CHAPTER Rev 2500 ELECTRONIC TRANSFERS AND FILING

 

Statutory Authority  RSA 21-J:13,X

 

PART Rev 2501  DEFINITIONS

 

Rev 2501.01  "Addenda record" means the tax information and electronic format required by the department in an ACH credit transfer.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.02  "Automated clearing house (ACH)” means a central distribution and settlement point for the electronic clearing of money transfers between financial institutions where the entity that operates as a clearing house for electronic debit or credit entries pursuant to an agreement with a member of the national automated clearing house association.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.03  "Automated clearing house credit (ACH credit)”  means the electronic transfer of funds initiated by the taxpayer crediting the state’s designated bank account and cleared through the ACH network by an entry debiting the taxpayer’s bank account.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.04  “Automated clearing house debit (ACH debit)” means the electronic transfer of funds initiated by the department debiting the taxpayer’s account and cleared through the ACH network by an entry crediting the state’s designated bank account.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.05  “Automated clearing house network (ACH network)” means the electronic funds transfer system governed by the national automated clearing house association.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.06  "Automated clearing house trace number" means a unique number assigned to an EFT transaction by the financial institution originating the transaction, under the ACH method of payment.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.04)

 

Rev 2501.07 "Cash concentration of disbursement plus addenda (CCD+addenda)” means a standard national automated clearing house association data format used to make ACH credit or debit transactions with a single addenda record of payment data known as the TXP.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.05)

 

Rev 2501.08  "Electronic funds transfer (EFT)”  means any transfer of funds initiated through a terminal, telephone instrument, computer or magnetic tape to authorize a financial institution to credit a bank account using a method specified in this chapter.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.06)

 

Rev 2501.09  "Holiday" means a recognized state holiday, in accordance with RSA 288:1 and RSA 288:2, or a holiday recognized by financial institutions, in accordance with RSA 288:3.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.07)

 

Rev 2501.10  "National automated clearing house association (NACHA)” means the regulatory body for the ACH network.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.08)

 

Rev 2501.11  “Payment authorization information” means the taxpayer-provided data required to complete an electronic debit payment transaction.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.12  "Prenote test" means a banking industry safeguard where a zero-dollar transaction is sent through the ACH network to verify banking and tax information for EFT payments.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.09)

 

Rev 2501.13  "Taxpayer" means any person, entity or association who uses the department’s electronic funds transfer system.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05 (formerly Rev 2501.12)

 

Rev 2501.14  “Tax payment (TXP)” means the banking convention record format for taxpayers to pay state taxes through the ACH method.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

        Rev 2501.15  “Telefile” means the use of a telephone key pad to electronically transfer data to the department including authorization for the department to debit a specified account for a specified amount.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2501.16  "TXP format" means the banking convention format for a filed transaction within a record of payment-related data used in ACH transactions.

 

                                                              Source.  #8495, eff 11-30-05 (formerly Rev 2501.15)

 

PART Rev 2502  GENERAL PROVISIONS

 

Rev 2502.01  Mandatory Participation.

 

(a) Business enterprise and business profits taxpayers with a total tax liability of $100,000 or greater for the most recently filed tax year shall electronically transfer funds to make tax payments not accompanied by a tax return.

 

(b)  Meals and rentals operators shall:

 

(1)  Electronically transfer funds to make tax payments when the taxable revenue is $25,000 or greater;

 

(2)  Forfeit, pursuant to RSA 78-A:8, V, any amounts retained pursuant to RSA 78-A:7, III, to the department to offset the costs of manual paper filings if they do not file electronically and have over $25,000 in meals and rentals taxable revenue in the prior calendar year; and

 

(3) If, during the prior calendar year, a business had under $25,000 in meals and rooms taxable revenue, have the forfeiture in (2) above automatically waived pursuant to RSA 78-A:8, V.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2502.02  Initiating Telefile.  Meals and rentals operators remitting tax payments via the telefile system shall dial 1-800-328-4557 and follow the voice instructions.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2502.03  Initiating Transfers.

 

(a)  Taxpayers remitting  tax payments through ACH credit or debit shall contact their financial institution  and initiate the transfer to the NH state treasurer so that the amount due is accessible and available to the NH state treasurer in the State of New Hampshire's bank account on or before the due date of the tax.

