N.H. Code Admin. R. Rev 308.01

Current through Register No. 25, June 20, 2024

Section Rev 308.01 - Taxpayer Records and Information

(a) Every business organization shall:

(1) Maintain all accounting, financial, or general information necessary to establish the amount of gross income, deductions, credits, or any other information required to be shown on any return, schedule, or attachment required under RSA 77-A and any department rules adopted to implement the business profits tax such as, but not limited to:

a. General ledger;

b. Cash receipts records;

c. Cash disbursements records;

d. Sales records;

e. Payroll records;

f. Bank statements with all enclosures;

g. Paid and unpaid invoices from vendors;

h. Correspondence, contracts, or other agreements;

i. Federal tax returns and all schedules attached or required to be attached thereto;

j. State and local tax returns and all schedules attached or required to be attached thereto for all jurisdictions in which the business organization has activities; and

k. Any electronic records maintained by the taxpayer; and

(2) Retain such records for a minimum period of 3 years from the date the returns were filed with the department or until the completion of all:

a. Audits commenced by the department;

b. Administrative appeals pending before the department; and

c. Judicial proceedings pending between the business organization and the department.

(b) Every business organization shall provide the commissioner or the commissioner's authorized designee access to:

(1) All records or information necessary to establish the amount of gross income, deductions, credits, or other information required to be shown on any return, schedule, or attachment required under RSA 77-A and any department rules adopted to implement the business profits tax;

(2) Key company personnel for interviews where applicable upon advance notice and at times during the regular business day;

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

a. Board of directors;

b. Audit committee;

c. Compensation committee;

d. Finance committee; and

e. Other similar committees or subcommittees of the board, where applicable;

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

(5) Annual financial statements, notes, and supporting schedules, including consolidating work papers for each year under audit;

(6) A reconciliation between net income from financial statements and net income per books on federal Form Schedule M as filed with the United States Internal Revenue Service for each year under audit;

(7) A reconciliation between the business organization's gross business profits and the IRC as described in RSA 77-A:1, XX;

(8) Schedules of sales, payrolls, and properties by state and documentation to support the respective apportionment factor for each year under audit;

(9) Federal unemployment and withholding returns filed with the United States Internal Revenue Service for each year under audit;

(10) A New Hampshire unemployment return as filed with the New Hampshire department of employment security for each year under audit;

(11) Schedules of income taxes, franchise taxes based on income, and capital stock taxes listing the state, type of tax, and amount for each year under audit;

(12) Complete state tax returns for states other than New Hampshire where business is conducted;

(13) Any listing of any key officers or employees who have substantial knowledge of and access to documentation on:

a. Pricing policies;

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

c. Methods of factor determination; and

d. Other data to establish a business organization's proper tax liability;

(14) Any records or information to establish that uncontrolled market prices were used for all intergroup activity between members of a combined group and any overseas business organization;

(15) Company policy and procedure manuals and any other information used to establish the operational policies of the business organization; and

(16) Any electronic records statements, including but not limited to accounting software.

(c) Every business organization having overseas business organizations or foreign dividends from unitary sources shall maintain the financial records necessary to verify:

(1) That 80% or more of the dividend payor's average payroll and property is assignable to a location outside the 50 states or territory or possession of the United States and the District of Columbia;

(2) The amount of dividend paid by each payor;

(3) The taxable income of the payor based upon United States tax standards;

(4) The foreign apportionment factor information for each dividend payor as required under Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.041; and

(5) Any additional information supporting Form NH-1120-WE Combined Business Profits Tax Return and affiliated schedules.

N.H. Code Admin. R. Rev 308.01

#4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd by #6179, eff 1-30-96; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06

Amended byVolume XXXV Number 06, Filed February 12, 2015 , Proposed by #10758, Effective 1/16/2015, Expires1/16/2025.

Amended by Volume XLI Number 14, Filed April 8, 2021, Proposed by #13177, Effective 3/6/2021, Expires 3/6/2021