New Hampshire Tax Amnesty Program Begins December 1st

IN BRIEF

• Business Profits Tax rate decreases to 8.2% and the Business Enterprise Tax rate decreases to .72% for tax years ending on or after December 31, 2016
• Tax Amnesty Program from December 1, 2015 through February 15, 2016
• New Hampshire Department of Revenue Administration authorized to establish a voluntary disclosure program

Tax Rate Reductions

Effective for tax years ending on or after December 31, 2016, the tax rate for the New Hampshire Business Profits Tax is decreased from 8.5% to 8.2% and the Business Enterprise Tax is decreased from .75% to .72%. If the amount of combined unrestricted general and education trust fund revenue collected for the biennium ending June 30, 2017 is less than a certain amount the new tax rates will remain in effect. In the event the combined unrestricted general and education trust fund revenue collected exceeds a certain amount the tax rate for the BPT is further reduced to 7.9% and the BET is further reduced to .675% for tax years ending on or after December 31, 2018.

New Amnesty Program

A new law establishes a tax amnesty program for taxes administered and collected by the New Hampshire Department of Revenue Administration. The program requires unpaid taxes be reported and paid during the period of December 1, 2015 through and including February 15, 2016, regardless of whether the taxes was previously assessed. The amnesty program only applies to taxes due but unpaid on or before February 15, 2016. By participating in the amnesty program, taxpayers may receive a waiver of all penalties and interest in excess of 50 percent of the applicable interest rate for the tax period.

On or after March 1, 2016, the Department of Revenue Administration or any administrative tribunal or court with jurisdiction will have no discretion to waive, abate, reduce, or remit, for good cause or any other reason, any penalties assessed with respect to taxes administered by the Department that were due before December 1, 2015.

Voluntary Disclosure Program

The law also provides that the Department of Revenue Administration will establish a voluntary disclosure program for taxes administered by the Department. Under the voluntary disclosure program, a person or entity voluntarily self-discloses a tax liability to the Department and the Department may waive applicable penalties, and settle and compromise the tax and interest due through a voluntary disclosure agreement. The potential penalty waiver does not appear to apply to taxes due before December 1, 2015, which would have otherwise been eligible for the amnesty program. 

Seek experienced legal counsel on any tax related issues. Contact Ian Gilbert, Nelson Toner, or Roy Tilsley.