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
PART Rev 2902
DEFINITIONS
Rev 2902.01
“Department “ means the
Source. #8389, eff
7-8-05
Rev
2902.02 “Federal identification number” or “taxpayer
identification number” means:
(b) Federal employer
identification number;
(c) Individual
taxpayer identification number;
(d) Preparer tax identification number; or
(e)
Source. #8389, eff 7-8-05
Rev 2902.03 "File" means to place a document in the
actual possession of the department by one of the following:
(a)
(b) Physical delivery; or
(c) Electronic data submission if authorized by
statute or another department rule.
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Rev
2902.04 “
Source. #8389, eff
7-8-05
Rev
2902.05 “Preparer tax identification
number” means the federal identification number of the tax preparer used to
file tax returns on behalf of clients.
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7-8-05
Rev
2902.06 "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 2904.07.
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7-8-05
Rev
2902.07 “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
Rev 2902.08 "Taxpayer" means any person, entity, or
association subject to any provision of the tax and revenue rules and laws of
New Hampshire that are within the jurisdiction of the department, such as an:
(a) Natural person;
(b) Estate;
(c) Partnership;
(d) Corporation;
(e) Limited liability company;
(f) Association;
(g) Business organization and, whenever
appropriate:
(1) Its
officers;
(2) Directors;
or
(3) Authorized
representative;
(h) Trust; or
(i) Joint venture.
Source. #8389, eff 7-8-05
Rev 2903.01
(a) The department shall require a taxpayer to
obtain a New Hampshire taxpayer identification number or department identification number pursuant to Rev 2902.04 prior
to filing any tax documents 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 obtain:
a.
A federal employer identification number;
b.
Social Security number; or
c.
Individual taxpayer identification number issued by the Internal Revenue
Service.
(b)
In order to obtain a
(1)
Taxpayer entity name and address;
(2) Single member limited liability company member
name and address, if applicable;
(3) The member’s Social Security number or federal
employer identification number, if applicable;
(4)
Entity type;
(5)
If the entity’s income will not be reported by the
entity or single member for federal income tax purposes, the
member’s name, address and Social Security number or federal employer
identification number who will be reporting it as income;
(6)
A statement declaring:
“Under penalties as provided by law, I
declare that I have examined this application, and to the best of my knowledge
and belief, it is true correct and complete.”; and
(7)
Dated signatures of:
a.
Applicant; and
b.
Corporation officer with title, if other than owner.
(c)
Form DP-200 shall be filed at least 30 days prior to filing a tax form.
(d)
The department shall be notified of any changes made 30 days prior to
the change.
Source. #8389, eff 7-8-05; ss by #8990, eff 9-25-07
Rev
2903.02 Confidentiality of
Department Records.
(a) All documents
and information shall be confidential 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 form is
on file with the department;
(2) The taxpayer authorizes
the specific disclosure or actions to be performed by the representative in a
letter to the department; or
(3) An authorized employee of the taxpayer is physically
present when such disclosure or action is occurring.
(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 federal
identification number or numbers on all tax returns and related documents.
Source. #8389, eff 7-8-05
Rev 2903.03 Power
of Attorney.
(a) A power of attorney authorizing someone to act
as an agent for another 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 for which the power of attorney is granted;
(4) Whether the
person to whom the power of attorney is granted may:
a. Perform all
acts necessary related to the subject matter; or
b. Only receive
or inspect confidential tax information; and
(5) The extent
to which existing grants of powers of attorney are not revoked by the new grant
of power of attorney.
(b) The taxpayer executing the power of attorney
shall sign and date the document.
(c) The signature required in (b), above, shall
be in the presence of 2 disinterested witnesses unless granted to:
(1) An
attorney; or
(2) A certified
public accountant;
(3) A public accountant;
(4) The
preparer of the subject tax returns; or
(5) Enrolled
agents.
