CHAPTER Rev 2400 BUSINESS
Statutory
Authority: RSA 21-J:13, I; 77-E:1, XVII;
77-E:11, II
PART Rev 2401 DEFINITIONS
Rev 2401.01 “Affiliated group” means:
(a)
Affiliated group as defined in RSA 77-E:3, II, for corporate
enterprises; or
(b)
A group of non-corporate business enterprises, if the chain of business
enterprises is connected through ownership with a common business enterprise,
provided that:
(1) The common parent business enterprise owns
directly at least 80% of the total ownership interest in at least one of the
includible business enterprises; and
(2) An ownership interest with at least 80% of
the total ownership interest is owned directly by one or more of the other
includible business enterprises.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2401.02 “Business enterprise”
means any profit or nonprofit enterprise or organization, whether corporation,
partnership, limited liability company, proprietorship, association, trust,
business trust, real estate trust or other form of organization engaged in or
carrying on any business activity within this state as defined in RSA 77-E:1, III.
Source.
INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2401.03); ss by #11032, eff 1-29-16
Rev 2401.03 “Capital” means the amount personally contributed to the business enterprise by the
owners in exchange for their proprietary interest in the enterprise plus the
amounts subsequently contributed by such individuals less any amounts withdrawn
from the enterprise by the owners.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2401.05); ss by #11032, eff 1-29-16
Rev 2401.04 “Client company” means “client company” as
defined in RSA 277-B:2, III.
Source. #11044, eff 2-24-16
Rev
2401.05 “Costs of performance”, as used
in RSA 77-E:4, I(c)(3), means the direct costs of providing the service or
activity determined in a manner consistent with generally accepted accounting
principles and in accordance with accepted conditions or practices in the trade
or business of the business enterprise.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2401.07); ss by #11032, eff 1-29-16; renumbered by #11044 (formerly
Rev 2401.04); ss by #13177, eff 3-6-21
Rev 2401.06 “Employee leasing company” means “employee
leasing company” as defined in RSA 277-B:2, V.
Source. #11044, eff 2-24-16
Rev
2401.07 “Delivered to a location in this
state” means
the location of the market for the services provided by the taxpayer, without
regard to the location of the property or payroll of the taxpayer.
Source. #13177, eff 3-6-21
Rev 2401.08 “Department” means the New Hampshire
department of revenue administration.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2401.08); ss by #11032, eff 1-29-16; renumbered by #11044 (formerly
Rev 2401.05); renumbered by #13177 (formerly Rev 2401.07)
Rev 2401.09 “Distributions” means a
transfer of money or property
from a business enterprise to its owners
related to their ownership interest.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(formerly Rev 2401.12); ss by #11032, eff 1-29-16 (from Rev 2401.05); renumbered
by #11044 (formerly Rev 2401.06); renumbered by #13177 (formerly Rev 2401.08)
Rev 2401.10 “Internal Revenue Code (IRC)” means the
United States Internal Revenue Code as defined in RSA 77-E:1, XVII.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(formerly Rev 2401.13); ss by #11032, eff 1-29-16 (from Rev 2401.06);
renumbered by #11044 (formerly Rev 2401.07) ); renumbered by #13177 (formerly
Rev 2401.09)
Rev 2401.11 “Net earnings from
self-employment” means the gross income derived by a business enterprise from
trade or business carried on by the enterprise less deductions, not including
those for guaranteed payments, allowed by chapter 1 of the IRC and attributable
to such trade or business.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07; renumbered by #11044, eff 2-24-16 (from Rev 2401.08)
New. #9065, eff 1-10-08
(formerly Rev 2401.16); ss by #11032, eff 1-29-16; (from Rev 2401.07);
renumbered by #11044 (formerly Rev 2401.08); renumbered by #13177 (formerly Rev
2401.10)
Rev 2401.12 “Personal investment activities,” as used in
RSA 77-E:1, VI(f), means the actions taken by one or more individuals, or
charitable remainder trusts, to place personal capital or wealth in such a way
as to secure income or profit from its employment without the individual or
trust becoming involved in the activities of a trade or business, or the rental
of property, other than the rental of a residence or vacation home to the
beneficiaries or grantors of the trust, in which the capital is placed.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(formerly Rev 2401.18); ss by #11032, eff 1-29-16 (from Rev 2401.08);
renumbered by #11044 (formerly Rev 2401.09); renumbered by #13177 (formerly Rev
2401.11)
Rev 2401.13 “Real and tangible personal property,” as
used in RSA 77-E:4, I, means land, buildings, improvements, equipment, merchandise
or manufacturing inventories, leasehold improvements, and other similar
property that reflects the enterprise's business activities.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(formerly Rev 2401.19); ss by #11032, eff 1-29-16 (from Rev 2401.09);
renumbered by #11044 (formerly Rev 2401.10); renumbered by #13177 (formerly Rev
2401.12)
Rev 2401.14 “Revenue producing
activity,” as used in RSA 77-E:4, I(c) (3):
(a)
Means the transactions and activities engaged in by the business
enterprise for the ultimate purpose of obtaining gain or profit and includes,
but is not limited to:
(1) The rendering of personal services by
employees or the utilization of tangible and intangible property by the
business enterprise in performing a service;
(2) The sale, rental, leasing, or other use of
real property;
(3) The sale, rental, leasing, licensing, or
other use of tangible personal property; or
(4) The sale, licensing, or other use of
intangible personal property; and
(b)
Does not include:
(1) Transactions and activities performed for the
business enterprise by independent contractors or other similar persons or
entities; or
(2) The mere holding of a security interest in
intangible property.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(formerly Rev 2401.21); ss by #11032, eff 1-29-16 (from Rev 2401.10);
renumbered by #11044 (formerly Rev 2401.11); renumbered by #13177 (formerly Rev
2401.13)
Rev 2401.15 “State” means:
(a)
Any state of the
(b)
The
(c)
The
(d)
A territory or possession of the
(e)
Any foreign country or political subdivision thereof.
Source. #11032, eff 1-29-16 (from Rev 2401.11); renumbered
by #11044 (formerly Rev 2401.12); renumbered by #13177 (formerly Rev 2401.14)
PART Rev 2402 COMPUTATION OF THE
Rev
2402.01 Compensation Element.
(a) The following shall be included in the compensation
element:
(1) Wages
subject to federal income tax withholding included on an employee's
federal Form W-2, Wage and Tax Statement;
(2) Compensation specifically exempt
from federal withholding such as, but not limited to, contributions by the employer
on behalf of employees to:
a. Qualified pension, profit-sharing and stock
bonus plans under IRC section 401; or
b. Annuity or deferred-payment plans under IRC sections 403 and 404;
(3) Fringe
benefits provided to, and included in the gross income of employees for federal
income tax purposes, unless such benefits are excluded under (a)(2) above,
or are included in gross income solely because the recipient is a partner or
shareholder of an "S" corporation;
(4) Imputed
interest on a below-market rate loan between an employer and employee to which
IRC section 7872 applies;
(5) The amount taken as a deduction for the
personal services of a proprietor, partner, or member for business
profits tax purposes;
(6) The net
earnings from self employment, not including:
a. The individual’s distributive share from a
trade or business conducted by another business enterprise;
b. The amount
included under (a)(5), above; or
c. Net losses
from self-employment;
(7)
The amount reported as guaranteed payments to partners on the
partnership’s federal income tax return if such amount has not been included
under (a)(5) or (6), above;
(8) Wages paid
to statutory employees, in accordance with IRC section 3121(d) (3) who file federal
Form Schedule C and do not have an employer-employee relationship;
(9) Wages paid
to an employee for qualified research and development services reported as a
credit and not deducted as an expense by the business enterprise under IRC
section 41; and
(10) Wages
paid, under RSA 277-B:9, I(a), by an employee leasing company to its leased
employees in accordance with Rev 2402.08.
(b) Payments in the form of, or for, services identified in IRC section
3401(a) (1), (9), (10), (13), (14), (15), (16), (18), (19), or (20) shall not
be considered compensation for purposes of the compensation element or
apportionment.
(c) Compensation paid or accrued for an employee,
employed by an affiliated group of business enterprises
and performing services for multiple members, shall be included in the
compensation element of the entity which:
(1) Is subject
to tax in
(2) Deducts the
individual's compensation for federal income tax purposes provided that:
a. The
compensation amount is not included within a management fee charged to the affiliate;
b. The
enterprise issuing the individual's federal Form W-2, “Wage and Tax Statement,”
charges the affiliate for the actual payroll expenditures; and
c. All
affiliated enterprises maintain detailed records to substantiate the
amount of compensation paid or accrued for each employee and how such
compensation was recorded and deducted by the various affiliates.
Source.
INTERIM #5708, eff 9-23-93, EXPIRED: 1-21-94;
ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99, EXPIRED: 12-23-07
New.
#9065, eff 1-10-08; ss by #11032, eff 1-29-16; amd by #11044, eff 2-24-16; amd
by #12906, eff 10-23-19
Rev 2402.02 Interest Element.
(a)
Interest, as defined in RSA 77-E:1, XI, shall be included in the
interest element when it is recognized as an expense for financial
accounting purposes of the business enterprise without regard to:
(1) Any limitation on deductibility for federal
income tax purposes; or
(2) The capitalization requirements provided in
IRC section 263A.
(b)
The interest element shall not be reduced by any interest income or
other fee income received for the use of its money or property.
