Tax Relief Services New Hamsphire

Notice of Assessment

The Department will send you a Notice of Assessment (tax bill) after you’ve been audited and found to owe additional tax, interest and/or penalties. An assessment can also be made with no audit whatsoever, which in this case would be essentially a demand for payment. This would be a good time to consult with a professional tax advisor or CPA for the tax help you need to avoid serious problems down the road.

Penalties

If you do not pay the full amount you owe in state taxes or fail to file your tax return as required by law, you run the risk of having penalties added onto your tax bill.

Types of infractions that warrant penalties:

Failing to File Tax Return: if a taxpayer does not file his/her tax return on time, unless the Department has granted an extension, a penalty of 5% of the amount owed or $10 (whichever is more) for every month or portion of a month that the tax return continues unfiled, shall by law be assessed. This penalty shall not be over 25% of the amount owed, or exceed $50 (whichever is more). Penalties are not assessed in cases where the tax return is filed during the extended filing time period.

Failing to Pay State Taxes: a penalty of 10% of the amount not paid or the underpayment shall by law be added onto the amount of tax owed in the event their was a reasonable cause for failing to pay the tax owed and not intentional neglect. If the taxpayer failed to pay his/her taxes due to a fraudulent act the penalty would be 50% of the amount not paid or the underpayment.

Understatement of Taxes: in the event that a business has a substantial understatement of taxes owed, the Department of Revenue may assess a penalty of 25%.

Below is a list of several common methods the Department of Revenue uses to collect unpaid back taxes, interest and/or penalties:

Seizure of Property

The Collections Division of the New Hampshire Department of Revenue Administration has the right to seize any property, real or personal, you own to satisfy your delinquent tax liability. You do not want things to get this far so it would be wise to hire a reputable professional who can provide you with the type of tax help needed to get out from under your tax liability.

Legal Action in Court

The New Hampshire Attorney General may initiate court action against you to ensure that you pay your tax liability.

Filing an Appeal to a Tax Assessment or Refund Denial

If you dispute the assessment you received from the Department of Revenue on the amount you owe in taxes, interest and penalties or your refund claim was denied you are within your rights to file an appeal. You have 60 days from the date on your Notice of Assessment in which to file your petition. You or your power of attorney must sign your written appeal and it must contain the following details:

• Your name or the name of your business
• Your social security number, department ID number, federal employer ID number or department license number if applicable

Power of Attorney

You are within your rights to give someone else the authority to represent you with regard to your tax issues with the Department of Revenue. You would need to submit one of the following in order to have power of attorney granted:

• New Hampshire Power of Attorney Form DP-2848
• Federal Power of Attorney Form 2848
• Signed letter that includes all the pertinent information, sent to the Department of Revenue Administration.

Tax Audit

Each year a percentage of state tax returns are selected for an audit by the Department of Revenue. Some are randomly selected while others are chosen because it is highly likely that they are inaccurate. Having a tax audit does not indicate that you’ve done anything wrong or that you owe more money. New Hampshire takes pride in saying that many of the tax returns the Department audits have nothing wrong with them and the files are closed with no changes. Some show an overpayment of taxes and others show that more money is owed.

Audits are done through the mail, at the your residence or place of business, the Office of the Department of Revenue or your power of attorney’s place of business. If the Department finds that you owe additional tax, interest and penalties, a Notice of Assessment will be sent. When undergoing a tax audit it is always advisable to have professional tax advice from someone you trust. There are tax help options available that could be very beneficial if your audit shows that you owe money.