Section Rev 2410.02 - Understatement of Taxpayer's Liability by Tax Preparer Penalty(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 business enterprise's tax liability.(b) An individual or company providing more than mechanical assistance shall be deemed to be a tax preparer when the individual or company uses computer software to make determinations about the: (1) Applicability of tax laws or characterization of income; and(2) Allowability 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 the result of a tax preparer's willful neglect or intentional disregard of the statute or department administrative rule unless the business enterprise has adequately disclosed the tax treatment of an item on the tax return or in a statement attached to the front of the tax return as provided in Rev 2410.01(b).(d) A tax preparer shall be deemed to have acted with willful neglect or intentional disregard when the tax preparer fails:(1) To comply with a statutory provision interpreted in an opinion of the New Hampshire supreme court; or(2) To comply with a department administrative rule prescribing the appropriate tax treatment of an item contained in the business enterprise tax return; or(3) Review a statute, administrative rule, or court case that addresses the proper treatment of an item or issue.(e) The penalty provided in RSA 21-J:33-b, IV shall be assessed when any part of an understatement of tax is the result of a tax preparer's willful attempt to understate the business enterprise's tax liability.(f) A tax preparer shall be deemed to have made a willful attempt to understate a tax liability of a business enterprise by: (1) Disregarding or misstating information furnished by the business enterprise, or other person in an attempt to reduce the tax liability; or(2) Not inquiring of the business enterprise or other person when the tax preparer knows or should have known that the information provided was incorrect or incomplete.N.H. Admin. Code § Rev 2410.02
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.