N.H. Admin. Code § Rev 1611.02 - Understatement of Taxpayer's Liability by Tax Preparer

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

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

(c) The 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 departmental rules unless the retailer or customer shall have adequately disclosed the tax treatment of an item on the return or in a statement attached to the front of the return.

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

(1) Any part of an understatement of tax is the result of a preparer's willful attempt to understate the retailer's or customer's tax liability or;

(2) A tax preparer shall have willfully attempted to understate a tax liability of a retailer or customer in the following instances:

a. The preparer disregards or misstates information furnished by the retailer, customer, or other person in an attempt to wrongfully reduce the tax liability; or

b. The preparer does not make inquiries of the retailer, customer, or other person when the information provided is incorrect or incomplete, and the preparer knows or should have known that the information was incorrect or incomplete.

(e) If, in an adjudicative proceeding or a judicial decision, it is established that there was no understatement of liability and if previously paid by the preparer, the penalty imposed shall be abated and refunded without any consideration of any period of limitation for the issuance of a refund.

Notes

N.H. Admin. Code § Rev 1611.02

#6336, eff 9-24-96; ss by #8178, eff 9-24-04; ss by #10213, eff 10-24-12

Amended by Number 10, Filed March 9, 2023, Proposed by #13553, Effective 2/7/2023, Expires 2/7/2033 (see Revision Note at chapter heading for Rev 1600).