CHAPTER Rev 1300 LEGACY AND SUCCESSION AND ESTATE TAXES

PART Rev 1301 DEFINITIONS

Rev 1301.01 "Beneficiary" means a person receiving benefits or profit such as, but not limited to, property or money from the decedent.

Rev 1301.02 "Bona fide" means in or with good faith; honestly, openly and sincerely, without deceit or fraud.

Rev 1301.03 "Contemplation of death" means a situation in which the fear of death, resulting from a person's knowledge of an illness, health condition or impending peril, affects his or her actions with respect to his or her assets.

Rev 1301.04 "Current assets" means cash, bonds, stocks or other assets which are available or may be sold within one year making them available for the payment of the just debts and expenses of the decedent.

Rev 1301.05 "Custodian" means any person or entity who has in their possession or control:

(a) Any property being transferred as a result of the decedent's death;

(b) Any document or information regarding the formation or existence of a trust, which transfers a beneficial interest by reason of death; or

(c) Any other agreement or information of an agreement, which transfers a beneficial interest in property from a decedent to another:

Rev 1301.06 "Date of death value" means the fair market value of the assets of an estate at date of death of the owner.

Rev 1301.07 "Decedent", means the person who is no longer living.

Rev 1301.08 "Fair market value" means the price property would command if sold by a seller who is willing, but not compelled, to sell and purchased by a purchaser who is willing, but not compelled to purchase.

Rev 1301.09 "Fiduciary" means a person or entity who manages real or personal property for another and who must exercise a standard of care in such management activity imposed by law or by contractual agreement.

Rev 1301.10 "Homestead" means the home where the family dwells.

Rev 1301.11 "Joint ownership" means a title arrangement under which a person:

(a) Shares an ownership interest in property with others; and

(b) Succeeds to the full title to the property upon the death of such co-tenants.

Rev 1301.12 "Legacy" means the disposition of personal or real property or interests therein by a last will and testament.

Rev 1301.13 "Lineal ascendent" means a person with whom one is related in an upward line, such as parent, grand parent, great-grandparent.

Rev 1301.14 "Lineal descendent" means a person with whom one is related in a descending line, such as the child, adopted child, grandchild or great grandchild.

Rev 1301.15 "Public charity" means an organization which has qualified as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986 or its predecessor section.

Rev 1301.16 "Rest and residue" means the amount of the estate remaining after the total deductions allowed under RSA 86 have been subtracted from the gross estate.

Rev 1301.17 "Settlor" means a person who provides the real, tangible or intangible property for the creation of a trust.

Rev 1301.18 "Step child" means the biological or adopted child of only one spouse of a marriage.

Rev 1301.19 "Succession" means the transmission of the rights and obligations of a deceased person to his or her heirs.

Rev 1301.20 "Tenancy in common" means ownership by two or more persons, each owning an undivided share of the whole.

Rev 1301.21 "Trustee" means a person or entity appointed by a settlor or who is court appointed to manage the real, tangible or intangible property placed in trust for the benefit of the beneficiaries.

PART Rev 1302 TAXABLE AND NONTAXABLE PERSONS

Rev 1302.01 Identifying the Taxpayer.

(a) The person who receives an interest in property passing from a decedent shall be the taxpayer, unless such individual refuses the legacy in which case the person receiving the property shall become the taxpayer.

(b) In instances where a decedent includes a clause in the will directing that all taxes are to be paid by his estate:

Rev 1302.02 Joint Ownership.

(a) Property passing by joint ownership, as described in RSA 86:8, shall be deemed to be prima facie a taxable transfer of the value of the entire property, subject, however, to paragraphs (b) and (c) and Rev 1303.04 below.

(b) Upon the decedent's death, a person asserting a claim of a separate interest in joint ownership property prior to the decedent's death shall provide the information outlined in Rev 1303.04 to determine the taxable portion of the separate interest.

