Section Rev 310.02 - Understatement of Taxpayer's Liability by Tax Preparer(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 organization's tax liability.(b) An individual or company providing more than typing, reproducing, or other mechanical assistance shall be deemed to be a tax preparer when the individual or company uses computer software which make determinations about the applicability of tax laws or the characterizations of income and the 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 departmental rules unless the business organization has adequately disclosed the tax treatment of an item on the return in a written statement as provided in Rev 310.01(b).(d) 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 business profits tax return; or(3) Follow a statute, rule or court decision that addresses the proper tax treatment of an item or issue.(e) 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 tax preparer's willful attempt to understate the business organization's tax liability.(f) A tax preparer shall be deemed to have made a willful attempt to understate a tax liability of a business organization by: (1) Disregarding or misstating information furnished by the business organization, or other person in an attempt to wrongfully reduce the tax liability; or(2) Not making inquiries of the business organization or other person when the information provided is incorrect or incomplete, and the tax preparer knows or should have known that the information was incorrect or incomplete.(g) If it is established in an adjudicative proceeding decision or a judicial decision that there was no understatement of liability and, if previously paid by the tax preparer, the understatement penalty imposed by RSA 21-J:33-b shall be abated and refunded.(h) The refund of the understatement penalty shall be made without any consideration of any period of limitation for the issuance of a refund.N.H. Code Admin. R. Rev 310.02
#5355, eff 3-16-92; amd by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8609, eff 8-25-06
Amended byVolume XXXV Number 06, Filed February 12, 2015 , Proposed by #10758, Effective 1/16/2015, Expires1/16/2025.