the program if the taxpayer is ineligible
pursuant to this section.
(b) A taxpayer shall not be eligible to
participate in the program if:
(1) The
department has contacted the taxpayer regarding a liability for any tax
administered by the department;
(2) The
department has contacted the taxpayer regarding whether the taxpayer is subject
to any tax administered by the department;
(3) The
department has contacted the taxpayer regarding whether the taxpayer is subject
to tax collection responsibilities for any tax administered by the department;
or
(4) The
taxpayer collected, but failed to remit, any tax administered by the
department.
(c) A taxpayer shall not be eligible to
participate in the program regarding a specific tax administered by the
department if:
(1) The taxpayer
has filed a return in a previous taxable period for the specific tax; or
(2) The
taxpayer’s estimated tax liability for the specific tax, for the look-back
period, is less than $500.
(d) For purposes of the program, the business
profits tax and the business enterprise tax together shall constitute a single
tax type.
(e) A taxpayer who is ineligible pursuant to
(c)(1) above, may request to participate in the program for good cause shown.
(f) A taxpayer who is ineligible to participate in
the program may voluntarily disclose the taxpayer’s tax liability to the
department, anonymously through a representative or otherwise, and request that
the department settle and compromise the taxes, interest, and penalties due for
good cause shown.
(g) In determining whether a taxpayer has shown
good cause, the department shall consider the factors in Rev 2910.06(b).
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
Rev
2910.06 Acceptance.
(a)
The department shall determine whether to allow a taxpayer to
participate in the program.
(b) The department shall allow a taxpayer to
participate in the program, subject to Rev 2910.05, if the department
determines, after considering the following factors, that the taxpayer’s
participation in the program will protect the public interest and promote
compliance with New Hampshire’s tax laws:
(1) The nature
and magnitude of the taxpayer’s activities in New Hampshire;
(2) The
reason(s) the taxpayer has failed to pay its tax liability, including, but not
limited to, whether the taxpayer was acting in good faith;
(3) The
benefits to the State of New Hampshire; and
(4) Any other
relevant factor bearing on whether the department should settle and compromise
the taxpayer’s tax liability.
(c) The department shall require a taxpayer to
submit further information as necessary to determine whether to allow the
taxpayer to participate in the program.
(d) If the department denies a taxpayer’s request
to participate in the program, the department shall notify the taxpayer in writing
with reasons.
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
Rev
2910.07 Voluntary Disclosure
Agreement.
(a) If the department determines that a taxpayer meets
all the requirements in RSA 21-J: 3, XXXII and Rev 2910.06, and subject to Rev
2910.05 to participate in the program, the department shall prepare a voluntary
disclosure agreement to settle and compromise the taxes and interest due for
the look-back period.
(b) The voluntary disclosure agreement shall
include the following terms:
(1) The
taxpayer shall file the returns for the look-back period;
(2) The taxpayer
shall pay the taxes shown to be due by the returns for the look-back period,
and interest calculated through the date of payment, at the time the taxpayer
files the returns;
(3) Unless
otherwise agreed, the taxpayer shall complete and file the returns and at the
same time pay the taxes and interest due for the look-back period within 30
days from the date of the voluntary disclosure agreement;
(4) In
determining the taxes and interest due for the look-back period, the taxpayer
shall not carry forward any net operating losses generated in a tax year
preceding the look-back period;
(5) Once the
taxpayer pays the taxes and interest due for the look-back period, the department
shall waive applicable penalties;
(6) The
department shall not, for any tax year preceding the look-back period, assess,
audit, or otherwise investigate the taxpayer regarding the tax type(s) settled
and compromised through the voluntary disclosure agreement; and
(7) The
voluntary disclosure agreement shall be rendered null and void pursuant to (f)
below.
(c) To participate in the program, the taxpayer
shall sign and return the voluntary disclosure agreement to the department within
30 days from the date the department sent the voluntary disclosure agreement to
the taxpayer.
(d) The voluntary disclosure agreement shall not
preclude the department from auditing or otherwise investigating the taxpayer’s
liability for the look-back period, or from assessing further taxes, interest
and penalties shown to be due by such an audit or investigation.