(c) A joint owner making a claim to the department for allowable deductions of medical, funeral and last sickness costs, as provided in RSA 86:8, shall provide, when requested by the department:

Rev 1302.03 Taxability of Transfers to Adopted Children.

(a) Adopted children shall be exempt from the legacy and succession tax for inheritances received from their adoptive parents and the lineal relatives of their adoptive parents.

(b) Executors or administrators shall:

(c) Upon the issuance of a final decree of adoption, the adopted child shall lose all rights of inheritance from his or her biological parent or parents and from the collateral and lineal relatives of such parent or parents; and

(d) The right of the biological parent or parents and their lineal relatives and collaterals to inherit from such child shall cease, as provided in RSA 170-B:20.

Rev 1302.04 Lineal Ascendents and Descendants of Adopted Children.

(a) The lineal descendants of an adopted child shall be considered for purposes of RSA 86 to be only the lineal descendants of the adoptive parents and not of the natural parents of such adopted child.

(b) An adopted child's only lineal ascendents shall be the child's adoptive parents and the lineal ascendents of such adoptive parents.

Rev 1302.05 Taxability of Transfers to Step Children. Executors or administrators shall advise the department on forms AU-101, list of legatees, and AU-101A, list of heirs, when an heir or legatee is a step child or the lineal descendent of a step child.

Rev 1302.06 Homestead Exemption for Siblings.

(a) The homestead exemption shall only apply in instances where the sibling receiving the real estate used such property as his or her primary residence for a period of at least one year immediately preceding the decedent's date of death.

(b) In instances where the property is bequeathed to more than one sibling but not all of them, the exemption shall be limited to the prorata share of the property's fair market value that is being transferred to those siblings who qualify under (a), above.

(c) The prorata share referred to in (b) shall be determined by multiplying the fair market value of the property at the date of death by the percentage of ownership the resident sibling or siblings received in the real estate, by reason of the death of the decedent.

Rev 1302.07 Common Law Spouse.

(a) No determination of common law spousal status independent of that made by a court having proper jurisdiction shall be accepted by the department.

(b) In instances where an individual petitions the probate court for common law spousal status, the individual shall provide the following information to the department at the time the individual notifies the department, as provided in probate court rule 3, of the filing of such petition:

Rev 1302.08 Qualification as a Public Charity. An organization's status as a public charity shall be evidenced by:

(a) Being listed in the cumulative list of organizations described in section 170(c) of the Internal Revenue Code of 1986, as amended; or

(b) Providing a copy of the letter from the Internal Revenue Service to the organization verifying their tax-exempt status, under section 501(c)(3).

PART Rev 1303 VALUATION OF PROPERTY SUBJECT TO TAX

Rev 1303.01 Method of Valuation.

(a) For purposes of assessment of the legacy and succession tax, the property shall be valued as follows:

(b) For purposes of the New Hampshire estate tax, the property shall be valued at the same values as those used in determining the federal estate tax liability.

Rev 1303.02 Alternate Valuation Date.

(a) A taxpayer may elect to value the gross estate of the decedent for purposes of RSA 86 in accordance with the provisions of sections 2032 (a), (b), (c) and (d) of the Internal Revenue Code of 1986, as most recently amended.

(b) This election may be made for the New Hampshire legacy and succession tax even though a federal estate tax return, federal form 706, was not required to be filed, or the election was not made for federal estate tax purposes.

(c) The election, shall be irrevocable, and shall be made by attaching a statement, signed by the executor or administrator, to the front of a timely filed legacy and succession tax return, form DP-145, indicating that the executor or administrator has elected to use the alternate valuation.

Rev 1303.03 Adjustments to Date of Death Value.

(a) Adjustments to the date of death value of the assets shall be requested in writing from the commissioner or his designee.

(b) Adjustments shall be granted if:

(c) The request for adjustment shall be:

(d) A will or trust shall not be considered to require the sale of property when an executor, administrator or trustee:

Rev 1303.04 Jointly Held Property.