 

(b)  If a tax due date falls on a Saturday, Sunday, or a holiday as defined in RSA 288:1-3, the ACH deposit shall be made on or before the business day that causes the exchange of funds to be entered and confirmed in the ACH network on or before the due date of the tax.

 

(c)  Taxpayers registered, as described in Rev 2503.03, by the department for the ACH credit payment method shall:

 

(1)  Ensure that the financial institution originating the transaction has the information necessary for a correct and timely completion of the transaction; and

 

(2)  Provide the information necessary for the financial institution to complete the NACHA CCD+ entry with the TXP format addendum record.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2502.04  ACH Payment Transmission Errors.

 

(a)  If a taxpayer makes an incorrect payment for a particular period, the taxpayer shall, on the nearest business day on which the error was discovered:

 

(1)  Notify:

 

a.  The department by telephone; and

 

b.  Their financial institution; 

 

(2)  Follow up by written confirmation to the department as to the factual information regarding the error; and

 

(3)  Make arrangements, except in the case of an overpayment, to initiate payment for the correct amount of payment.

 

(b)  If the error involves an overpayment, the overpayment shall be applied against the liability for the next reporting period unless the taxpayer requests a refund in writing.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2502.05  Crediting Electronic Payments. Electronic payments shall be credited to the taxpayer’s account by the department in accordance with the application of payments described in Rev 2903.05 and Rev 2903.07.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2502.06  Financial Institution Service Fees. Any transfer fees, service charges, discrepancies in exchange rate, or other fees charged by the taxpayer's financial institution for ACH credit or debit participation shall be the responsibility of the taxpayer.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2502.07  Record Retention.  All records, whether paper or electronic, shall be retained pursuant to Rev 2906.12.

 

                                                                      Source.  #8495, eff 11-30-05

 

PART Rev 2503  ACH CREDIT PARTICIPATION

 

Rev 2503.01  ACH Credit Participation Filing Options.

 

(a)  Any taxpayer with a tax liability below the statutory thresholds for mandatory electronic filing may:

 

(1)  Withdraw from ACH credit participation;

 

(2)  Voluntarily continue to participate in the ACH credit participation; or

 

(3)  Participate in ACH debit filing.

 

(b)  Voluntary participants in the ACH credit payment shall comply with all the filing requirements imposed upon mandatory electronic payment participants.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

        Rev 2503.02  Withdrawal From ACH Credit Participation.

 

(a)  A mandatory participant shall submit a request, in writing at least 60 days prior to the last non-ACH credit payment due date, to the commissioner, to be relieved from the EFT requirements  by including the following:

 

(1)  Their name;

 

(2)  Their federal employer identification number;

 

(3)  The effective date of the removal request;

 

(4)  The last due date for ACH credit payment;

 

(5)  A statement certifying:

 

“The tax liability has fallen below the statutory threshold; and the level of tax liability for the preceding taxable period was atypical and future tax liabilities will fall below the statutory threshold.”; and

 

(6)  Any other information the participant believes is applicable to withdrawal.

 

(b)  A withdrawal request may be granted, as described in (d), or denied, as described in (e), by the commissioner based on the information provided in (a) or (c), as applicable.

 

(c)  A voluntary participant shall submit to the department, at least 60 days prior to the last non-ACH credit payment due date, a  request in writing to withdraw from ACH credit participation by including the following:

 

(1)  Their name;

 

(2)  Their federal employer identification number;

 

(3)  The effective date of the removal request;

 

(4)  The last due date for ACH credit payment; and

 

(5)  A statement certifying:

 

“I hereby certify that the tax liability is less than the statutory threshold; the level of tax liability for the preceding taxable period was atypical; and future tax liabilities will fall below the statutory threshold.”

 

(d)  The withdrawal request shall be granted upon receipt of the request to withdraw provided:

 

(1)  The information required in (a) or (c) has been submitted; and

 

(2)  The taxpayer's tax liability is below the statutory threshold for participation.

 

(e)  A withdrawal request shall be denied due to not meeting the requirements listed in (a) or (c).

