Form Changes Summary - Summary Of Changes & Common Problem Areas printable pdf download

FORM

NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION

CHANGES

SUMMARY OF CHANGES & COMMON PROBLEM AREAS

SUMMARY

BUSINESS TAX RATES

8.5%

Effective for all tax years ending on or after July 1, 2001, the business profits tax rate is increased from 8% to

, and the business enterprise tax

rate is increased from 0.5% to 0.75%. The changes apply to the entire tax period and not just the months after June 30, 2001.

For taxpayers who elected a federal 52-53 week tax year under section 441 of the US Internal Revenue Code the fiscal year of which ends on the last

day of the week nearest to June 30, 2001, the taxable period will be deemed to end on June 30, 2001 for purposes of this statutory rate increase.

BUSINESS ENTERPRISE TAX FILING THRESHOLDS

$150,000

$75,000

The filing threshold for the business enterprise tax increased to

of gross business receipts or

of the enterprise value tax base (as

compared to previous filing thresholds of $100,000 and $50,000 respectively). The filing threshold changes are effective for all returns and taxes due

on account of taxable periods ending on or afterJuly 1, 2001 for taxpayers who elected a federal 52-53 week tax year under section 441(f) of the US

Internal Revenue Code and the fiscal year of which ends on the last day of the week nearest to June 30, 2001, the taxable period will be deemed to have

ended on June 30, 2001 for purposes of these thresholds.

INTEREST RATES

The interest rates for calendar year 2002 are established by RSA 21-J:28. Effective January 1, 2002 through December 31, 2002, the State of New

Hampshire interest rates, applicable on taxes administered by the Department of Revenue Administration, will be 9% for underpayments and 6% for

overpayments. Interest is calculated on the balance of the tax due from the original due date of the tax to the date the tax is paid.

INTEREST RATE FOR

PERIOD

UNDERPAYMENT OF TAX

OVERPAYMENT OF TAX

1/1/2002 - 12/31/2002

1/1/2001 - 12/31/2001

11%

10%

1/1/1999 - 12/31/2000

11%

1/1/1998 - 12/31/1998

PRIOR TO 1/1/1998

15%

10%

REPORTING IRS CHANGES

To report IRS changes taxpayers must file the appropriate Report of Change (ROC) Form for each taxable period they incurred a change. Forms may be

obtained by contacting the forms line at (603) 271-2192 or by visiting the forms page of our web site at You may contact the

Department at (603)271-3400 with any questions.

REMINDER FOR SINGLE MEMBER LIMITED LIABILITY COMPANIES

Form DP-200 SMLLC Request for Department Identification Number must be filed 30 days prior to filing any other tax related document.

NO EXTENSION OF TIME TO PAY TAX

An extension of time to file your return is not an extension of time to pay the tax due. An automatic 7 month extension of time to file your return will be

granted, however interest will be applied and penalties may be assessed if 100% of the tax determined to be due has not been paid by the due date of

the tax. Zero extensions are not required to be filed.

Use Form BT-EXT for Business Taxes if you need to make an additional payment in order to have paid 100% of the tax due by the original due date.

When you calculate the tax on your return during the extension period, if the tax balance due is greater than zero, then you did not pay 100% of the tax

by the original due date and interest will be applied and penalties may be assessed. Do not file a request for an extension if no money is due.

To request an abatement of any penalties that may be assessed, please attach a letter and any supporting documentation (e.g. work papers for said

calculation, change of status, etc.) to the front of the return when filed. As long as 100% of the tax due has been paid by the original due date, you have

an automatic 7 month extension of time to file the return.

Even if you have filed a Federal and/or State extension, it is not necessary to attach a copy to your return.

BT SUMMARY STEP 2 - BPT QUESTIONS MUST BE ANSWERED

Failure to answer questions in Step 2 of the BT-Summary may result in inquiries from the Department which MAY generate late filing penalties.

REQUIRED FEDERAL TAX RETURN and/or SCHEDULES

Be sure to include all required forms with your return, and check the appropriate boxes in STEP 2, Filing Requirements.

SEQUENCING

All state forms which are required to be filed with the return have a sequencing number in the upper right-hand corner. Please place the forms that you

are required to file in sequential order when assembling your return.

CHANGES

SUMMARY

Rev. 12/01