(a) In instances where property was jointly held by the decedent and a taxable party with rights of survivorship the method utilized for determining the value of the amount passing to the taxable party shall be as follows:

PART Rev 1304 ALLOWABLE AND NON-ALLOWABLE DEDUCTIONS AND CREDITS

Rev 1304.01 Exclusion for Charitable Gifts.

(a) Any public charity, as provided in Rev 1302.08, receiving gifts from a decedent shall be exempt from the tax imposed by RSA 86.

(b) In instances where a bequest passes to or for the use of an institution, society or association which is not qualified under (a), above, the department shall not impose the tax if the organization can show any of the following:

Rev 1304.02 Executor or Administrator Fees.

(a) In instances where an executor, administrator or trustee engages the services of an attorney or other professional to assist the executor, administrator or trustee in the performance of that position's responsibilities, the fees of the professional shall be combined with any fees submitted by the executor, administrator or trustee for personal services to

determine the amount deductible as reasonable compensation under RSA 86:44(e) or (f).

(b) Fees paid to attorneys or other professionals for professional services rendered that are not for services normally performed by an executor, administrator or trustee shall not be combined with the fees for the personal services of the executor, administrator or trustee in determining the reasonableness of the compensation deduction provided in RSA 86:44 (e) or

(f).

Rev 1304.03 Claims for Care.

(a) Claims for care made pursuant to RSA 86:45 shall be submitted to the department in the form of an affidavit.

(b) The affidavit on claims for care for a period of less than six months shall contain the following information:

(c) The affidavit on claims for care for a period of six months or more shall:

Rev 1304.04 Expenses Incurred for Sale of Real Estate for Non-Resident Decedent. Expenses incurred by an administrator or executor of a non-resident decedent's estate in the process of showing and selling the New Hampshire real estate shall be allowed as a deduction in the state of New Hampshire to the extent that the will of the decedent directs the sale of the property or its sale is required to pay the debts of the decedent.

Rev 1304.05 Expenses Incurred for Trusts Under Legacy and Succession Tax. Expenses incurred by the trustees of a trust created and funded by the decedent as a testamentary substitute shall be deductible to the extent the expenses would be deductible if incurred in the administration of a probate estate.

Rev 1304.06 Credit Verification for Payments Made in Other Taxing Jurisdictions. For credits taken on form NH 706, for death taxes paid to other states, a copy of the other state's tax return showing the estate taxes paid to such state or other taxing jurisdictions shall be attached to the New Hampshire return when such return is originally filed.

Rev 1304.07 Life Estates and Remainder Interests.

(a) To determine the taxable portion of a life estate or remainder passing to an individual subject to tax under RSA 86:6, the executor, administrator, legatee or their authorized representative, in instances where the valuation of the life estate is based on the life of one person shall:

(b) In instances where the valuation of the life estate is based on the life of more than one person, the valuation shall be determined in accordance with U.S. Department of the Treasury notice 89-60.

Rev 1304.08 Expenses of Administration.

(a) Expenses of administration shall include the following:

(b) Expenses of administration shall not include any expenditures that are not essential to the administration of the estate or that are for the benefit of one or more of the legatees such as the following:

Rev 1304.09 Deductions. Deductions shall not be allowed to reduce the value of specific bequests or joint property subject to tax unless there are no other funds available in the estate from which to pay such expenses or the will directs the payment from such bequests or joint property.

PART Rev 1305 PROPERTY TAXABLE

Rev 1305.01 Insurance Policies.

(a) Proceeds of a life insurance policy payable to a designated beneficiary shall not be subject to a legacy and succession tax.

(b) Proceeds of a life insurance policy, where no beneficiary had been named, shall be a general asset of the estate and as such shall be subject to the legacy and succession tax to the extent that such assets become distributable to beneficiaries bearing a taxable relation to the decedent.

Rev 1305.02 Annuities, Retirement Accounts, Pension and Profit Sharing Plans.