(e) The taxpayer shall be precluded from pursuing
all statutory remedies, including the right to appeal, with respect to the
taxes and interest settled and compromised through the voluntary disclosure
agreement, except in the case of a further assessment pursuant to (d) above, or
a federal audit change.
(f) A taxpayer shall be disqualified from the
program, and the voluntary disclosure agreement rendered null and void, if the
department finds any of the following:
(1) The
taxpayer was ineligible to participate in the program pursuant to Rev 2910.05;
(2) The
taxpayer materially misrepresented or falsified information relevant to the
voluntary disclosure agreement;
(3) The
taxpayer attempted to avoid, defeat, or evade any of the taxes and interest due
for the look-back period; or
(4) The
taxpayer failed to comply with any terms of the voluntary disclosure agreement.
(g) If the voluntary disclosure agreement is
rendered null and void, the department shall be allowed to use any information
ascertained through the program to assess taxes, interest, and penalties
against the taxpayer not only for the look-back period, but for all tax years.
Source. #11142, eff
7-26-16; ss by #13660, eff 6-21-23
APPENDIX
Rule |
Specific
State Statute the Rule Implements |
|
|
Rev
2901.01 |
RSA
21-J:13, I; RSA 21-J:1, II (a) |
Rev
2902.01 – Rev 2902.11 |
RSA
21-J:13, I; RSA 21-J:1, II (a) |
Rev
2903.01 |
RSA
21-J:13, I; RSA 21-J:1, II (a) |
Rev
2903.02 |
RSA
21-J:14 |
Rev
2903.03 – Rev 2903.06 |
RSA
21-J:13, I; RSA 21-J:1, II (a) |
Rev
2903.07 |
RSA
21-J:13, I; RSA 21-J:28-a, IV |
Rev
2904.01 – Rev 2904.09 |
RSA
21-J:13, I; RSA 21-J:1, II (a); RSA 21-J:33 |
Rev
2905.01 – Rev 2905.02 |
RSA
21-J:13, I; RSA 21-J:1, II (a); RSA 21-J:33 |
Rev
2906.01 – Rev 2906.12 |
RSA
21-J:13, I; RSA 21-J:1, II (a); RSA 21-J:33 |
Rev
2907.01 |
RSA
21-J:13, I; RSA 21-J:28-c |
Rev
2907.02 |
RSA
21-J:8, II; RSA 21-J:13, I; RSA 21-J:28-c; RSA 77-A:1, I; RSA
78-A:2, II; RSA 78-A:8; RSA 78-A:20 |
Rev
2907.03 |
RSA
21-J:28-c, II; RSA 21-J:28-d |
Rev
2907.04 |
RSA
21-J:13, I; RSA 21-J:28-c |
Rev
2907.05 |
RSA
21-J:8, II; RSA 80 |
Rev
2907.06 |
RSA
21-J:1, II(a); RSA 21-J:28-c |
Rev
2907.07 |
RSA
21-J:13, I; RSA 21-J:28-c |
Rev
2908.01 |
RSA
21-J:43; RSA 21-J:1, II(a) |
Rev
2908.02 |
RSA
21-J:13, I; RSA 21-J:43 |
Rev
2908.03 |
RSA
21-J:43; RSA 21-J:1, II(a) |
Rev
2908.04 |
RSA
21-J:13, I; RSA 21-J:43 |
Rev
2908.05 |
RSA
21-J:13, I; RSA 21-J:43 |
Rev
2908.06 |
RSA
21-J:13, I; RSA 21-J:43 |
Rev
2908.07 |
RSA
21-J:43 |
Rev
2909.01 |
RSA
21-J:1, II(a); RSA 21-J:3, XVI |
Rev
2909.02 |
RSA
21-J:1, II(a); RSA 21-J:3, XVI |
Rev
2909.03 |
RSA
21-J:1, II(a); RSA 21-J:3, XVI; RSA 541-A:29 |
Rev
2910.01 – Rev 2910.07 |
RSA
21-J:3, XXXII; RSA 21-J:13, XIV |