(c)
When an amount of property is actually transferred
by a business enterprise and is not classified as interest, but the substance
of the transaction or the relatedness of the parties indicates that the
payment was made in lieu of interest, then an amount of interest shall be
deemed to have been paid. The amount of
deemed interest shall be equal to the amount paid which is in
excess of the fair market value of the property transferred.
(d)
Imputed interest, pursuant to IRC section 7872, relative to treatment of
loans at below market interest rates, shall be included in the interest
element.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2402.03 Dividend Element.
(a)
The following transactions between a business enterprise and its owners
shall be a dividend:
(1) Property transferred from a business
enterprise to an owner with respect to the owner's ownership interest from the
accumulated revenues and profits of the business enterprise as defined by RSA
77-E:1, I;
(2) Personal expenditures made by a business
enterprise on behalf of an owner except those properly reported as compensation
to the owner for federal income tax purposes;
(3) Forgiveness of an owner's indebtedness to the
business enterprise unless the amount is:
a. Reported as compensation or interest to the
individual for federal income tax purposes; and
b. Included in the compensation or interest
elements of the business enterprise value tax base;
(4) Automatic re-investment of property deemed
distributed to the owners from accumulated profits into additional stock of the
business enterprise; or
(5) Imputed interest on a below market interest
rate loan under IRC section 7872.
(b)
When property, other than money, is distributed as a dividend,
the computation of the dividend amount paid to the owner shall be measured by
the property's fair market value determined as of the date of the distribution.
(c)
All distributions by a business enterprise to its owners shall be
presumed to be made sequentially from:
(1) The current year profits of the business enterprise;
(2) The accumulated revenues and profits of the
business enterprise; and
(3) The capital of the business enterprise.
(d)
Distributions made by “S” corporations shall be a dividend to be
included in the dividend element when the distribution is from:
(1) The accumulated adjustment account or the
previously taxed income categories; and
(2) Earnings and profits of the corporation
accumulated prior to the “S” corporation election being made.
(e)
An “S” corporation shall treat an item of income or expense under
federal income tax provisions in arriving at the accumulated revenues and
profits of the business enterprise, in a manner consistent with that of the “C”
corporation.
(f)
For corporate business enterprises, other than "S"
corporations, the current earnings and profits of the business enterprise
shall be determined as they are for federal income tax purposes.
(g) The accumulated revenues
and profits of a non-corporate business enterprise shall be the total
undistributed net income from all business activities since the inception of
operations.
(h)
Any undistributed net income retained by the business enterprise
and considered capital for federal income tax purposes shall not be considered
as such for purposes of the business enterprise tax.
(i) Amounts deducted under RSA 77-A:4, III, for
the personal services of the proprietor or partners shall:
(1) Be a deduction in determining the net
income from business activities; and
(2) Not be included in the dividend element.
(j)
Distributions made by a business enterprise in liquidation or in
complete redemption of an owner's interest in the business enterprise shall not
be considered as a dividend for business enterprise tax purposes.
(k)
Amounts included in the compensation element under Rev 2402.01(a)(6),
net earnings from self-employment shall not be included in the dividend
element.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2402.04 Grantor Trusts.
(a)
The grantor of a grantor trust shall include the compensation, interest,
and dividends of the grantor trust within its own business enterprise value tax base.
(b)
For purposes of both the business
enterprise value tax base and the apportionment factor
in instances where a grantor trust has only a portion of its activity
considered business activity, the grantor trust shall only be required to report
the compensation, interest, and dividends associated with the business activity
portion of the business enterprise’s activities.
(c)
The exclusion provided by RSA 77-E:1,VI(f), shall apply to a grantor
trust that is subject to taxation under section 641 or described in section 664
of the IRC to the extent that such grantor trust limits its activities to
personal investment activities as described in Rev 2401.09.
(d)
When a grantor of a grantor trust has no other activity beyond that of
the grantor trust subject to the business enterprise tax, the grantor
trust
shall be deemed to be a business enterprise and the grantor
is required to report the compensation, interest and
dividends of the grantor trust.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2402.05 Business Enterprises, Exempt from Tax
Under IRC Section 501(c)(3), with Unrelated Business Income.
(a)
For purposes of the enterprise value tax base, the exempt business
enterprise shall report on the applicable Form BET, “Business Enterprise
Tax Return,” the activity associated with the unrelated business income portion
of the business enterprise’s activities reported on federal Form 990T.
(b)
The business enterprise shall allocate, when there is an overlap between
the activities, the compensation and interest between the unrelated business
income and exempt activities by basing:
(1) Compensation on the hours spent performing
services for the unrelated business activity in relation to the total hours
worked; and
(2) Interest on the portion of loan proceeds used
for the unrelated business activities in relation to the total loans
outstanding.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2402.06 Business Enterprises Whose Income or
Expenses are Federally Reportable by the Owners. Business enterprises, other than grantor
trusts, whose income or expenses are reportable by the true owners for federal
income tax purposes, shall include all items associated with the enterprise
value tax base on its business enterprise tax return.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2402.07 Non-applicability of Federal Immunity
Provision. Since the business
enterprise tax is not based on the net
income or capital stock of the business enterprise, the provisions
of 15 USC section 381, P.L. 86-272 shall not apply to a business enterprise.
Source. #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2402.08 Employee Leasing Companies.
(a)
Employee leasing companies shall be solely responsible for paying wages
to leased employees pursuant to RSA 277-B:9, I(a).
(b)
An employee leasing company and a client company may jointly elect to
make the client company solely responsible for including the leased employees’
wages in the client company’s compensation portion of the enterprise value tax
base for those wages paid to leased employees.
(c)
If the employee leasing company and the client company make such an
election, the client company shall be the company eligible for the credit
provided in RSA 77-A:5, X.
(d)
In order to make the election described in this section, the employee
leasing company and the client company shall jointly complete and file Form
DP-216, “Employee Leasing Company Business Enterprise Tax (BET) Election,” with
the department.
(e) For an election to be effective
for any given tax year, the employee leasing company and the client company
shall jointly complete and file Form DP-216 prior to the end of the employee
leasing company's tax year.
(f)
An election described in this section shall remain in effect until both
the employee leasing company and the client company notify the department of
the termination by completing and filing Form DP-216.
(g)
In order to terminate the election described in this section, the
employee leasing company and the client company shall jointly complete and file
Form DP-216 with the department prior to the end of the employee leasing
company’s tax year to which the termination relates.
(i) For both an election and termination of an
election, if the client company has a different taxable period than the
employee leasing company, the election or termination shall apply to the client
company’s taxable period as of the first day of the employee leasing company’s
taxable period to which the election or termination relates.
(j)
By making the election pursuant to RSA 77-E:13-a and completing and
filing Form DP-216, the employee leasing company and the client company agree
that the department is authorized to disclose to each named company the information
provided on Form DP-216 and any information relevant to the election for the
sole purpose of auditing this election.
Source. #11044, eff 2-24-16
PART Rev 2403 ADJUSTMENTS TO THE
Rev 2403.01 Net Earnings from Self-Employment Retained
in the Business
(a)
A business enterprise may deduct from its enterprise value tax base, the
amount of net earnings from self-employment which:
(1) Are retained and used for the reasonable
needs of the business enterprise; and
(2) Have previously been, or are currently being,
taxed under RSA 77-A as the business profits of the business enterprise.
(b)
The reasonable needs of the business enterprise shall not include the
following:
(1) The total amount of any deduction taken for
the personal services of a proprietor or partner for business profits tax
purposes under RSA 77-A:4, III; or
(2) The amount of funds loaned by the business enterprise
to the proprietor, partners or any directly or indirectly related party under
the provisions of the IRC.
(c)
The business enterprise shall maintain accounting records that are
sufficient to analyze all transactions between the business enterprise
and:
(1) The owner(s);
(2) Any related party under the provisions of the
IRC; and
(3) The amount of
funds needed by the business enterprise for its current and
future operations.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2403.02 Dividend Received Deduction.
(a)
The dividends received from a member of an affiliated group of business
enterprises eligible for the deduction shall be limited to that portion of the
dividend included in the payor’s taxable enterprise value tax base.
(b) The business enterprise
shall maintain detailed accounting records to:
(1) Document any dividends received deducted
from the enterprise value tax base of the recipient business enterprise have been
previously included in the enterprise value tax base of the payor; and
(2) Calculate the accumulated earnings and
profits of the payor.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2403.03 Utilization of Deductions in Arriving at
the Taxable Amount of the Enterprise Value Tax Base.
(a) The deduction allowed for compensation
from self employment income retained in the
business enterprise, as provided in RSA 77-E:3, I, shall be deducted from the
compensation element of the tax base to arrive at the compensation amount
subject to the apportionment factor.
(b) The deduction allowed for
dividends received from members of an affiliated group of business enterprises as
provided in RSA 77-E:3, II and III, shall be deducted from the dividend element
of the tax base to arrive at the dividend amount subject to the apportionment
factor.