(a) Proceeds payable to a beneficiary upon death shall be taxable to the beneficiary under the legacy and succession tax for the following types of accounts:

(b) The amount subject to the tax shall be:

(c) The name of the beneficiary and the taxable account value shall be:

Rev 1305.03 Mortgage Interest in Real Property.

(a) The value of a mortgage interest in property located in New Hampshire which shall pass by will, or by the laws regulating intestate succession, shall be subject to the legacy and succession tax as provided in RSA 86:6,I for both domiciliaries and non-domiciliaries.

(b) The prima facie value of such a mortgage interest subject to the tax shall be:

Rev 1305.04 Trusts.

(a) Property within a trust shall be taxable if:

(b) A trust where the transfer of possession or enjoyment of the property within the trust is made within two years of the death of the trust settlor shall be, prima facie, deemed to have been made in contemplation of death.

(c) Property within a trust shall be taxable if:

PART Rev 1306 ADMINISTRATION

Rev 1306.01 Taxpayer Records and Information.

(a) Every executor, administrator or legatee shall maintain all accounting, financial, or general information relied upon to establish the value of the gross estate, specific bequests, ownership of joint property, deductions, credits or any other information required to be shown on any return, schedule or attachment required under RSA 86, 87, 89 and any rules

promulgated for their administration.

(b) Every executor, administrator or legatee shall provide the commissioner or his authorized representatives the following information or records where applicable upon advance notice and during the regular business day:

(c) Every trustee of a trust funded in whole or in part with property of a decedent and which transfers a beneficial interest in property in a manner similar to a will or other testamentary instrument shall maintain all accounting, financial, or general information, including appraisals and trust agreements, relied upon to establish:

Rev 1306.02 Confidentiality.

(a) For purposes of RSA 86, RSA 87 and RSA 89, all records and files of the department shall be considered confidential as provided under RSA 21-J:14,I, even though such records and files are public records in the probate courts.

(b) The department shall only make a disclosure or allow the representative to act on behalf of the estate, executor, administrator, legatee, trustee or beneficiary if:

(c) Individuals other than the executor or administrator, requesting from the department any confidential information concerning a decedent, not relating to a trust, shall provide a power of attorney, signed by an executor or administrator, authorizing the department to release such information; and

(d) Individuals other than the trustee, requesting from the department any confidential information concerning a trust established by a decedent shall provide a power of attorney, signed by the trustee, authorizing the department to release such information.

Rev 1306.03 Power of Attorney.

(a) If a power of attorney is provided to the department, the providor shall use one of the following formats:

(b) A power of attorney shall be submitted to the department prior to, or in conjunction with, a request for information or any discussions with the department regarding the decedent s estate or information contained within the department's files regarding the estate's documents, executors, administrators, legatees, trustees or beneficiaries.

Rev 1306.04 Pre-Assessment Conference.

(a) The purpose of an informal pre-assessment conference shall be to discuss the audit findings with audit division management personnel in an effort to reach an agreement on the issues of fact and/or audit results.

(b) At the conclusion of an audit, when the facts and circumstances of the audit review indicate to the department that an informal pre-assessment conference would benefit both the state and the estate of the decedent, the audit division shall provide an informal pre-assessment conference for the estate, or its authorized representative.

(c) The department shall notify the executor or administrator of the estate or the authorized representative by mail of:

(d) The information required by (c), above, shall include:

(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.

PART Rev 1307 INFORMATIONAL REPORTING BY EXECUTORS, ADMINISTRATORS, TRUSTEES,

FIDUCIARIES OR CUSTODIANS

Rev 1307.01 Notification of Trust By Executors, Administrators, Fiduciaries or Custodians. Executors, administrators, fiduciaries or custodians having knowledge of the existence of a trust and required to notify the department of its existence under RSA 86:22, III shall:

(a) Advise the department of the existence of the trust within 6 months of the date of the decedent's death by sending a letter to the estate and legacy bureau of the department's audit division at 61 South Spring Street, PO Box 457, Concord, New Hampshire 03302-0457;

(b) Include in the letter of advice required in (a), above:

(c) Attach to the letter of advice required in (a), above, a copy of the trust document and a schedule of beneficiaries, if the person reporting possesses or has access to such document and schedule.

