CONCORD — With tax filing season well underway in advance of April 15, the New Hampshire Department of Revenue Administration examined filing errors from previous tax seasons and is offering tips for taxpayers to avoid common filing errors.
“Many of the errors New Hampshire taxpayers make in the filing process can result in a delayed processing of tax returns and the issuance of assessments, penalties and interest,” said Lindsey Stepp, commissioner of revenue administration. “We prepared this list of what we consider to be the top 10 tips to better equip taxpayers for avoiding easily preventable mistakes.”
Top 10 Tips:
1. Use the updated form
Each year, the revenue administration updates its tax return forms to reflect any tax law, tax rate, or other changes. Often, taxpayers have downloaded a previous version and forget to update the following year- — or use one form for multiple filings. Be sure to use the return form published for the tax year being reported. Visit the revenue administration’s Forms Page online to find the correct version of all forms.
2. E-filed returns do not require snail-mail
Many New Hampshire tax returns can now be e-filed. When a return is submitted electronically, there is no need to mail a paper copy to the department. Submitting both may slow the process. The revenue administration also accepts returns through its Modernized e-File System from approved software vendors. Visit the department’s e-File Page to learn more about how to electronically file a New Hampshire tax return.
3. Include payment with the return
If upon completing a New Hampshire return the taxpayer determines that tax, penalties, or interest is owed, ensure that a check accompanies the return to avoid the assessment of interest and penalties. Taxpayers who elect to electronically file their return also have the option to pay any tax, penalties, or interest owed electronically. If the amount owed is not paid electronically, ensure that a check accompanied by a payment coupon, is mailed to the revenue administration.
4. Include necessary attachments and schedules
Many of the department’s return forms require additional attachments to be submitted with the return. Carefully read the form instructions to determine which, if any, additional attachments and schedules must accompany a return in order for the return to be considered complete. Additionally, the department’s Administrative Rules can be a helpful resource in further understanding which schedules and attachments apply to a specific situation.
5. Keep “primary taxpayer” consistent
Married taxpayers filing a joint Interest & Dividends (I&D) Tax return should ensure that the same taxpayer is listed first on the return each year. Changing the first named taxpayer on the I&D Tax return could result in delayed processing of returns.
6. Do not use owner’s Social Security number for single-member LLC
Unlike the federal treatment of single-member LLCs, in New Hampshire, an SMLLC is treated as a business entity that is separate and distinct from the SMLLC’s owner. Therefore, an SMLLC may not file its New Hampshire return using the owner’s Social Security number. Instead, if the SMLCC has not been issued a federal employer identification number, the SMLLC must complete and file form DP-200 “Request for Department Identification Number” and use the SMLLC’s DIN when filing the return.
7. Include payment with extension form
Business Profits Tax, Business Enterprise Tax, and I&D Tax taxpayers are entitled to an automatic seven-month extension to file a return provided the taxpayer has paid 100-percent of the tax determined to be due by the due date. A taxpayer that has not paid the tax determined to be due through estimated payments by the due date, but wishes to receive an extension of time to file their return, must pay the additional amount due on or before the due date using the appropriate extension form. Ensure that the extension form filed with the revenue administration includes payment of any tax owed to avoid denial of the application for an extension and the assessment of interest and penalties. A taxpayer that has already paid in full need not file an application for an extension to obtain the automatic seven-month extension to file their return.
8. Include apportionment forms
Businesses that conduct operations in New Hampshire and at least one other state must apportion its BET enterprise value tax base and BPT adjusted gross business profits using the appropriate form(s) (BET-80, “Business Enterprise Tax Apportionment;” BET-80-WE, “Combined Group Business Tax Apportionment;” and DP-80, “Business Profits Tax Apportionment Schedule”). Taxpayers whose BPT and BET returns reflect less than 100 percent New Hampshire apportionment are required to attach the appropriate apportionment schedule(s).
9. Form DP-160 is not always required
Taxpayers utilizing any credit other than the BET credit to offset their BPT or BET liability must include Form DP-160, “Schedule of Credits” with their return. However, taxpayers that are utilizing only the BET credit to offset their BPT liability are not required to file form DP-160.
10. Contact the revenue administration with questions
Last, but certainly not least, a few minutes on the phone to clarify any questions can save time down the road. Revenue administration’s Taxpayer Services Division is available to answer any filing questions. Contact the Taxpayer Services Division at (603) 230-5920, Monday through Friday, 8 a.m. to 4:30 p.m.
Additional information about the taxes administered by revenue administration can be found at www.revenue.nh.gov, where taxpayers can access tax statutes, administrative rules, and FAQ’s.
The New Hampshire Department of Revenue Administration collects approximately 80 percent of New Hampshire’s general taxes. During Fiscal Year 2017, the department collected $1.5 billion for the New Hampshire General Fund and Education Trust Fund.
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