Form Nh 706 - New Hampshire Estate Tax Return - General Instructions (Page 3 of 3) in pdf

FORM

New Hampshire Estate Tax Return

NH 706

LINE-BY-LINE INSTRUCTIONS

Instructions

(Continued)

Line 8(a) -

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

interest rate's recomputed each year under the provisions of RSA 21-J:28,II. Applicable rates

for the current and prior years are as follows:

For the number of days prior to 1/1/98 interest is calculated at 15%.

x .000411

Enter on line 8(a).

Tax Due (line 7)

Number of Days

Interest Due

For the number of days prior to 1/1/99 interest is calculated at 11%.

x .000301

Enter on line 8(a).

Tax Due (line7)

Number of Days

Interest Due

For the number of days after 1/1/99 interest is calculated at 10%

x .000274

Enter on line 8(a).

Tax Due (line 7)

Number of Days

Interest Due

Line 8(b) -

A penalty equal to 10% of any nonpayment or underpayment of taxes shall be imposed if the

taxpayer fails to pay when due and the failure to pay is due to willful neglect or intentional

disregard of the law but without intent to defraud. If the failure to pay is due to fraud, the

penalty shall be 50% of the amount of the nonpayment or underpayment.

A taxpayer failing to timely file a complete return will be subject to a penalty equal to 5% of

Line 8(c) -

the tax due (line 7) or $10, whichever is greater, for each month or part thereof, that the

return remains unfiled. The total amount of this penalty shall not exceed 25% of the balance

of tax due (line 7) or $50, whichever is greater. Calculate this penalty starting from the

original due date of the return until the date a complete return has been filed.

Line 9 -

Enter the sum of lines 8(a), 8(b) and 8(c).

Line 10 -

If the total tax (line 5) plus interest and penalties (line 9) is greater than the amount

previously paid, (line 6), then enter the balance due. If less than $1.00, do not pay, but still

file the return. Make check or money order payable to: STATE OF NEW HAMPSHIRE.

Payment must accompany the return. To ensure that the check is credited to the proper

account, please put the executor's/administrator's identification number and the decedent's

name and identification number on the check.

Line 11 -

If the total tax (line 5) plus interest and penalties (line 9) is less than the amount previously

paid (line 6), then you have overpaid the tax and a refund is due. Please allow 12 weeks for

processing your refund.

STEP 5

This return must be accompanied by a complete copy of the Federal Estate Tax Return, Form

706. The return must be dated and signed by the executor or administrator. If the return was

completed by a paid preparer, then the preparer must also sign and date the return. The

preparer must also enter their federal identification number and complete address.

Form Nh 706 - New Hampshire Estate Tax Return - General Instructions Page 3

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