Rev 1307.02 Notification of Trust By Trustee. Trustees required to notify the department of the existence of a trust under RSA 86:22, III shall:

(a) Prepare the department's form AU 101-C, "Report of Trusts", in accordance with Rev 1309.04; and

(b) Attach a complete copy of the trust document and a schedule of beneficiaries.

Rev 1307.03 Notification; Time Limit. Executors, administrators, fiduciaries, trustees or custodians required to notify the department under RSA 86:22, IV shall:

(a) Advise the department within 6 months of the date of the decedent's death of the transfer by operation of law by sending a letter to the estate and legacy bureau of the department's audit division at 61 South Spring street, PO Box 457, Concord, New Hampshire 03302-0457;

(b) Include in the letter of advice required in (a), above:

(c) Attach a copy of the document under which the transfer occurred if the person reporting has the document in their possession or has access to such document.

PART Rev 1308 STANDARDS FOR TAX RETURNS, FORMS AND RELATED DOCUMENTS

Rev 1308.01 Availability of Tax Returns, Forms and Related Documents. All forms may be obtained by calling the department forms line at 603-271-2192, or by writing to the department of revenue administration, estate and legacy bureau, 61 South Spring Street, P.O. Box 457, Concord, NH 03302-0457.

Rev 1308.02 Signatures.

(a) All forms or related documents requiring a signature shall be signed in ink.

(b) All forms or related documents shall be signed and dated, as applicable, by the following:

Rev 1308.03 Authorization Other Than Executor or Administrator.

(a) If someone other than the resident executor or administrator will represent the estate on matters dealing with the documents filed with the department, the following shall be provided when requested on the documents:

Rev 1308.04 Uniform Return or Document Information.

(a) 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) for the authority to require taxpayer identification numbers, all tax returns and related documents shall bear the federal identification number for the decedent and the executor or administrator, which means either:

(b) The following information shall be provided by the executor or administrator on all tax returns, as applicable, submitted to the department:

(c) Monetary amounts shall be shown as follows:

(d) In instances where a payment is due with a document, such payment shall be submitted with the document.

(e) An executor, administrator, trustee, beneficiary or joint owner with a tax liability under one dollar shall not be required to remit the payment, however, the return shall be filed.

(f) Administrators, executors, trustees and tax preparers shall use the tax returns prescribed by the department for filing with the department.

(g) Tax returns or related documents sent by electronic mail shall not be accepted as a properly filed document.

(h) Computer-generated tax forms shall be accepted as a properly filed form, provided that they are formatted in accordance with Rev 221.03 (c), (d) and (e).

Rev 1308.05 Filing Requirements.

(a) As provided by RSA 80:55, returns or other documents shall be considered timely filed when they are postmarked by the United States postal service on or before the due date. The date indicated on a postmark affixed by a postage meter operated by someone other than the United States postal service shall not meet the requirements of RSA 80:55.

(b) Returns or other documents filed after the prescribed filing date, as defined in RSA 86:90, shall be subject to penalties as prescribed in RSA 21-J:31.

(c) Returns showing a balance due and filed after the prescribed filing date shall be subject to interest as prescribed in RSA 21-J:28 and penalties as prescribed in RSA 21-J:33.

(d) All tax returns and payments shall be mailed to the NH department of revenue administration, P.O. Box 637, Concord, N.H. 03302-0637.

(e) Executors, administrators, trustees, beneficiaries, legatees or joint owners who fail to receive tax forms from the department shall not be relieved of their obligation to prepare and file a timely return, extension request or other document required under RSA 86, 87 or 89 or the administrative rules promulgated under those statutes.

Rev 1308.06 Extensions of Time to File.