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2503.03  Registration to Pay by ACH Credit.  A taxpayer shall register to pay taxes by ACH credit by completing and submitting to the department prior to remitting payments:

 

(a)  Form DP-175,Registration for Electronic Funds Transfer of Business Tax Payments”, as specified in Rev 2506.02, at least 30 days prior to the due date of its first ACH credit payment; and

 

(b)  A prenote test of a zero dollar transaction to verify the New Hampshire department of treasury’s routing/transit number and bank account number at least 10 calendar days prior to its first EFT payment.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2503.04  Registration Information Changes.  Whenever registration information changes, a taxpayer shall provide:

 

(a)  Written notice to the department on Form DP-175, “Registration for Electronic Funds Transfer of Business Tax Payments”, as specified in Rev 2506.02, at least 30 days prior of any change of the information; and

 

(b)  A prenote test of a zero dollar transaction to verify the New Hampshire department of treasury’s routing/transit number and bank account number at least 10 calendar days prior to any change of the information.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2503.05  Remitting Payments. The taxpayer shall remit payment to the state's depository financial institution specified by the department when the taxpayer is notified by the department in writing that approval for the ACH credit method of payment has been granted.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2503.06  Renewal of Electronic Payments.  A taxpayer applying to resume ACH credit payments after ceasing to remit ACH credit payments shall:

 

(a)  Submit a new Form DP-175, “Registration for Electronic Funds Transfer of Business Tax Payments”, as specified in Rev 2506.02, at least 30 days prior to resuming any ACH credit payment; and

 

(b)  A prenote test of a zero dollar transaction to verify the New Hampshire department of treasury’s routing/transit number and bank account number at least 10 calendar days prior to the first ACH credit payment.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2503.07  Filing Options.  Taxpayers with a tax liability falling below the statutory threshold may choose an option listed in Rev 2503.01.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2503.08  Penalties.

 

(a)  The ACH credit method of payment shall not change the current filing requirements for tax returns.

 

(b)  Any payment required by ACH credit not made by the due date shall be subject to:

 

(1)  Penalties pursuant to RSA 21-J:31-33; and

 

(2)  Interest pursuant to RSA 21-J:28.

 

(c)  Failure to conform with any filing, data transmission, or payment with the credit method prescribed by the commissioner shall result in:

 

(1)  Penalties pursuant to RSA 21-J:31 - 33; and

 

(2)  Interest pursuant to RSA 21-J:28.

 

(d)  In the event of a malfunction of the ACH credit payment mechanism, no interest or penalties shall be imposed provided the taxpayer verifies the ACH credit payment was initiated in a timely manner by electronic  written confirmation  from his or her financial institution that:

 

(1)  The proper amount of tax payment was transferred from the taxpayer’s account to the NH department of treasury’s account; and

 

(2)  The tax payment was timely made.

 

(e)  The taxpayer shall bear the burden of proof of proper tax payment.

 

(f)  In addition to the provisions for reasonable cause for failure to file pursuant to RSA 21-J:31 and failure to pay pursuant to RSA 21-J:33, for ACH credit purposes, reasonable cause for late payment by ACH credit shall include, but not be limited to:

 

(1)  The inability to gain access to the ACH system on the required date because of a system failure beyond the control of the taxpayer; or

 

(2)  Failure of the ACH credit network to properly apply a payment.

 

                                                                      Source.  #8495, eff 11-30-05

 

PART Rev 2504  RESERVED

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

PART Rev 2505  ACH DEBIT PAYMENTS

 

Rev 2505.01  Business Tax.  Business tax filers shall file payments electronically through the ACH debit method by accessing the department’s website at www.nh.gov/revenue and clicking on efile.

 

                                                                      Source.  #6639, eff 11-27-97, EXPIRED 11-27-05

 

                                                                      New.  #8495, eff 11-30-05

 

Rev 2505.02  Interest and Dividends Tax.  Interest and dividend taxpayers may file returns, payments, or both, electronically through the ACH debit method by accessing the department’s website at www.nh.gov/revenue and clicking on efile.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2505.03  Meals and Rentals Tax.

 

(a)  Meals and rentals operators, subject to RSA 78-A:6, shall obtain a license by completing and submitting Form CD-3, “Application for Meals and Rentals Tax Operators License”, as described in Rev 708.05, prior to remitting payments to the NH state treasurer by ACH debit method by:

 

(1)  Accessing the department’s website at www.nh.gov/revenue and clicking on efile; or

 

(2)  Telefiling at 1-800-328-4557 and following the voice instructions to enter their information.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2505.04  Nursing Facilities Quality Assessment.