(d) A power of
attorney may be provided using:
(1) The department's form DP-2848 NH, Power of
Attorney;
(2) A letter addressed to the department of
revenue administration; or
(3) Federal form 2848, Power of Attorney.
Source. #8389, eff 7-8-05
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.
(b) A taxpayer may indicate such authorization
through:
(1) Checking
the appropriate box; and
(2) Providing
the necessary information 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 “Check-the-Box” limited power of attorney
authorizing the department to discuss a tax form with the preparer of the tax
form, if someone other than the taxpayer, shall include the following
information:
(1) Name,
mailing address and tax identification number of the taxpayer granting the
limited power of attorney; and
(2) The name,
mailing address and federal identification number of the tax preparer to whom
the limited power of attorney is granted.
(e) The taxpayer and authorized agent, executing
the power of attorney shall sign and date the document.
(f) The tax preparer shall sign and date the
document.
(g) The taxpayer shall indicate such
authorization by marking the box indicated by the instructions on the form.
Source. #8389, eff
7-8-05
Rev
2903.05 Partial Payments.
(a) Payments made in an amount less than the
total amount due shall be applied to the taxpayer's liability in the following
sequence:
(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.
(b) Interest shall continue to accrue on any tax
liability remaining unpaid until the total outstanding tax liability has been
paid.
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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
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
outstanding liability the taxpayer has with the department whether or not the
taxpayer has contested or appealed such liability.
(b) Application and offset pursuant to (a) above
shall be made as provided in Rev 2903.05 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 refund of
penalties or interest paid by the taxpayer.
(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
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 forms produced or required by the department of revenue
administration.
(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 sets forth the specific
requirements for a form that conflicts with the rules in this chapter, the
requirements in the rule that is specific to a form or tax shall govern.
Source. #8389, eff
7-8-05
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:
Governor Hugh J. Gallen Office Park South
109 Pleasant Street
Medical and Surgical Building
(b) The mailing address shall be:
New Hampshire Department of Revenue Administration
Source. #8389, eff 7-8-05
Rev
2904.03 Uniform Document Filing
Information.
(a) A document shall be considered filed with the
department when it is:
(1) Placed in
the
(2) Received by
a delivery service in accordance with Rev 2904.03 (d) below;
(3) Delivered
to the department; or
(4) Received
through electronic data submission that is authorized by statute or department
rule as evidenced by the department’s issuance of a department confirmation
number.
(b) A document transmitted by facsimile shall not
be considered filed.
(c) Documents transmitted by means of the
(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
(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 on or before the due date, 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 on or before the due date in instances where:
a. The postmark is affixed by a postage meter
operated by the 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 as shown by the department’s date stamp thereon.
(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
Rev
2904.04 Signatures. 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 receiver;
(4) A trustee
in bankruptcy;
(5) An assignee
in control of property of the business organization;
(6) The
executor or administrator;
(7) A trustee;
(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
Rev 2904.05 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.
(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
Rev 2904.06 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.
(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
Rev 2904.07 Uniform
Standards for Forms.
(a) Taxpayers and
tax preparers shall use the tax forms prescribed and provided by the
department, except as provided in Rev 2904.08.
(b) Unless pre-printed
on the 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 tax preparer 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
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 information
appearing on the tax form shall be:
a. In the same order in which it appears on the
form provided by the department; and
b. In the same layout as it appears on the form
provided by the department.
(d) All white spaces
marked “for office use only” shall be left blank.
(e) When negative
amounts are shown on a form, they shall be enclosed by parenthesis.
(f) Checks, bank
checks, or money orders shall be made payable to the “State of
(g) 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.
(h) 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.
(i) Pertinent
documentation shall include, but not be limited to the following:
(1) All numeric data required to calculate the
taxpayer's tax liability;
(2)
(3) All NH 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 NH statute,
rule or court decision;
(5) Supporting documents for any adjustments made
that are not specifically included in NH 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.