(a) A 6 month extension of time for filing a legacy and succession tax return or a nonresident personal property transfer tax return shall be obtained on or before the due date of the tax return, as follows:

(b) The payment of the liability referred to in (2) shall accompany the request for extension.

(c) An automatic extension of time for filing an estate tax return, NH 706, shall be granted for a period of 6 months provided that the executor, administrator or their authorized representatives meet all of the following provisions:

(d) An additional period of time to file a tax return may be requested by mailing a letter to the department s estate and legacy bureau at P.O. Box 457, Concord, New Hampshire, 03302-0457 on or before the extended due date of the tax return;

(e) A request for an additional period of time to file shall provide the following information:

(f) A request for additional period of time to file a tax return shall be granted if the applicant is able to show that:

(g) The director of audit shall advise the executor, administrator or authorized representative by letter whether or not the additional extension of time has been approved and the date to which the extension has been granted.

(h) An original 6 month extensions of time to file, or requests for additional time to file a return shall be rejected if:

Rev 1308.07 Estimated Payments of Tax Liabilities. An executor or administrator who wishes to pay additional amounts of their tax liability after the original due date and before the filing of the tax return shall submit the payment to the department in the following manner:

(a) In instances of a legacy and succession tax payment, the payment shall be accompanied by an estimated legacy and succession tax form DP 145-ES;

(b) In instances of an estate tax payment, the payment shall be accompanied by an estimated estate tax form NH 706-ES; or

(c) In instances of a nonresident personal property transfer tax payment, the payment shall be accompanied by an estimated nonresident personal property transfer tax form DP 146-ES.

Rev 1308.08 Amended Returns.

(a) An amended legacy and succession tax return shall be filed when the information contained on the final accounting filed with the probate court differs from the information included on a previously filed legacy and succession tax return.

(b) An amended New Hampshire estate tax return shall be filed when the estate of the decedent files an amended United States estate tax return and the credit for state death taxes paid on such amended federal return is modified.

(c) An executor or administrator shall use a legacy and succession tax return, form DP-145, or a New Hampshire estate tax return, form NH-706, as applicable, and clearly place the word "Amended" at the top of the document.

(d) In instances where the changes made to the final accounting filed with the probate court or to the federal estate tax return do not require a change to the New Hampshire legacy and succession tax return or the New Hampshire estate tax return, the executor or administrator shall submit a copy of the revised final accounting or the amended federal estate tax return and a letter explaining the changes to the department's estate and legacy bureau at

P.O. Box 457, Concord, New Hampshire, 03302-0457 at the time the amended documents are filed with the court or the Internal Revenue Service.

Rev 1308.09 Corrections Resulting From Internal Revenue Service Audit Changes.

(a) Any executor or administrator liable for the tax assessed under RSA 87 shall report all federal audit changes, as required under RSA 87:10 when such changes have been finally determined by the Internal Revenue Service, using an amended NH 706.

(b) For purposes of this section, federal audit changes shall have finally been determined when:

(c) A copy of the federal change report shall be attached to the amended form NH 706.

(d) Payment of any additional liability shall accompany the amended form NH 706.

PART Rev 1309 FORMS PRESCRIBED

Rev 1309.01 AU 101 List of Legatees.

(a) Form AU 101, "List of Legatees", shall be filed with the register of probate pursuant to RSA 86:18-19, by every executor or, in cases where the named executor is unable or unwilling to serve, by the appointed administrator.

(b) In addition to the requirements listed under Rev 1308, above, an executor or administrator preparing form AU 101 shall furnish the following information:

(c) The form shall be mailed in duplicate by the executor or administrator to the register of probate at the county in which the decedent was a resident at the time of death or in which an out of state resident owned real estate.

(d) The form shall be filed at the time of appointment.

Rev 1309.02 AU 101-A List of Heirs.

(a) Form AU 101-A, "List of Heirs" shall be filed with the register of probate by every administrator of an intestate estate, pursuant to RSA 86:18-19.