(c) In instances where a
business enterprise, entitled to a dividend received deduction, has not paid
dividends to its owners, the business enterprise shall:
(1) Apportion the dividend received
deduction using the dividends apportionment factor determined in accordance with Rev 2404.06
and Rev 2404.061; and
(2) Use such apportioned amount as an offset to
either:
a. The taxable compensation portion of the tax base;
or
b. The taxable interest portion of the tax base.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2403.04); ss by #11032, eff 1-29-16; ss by #13177, eff 3-6-21
PART Rev 2404 APPORTIONMENT OF THE
Rev 2404.01 Definitions. For purposes of this Part, the following
definitions shall apply:
(a)
“Base of operations” means the place of more or less permanent nature
from which the service provider starts work and to which the service provider
customarily returns in order to receive instructions from the business entity
or communications from customers or other persons or to replenish stock or
other materials, repair equipment, or perform any other functions necessary to
the exercise of the service provider’s trade or profession;
(b)
“Business entity” means “business enterprise” as the term is defined in
Rev 2401.02;
(c)
“Incidental to” means any service which is temporary or transitory in
nature, or which is rendered in connection with an isolated transaction;
(d)
“Material distortions” means the interest apportionment factor computed
using monthly averages is 25% greater or lesser than the factor computed using
the beginning and ending average;
(e)
“Order” means a determination signed by the commissioner requiring use
of the modified apportionment formula in instances when:
(1) The current apportionment formula does not
accurately reflect the business enterprise’s business activity; or
(2) It is a result of an adjudicative proceeding;
(f)
“Place from which the service is directed or controlled” means the place
from which the business entity exercises its power to direct or control the
service provider’s entire service, rather than the place from which a
particular project is directed or controlled; and
(g)
“Service provider” means an employee, officer, director, proprietor,
partner, or member of a business entity who provides services to that entity.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2404.02 Availability or
Requirement of Apportionment for a Business
(a)
A
(1) Its business activities are conducted both
within and without
(2) The business enterprise's activities were
sufficient in another state for that state to impose a:
a. Net income tax;
b. Franchise tax based upon net income;
c. Capital stock tax;
d. Business privilege tax; or
e. Tax of the type imposed by RSA 77-E.
(b)
A business enterprise shall complete and file Form BET-80,
“Business Enterprise Tax Apportionment,” with the applicable Form BET described
in Rev 2407.03, to apportion its New Hampshire business activity in accordance with
RSA 77-E:4.
(c)
A business enterprise, which is a member of a combined group required to
apportion its New Hampshire business activity, in accordance with RSA 77-E:4,
shall complete and file Form BET-80-WE, “Business Enterprise Tax Apportionment for
Individual Nexus Members of a Combined Group.”
(d)
A business enterprise not domiciled in
(e)
A business enterprise shall not apportion a portion of its income to
another state when:
(1) Its activities within the other state were not
sufficient for that state to impose the taxes referred in (a)(2) above;
(2) It pays a minimal fee for qualifying to do
business within that state; or
(3) It files and pays a tax, referred to in
(a)(2) above, which was not legally required.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2404.02); ss by #11032, eff 1-29-16
Rev 2404.03 Apportionment for Grantor Trust Activity.
A grantor of a grantor trust shall
include the apportionment factor information of the grantor trust within its
own compensation, interest, and dividend factors.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2404.02); ss by #11032, eff 1-29-16
Rev 2404.04 Compensation Apportionment Factor.
(a)
The compensation apportionment factor shall include:
(1) The total amount of compensation, as
described in Rev 2402.01, paid or accrued to all of
the following in a business enterprise:
a. Employees;
b. Officers;
c. Directors;
d. Partners; or
e. LLC members;
(2) The net earnings from self-employment, less
that portion of earnings retained for use in the business enterprise by
the owner and the amount included in (a)(3) below; and
(3) The amount deducted as compensation for the
personal services of a proprietor, partner, or member under RSA 77-A:4, III,
for purposes of the business profits tax.
(b)
The total amount of compensation paid to service providers shall be
determined based on:
(1) The business enterprise's method of accounting;
or
(2) The wages reported on the employer's
state unemployment wage reports.
(c)
The method selected in (b), above, shall be used in a consistent manner.
(d)
If the method in (b), above, is changed, adjustments shall be
made to prevent the inclusion of the identical wages in the compensation
apportionment factor for more than one taxable period.
(e)
Payment made to, or on behalf of, independent contractors shall not be
included in a business enterprise's compensation apportionment factor.
(f)
Service providers performing services for an affiliated enterprise shall
be included in the compensation apportionment factor of the entity which:
(1) Issues the individual's federal Form W-2;
or
(2) Deducts the individual's compensation for
federal income tax purposes provided that:
a. The compensation amount is not included
within a management fee charged to the affiliate;
b. The business enterprise issuing the
individual's federal Form W-2 only charges the affiliate for the actual
payroll expenditures; and
c. All affiliates maintain detailed records to
substantiate the amount of compensation paid or accrued for each employee and
how such compensation was recorded and deducted by the various affiliates.
(g)
The compensation for services of an employee, officer, or director,
or personal services of a proprietor, partner, or member
shall be included in New Hampshire’s numerator when:
(1) The services are performed entirely within
this state;
(2) The services are performed both within and
without this state and the services performed without this state are incidental
to the services within this state; or
(3) Some of the services are performed in this
state, and
a. The base of operations or, if there is no
base of operations, the place from which the services are directed or
controlled is in this state; or
b. The base of operations or the place from
which the services are directed or controlled is not in any state in which some
part of the services are performed, but the individual
performing such services resides within this state.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2404.03); ss by #11032, eff 1-29-16
Rev 2404.05 Interest Apportionment Factor.
(a)
The interest apportionment factor shall include:
(1) All real property and tangible personal
property, as defined in Rev 2401.12;
(2) Property that is:
a. Actually used, is available for, or capable
of being used, during the taxable period in the regular course of the trade or
business of the business enterprise;
b. Used in
the regular course of business shall remain in the property factor until
its permanent withdrawal from use; or
c. In transit with the property being included
in the numerator of the destination state; and
(3) The value of moveable or mobile property,
such as construction equipment and common carrier vehicles, with the value
being determined for purposes of the property factor on the total time
or miles within a state during the period.
(b) Property, other than inventory, owned by the
business enterprise shall be valued at its original cost which is deemed to be
the basis of the property for federal income tax purposes at the time of
acquisition prior to any federal adjustments and adjusted by subsequent sale,
exchange, abandonment, or other such disposition.
(c)
Inventory shall be included in the interest apportionment factor
in accordance with the valuation method used for federal income tax purposes.
(d)
Real and tangible personal property rented or leased by the business
enterprise shall not be included in the interest apportionment factor.
(e)
The beginning and ending average value of owned property shall be used
for the interest apportionment factor unless material distortions of the factor
are caused by:
(1) Fluctuations in values existing during the
period; or
(2) The acquisition or disposition of significant
property during the period.
(f)
Business enterprises having material distortions caused by the use of a beginning and ending average value shall
calculate the value of their property for apportionment purposes using a
monthly average.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2404.04); ss by #11032, eff 1-29-16
Rev
2404.06 Dividends Apportionment
Factor. For taxable periods ending
before December 31, 2021:
(a) Revenue-producing activity shall include:
(1) Any transaction,
procedure, or operation in which a business enterprise directly engaged in by a
business enterprise resulting in a separately identifiable item of income; or
(2) The performance of
any activity creating an obligation of a particular customer to pay specific
consideration to the business enterprise.
(b) The denominator of the sales portion of the
dividends apportionment factor shall include the following:
(1) Sales less returns and allowances;
(2) Dividends which are not eligible for the
dividend deduction under RSA 77-E:3, II and III;
(3) Other interest;
(4) Rental income;
(5) Royalties;
(6) Capital gain income;
(7) Net gains or losses; and
(8) Other income, unless
the other income is properly includible as a reduction of an expense or
allowance.
(c) The numerator of the sales portion for each
business enterprise shall include:
(1) Sales of tangible personal property
regardless of the conditions of sale delivered in New Hampshire, other than to
the United States government;
(2) Sales of tangible personal property
originating in New Hampshire to a purchaser in another state in which the
business enterprise is not taxable or subject to tax;
(3) Sales of tangible personal property
originating in New Hampshire and delivered to the United States government in
any state;
(4) Interest on receivables where the debtor or
the encumbered property is located in New Hampshire;
(5) Gross receipts from the lease, rental, or
other use of real or personal property located in New
Hampshire;
(6) Gross receipts from the licensing or other
use of intangible property when such property is used within New Hampshire; and
(7) Personal services performed in New Hampshire;
(8) Capital gains from the sale of business
assets located within New Hampshire;
(9) Dividend income received by business enterprises
domiciled in New Hampshire;
(10) Gross receipts for the rendering of personal
services when the services are performed in New Hampshire;
and
(11) Other income which is earned in New
Hampshire.
(d) Sales price shall include:
(1) All interest;
(2) Carrying charge or time-price differential
charges; and
(3) Excise taxes passed on to the buyer or included
as part of the selling price of the product.
(e) The rental, lease, licensing, or other use of
tangible or intangible personal property in New Hampshire shall be considered a
separate and distinct revenue producing activity within New Hampshire.
(f) When a revenue producing activity results
from the use of personal property within and without New Hampshire during the
taxable period, gross receipts attributable to New Hampshire shall be measured
by one of the following ratios:
(1) The time the property was used in New
Hampshire as compared to the total time of use of the property everywhere
during that taxable period when the amount of time is the most appropriate
measure under the specific facts and circumstances of the business
enterprise’s activities; or
(2) The distance
traveled or covered in New Hampshire as compared to the total distance traveled
or covered everywhere during the taxable period when distance is the most
appropriate measure under the specific facts and circumstances of the business
enterprise’s activities.
(g) Personal services performed in New Hampshire
shall be a separate revenue producing activity performed in New Hampshire
unless the business enterprise can demonstrate the activity performed in New
Hampshire is completely dependent upon activities performed by the business
enterprise in one or more other states.