 

(a)  Nursing facilities subject to RSA 84-C shall submit payment through the ACH debit method by:

 

(1)  Authorizing payments to the NH state treasurer by ACH debit; and

 

(2) Completing Form DP-156-ACH, “Nursing Facility Quality Assessment Authorization Agreement for the Pre-Authorized Payments (ACH Debits)”, as specified in Rev 2506.03, to register for authorizing tax payments by EFT ACH Debit.

 

(b)  Nursing facilities wishing to change or revoke the EFT ACH debit authorization shall submit a request by checking the appropriate box on form DP-156-ACH, “Nursing Facility Quality Assessment Authorization Agreement for the Pre-Authorized Payments (ACH Debits)”, as specified in Rev 2506.03, to indicate the intended action.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2505.05  Registry of Deeds.  County registry of deeds may file and pay real estate transfer taxes electronically through the ACH debit method.

 

                                                                      Source.  #8495, eff 11-30-05

 

PART Rev 2506  FORMS

 

Rev 2506.01  Forms Availablity.  Forms may be obtained by:

 

(a)  Accessing the department’s website at www.nh.gov/revenue and clicking on the forms option; or

 

(b)  Contacting the department forms line at (603) 271-2192.

 

                                                                      Source.  #8495, eff 11-30-05

 

Rev 2506.02  Form DP-175, Registration for Electronic Funds Transfer of Business Tax  Payments.

 

(a)  Taxpayers shall complete and file with the department’s document processing division, Form DP-175, “Registration for Electronic Funds Transfer of Business Tax Payments”, to register to remit payments by  ACH credit by providing:

 

(1)  The taxpayer’s name and address;

 

(2)  Federal employer identification, social security number or department identification number;

 

(3)  The names, telephone and fax numbers of the primary and secondary contact persons;

 

(4)  Entity type; and

 

(5)  An indication if the form is:

 

a.  A new registration;

 

b.  A change; or

 

c.  An initial request.

 

(b)  Form DP-175 shall be filed at least 30 days prior to:

 

(1)  The first EFT payment; or

 

(2)  Any changes in the information.

 

                                                                      Source.  #8495, eff 11-30-05

 

            Rev 2506.03  Form DP 156-ACH, “Nursing Facility Quality Assessment Authorization Agreement for Pre-Authorized Payments (ACH Debits)”.

 

(a)  A nursing facility shall complete and file with the department’s document processing division Form DP-156-ACH, “Nursing Facility Quality Assessment Authorization Agreement for Pre-Authorized Payments (ACH Debits)” in order to transfer funds electronically by providing:

 

(1)  Facility name and address;

 

(2)  Federal employer identification number;

 

(3)  An indication whether the request is:

 

a.  Initial;

 

b.  A change; or

 

c.  Revocation of authorization;

 

(4)  Name of financial institution;

 

(5)  Account name and number;

 

(6)  Financial institution routing and transit number;

 

(7)  Federal employer identification number on account;

 

(8)  An indication whether the account is checking or savings;

 

(9)  A statement:

 

“This authorization is to remain in full force and effect until the State has received written notice from me (or either of us) of its termination in such time and in such a manner as to afford the State and depository a reasonable opportunity to act on it.

 

By signing below, I hereby authorize the State of New Hampshire Department of Treasury to initiate variable debit entries to the bank account and the depository named above.”;

 

(10)  The primary and secondary:

 

a.  Taxpayer contact names; and

 

b.  Taxpayer contact telephone numbers;

 

(11)  A statement:

 

“By signing below, I hereby authorize the State of New Hampshire Department of Treasury, to initiate debit entries to our Checking or Savings account indicated above at the depository (bank) named above, to debit the same to such account.”; and

 

(12)  Dated signature and title of authorized officer or representative.

 

(b)  A voided check or savings withdrawal slip for the account shall accompany the form.

 

                                                                      Source.  #8495, eff 11-30-05

 


APPENDIX

 

RULE

STATUTE

 

 

Rev 2501.01  -- 2501.17

RSA 21-J:13, X

 

 

Rev 2502.01

RSA  21-J:13, X, RSA 71-A:8

Rev 2502.02 – Rev 2502.0 7

RSA 21-J:13, X

 

 

Rev 2503.01  - Rev 2503.07

RSA 21-J:13, X

Rev 2503.08

RSA 21-J:13, X

RSA 21-J:31, 32, 33 & 28

Rev 2505.01 – Rev 2505.05

RSA 21-J:13, X

 

 

Rev 2506.01 – Rev 2506.03

RSA 21-J:13, X