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