(h) Personal services shall be attributed to New
Hampshire if:
(1) The activity is completely performed in New
Hampshire; or
(2) The activity performed in New Hampshire is a
dependent component of a service performed both within and without New
Hampshire and a greater proportion of the costs directly associated with
performing such service are incurred in New Hampshire.
(i) In determining
the costs directly associated with the performance of the service in (h),
above, the business enterprise shall allocate all compensation costs, including
benefits, of personnel performing the service based on the amount of time spent
performing the service in New Hampshire as compared to the time spent in
performing the service outside New Hampshire.
(j) Expenses incurred in obtaining or retaining
customers or clients, including contract negotiations, shall not be costs
directly associated with the performance of the service.
Source. #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2404.05); ss by #11032, eff 1-29-16; ss by #13177, eff 3-6-21
Rev
2404.061 Dividends Apportionment
Factor. For taxable periods ending
on or after December 31, 2021:
(a) The denominator of the sales
portion of the dividends apportionment factor shall include the following:
(1) Sales less returns and allowances;
(2) Dividends which are not eligible for the
dividend deduction under RSA 77-E:3, II and III;
(3) Other interest;
(4) Rental income;
(5) Royalties;
(6) Capital gain net income;
(7) Net gains or losses; and
(8) Other income, unless
the other income is properly includible as a reduction of an expense or
allowance.
(b) The numerator of the sales portion for each business
enterprise shall include:
(1) Sales of tangible personal property
regardless of the conditions of sale delivered in New Hampshire, other than to
the United States government;
(2) Sales of tangible personal property
originating in New Hampshire to a purchaser in another state in which the business
enterprise is not taxable or subject to tax;
(3) Sales of tangible personal property
originating in New Hampshire and delivered to the United States government in
any state;
(4) Ordinary net gains or losses and capital
gains from the sale of real or tangible property, if and to the extent the
property is located in this state;
(5) Ordinary net
gains or losses and capital gains from the sale of intangible property, if and
to the extent the property is used in this state;
(6) Sales of a service, if and to the extent the
service is delivered to a location in this state;
(7) Sales, rental, lease, license, or other use
of intangible property, if and to the extent the property is used in this state;
(8) Interest income, if and to the extent the debtor
or encumbered property is located in this state;
(9) Dividend income received by business
enterprises domiciled in New Hampshire; and
(10) Other income, if and to the extent the income
is derived from sources in this state.
(c)
In the case of the delivery of a service
by electronic transmission, where the service is delivered electronically to
end users or other third-party recipients through or on behalf of the customer,
the service shall be considered delivered in New Hampshire if and to the extent
that the end users or other third-party recipients are in New Hampshire.
(d)
In the case of the delivery of a
professional service to a customer other than by in-person means, the service shall
be considered delivered in New Hampshire if and to the extent that the customer
receives the benefit of the service in New Hampshire.
(e)
In the case of sales other than sales of
tangible personal property, if the state or states of assignment cannot be
determined, the state or states of assignment shall be reasonably approximated.
Methods to reasonably approximate such sales shall include, but not be limited
to, multiplying such sales by a percentage that equals the ratio that the
population of New Hampshire bears to the combined total population of every state
within the United States where such business organization is taxable or subject
to tax. The need, and methodology used,
for reasonable approximation shall be determined on a separate entity basis
consistent with the separate entity treatment provided in RSA 77-A:1, I, notwithstanding
that a combined report is filed.
(f)
In the case of sales other than sales of
tangible personal property, if the taxpayer is not taxable in a state to which
a sale is assigned, or if the state of assignment cannot be determined or
reasonably approximated, such sale shall be excluded from the denominator of
the sales factor.
(g)
The sales price shall include all
interest, carrying charges or time-price differential charges and excise taxes
passed on to the buyer or included as part of the selling price of the product.
Source. #13177, eff 3-6-21
Rev 2404.07 Modification of Apportionment Provisions.
(a)
A business enterprise seeking to modify the statutory
apportionment formulas provided in RSA 77-E:4 shall, prior to using a modified
formula, petition the commissioner in writing.
(b)
The petition for modification of the apportionment formula shall be:
(1) Submitted separately and not attached to a
tax return being filed; and
(2) Mailed to:
Commissioner
New Hampshire
Department of Revenue Administration
(c)
The petition shall include:
(1) The business enterprise’s:
a. Full name and address;
b. Taxpayer identification number as defined in
Rev 2902.10; and
c. Taxpayer representative’s power of attorney,
if applicable;
(2) A full and precise statement of the business
activity and the necessity for the modification;
(3) Evidence supporting the business enterprise's
petition including:
a. Any court decisions and
b. True
copies of all contracts, deeds, agreements, instruments or other documents
which evidence the necessity of the modification of the apportionment formula;
(4) Reference to the statutory provisions
relating to the subject of the written petition;
(5) A description of the modified formula
proposed by the business enterprise; and
(6) A statement whether, to the best of the petitioner's knowledge, the modification is
the subject of prior petition requests of a similar or identical factual
nature.
(d) The use of a separate accounting result,
which differs from the standard apportionment result, shall not be deemed to
demonstrate conclusively the need for, or the acceptability of, a modified
apportionment formula.
(e) The information in the petition shall be
reviewed by the department’s director
of audit to determine whether the requested modification of the apportionment
formula measures the activity
being conducted in
(f)
The petitioner shall receive the determination signed by the
department’s director of audit.
(g) If the petitioner is aggrieved by the department’s
director of audit’s determination, the
petitioner may appeal the determination within 60 days after the date of the
determination letter by requesting a hearing on the petition in the same manner
as an adjudicative proceeding, involving the administration, assessment
or refund of taxes, governed by Rev 200.
(h) The use of a modified apportionment formula
by a business enterprise without the prior written approval of the department’s
director of audit, or order from the department’s commissioner, shall:
(1) Constitute a willful violation of RSA 77-E:4;
and
(2) Not be considered filed for purposes of RSA
77-E:5, RSA 77-E:1, XII, and Rev 2407 until
approval has been obtained from the department’s director of audit, or ordered by the commissioner.
(i) A copy of the commissioner’s order or the
department’s director of audit approval letter shall be attached
to all subsequently filed returns.
(j)
Once a modified apportionment formula has been approved by the department’s
director of audit or ordered by the commissioner, it shall remain in
effect in its entirety until:
(1) Another modification of apportionment formula petition
has been approved; or
(2) Another modification of apportionment formula has
been ordered by the department’s commissioner.
(k)
The business enterprise may petition in writing for, or the commissioner
may order, another modification of the apportionment formula when
further adjustments are necessary.
Source. #9065, eff 1-10-08
(from Rev 2404.06); ss by #11032, eff 1-29-16
PART Rev 2405 COMPUTATION OF TAX, PAYMENTS, REFUNDS AND
CARRYOVER OF CREDIT
Rev 2405.01 Payments of Liabilities.
(a)
Where a business
enterprise has a payment due with any document, such payment shall be
submitted:
(1) With the document when the business
enterprise is not:
a. Statutorily required to participate in the
electronic funds transfer program; or
b. Voluntarily
participating in the department’s electronic funds transfer program in
accordance with Rev 2500; or
(2) Separately from the document by means of an
electronic funds transfer program as provided in RSA 21-J:3, XXI and Rev 2500
in instances where the business enterprise is:
a. Statutorily required to participate in the
program; or
b. Voluntarily participating in the program in
accordance with Rev 2500.
(b)
A business enterprise with a tax liability under one dollar shall not be
required to remit the payment; however, the tax return shall be filed.
(c)
The payment of the business enterprise tax shall be made on, or before,
the prescribed payment date as defined in RSA 77-E:1, XIII.
(d)
An extension of time to file the tax return shall not extend the time
for the payment of the tax.
(e)
The department shall apply any overpayment of the business profits tax
estimated payments against the business enterprise tax liability.
(f)
Checks or money orders submitted as payments shall be payable to the
State of
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2405.02 Estimated Taxes.
(a)
A business enterprise having an annual projected tax liability in excess of $260 shall:
(1) Complete and file the applicable
estimated tax form:
a. Form NH-1040-ES, “Estimated Proprietorship Business
Tax”;
b. Form NH-1041-ES “Estimated Fiduciary Business
Tax”;
c. Form NH-1065-ES, “Estimated Partnership
Business Tax”; or
d. Form NH-1120-ES, “Estimated Corporation
Business Tax”; and
(2) Make 4 payments of 25% on such annually
projected tax liability on or before the fifteenth day of the fourth, sixth,
ninth, and the twelfth months of the tax year.
(b)
When an annually projected tax liability in excess of
$260 is determined in a quarter subsequent to the first quarter, the initial
estimated tax payment shall equal the cumulative amount payable as of that
quarter as if the liability had been determined in the first quarter.
(c)
Estimated tax liabilities of a water’s edge combined group, as defined
in RSA 77-A:1, XV, shall be:
(1) Determined for the combined group as a whole;
and
(2) Paid by the principal
Source. #5774, eff 1-21-94;
ss by #7178, eff 12-23-99, EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #10332, eff 5-9-13; ss by #11032, eff 1-29-16
Rev 2405.03 Application of an Overpayment.
(a)
An overpayment of tax, verified by the department, shall be treated in
the following sequence:
(1) Applied to offset any other tax liability of
the business enterprise or the water’s edge combined group, in accordance with
RSA 21-J:28-a, IV;
(2) Refunded to the taxpayer if requested by the taxpayer;
(3) Credited to subsequent tax liability; or,
(4) A combination of (2) and (3), above, if
indicated on Form BT-SUMMARY, “Business Tax SUMMARY” by the business enterprise
or the water’s edge combined group.
