Section Rev 2607.02 - Understatement of Taxpayer's Liability(a) The penalty provided in RSA 21-J:33-b, III, shall be assessed when an understatement of tax is the result of a tax preparer's willful neglect or intentional disregard of the statute or departmental rules unless the taxpayer has adequately disclosed the tax treatment of an item on the return or in a statement attached to the front of the return as provided in Rev 2410.01(b).(b) A tax preparer shall be deemed to have acted with willful neglect or intentional disregard when the preparer fails to: (1) Comply with a statutory provision as interpreted in an opinion of the New Hampshire supreme court;(2) Comply with a department rule prescribing the appropriate tax treatment of an item contained in the tax return; or(3) Follow a statute, rule, or court case that addresses the proper treatment of an item or issue.(c) The penalty provided in RSA 21-J:33-b, IV shall be applied when any part of an understatement of tax is the result of a preparer's willful attempt, as stated in (d) below, to understate the taxpayer's tax liability.(d) A tax preparer shall be deemed to have made a willful attempt to understate a tax liability of a taxpayer in cases such as, but not limited to: (1) Disregarding or misstating information furnished by the taxpayer, or other person in an attempt to reduce the tax liability; or(2) Not making inquiries of the taxpayer or other person when the information provided is incorrect or incomplete, and the preparer knows or should have known that the information was incorrect or incomplete.(e) The penalty provided in RSA 21-J:33-c shall be assessed against any person who aids, assists in, procures, or advises in the preparation or presentation of any return or other document in connection with the electricity consumption tax law or department rules if the person knows, or should have known, that: (1) The information provided will be used in the preparation of any material document; or(2) If used, the information will result in an understatement of tax liability.(f) The penalty imposed by RSA 21-J:33-b, or by RSA 21-J:33-c, shall be abated and refunded if: (1) An adjudicative proceeding or a judicial decision establishes that there was no understatement of liability; and(2) The penalty had been previously paid.(g) The refund of a penalty shall be made without any consideration of any period of limitation for the issuance of a tax refund.N.H. Admin. Code § Rev 2607.02
#7479, eff 4-24-01; ss by #9443, eff 4-1-09
Amended by Volume XXXVII Number 15, Filed April 13, 2017, Proposed by #12138, Effective 3/22/2017, Expires 3/22/2027.