Section 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
PO Box 457
Concord, NH 03302-0457.
(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; andc. 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 New Hampshire administrative rules on the matter; andb. 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 New Hampshire more accurately than the statutory apportionment formulas.(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.N.H. Admin. Code § Rev 2404.07
#9065, eff 1-10-08 (from Rev 2404.06 )
Amended by Volume XXXVI Number 06, Filed February 11, 2016, Proposed by #11032, Effective 1/29/2016, Expires 1/29/2026.