(b)
A business enterprise, which is not required to file a tax return, but
incorrectly files and makes a payment of estimated taxes, shall request a refund
by:
(1) Completing and filing Form BT-SUMMARY with the
department to request a refund
pursuant to RSA 21-J:29 I,(b); or
(2) Submitting a written request:
a. To the department at:
New Hampshire Department of Revenue
Administration
Taxpayer Services Division
PO Box 3306
Concord, NH 03302-3306; and
b. Which includes the following:
1. Name and mailing address;
2. Taxpayer identification number;
3. The type of entity for the business organization;
4. The reason the estimated tax payment was not
required to be made;
5. The tax year for which the estimated tax payment
was made;
6. The amount of the estimated tax payment; and
7. Preparer’s dated signature.
Source. #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16; ss by #13126-B, eff 10-24-20
Rev 2405.04 Carryover of Unused Credits Resulting From Changes in Form of Business.
(a)
The surviving entity involved in a merger may utilize unused business
enterprise tax credits of the merged companies.
(b)
The surviving entity involved in a merger shall determine the expiration
date of unused credits based on the original carryover periods of the credits
obtained in the merger.
(c)
A business enterprise which changes its form of conducting business,
such as the incorporation of a proprietorship, shall:
(1) Not lose the unused business enterprise tax
credits available to it at the time of change; and
(2) Determine the expiration date of all unused
credits based on the original carryover periods of the credits.
Source. #7178, eff 12-23-99
(from Rev 2405.02), EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
PART
Rev 2406 CREDITS ALLOWED AGAINST
TAX LIABILITY
Rev 2406.01 Credits Allowed Against the Business
Profits Tax. The business enterprise
tax credit against the business profits tax shall only be taken by a business
organization having the same federal employer identification number or social security
number as the business enterprise liable for the business enterprise tax,
except as referenced in Rev 2405.03.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #11032, eff 1-29-16
Rev 2406.02 Credits Allowed Against the Business
(a) A community development finance authority
investment tax credit, pursuant to RSA 162-L:10;
(b) An economic revitalization zone credit,
pursuant to RSA 162-N:6; and
(c) The unused portion of the research and
development credit, pursuant to RSA 162-P:1.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; rpld
by #7178, eff 12-23-99
New. #9065, eff 1-10-08
(from Rev 2406.01);
ss by #11032, eff 1-29-16
Rev 2406.03 Community Development Finance Authority
Investment Tax Credit.
(a)
A business organization qualified for the credit under RSA 162-L:10
shall be allowed a credit for the amount available based on its contributions
against either its:
(1) Business profits tax liability; or
(2) Business enterprise tax liability.
(b)
Any amount of the investment tax credit applied first against the
business profits tax shall not be used as a credit against the business
enterprise tax.
(c)
Any amount of the investment tax credit applied first against the
business enterprise tax shall:
(1) Be considered business enterprise tax paid;
and
(2) Not be available as a credit against the business
profits tax, except to the extent it is a credit against the business
enterprise tax.
(d)
In addition to the filing requirements under Rev 2407.02, a copy of the
following documents shall be attached to the business enterprise tax return:
(1) The authorization letter from
(2) Form DP-160, “Schedule of Credits”.
Source. #9065, eff 1-10-08; ss by #11032,
eff 1-29-16
Rev 2406.04 Economic Revitalization Zone Tax Credits.
(a)
Economic revitalization zone tax credits, pursuant to RSA 162-N:7, may
be allowed as a credit against either:
(1) The business profits tax liability; or
(2) The business enterprise tax liability.
(b)
Economic revitalization zone tax credits applied first against the
business profits tax shall not be available as a credit against the business
enterprise tax.
(c)
Economic revitalization zone tax credits applied first against the business
enterprise tax shall:
(1) Be considered business enterprise tax paid;
and
(2) Not be available as a credit against the
business profits tax, except to the extent it is a credit against the business
enterprise tax.
(d) In addition to the filing requirements under
Rev 2407.02, a copy of the following documents shall be attached to the
business enterprise tax return:
(1) The authorization letter from the
(2) Form DP-160.
Source. #9065, eff 1-10-08; ss by #11032,
eff 1-29-16
Rev 2406.05 Research and Development Tax Credit.
(a)
A business enterprise shall complete and file Form DP-165 “Research
& Development Tax Credit Application,” with the commissioner by June 30,
following the taxable period, to apply for the research and development tax
credit pursuant to RSA 77-A:5, XIII (a).
(b)
Any unused research and development tax credit not applied against the
business profits tax liability may be used to offset the taxpayer’s business
enterprise tax liability as provided on RSA 77-A:5, XIII.
(c)
Any wages included in the calculation of the research and development
tax credit shall be included in the compensation element of the enterprise value
tax base pursuant to RSA 77-A:5, XIII(b).
(d)
Taxpayers making quarterly estimated tax payments resulting in
overpayments after applying the credits may request a refund for the
overpayments on its Form BT-Summary.
Source. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2406.06 Education Tax Credit.
(a)
A business enterprise granted an education tax credit under RSA 77-G may
use the amount approved against its business enterprise tax liability for the
taxable period during which the corresponding donation was made and up to 5
succeeding taxable periods as provided in (c) below, after receiving a Form
ED-03, “Education Tax Credit Scholarship Receipt.”
(b)
No portion of the education tax credit used against the business
enterprise tax shall be considered taxes paid pursuant to RSA 77-E for purposes
of the credit against the business profits tax under RSA 77-A:5, X.
(c)
Any portion of the education tax credit which is not used to offset the
business organization’s liability under the business enterprise tax, the
business profits tax, or the interest and dividends tax, for the taxable period
during which the corresponding donation was made, may be carried forward and
allowed against the business enterprise tax, the business profits tax, or both,
for no more than 5 succeeding taxable periods, but shall not exceed $1,000,000
in any given taxable period. No portion
of the education tax credit shall be carried forward against the interest and
dividends tax.
(d) Every business organization using an education
tax credit against its liability under the business enterprise tax or the business profits tax shall attach a copy of each
applicable Form ED-03 to its business tax return, in accordance with Rev
3204.01(e).
Source. #10232, eff 11-21-12; ss by #11032,
eff 1-29-16; ss by #12883, eff 9-27-19
PART Rev 2407 RETURNS, EXTENSIONS AND DECLARATIONS
Rev 2407.01 Timeliness.
(a)
Returns, extensions and declarations shall be timely filed in accordance
with Rev 2904.03.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032,
eff 1-29-16
Rev 2407.02 Filing.
(a)
A business enterprise required to file a business profits tax return
shall complete and file its business enterprise tax return with its business
profits tax return and Form BT-Summary.
(b)
A business enterprise shall attach a clear and legible copy of their
federal income tax return with the business enterprise tax return.
(c)
A business enterprise, other than a single member entity, electing,
under the U.S. Department of the Treasury's Treasury Decision 8697, to be taxed
as a corporation or partnership for federal income tax purposes, shall:
(1) Comply with all federal income tax
regulations relating to such election;
(2) Complete and file its New Hampshire
business enterprise tax returns based on the entity type selected for federal
income tax purposes; and
(3) Attach:
a. A copy of federal Form 8832, if required to
be filed with the Internal Revenue Service; or
b. A statement that the business enterprise has
accepted the federal default treatment of being taxed as a partnership.
(d)
An entity electing, for federal income tax purposes the
provisions under the U.S. Department of the Treasury's Treasury Decision 8697,
shall:
(1) Not include the income or expenses of the
entity within the member's business enterprise tax return as provided under RSA
77-E:1, III; and
(2) Complete and file Form BET.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2407.01);
ss by #11032, eff 1-29-16
Rev 2407.03 Tax Returns.
(a)
A business enterprise as defined in Rev 2401.02 shall complete and file
Form BET and Form BT-SUMMARY and indicate the beginning and end dates for the
taxable period.
(b)
Members of a combined group conducting a unitary business shall complete
and file Form BET, on or before the 15th day of the fourth month
following the expiration of the taxable period.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2407.02);
ss by #11032, eff 1-29-16; ss by #13126-B, eff 10-24-20
Rev 2407.04 Amended Returns.
(a)
A business enterprise amending its business enterprise tax return
for reasons other than an Internal Revenue Service audit change shall complete
and
file Form BET and Form BT-Summary for the particular
taxable period.
(b)
Amended business enterprise tax returns not requesting a refund or
credit shall be filed within 3 years of the prescribed filing date for the
original return as provided by RSA 21-J:29.
(c)
Amended business enterprise tax returns requesting a refund or credit
shall be filed within 3 years of the prescribed payment date for the tax or
within 2 years from the date the tax was actually paid, whichever is later.
(d)
The 2-year period from the date the tax was actually paid shall not be
applicable to an amended return requesting a refund or credit where the payment
of tax, interest or penalty paid was a result of an assessment or a demand for
payment as provided by RSA 21-J:29.
(e)
Business enterprises shall attach a copy of the applicable federal
income tax return to the amended business enterprise tax return.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-9,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2407.03); ss
by #11032, eff 1-29-16
Rev 2407.05 Short Period Returns.
(a)
A business enterprise whose taxable period is less than 12 months shall
complete and file Form BET and Form BT-Summary and indicate the beginning
and end dates for the taxable period.
