N.H. Admin. Code § Rev 2407.06

Current through Register No. 50, December 12, 2024

Section Rev 2407.06 - Corrections Resulting From Internal Revenue Service Audit Changes

(a) Business enterprises shall report all federal audit changes, as provided in RSA 77-E:9, with the department's audit division when such changes finally have been determined by filing:

(1) The applicable entity type Form DP-87, "Report of Change for IRS Adjustment Only"; and

(2) Attaching a clear and legible copy of:

a. The federal revenue agent's report;

b. Closing agreement; and

c. Court decision, where applicable.

(b) For purposes of this section, federal audit changes shall have been finally determined when:

(1) The business enterprise has made payment to the IRS on any additional income tax liability resulting from the federal audit and has not filed a federal petition for redetermination or claim for refund for the portions of the federal audit on which payment was made;

(2) The business enterprise received a refund from the U.S. Department of the Treasury resulting from the federal audit;

(3) The business enterprise signed federal Form 870 or other Internal Revenue Service form consenting to the deficiency or accepting any over-assessment;

(4) The business enterprise's time period for filing its federal petition for redetermination to the United States Tax Court expired;

(5) The business enterprise entered into a closing agreement with the Internal Revenue Service as provided in section 7121 of the Internal Revenue Code as amended; or

(6) The business enterprise has received a decision from the U.S. Tax Court, U.S. District Court, U.S. Court of Appeals, U.S. Court of Claims, or the U.S. Supreme Court which is final and non-appealable.

(c) A separate applicable business entity type Form DP-87, "Business Tax Report of Change for IRS Adjustment Only," as described in (a) (1) above, shall be completed and filed for each:

(1) Business enterprise; and

(2) Taxable period affected by the federal audit.

(d) The form in (c) above shall be submitted to the department's audit division under separate cover that is not attached to, bound with, or accompanied by any other state of New Hampshire return or document.

(e) Payment of any additional tax liability shall accompany the applicable business entity type Form DP-87.

(f) The statute of limitations shall be opened only for a federal audit change on a tax return for the items of compensation, interest or dividends, pursuant to RSA 77-E:9, that are directly affected by the specific changes within the federal revenue agent's report, closing agreement or court decision.

N.H. Admin. Code § Rev 2407.06

INTERIM #5708, eff 9-23-93, EXPIRED: 1-21-94; ss by #5774, eff 1-21-94; ss by #7178, eff 12-23-99, EXPIRED: 12-23-07

New. #9065, eff 1-10-08 (from Rev 2407.05 )

Amended by Volume XXXVI Number 06, Filed February 11, 2016, Proposed by #11032, Effective 1/29/2016, Expires 1/29/2026.