Section Rev 709.02 - 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 operator'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 makes determinations about the applicability of tax laws or the characterization 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 operator shall have adequately disclosed the tax treatment of an item on the return in a written statement as provided in Rev 709.01(b) and (c).(d) 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 to understate the operator's tax liability.(e) A tax preparer shall be deemed to have made a willful attempt to understate a tax liability of an operator by: (1) Disregarding or misstating information furnished by the operator or other person in an attempt to wrongfully reduce the tax liability; or(2) Not making inquiries of the operator 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.(f) If, in an adjudicative proceeding or a judicial decision it is established that there was no understatement of liability and if previously paid by the preparer, then the penalty imposed by RSA 21-J:33-b shall be abated and refunded.(g) The refund of the penalty shall be made without any consideration of any period of limitation for the issuance of a refund.(h) A tax preparer shall be deemed to have acted with willful neglect or intentional disregard when the preparer fails: (1) To comply with a statutory provision as interpreted in an opinion of the New Hampshire supreme court;(2) To comply with a department rule prescribing the appropriate tax treatment of an item contained in the meals and rentals tax return; or(3) To follow pertinent statutes, rules or court decisions that address the proper treatment of an item or issue.N.H. Admin. Code § Rev 709.02
#7505, eff 6-19-01; ss by #8653, eff 6-8-06
Amended byVolume XXXIV Number 46, Filed November 13, 2014, Proposed by #10714, Effective 11/7/2014.