(b)
Short period returns shall be completed and filed by the 15th day
following the close of the business enterprise's taxable period of:
(1) The third month for partnerships; and
(2) The fourth month for combined groups and all
other entities.
(c)
A business enterprise may request an extension of time to file a short
period return in accordance with Rev 2407.07.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2407.04); ss
by #11032, eff 1-29-16; ss by #12187, eff 5-25-17
Rev 2407.06 Corrections Resulting From Internal Revenue Service Audit Changes.
(a)
Business enterprises shall report all federal audit changes, as provided
in RSA 77-E:9, with the department’s audit division when such changes finally
have been determined by filing:
(1) The applicable entity type Form DP-87,
“Report of Change for IRS Adjustment Only”; and
(2) Attaching a clear and legible copy of:
a. The federal revenue agent's report;
b. Closing agreement; and
c. Court decision, where applicable.
(b)
For purposes of this section, federal audit changes shall have been finally
determined when:
(1) The business enterprise has made payment to
the IRS on any additional income tax liability resulting from the federal audit
and has not filed a federal petition for redetermination or claim for
refund for the portions of the federal audit on which payment was made;
(2) The business enterprise received a refund
from the U.S. Department of the Treasury resulting from the federal audit;
(3) The business enterprise signed federal Form
870 or other Internal Revenue Service form consenting to the deficiency or
accepting any over-assessment;
(4) The business enterprise’s time period for
filing its federal petition for redetermination to the United States Tax Court expired;
(5) The business enterprise entered into a
closing agreement with the Internal Revenue Service as provided in section 7121
of the Internal Revenue Code as amended; or
(6) The business enterprise has received a decision
from the U.S. Tax Court, U.S.
(c)
A separate applicable business entity type Form DP-87, “Business Tax
Report of Change for IRS Adjustment Only,” as described in (a) (1) above, shall
be completed and filed for each:
(1) Business enterprise; and
(2) Taxable period affected by the federal audit.
(d)
The form in (c) above shall be submitted to the department’s
audit division under separate cover that is not attached to, bound with, or
accompanied by any other state of New Hampshire return or document.
(e)
Payment of any additional tax liability shall accompany the
applicable business entity type Form DP-87.
(f)
The statute of limitations shall be opened only for a federal audit
change on a tax return for the items of compensation, interest
or dividends, pursuant to RSA 77-E:9, that are directly affected by the
specific changes within the federal revenue agent’s report, closing agreement
or court decision.
Source.
INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2407.05);
ss by #11032, eff 1-29-16
Rev 2407.07 Extension of Time to File Returns.
(a)
A business enterprise which has paid 100% of the business enterprise tax
determined to be due by the prescribed due date shall be allowed an automatic
7-month extension of time, pursuant to RSA 77-E:8, to file a return without
filing an extension application.
(b)
A business enterprise which has not paid the business enterprise tax
determined to be due through estimated payments shall pay the additional amount
due on or before the prescribed payment date.
(c)
Extensions shall be denied for non-compliance with (a) and (b) above.
(d)
An extension of time for filing a business enterprise tax return shall not
extend the time for the payment of the tax.
(e)
Payments not made by the prescribed payment date shall be subject to the
interest and penalty provisions of RSA 21-J.
(f)
Form BT-EXT, “Payment Form and Application for 7 Month Extension of Time
to File Business Tax Return,” shall, prior to the due dates:
(1) Be completed and filed with:
New Hampshire
Department of Revenue Administration
PO Box 1201
Concord,
(2) Remit payment of any additional tax
liability.
Source. #9065, eff 1-10-08
(from Rev 2407.06); ss
by #11032, eff 1-29-16
PART Rev 2408 ADMINISTRATION
Rev 2408.01 Taxpayer Records and Information.
(a)
Every business enterprise shall maintain all information:
(1) Necessary to establish the amount of
compensation paid or accrued, net earnings from self-employment, interest paid
or accrued, dividends paid, and
(2) Required to be shown on any return, schedule
or attachment required under RSA 77-E and any administrative rules
adopted to implement the business enterprise tax.
(b)
The information required by (a) above shall include, but not be limited
to, the following:
(1) General ledger;
(2) Cash receipts records;
(3) Cash disbursements records;
(4) Sales records;
(5) Payroll records;
(6) Bank statements with all enclosures;
(7) Paid and unpaid invoices from vendors;
(8) Correspondence, contracts, or other agreements;
(9) Federal tax returns and all schedules
attached or required to be attached thereto;
(10) State and local tax returns and all schedules
attached or required to be attached thereto for all jurisdictions in which the
business enterprise has activities; and
(11) Agreements between the enterprise and its
owners or shareholders.
(c)
The information may be maintained in either a formal or informal nature
such as in a worksheet format provided that such worksheets shall be the basis
for the preparation of any financial statements and federal or state tax
returns.
(d)
The information shall be retained for a minimum period of 5 years from
the date the returns were filed or until the completion of all:
(1) Audits commenced by the department;
(2) Administrative appeals pending before the
department; and
(3) Judicial proceedings pending between the
business enterprise and the department.
(e)
Business enterprises shall provide the commissioner or authorized
representatives access to:
(1) All information, listed in (b) above, necessary
to establish the amount of compensation paid or accrued, net earnings from
self-employment, guaranteed payments, interest paid or accrued,
dividends paid, or any other information required to be shown on any return,
schedule or attachment required under RSA 77-E and any administrative rules
adopted to implement the business enterprise tax;
(2) Key company personnel, officers, or
employees, for interviews, where applicable, upon advance notice and at times
during the regular business day relative to substantial knowledge of and access
to documentation on:
a. Compensation policies;
b. Financing policies;
c. Profit centers or other methods of allocating
income and expense among related parties;
d. Methods of factor determination; or
e. Other data needed to establish a business
enterprise's proper tax liability;
(3) Minutes of meetings for the business
enterprise’s:
a. Board of directors;
b. Audit committee;
c. Compensation committee;
d. Finance committee; and
e. Other similar committees or subcommittees of
the board;
(4) Consolidated or separate federal income tax
returns and related schedules and exhibits as filed with the United States
Internal Revenue Service including federal Form 5471 or other
similar document for each taxable period under audit;
(5) Annual financial statement and supporting
schedules, including consolidating work papers for each taxable period under
audit;
(6) Reconciliation between net income from
financial statements and net income per books on Schedule M of the federal
income tax return as filed with the United States Internal Revenue Service for
each taxable period under audit;
(7) Schedules of sales, payroll and property by
state and supporting documentation that can be tied to the respective denominators
for each taxable period under audit; and
(8) Unemployment and withholding returns, as
applicable, for each taxable period under audit, filed with:
a. The United States Internal Revenue Service
for each taxable period under audit; and
b. The
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2408.02 Confidentiality of Department Records.
(a)
All business enterprise tax returns and information shall be confidential
pursuant to RSA 21-J:14.
(b)
The department shall make a disclosure or allow a representative to act
on behalf of the business enterprise pursuant to Rev 2903.02 (b).
(c)
Taxpayers shall provide their taxpayer identification number or numbers
on all tax returns and related documents pursuant to Rev 2903.02 (c).
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2408.03 Informal Pre-Assessment Conference.
(a)
The purpose of an informal pre-assessment conference shall be to discuss
the audit findings with the department’s audit division in an
effort to reach an agreement on the issues of facts, audit results, or both.
(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 business enterprise, the department’s
audit
division shall provide an informal pre-assessment conference with the
business enterprise, or its authorized representative.
(c)
The department’s audit division shall notify the business
enterprise or the authorized representative by mail of:
(1) The date, time, and location for the informal
pre-assessment conference; and
(2) The advanced information that the business
enterprise or its authorized representative shall be required to provide the
audit division.
(d)
The information specified in (c)(2), above, shall include:
(1) The name, address, and taxpayer identification
number of the business enterprise;
(2) An outline of the areas of agreement and disagreement;
(3) Documentation in support of the business enterprise’s
position such as, but not limited to:
a. Citations of supporting case law;
b. Statutory or regulatory provisions; and
c. Documents or correspondence from unrelated parties;
(4) Responses to outstanding questions raised by
the department’s auditor during the audit; and
(5) The names of the employees or authorized
representatives who shall participate in the informal pre-assessment
conference on behalf of the business enterprise.
(e)
Upon completing a review of material provided during the informal
conference, the department shall determine the appropriate disposition of the
audit or department review.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
PART Rev 2409 CERTIFICATIONS
Rev 2409.01 Business
(a)
A business enterprise making a request for certification shall:
(1) Complete and file Form AU–22, “Certification
Request Form,” with the department; and
(2) Include, pursuant to RSA 77-E:12, the fee by
check, made payable to the State of
(3) Pursuant to RSA 77-E:12, I (a), have paid all
taxes, interest and penalties.
(b)
The non-refundable fee, established under RSA77-E:12, for the
certification statements shall be considered fully expended when:
(1) The requested certification statement is
issued to the business enterprise; or
(2) The business enterprise, or its authorized
representative, is notified that the department is unable to issue the required
certification statement and the reason why it cannot do so.
(c) A request for the
certification statement signed by someone other than a corporate officer,
general partner, managing member, or the proprietor, shall be accompanied by a
power of attorney pursuant to Rev 2903.03.
(d)
The petitioner shall receive the requested certification if the
department’s commissioner determines that no returns, tax, additions to
tax, interest, or penalties for taxes administered by the department are due
and unpaid.