(j) If a return, the
taxpayer shall sign a statement declaring:
“I have examined this return
and to the best of my belief it is true, correct and complete.”
(k) 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, this return is true, correct and complete.”
(l) The department
shall reject forms that are in violation of this rule.
Source. #8389, eff
7-8-05
Rev 2904.08 Substitute
Forms Standards and Approvals.
(a) Substitute forms
shall be accepted provided they are:
(1) Clear and legible; and
(2) Follow the exact format of the forms provided
by the department.
(b) Substitute forms
vendors who would like pre-approval of their substitute forms, other than 2D
Barcode Forms, shall submit one complete hard-copy of their data-filled
substitute forms and instructions to:
New Hampshire Department of
Revenue Administration
Forms Committee
Governor Hugh J. Gallen Office Park South
109 Pleasant Street
Medical and Surgical Building
(c) Substitute forms
vendors who issue 2D Barcode Forms shall submit their completed data-filled 2D
Barcode Package for testing and approval to:
New Hampshire Department of
Revenue Administration
2D Barcode Approvals
Document Processing
(d) Substitute forms
inquiries shall be addressed to the Forms Committee:
(1) In writing at:
New Hampshire Department of
Revenue Administration
Forms Committee
(2) By e-mail at formscmte@rev.state.nh.us.
(e) All substitute
forms vendors shall provide the department annually, in December:
(1) A list of all substitute tax forms that will
be produced by their agency; and
(2) The expected release date of each substitute
form.
(f) The list shall
be sent to the address or e-mail in Rev 2904.08 (d) above.
(g) Substitute forms
shall be acceptable if they:
(1) Are exactly the same page size as the forms
provided by the department;
(2) Contain all of the information, general and
line-by-line instructions appearing on the forms provided by the department;
(3) Include a cents line, wherever indicated on
the
(4) Not display the number zero on the form
refund or credit carryover line when no refund or credit carryover is due the
taxpayer.
(5) Display the vendor’s name on the bottom of
each form;
(6) Include a “For DRA Use Only” box 1" high
by 2" wide in the top right corner, wherever indicated;
(7) Include a “For DRA Use Only” box 2" high
by 1 ½" wide in the bottom left corner, wherever indicated;
(8) Display the form number in the top left and
bottom right corners of the form; and
(9) Clearly spell out “New Hampshire Department
of Revenue Administration” and the form title on the top center of the form.
Source. #8389, eff
7-8-05
PART Rev 2905
FORMS NOT INCLUDED IN OTHER RULES
Rev
2905.01 "S corporation" means
a small business corporation as defined by IRC subchapter S, Sec. 1361 (a)(1)
for which an election under IRC subchapter S, Sec. 1362(a) is in effect for the
particular tax year.
Source. #8389, eff
7-8-05
Rev
2905.02 Form DP-9, Small Business
Corporations (“S” Corp) Information Report for Calendar Year _____. “S” corporations shall complete and file
annually by May 1, Form DP-9, small business corporations (“S” Corp)
information report for calendar year ______, to report all dividends
distributed to New Hampshire residents by providing:
(a) Name and address
of S corporation;
(b) Federal employer
identification number;
(c) The resident stock holders:
(1) Names and addresses;
(2) Social Security number; and
(3) The amount of the distribution; and
(d) A certification by the treasurer or clerk of
the corporation stating:
“Under penalties of perjury, I declare that I have
examined this form and to the best of my belief it is true correct and
complete. If prepared by a person other than the taxpayer, this declaration is
based on all information of which the preparer has knowledge.”; and
(e) Officer’s:
(1) Title; and
(2) Dated signature;
or
(f) Preparer’s:
(1) Dated signature;
(2) Tax
preparer identification number; and
(3) Address.
Source. #8389, eff
7-8-05
Rev
2905.03 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 by providing:
(1) Taxpayer
name;
(2) Taxpayer
identification number;
(3) Tax period;
(4) Calculation
of any underpayment of tax;
(5) Calculation
of payments necessary to meet the requirements of the various exceptions to
penalties; and
(6) Calculation
of any penalty due on underpaid quarters in which the exception was not met.