(b) In addition to the requirements listed under Rev 1308, above, an administrator preparing form AU 101-A shall furnish the following information:

(c) The form shall be mailed in duplicate by the administrator to the register of probate at the county in which the decedent was a resident at the time of death or in which an out of state resident owned real estate.

Rev 1309.03 AU 101-B Report of Gifts, Transfers, Joint Tenancies and Trusts.

(a) Form AU 101-B, "Report of Gifts, Transfers, Joint Tenancies and Trusts" shall be filed as follows:

(b) In addition to the requirements listed under Rev 1308, above, an executor, administrator, or surviving joint tenant preparing form AU 101-B shall furnish the following:

(c) The form shall be mailed to the department by the joint tenant and by the executor or administrator to the department and the register of probate at the county in which the decedent was a resident at the time of death or in which an out of state resident owned real estate.

Rev 1309.04 AU 101-C Trust Report.

(a) Form AU 101-C, "Trust Report", shall be filed by the trustee.

(b) In addition to the requirements listed under Rev 1308, above, a trustee preparing form AU 101-C shall furnish the following:

(c) The form shall be mailed by the trustee to the department.

Rev 1309.05 Inventory For A Nonresident Decedent.

(a) Form AU-115, "Inventory for a Nonresident Decedent", shall be used by the executor or administrator of the estate to file an inventory of the tangible personal property located in New Hampshire.

(b) The form shall contain the following information:

(c) The completed form shall be signed in the presence of a notary public or a justice of the peace.

Rev 1309.06 AU-LS 116 Application for Consent to Transfer Shares of Stock.

(a) Form AU-LS 116, "Application for Consent to Transfer Shares of Stock", shall be used by the surviving joint owner of the stock, to obtain written consent from the department to transfer stock belonging to the decedent or held in trust for the decedent, pursuant to RSA 86:73.

(b) In addition to the requirements listed in Rev 1308, above, the surviving joint owner preparing form AU-LS 116 shall provide the following:

(c) Written consent shall be automatically granted provided the joint owner of the stock has made full payment of the legacy and succession tax liability.

Rev 1309.07 DP-145 Legacy and Succession Tax Return.

(a) The form DP-145, "Legacy and Succession Tax Return", shall be completed and filed with the department by persons complying with RSA 86:90.

(b) In addition to the requirements listed under Rev 1308, above, persons completing the form DP-145 shall provide the following information:

(d) Form DP-145 shall be accompanied by:

Rev 1309.08 DP-145 Schedule A Summary of Estate.

(a) Form DP-145 Schedule A," Summary of Estate", shall accompany form DP-145 when it is submitted to the department.

(b) The executor or administrator preparing form DP-145-Schedule A shall provide the following information:

Rev 1309.09 DP-145-ES Estimated Legacy and Succession Tax. Form DP-145-ES, "Estimated Legacy and Succession Tax", shall be:

(a) Submitted to the department by the executor or administrator; and

(b) Used when making legacy and succession tax payments to the department at times other than when filing the tax return or requesting an extension of time to file a return.

Rev 1309.10 DP-146 Nonresident Personal Property Transfer Tax Return.

(a) Form DP-146, "Non Resident Personal Property Transfer Tax Return", shall be submitted by the executor or administrator to the department in accordance with RSA 89:10.

(b) In addition to the requirements of Rev 1308, above, the executor or administrator preparing form DP-146 shall provide the following information:

Rev 1309.11 DP-146-ES Estimated Non-Resident Personal Property Transfer Tax. Form DP-146-ES, "Estimated Non Resident Personal Property Transfer Tax", shall be:

Rev 1309.12 DP-147 Application for 6-month Extension of Time to File for Non-Resident Personal Property Transfer Tax.

(a) Form DP-147, "Application for 6-Month Extension of Time to File for Non Resident Personal Property Transfer Tax", shall be filed by the executor or administrator for the estate of the decedent, in accordance with RSA 89:10.

