With tax filing season well underway and April deadlines approaching, the New Hampshire Department of Revenue Administration (DRA) examined filing errors from previous tax seasons and is offering tips for state taxpayers to avoid common filing errors.
DRA Commissioner Lindsey Stepp says many of the errors NH taxpayers make in the filing process can result in a delayed processing of tax returns and the issuance of assessments, penalties and interest, “We prepared this list of what we consider to be the top 10 tips to better equip taxpayers for avoiding easily preventable mistakes.”
1. Use the updated form:
Each year, DRA 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 DRA’s forms page online to find the correct version.
2. e-Filed returns do not require snail-mail
Many NH returns can now be submitted electronically, and there is no need to mail a paper copy to DRA. Submitting both may slow the process. DRA also accepts returns through its modernized e-File system from approved software vendors. Visit the e-File page to learn more.
3. Include payment with the return:
If upon completing a return, the taxpayer determines that tax, penalties, or interest is owed, include a check 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.
4. Include necessary attachments and schedules:
Many DRA return forms require additional attachments. Carefully read the instructions to determine which, if any, additional attachments and schedules are needed. DRA’s administrative rules can be a helpful resource in 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 NH, an SMLLC is treated as a business entity that is separate and distinct from the owner and may not file its NH return using the owner’s social security number. Instead, if the SMLCC has not been issued a federal employer identification number it must first complete and file form DP-200 Request for Department Identification Number.
7. Include payment with extension form:
Business Profits Tax (BPT), Business Enterprise Tax (BET), and I&D Tax taxpayers are entitled to an automatic seven-month extension provided the taxpayer they have paid 100 percent of the tax determined to be due by the due date. Ensure that the extension form filed with DRA includes payment of any tax owed to avoid denial of the application and the assessment of interest and penalties. A taxpayer that has already paid in full need not file for an extension.
8. Include apportionment forms:
A business that conducts operations in NH 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 NH 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 DRA with questions:
Last, but certainly not least, a few minutes on the phone to clarify any questions can save time down the road.The Taxpayer Services Division is available to answer any filing questions. Call 603-230-5920, Monday through Friday, 8 a.m. to 4:30 p.m. Additional information is at www.revenue.nh.gov.
Current Issue - April 2024