N.H. Admin. Code § Rev 2408.01

Current through Register No. 50, December 12, 2024

Section Rev 2408.01 - Taxpayer Records and Information

(a) Every business enterprise shall maintain all information:

(1) Necessary to establish the amount of compensation paid or accrued, net earnings from self-employment, interest paid or accrued, dividends paid, and

(2) Required to be shown on any return, schedule or attachment required under RSA 77-E and any administrative rules adopted to implement the business enterprise tax.

(b) The information required by (a) above shall include, but not be limited to, the following:

(1) General ledger;

(2) Cash receipts records;

(3) Cash disbursements records;

(4) Sales records;

(5) Payroll records;

(6) Bank statements with all enclosures;

(7) Paid and unpaid invoices from vendors;

(8) Correspondence, contracts, or other agreements;

(9) Federal tax returns and all schedules attached or required to be attached thereto;

(10) State and local tax returns and all schedules attached or required to be attached thereto for all jurisdictions in which the business enterprise has activities; and

(11) Agreements between the enterprise and its owners or shareholders.

(c) The information may be maintained in either a formal or informal nature such as in a worksheet format provided that such worksheets shall be the basis for the preparation of any financial statements and federal or state tax returns.

(d) The information shall be retained for a minimum period of 5 years from the date the returns were filed or until the completion of all:

(1) Audits commenced by the department;

(2) Administrative appeals pending before the department; and

(3) Judicial proceedings pending between the business enterprise and the department.

(e) Business enterprises shall provide the commissioner or authorized representatives access to:

(1) All information, listed in (b) above, necessary to establish the amount of compensation paid or accrued, net earnings from self-employment, guaranteed payments, interest paid or accrued, dividends paid, or any other information required to be shown on any return, schedule or attachment required under RSA 77-E and any administrative rules adopted to implement the business enterprise tax;

(2) Key company personnel, officers, or employees, for interviews, where applicable, upon advance notice and at times during the regular business day relative to substantial knowledge of and access to documentation on:

a. Compensation policies;

b. Financing policies;

c. Profit centers or other methods of allocating income and expense among related parties;

d. Methods of factor determination; or

e. Other data needed to establish a business enterprise's proper tax liability;

(3) Minutes of meetings for the business enterprise's:

a. Board of directors;

b. Audit committee;

c. Compensation committee;

d. Finance committee; and

e. Other similar committees or subcommittees of the board;

(4) Consolidated or separate federal income tax returns and related schedules and exhibits as filed with the United States Internal Revenue Service including federal Form 5471 or other similar document for each taxable period under audit;

(5) Annual financial statement and supporting schedules, including consolidating work papers for each taxable period under audit;

(6) Reconciliation between net income from financial statements and net income per books on Schedule M of the federal income tax return as filed with the United States Internal Revenue Service for each taxable period under audit;

(7) Schedules of sales, payroll and property by state and supporting documentation that can be tied to the respective denominators for each taxable period under audit; and

(8) Unemployment and withholding returns, as applicable, for each taxable period under audit, filed with:

a. The United States Internal Revenue Service for each taxable period under audit; and

b. The New Hampshire department of employment security.

N.H. Admin. Code § Rev 2408.01

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

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