Section Rev 1010.03 - Adequate Disclosure and Substantial Authority Requirements(a) For purposes of meeting the requirements of RSA 21-J:33-b and RSA 21-J:33-c, a licensee 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 all of the following criteria are met: (1) The statement contains a prominent caption identifying the statement as a disclosure of the tax treatment for the understatement of taxpayer's liability by tax preparer penalty provided in RSA 21-J:33-b and the penalty for aiding and abetting an understatement of tax liability provided in RSA 21-J:33-c;(2) The item for which the disclosure is made is clearly identified;(3) The dollar amount of the item is disclosed; and(4) The statement contains those facts affecting the tax treatment of the item that reasonably will apprise the department of the nature of the potential controversy or a concise description of the legal issues presented by the facts in question.(b) In determining whether a licensee has substantial authority, the department shall consider the following as being authoritative sources: (1) The tax statutes on tobacco and any other New Hampshire statutes that have a bearing on the tax statutes;(2) Rules issued by the department;(3) Declaratory rulings requested by and issued to the licensee making the disclosure;(4) Technical information releases issued by the department;(5) Superior court and board of tax and land appeals decisions;(6) Federal district court and first circuit court of appeals decisions;(7) United States and New Hampshire supreme court decisions;(8) Legislative committee reports specifying legislative intent; and(9) Written advice from the department issued to the licensee about the tax treatment of the item in question.(c) The following shall not be considered authoritative sources: (1) Opinions by tax professionals;(2) Tax publication opinions or narrative statements; or(3) Articles contained in any professional or tax periodicals.(d) The existence of substantial authority for a particular item shall be determined as of the date the return containing the item was filed.N.H. Admin. Code § Rev 1010.03
#6662, eff 12-25-97; ss by #8526, 12-21-05; ss by #10536, eff 3-6-14