(e)
Certification statements shall be mailed to the business enterprise
unless the request authorizes the department to send the statement to someone
other than the business enterprise.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2409.02 Certification Statement of
Good Standing.
(a)
A business enterprise seeking the issuance of a certification statement
of good standing from the department shall, in addition to providing the
information in Rev 2409.01 (a) and (c), submit to the department:
(1) Returns due but have not yet been filed with
the department; and
(2) A copy of the federal tax return, as filed
with the IRS.
Source. #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2409.03 Certification of Dissolution. A business enterprise which is dissolving and
seeking a certification statement of dissolution shall, in addition to the
information in Rev 2409.01 (a) and (c), submit to the department:
(a)
A final
(b) A clear and legible copy
of federal Form 966, corporate dissolution or liquidation, if applicable;
(c)
Clear and legible copies of all federal Forms 4797 and 6252 filed
pertaining to the sale of assets and any other schedule that is required to
show the breakdown of the sale of assets;
(d)
A copy of the corporate minutes adopting the liquidation, describing the
disposition of the corporate assets, if applicable; and
(e)
A copy of the plan of liquidation, if one
exists.
Source. #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2409.04 Certification Statement for Withdrawal. As provided in RSA 77-E:12, II, a business
enterprise seeking a certification statement for withdrawal that the business
enterprise has adequately provided for all state tax liabilities administered
by the department shall, in addition to the information in Rev 2409.01 (a) and
(c), submit to the department:
(a)
An explanation for the withdrawal;
(b)
A copy of federal Form 966, if a plan of liquidation has been adopted; and
(c)
A final
Source. #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
PART Rev 2410 APPLICATION OF PENALTIES
Rev 2410.01 Substantial Understatement of Tax Penalty.
(a)
The department shall assess the 25% penalty for understatement of tax
provided by RSA 21-J:33-a on returns where the understatement exceeds the
greater of 10% of the correct tax liability or $5,000 unless the business
enterprise:
(1) Adequately disclosed the relevant facts
regarding the tax treatment of the item generating the understatement; or
(2) Had substantial authority for its tax treatment
of such item.
(b)
A business enterprise 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:
(1) The statement contains:
a. A prominent caption identifying the statement
as a disclosure of the tax treatment for the substantial underpayment penalty
provided in RSA 21-J:33-a; and
b. Those facts affecting the tax treatment of
the item will apprise the department of the potential controversy or a concise
description of the legal issues presented by the facts in question;
(2) The item for which the disclosure is made is
clearly identified; and
(3) The dollar amount of the item is disclosed.
(c)
A business enterprise shall have substantial authority for the tax treatment
of an item if the weight of the authorities supporting the treatment of the
item is substantial in relation to the weight of the authorities supporting the
position of the department.
(d)
The department shall consider the following as authoritative sources of
substantial authority for items specific to the application of the business
enterprise tax:
(1) Any
(2) Department administrative rules;
(3) Declaratory rulings issued to the business enterprise;
(4) Department technical information releases;
(5) Superior court and board of tax and land
appeals decisions;
(7)
(8) New Hampshire Legislative committee reports
specifying legislative intent; and
(9) Written advice from the department issued to
the business enterprise about the tax treatment of the item in question.
(e)
The department shall consider the following as authoritative sources of
substantial authority in arriving at the enterprise value tax base that are included in federal
taxable income before any state required adjustments:
(1) Internal Revenue Code and other statutory provisions;
(2) Temporary and final United States Department
of the Treasury regulations;
(3) Federal
or state court cases;
(4) Internal Revenue Service or United States
Department of the Treasury administrative pronouncements including revenue rulings
and revenue procedures;
(5) Tax
treaties and related regulations, as well as the United States Department of
the Treasury's or other official explanation of such treaties;
(6) Congressional
intent as reflected in Committee Reports, joint explanatory statements of
managers included in the conference committee reports and floor statements made
by the bill's managers prior to enactment;
(7) Controlling
precedent of the United States Court of Appeals to which the business
enterprise has a right of appeal;
(8) Technical advice memoranda, ruling or
determination letter issued to the business enterprise or in which the business
enterprise is named;
(9) An affirmative statement in a federal revenue
agent's report with respect to the business enterprise’s prior taxable periods;
and
(10) Any source accepted by the Internal Revenue
Service as substantial authority.
(f) The following shall not
be considered authoritative sources:
(1) Opinions by tax professionals;
(2) Tax publication opinions or narrative
statements; and
(3) Articles contained in professional or tax
periodicals.
(g) The existence of
substantial authority for a particular item shall be determined as of the date
the tax return containing the item was filed or as of the last day of
the taxable period to which the tax return relates, whichever is later.
(h) The penalty shall be
applied to the net understatement determined by reducing the understatement, as
defined in RSA 21-J:33-a, III, by the portion of the understatement for which
the business enterprise had substantial authority or had adequately disclosed
the position taken on the return.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2410.02 Understatement of Taxpayer's Liability by
Tax Preparer Penalty.
(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 business enterprise's tax liability.
(b)
An individual or company providing more than mechanical assistance shall
be deemed to be a tax preparer when the individual or company uses computer software to make
determinations about the:
(1) Applicability of tax laws or characterization
of income; and
(2) Allowability of deductions or credits.
(c)
The penalty provided in RSA 21-J:33-b, III, shall be assessed when any
part of an understatement of tax is the result of a tax preparer's willful
neglect or intentional disregard of the statute or department administrative rule
unless the business enterprise has adequately disclosed the tax
treatment of an item on the tax return or in a statement attached
to the front of the tax return as provided in Rev 2410.01(b).
(d)
A tax preparer shall be deemed to have acted with willful neglect or
intentional disregard when the tax preparer fails:
(1) To comply with a statutory provision interpreted
in an opinion of the
(2) To comply with a department administrative rule
prescribing the appropriate tax treatment of an item contained in the business
enterprise tax return; or
(3) Review a statute, administrative rule,
or court case that addresses the proper treatment of an item or issue.
(e)
The penalty provided in RSA 21-J:33-b, IV shall be assessed when any
part of an understatement of tax is the result of a tax preparer's willful
attempt to understate the business enterprise’s tax liability.
(f)
A tax preparer shall be deemed to have made a willful attempt to
understate a tax liability of a business enterprise by:
(1) Disregarding or misstating information
furnished by the business enterprise, or other person in an
attempt to reduce the tax liability; or
(2) Not inquiring of the business enterprise or
other person when the tax preparer knows or should have known
that the information provided was incorrect or incomplete.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
Rev 2410.03 Aiding and Abetting an Understatement of
Tax Liability Penalty.
(a)
The penalty provided in RSA 21-J:33-c shall be assessed against any person
who aids, assists in, procures or advises in the
preparation of any tax return or document in connection
with the business enterprise tax law or department administrative rule if the
person knows that:
(1) The information provided will be used in the preparation
of any material document; and
(2) If used, the information will result in an
understatement of tax liability.
(b)
The penalty shall not be assessed when the business enterprise
adequately disclosed the relevant facts regarding the tax treatment of the item
in the manner provided in Rev 2410.01(b).
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff
1-29-16
PART
Rev 2411 BUSINESS
Rev 2411.01 Availability of Forms.
(a)
Forms may be obtained:
(1) Online at www.revenue.nh.gov;
(2) By calling the forms line at 603-230-5001: or
(3) By requesting them, in writing, from:
New Hampshire
Department of Revenue Administration
Tax Forms
(b)
Business enterprise tax forms listed on www.revenue.nh.gov/forms may be filled in on line, printed, signed, and submitted to the department.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-9494; ss by #5774, eff 1-21-94; ss by #7178, eff
12-23-99, EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2411.02); ss
by #11032, eff 1-29-16
Rev 2411.02 Form BT-EXT, Payment Form and Application
for 7-Month Extension of Time to File
Business Tax Return.
(a)
Business enterprises that have not paid 100% of their tax liability and
need an extension of time to file their business enterprise tax return shall:
(1) Remit payment of any additional tax
liability; and
(2) Complete and file Form BT-EXT,
“Payment Form and Application for 7 Month
Extension of Time to File Business Tax Return,” in accordance with RSA
77-E:8 on or before the original due date of the applicable tax return or returns.
(b)
Business enterprises that have paid 100% of their tax liability and need
an extension of time to file their business enterprise tax return, shall be
granted a 7-month extension of time to file the tax return without
filing Form BT-EXT.
(c) A granted extension of time to file its
business tax return shall extend the due date of the tax return, not the due date
of any payment.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99,
EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2411.05); ss
by #11032, eff 1-29-16
Rev 2411.03 Form BT-SUMMARY, Business Tax Return
Summary.
(a)
Form BT-SUMMARY, “Business Tax Return Summary,” shall be completed
and
filed by business enterprises to report all business enterprise
tax liabilities, interest, penalties and payments to
the department.
(b)
Business enterprises shall attach:
(1) The required business enterprise tax return
and business profits tax return to Form BT-SUMMARY; and
(2) Copies of the federal forms and schedules
used to support the information being reported as provided for in Rev 2408.
Source. INTERIM #5708, eff
9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; amd by #6130, eff 11-23-95;
ss and moved by #7178, eff 12-23-99 (from Rev 2411.02), EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2411.06); ss
by #11032, eff 1-29-16
Rev 2411.04 Form BET, Business
(a) Form BET, “Business Enterprise Tax Return” shall be completed and filed
by business enterprises to report their business enterprise tax liability in
compliance with RSA 77-E:5.
(b)
Business enterprises preparing Form BET shall attach the form to Form BT-SUMMARY.
