Tax Problems and Tax Resolution in New Hampshire

The Department of Revenue Administration (DRA) collects taxes due to the State of New Hampshire and has a Collection Division responsible for enforcing taxpayer compliance. The Collection Division initiates collection actions in pursuit of overdue tax returns and payments for all taxes administered by the Department. While the State of New Hampshire does not have a general sales tax or income tax on reported W-2 wages, there are taxes on an individual's interest and dividends income, inheritance, business taxes, consumer excise taxes more.

The following information is unique to taxes in New Hampshire.

• Appeals
• Installment Agreement
• Interest
• Licenses
• Liens & Distraint
• Notice of Assessment
• Offset
• Penalties
• Power of Attorney

Appeals

If you disagree with the assessment of taxes, penalties or interest or have a denial or refund you have the right to appeal to the Hearings Bureau by written petition within 60 days of the notice of assessment or denial.

Installment Agreement

If cannot pay your taxes, penalties or interest, you may request an installment agreement if DRA agrees that it will facilitate the collection of delinquent taxes, penalties, and interest owed and the taxpayer has shown inability to pay in full. Installment agreements may not extend for longer than a period of six months and must be secured by a lien on your property to secure the interest of the state. An installment agreement may be cancelled or revised, upon 30 days notice from the Department, if your financial situation changes or you fail to comply with the terms of the agreement.

Interest

Interest will continue to accrue on unpaid tax notices from the due date of the tax payment. The interest rates apply to underpayment of taxes:

• 1/1/2011 -12/31/2011 6%
• 1/1/2010 -12/31/2010 6%
• 1/1/2009 -12/31/2009 7%
• 1/1/2007 -12/31/2008 10%
• 1/1/2006 -12/31/2006 8%
• 1/1/2005 -12/31/2005 6%
• 1/1/2004 -12/31/2004 7%

Licenses

If you fail to pay taxes, penalties or interest when due or assessed, proceedings may begin to revoke or suspend any licenses from the Department.

Liens & Distraint

The DRA may place a lien on your personal property, real estate, bank accounts, accounts receivable and similar items if you fail to pay taxes, penalties, interest or fail to otherwise comply with tax codes. Liened property may be subject to tax sale.

Notice of Assessment

The Department will issue a tax bill in the form of a notice of assessment if additional tax, penalties or interest are found to be due after an audit. An assessment may be made without an audit in which case a demand for payment will be issued.

Offset

If you have an outstanding liability with the Department, any refunds or credits for taxes, penalties or interest paid by a taxpayer shall first be applied to, and offset against, any the outstanding liability, whether or not the taxpayer has contested or appealed such liability.

Penalties

If you fail to pay all of your taxes or fail to file taxes as required by the state of New Hampshire, you may have penalties such as those shown below, added to your tax debt bill. Understatement of Taxes: if a business organization has a significant understatement of taxes, the Department may assess a 25% penalty.

Failure to File: if a taxpayer fails to file a return when due, unless an extension has been granted by the department, a penalty equal to 5 percent of the amount of the tax due or $10, whichever is greater, for each month or part of a month during which the return remains unfiled, shall be assessed. The penalty shall not exceed 25 percent of the amount of the tax due, or $50, whichever is greater. Penalty does not apply to any case in which a return is filed within the extended filing period.

Failure to Pay: a penalty equal to 10 percent of the amount of nonpayment or underpayment shall be added to the amount due, when the failure to pay was due to reasonable cause and not willful neglect.

If the failure to pay is due to fraud the penalty is 50 percent of the amount of nonpayment or underpayment.

Power of Attorney

You have the right authorize someone to represent you before the Department of Revenue Administration regarding your tax issues. Power of attorney may be granted by submitting one of the following:

• Form DP-2848, NH Power of Attorney;
• Federal Form 2848, Power of Attorney; or
• A letter containing all pertinent information, addressed to the department of revenue.

We strive to save our clients money, time and stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.