(b) In addition to the requirements of Rev 1308, above, the executor or administrator preparing form DP-147 shall provide the following:

Rev 1309.13 DP-148 Application for 6-month Extension of Time to File for Legacy and Succession Tax.

(a) Form DP-148, "Application for 6-Month Extension of Time to File", shall be filed by the executor or administrator in accordance with RSA 86:90.

(b) In addition to the requirements of Rev 1308, above, the executor or administrator preparing form DP-148 shall provide the following information:

Rev 1309.14 NH 706 NH Estate Tax Return.

(a) Form NH 706, NH Estate Tax Return", shall be filed by the executor or

administrator of the estate, in accordance with RSA 87:6.

(b) In addition to the requirements of Rev 1308, above, the executor or administrator preparing form NH 706 shall provide the following:

(c) The computation of the tax liability shall show the following:

Rev 1309.15 NH 706-ES NH Estate Tax Estimate. Form NH 706-ES, NH Estate Tax Estimate", shall be:

(a) Submitted to the department by the executor or administrator of the estate; and

(b) Used when making an estimated payment of the tax liability to the department at times other than when filing the tax return or requesting an extension of time to file the return.

Rev 1309.16 Form AU-123 Application For Consent to Transfer Property. Form AU 123, "Application for Consent to Transfer Property", shall:

(a) Be prepared by:

(b) Be submitted to the estate and legacy bureau of the department's audit division by mail at P.O. Box 457, Concord, N.H. 03302-0457 or in person at 61 South Spring Street, Concord, N.H. prior to the transfer of property; and

(c) Contain:

PART Rev 1310 PENALTIES

Rev 1310.01 Against Executor, Administrator, Trustee, Fiduciary or Custodian for Neglect or Refusal to Comply. Prior to the assessment of the statutory penalty for failure to comply with the provisions of RSA 86:18-22, as stipulated by RSA 86:23, the executor, administrator, trustee, fiduciary or custodian shall be notified via mail of the claimed violation, and required to appear before the commissioner or his authorized agent to show cause why penalties pursuant to RSA 86:23 should not be imposed.

Rev 1310.02 Understatement of Taxpayer's Liability by Tax Preparer.

(a) For purposes of RSA 21-J:33-b,I, "substantial portion" means any instance where the efforts of the tax preparer have affected more than 25% of the estate or legatee's tax liability.

(b) An individual or company providing more than typing, reproducing or other mechanical assistance shall be deemed to be a tax preparer when the individual or company uses computer software which makes determinations about the applicability of tax laws or the characterization of income and the allowability of deductions or credits.

(c) The $1000 penalty provided in RSA 21-J:33-b,III shall be applied as follows:

(d) The $2000 penalty provided in RSA 21-J:33-b, IV shall be applied when:

(e) 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-b shall be abated and refunded.

(f) The refund of the penalty shall be made without any consideration of any period of limitation for the issuance of a refund.

Rev 1310.03 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, as defined in RSA 21-J:33-b, 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 $1000 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 tax on legacies and successions, RSA 86, the tax on the transfer of certain estates, RSA 87, and the transfer tax upon the personal property of nonresident decedents, RSA 89, or departmental rules if:

(c) The penalty shall not be assessed in instances where the executor, administrator or legatee adequately disclosed the relevant facts regarding the tax treatment of the item in the manner provided in Rev 1310.04.

(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.

Rev 1310.04 Adequate Disclosure and Substantial Authority Requirements.

(a) For purposes of meeting the requirements of RSA 21-J:33 (b) and (c), an executor, administrator or legatee shall have adequately disclosed the tax treatment of an item on the return or in a statement attached to the front of the return if all of the following criteria are met:

(b) In determining whether an executor, administrator or legatee has substantial authority, the department shall consider the following as being authoritative sources:

(c) The following shall not be considered authoritative sources:

(d) The existence of substantial authority for a particular item shall be determined as of the date the return containing the item was filed.