Source. #6130, eff 11-23-95;
ss and moved by #7178, eff 12-23-99 (from Rev 2411.03), EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2411.07);
ss by #11032, eff 1-29-16
Rev 2411.05 Form BET-80, Business
(a)
Form BET-80, “Business Enterprise Tax Apportionment,” shall be completed
and
filed by business enterprises required to apportion their New Hampshire
business activity in accordance with RSA 77-E:4.
(b)
Business enterprises preparing Form BET-80 shall attach the form to Form BET.
Source. #6130, eff 11-23-95;
ss and moved by #7178, eff 12-23-99 (from Rev 2411.05), EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2411.09); ss by #11032, eff 1-29-16 (formerly Rev 2411.06)
Rev 2411.06 Form BET-80-WE,
Business
(a)
Form BET-80-WE, “Business Enterprise Tax Apportionment for Individual
Nexus Members of a Combined Group,” shall be completed and filed by its combined
group business enterprises required to apportion their New Hampshire business activity,
in accordance with RSA 77-E:4.
(b)
Combined group business enterprises preparing Form
BET-80-WE shall attach the form to Form BET.
Source. #6130, eff 11-23-95;
ss and moved by #7178, eff 12-23-99 (from Rev 2411.07), EXPIRED: 12-23-07
New. #9065, eff 1-10-08
(from Rev 2411.11); ss by #11032, eff 1-29-16 (formerly Rev 2411.08)
Rev 2411.07 Estimated Tax Forms. A business enterprise having an annual
projected tax liability in excess of $260 shall complete
and
file the applicable estimated tax form:
(a)
Form NH-1040-ES, “Estimated Proprietorship Business Tax”;
(b)
Form NH-1041-ES “Estimated Fiduciary Business Tax”;
(c)
Form NH-1065-ES, “Estimated Partnership Business Tax”; or
(d)
Form NH-1120-ES, “Estimated Corporation Business Tax.”
Source. #6130, eff 11-23-95;
ss and moved by #7178, eff 12-23-99 (from Rev 2411.08), EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #10332, eff 5-9-13; ss by #11032, eff 1-29-16 (formerly Rev 2411.09)
Rev 2411.08 Form AU-22, Certification Request Form. A business enterprise seeking a certification
statement of good standing, statement for withdrawal, or certificate of dissolution
from the department shall submit Form AU-22, “Certification Request Form,” accompanied
by the statutorily set fee and the documents described in Rev 2409.
Source. #6130, eff 11-23-95;
ss and moved by #7178, eff 12-23-99 (from Rev 2411.09), EXPIRED: 12-23-07
New. #9065, eff 1-10-08;
ss by #10332, eff 5-9-13; ss by #11032, eff 1-29-16 (formerly Rev 2411.10)
Rev 2411.09 Form DP-165, Research & Development
Tax Credit Application.
(a)
A business enterprise shall complete and file Form DP-165,
“Research & Development Tax Credit Application,” with the department’s commissioner
by June 30 following the taxable period, to apply for a research and development
tax credit.
(b)
The application shall be accompanied by federal Form 6765, Credit for
Increasing Research Activities.
Source. #7178, eff 12-23-99
(from Rev 2411.10), EXPIRED: 12-23-07
New. #9065, eff 1-10-08; ss by #11032, eff 1-29-16 (formerly
Rev 2411.11)
Rev 2411.10 Forms Applying Credits for Business
Profits Tax. A business enterprise
reporting a business profits tax credit for research and development, or an
economic revitalization zone tax credit, shall complete and file the following
applicable form with their business enterprise tax return Form DP-160 “Schedule
of Credits”.
Source. #9065, eff
1-10-08; ss by #11032, eff
1-29-16 (formerly Rev 2411.12)
Rev 2411.11 Form DP-216, Employee Leasing Company
Business
(a)
An employee leasing company and a client company shall make an election
under RSA 77-E:13-a by jointly completing and filing Form DP-216, “Employee
Leasing Company Business Enterprise Tax (BET) Election,” with the department.
(b)
For an election to be effective for any given tax year, the employee
leasing company and the client company shall jointly complete and file Form
DP-216 prior to the end of the employee leasing company's tax year.
(c)
To terminate an election, the employee leasing company and the client
company shall jointly complete and file Form DP-216 with the department prior
to the end of the employee leasing company’s tax year to which the termination
relates.
(d)
Employee leasing companies and client companies making an election under
RSA 77-E:13-a shall attach a copy of Form DP-216 to each Form BET filed while
the election is in effect.
Source. #11044, eff 2-24-16
APPENDIX
|
Rule |
Specific State
Statute the Rule Implements |
|
|
Rev 2401.01 |
RSA 21-J:13, I;
RSA 77-E:3, II |
|
|
Rev 2401.02 |
RSA 77-E:1, III |
|
|
Rev 2401.03 |
RSA 21-J:13, I |
|
|
Rev 2401.04 |
RSA 277-B:2, III |
|
|
Rev 2401.05 |
RSA 77-E:4 |
|
|
Rev 2401.06 |
RSA 277-B:2, V |
|
|
Rev 2401.07 |
RSA 77-E:4 |
|
|
Rev 2401.08 |
RSA 21-J:13, I |
|
|
Rev 2401.09 |
RSA 21-J:13, I;
RSA 77-A:15; RSA 77-E:1, XVII |
|
|
Rev 2401.10 |
RSA 21-J:13, I |
|
|
Rev 2401.11 |
RSA 21-J:13, I;
RSA 77-E:1, VI(f) |
|
|
Rev 2401.12 |
RSA 21-J:13, I;
RSA 77-E:4, I |
|
|
Rev 2401.13 |
RSA 21-J:13, I;
RSA 77-E:4, I(c)(3) |
|
|
Rev 2401.14 |
RSA 21-J:13, I;
RSA 77-A:3; RSA 77-A:4 |
|
|
|
|
|
|
Rev 2402.01 –
Rev 2402.07 |
RSA 21-J:13, I;
RSA 77-E:1, RSA 77-E:2, |
|
|
Rev 2402.01(a)
intro and (a)(7) |
RSA 77-E:1; RSA 77-E:11,
II |
|
|
Rev 2402.08 |
RSA 77-A:5, X;
RSA 77-E:13-a; |
|
|
Rev 2403.01 –
Rev 2403.02 |
RSA 21-J:13, I;
RSA 77-E:3 |
|
|
Rev 2403.03 |
RSA 77-E:4 |
|
|
Rev 2404.01 |
RSA 21-J:13, I;
RSA 77-E:4 |
|
|
Rev 2404.02 –
Rev 2404.05 |
RSA 21-J:13, I;
RSA 77-E:4 |
|
|
Rev 2404.06 |
RSA 77-E:4 |
|
|
Rev 2404.061 |
RSA 77-E:4 |
|
|
Rev 2404.07 |
RSA 21-J:13, I;
RSA 77-E:4 |
|
|
|
|
|
|
Rev 2405.01
& 2405.04 |
RSA 21-J:13, I;
RSA 77-E:6, RSA 77-E:13 |
|
|
|
|
|
|
Rev 2405.02 |
RSA 77-E:5, II; RSA
77-E:6, RSA 77-E:13 |
|
|
Rev 2405.03 |
RSA 77-E:11, II; RSA 77-E:6, II; RSA 21-J:28-a |
|
|
Rev 2406.01 |
RSA 21-J:13, I; RSA
77-E:13 |
|
|
Rev 2406.02 |
RSA 21-J:13, I;
RSA 77-E |
|
|
Rev 2406.03 |
RSA 21-J:13, I;
RSA 77-E:3-a; RSA 77-E:3-b |
|
|
Rev 2406.04 |
RSA 21-J:13, I;
RSA 77-E:3-a |
|
|
Rev 2406.05 |
RSA 21-J:13, I;
RSA 77-E:3-b |
|
|
Rev 2406.06 |
RSA 77-E:3-d;
RSA 77-G:3; RSA 77-G:4, II; RSA 77-G:6, I(f) |
|
|
Rev 2407.01 |
RSA 21-J:13, I;
RSA 77-E:5, RSA 77-E:7, |
|
|
Rev 2407.02 |
RSA 21-J:13, I |
|
|
Rev 2407.03 |
RSA 77-E:11, II; RSA 77-E:5, I |
|
|
Rev 2407.04 |
RSA 21-J:13, I |
|
|
Rev 2407.05 |
RSA 21-J:13, I; RSA
77-E:5, I; RSA 77-E:8; RSA 77-E:11, II |
|
|
Rev 2407.06 |
RSA 21-J:13, I;
RSA 77-E:9 |
|
|
Rev 2407.07 |
RSA 21-J:13, I |
|
|
Rev 2408.01 –
Rev 2408.03 |
RSA 21-J:13, I;
RSA 77-E:10; RSA 21-J:14 |
|
|
Rev 2409.01 –
Rev 2409.04 |
RSA 21-J:13, I;
RSA 77-E:12 |
|
|
Rev 2410.01 – Rev
2410.03 |
RSA 21-J:13, I;
RSA 77-E:7, RSA 77-E:11 |
|
|
Rev 2411.01 – Rev
2411.08 |
RSA 21-J:13, I |
|
|
Rev 2411.09 |
RSA 77-E:5, II; RSA
77-E:6, RSA 77-E:13 |
|
|
Rev 2411.10 |
RSA 21-J:13, I |
|
|
Rev 2411.11 |
RSA 77-E:13-a |
|