Section Rev 1010.01 - 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 licensee'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 allow ability 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: (1) The result of a tax preparer's willful neglect; or(2) Intentional disregard of the statute or department rules unless the individual or company shall have adequately disclosed the tax treatment of an item on the return or in a statement attached to the front of the return as provided in Rev 1010.03.(d) Affirmative defenses against an allegation of a tax preparer being willfully negligent, or intentionally disregarding a statute or rule, shall be: (1) The tax preparer had substantial authority as provided in Rev 1010.03 for the tax treatment of the item; or(2) The tax preparer exercised due care in an effort to apply the statute and rules to the information given to the preparer by the licensee unless the preparer knew or should have recognized that such information was incorrect or incomplete.(e) The penalty provided in RSA 21-J:33-b, IV shall be applied when any part of an understatement of tax is the result of a preparer's willful attempt to understate the licensee's tax liability.(f) A tax preparer shall be deemed to willfully attempt to understate a tax liability of a licensee by: (1) Disregarding or misstating information furnished by the licensee or other person in an attempt to wrongfully reduce the tax liability; or(2) Not making inquiries of the licensee 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.(g) 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, then the penalty imposed by RSA 21-J:33-b shall be abated and refunded.(h) The refund of the penalty shall be made without any consideration of any period of limitation for the issuance of a refund.N.H. Admin. Code § Rev 1010.01
#6662, eff 12-25-97; ss by #8526, eff 12-21-05; ss by #10536, eff 3-6-14