(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
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 of
revenue administration. The
applicability of these rules is limited to the subjects of recordkeeping and
retention requirements.
Source. #8389, eff 7-8-05
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 system such as microfilm, microfiche, or storage-only imaging systems;
(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
Rev
2906.03 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
Rev
2906.04 General 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.
Source. #8389, eff 7-8-05
Rev 2906.05 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 2906.07, below.
Source. #8389, eff
7-8-05
Rev 2906.06 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
Rev
2906.07 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.
(d) 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
Rev
2906.08 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
Rev
2906.09 Taxpayer Responsibility and
Discretionary Authority.
(a) A taxpayer with a data base management system
shall comply with Rev 2906.04 through Rev 2906.07 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 2906.07; 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
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 these media
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) Other storage-only imaging systems shall:
(1)
Document procedures for converting the hardcopy documents to microfilm, microfiche
or other 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 internal procedures
established 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 microfilm, microfiche or other
storage-only imaging system upon request of the department;
(5)
Be legible 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 microfilm, microfiche or other
storage-only imaging system lacks authenticity or integrity.
Source. #8389, eff 7-8-05
Rev
2906.11 Effect On 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 need not 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
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
notified by the department that 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 adjudicated 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.
Source. #8389, eff 7-8-05
APPENDIX
|
RULE |
STATUTE
IMPLEMENTED |
|
|
|
|
Rev 2901.01 |
RSA 21-J:13, I |
|
Rev 2902.01 |
RSA 21-J:13, I |
|
Rev 2902.02 |
RSA 21-J:13, I |
|
Rev 2902.03 |
RSA 21-J:13, I |
|
Rev 2902.04 |
RSA 21-J:13, I |
|
Rev 2902.05 |
RSA 21-J:13, I |
|
Rev 2902.06 |
RSA 21-J:13, I |
|
Rev 2902.07 |
RSA 21-J:13, I |
|
Rev 2902.08 |
RSA 21-J:13, I |
|
Rev 2903.01 |
RSA 21-J:13 |
|
Rev 2903.02 |
RSA 21-J:14 |
|
Rev 2903.03 |
RSA 21-J:13, I |
|
Rev 2903.04 |
RSA 21-J:13, I |
|
Rev 2903.05 |
RSA 21-J:13, I |
|
Rev 2903.06 |
RSA 21-J:13, I |
|
Rev 2904.01 |
RSA 21-J:13, I |
|
Rev 2904.02 |
RSA 21-J:13, I |
|
Rev 2904.03 |
RSA 21-J:13, I |
|
Rev 2904.04 |
RSA 21-J:13, I |
|
Rev 2904.05 |
RSA 21-J:13, I |
|
Rev 2904.06 |
RSA 21-J:13, I |
|
Rev 2905.01 |
RSA 21-J:13, I |
|
Rev 2905.02 |
RSA 21-J:13, I |
|
Rev 2905.03 |
RSA 21-J:13, I |
|
Rev 2906.01 |
RSA 21-J:13, I |
|
Rev 2906.02 |
RSA 21-J:13, I |
|
Rev 2906.03 |
RSA 21-J:13, I |
|
Rev 2906.04 |
RSA 21-J:13, I |
|
Rev 2906.05 |
RSA 21-J:13, I |
|
Rev 2906.06 |
RSA 21-J:13, I |
|
Rev 2906.07 |
RSA 21-J:13, I |
|
Rev 2906.08 |
RSA 21-J:13, I |
|
Rev 2906.09 |
RSA 21-J:13, I |
|
Rev 2906.10 |
RSA 21-J:13, I |
|
Rev 2906.11 |
RSA 21-J:13, I |
|
Rev 2906.12 |
RSA 21-J:13, I |