New Hampshire Code of Administrative Rules Rev - Department of Revenue Administration
New Hampshire Code of Administrative Rules — Rev (Department of Revenue Administration)
1. Overview and Authority
The Department of Revenue Administration (DRA) in New Hampshire is responsible for administering the state’s tax laws, collecting taxes, and ensuring compliance with revenue statutes. The DRA’s rules are codified under the Rev series of the New Hampshire Code of Administrative Rules.
The legal authority for these rules primarily comes from the New Hampshire Revised Statutes Annotated (RSA) Chapter 21-J (the Department of Revenue Administration statute), as well as various tax statutes such as RSA 77 (property tax), RSA 78 (business profits tax), and others.
The DRA administers a variety of taxes, including property tax, business profits tax, interest and dividends tax, and meals and rentals tax.
2. Purpose of the Rules
The Rev rules establish procedures for:
Tax assessments and appeals.
Taxpayer registration and reporting.
Tax collection and enforcement.
Confidentiality of taxpayer information.
Penalties and interest on late payments.
Administrative hearings and dispute resolution.
3. Key Provisions
a) Tax Assessment and Appeals
The DRA has the authority to assess taxes based on taxpayer filings and audits.
If a taxpayer disagrees with an assessment, they may file an appeal.
Appeals initially go to the DRA’s Board of Tax and Land Appeals (BTLA).
The BTLA conducts hearings and issues decisions which can be further appealed to the New Hampshire Superior Court.
b) Taxpayer Obligations
Timely filing of tax returns and accurate reporting is required.
Payment of taxes, interest, and penalties must be made in accordance with statute and administrative rules.
Taxpayers must keep adequate records for verification.
c) Collection and Enforcement
The DRA has enforcement powers including liens, levies, and garnishments.
The rules outline procedures for the seizure and sale of property for unpaid taxes.
d) Confidentiality
Taxpayer information is confidential and may only be disclosed under specified circumstances, usually consistent with RSA 21-J:16.
4. Due Process and Administrative Hearings
Taxpayers have the right to a hearing before the BTLA if they dispute a tax decision.
Hearings must be conducted fairly, allowing taxpayers to present evidence and witnesses.
Decisions must be supported by the record and in accordance with law.
5. Case Law Illustrations
While case law specifically citing the Rev rules is relatively specialized, New Hampshire courts have addressed important principles related to the DRA’s authority and taxpayer rights. Below are summarized examples of key case law principles illustrating the application of the Rev rules and statutes:
Case 1: Taxpayer vs. Department of Revenue Administration
Issue: Whether the DRA properly assessed additional tax based on an audit.
Holding: The court upheld the DRA’s assessment, finding that the agency’s determination was supported by substantial evidence from the audit.
Principle: Courts give deference to the DRA’s expertise and factual findings in tax assessments, so long as the process is lawful and evidence is sufficient.
Case 2: Appeal of Property Tax Assessment
Issue: A property owner challenged the valuation used in a property tax assessment.
Holding: The BTLA's decision to uphold the DRA’s valuation was affirmed because the valuation methodology was reasonable and consistent with the statute.
Principle: The DRA has discretion in valuation methods, and courts generally defer to administrative expertise in valuation disputes.
Case 3: Due Process in Tax Collection
Issue: A taxpayer argued that seizure of property for unpaid taxes violated due process because they were not properly notified.
Holding: The court ruled that proper notice and an opportunity to be heard must be given before enforcement actions.
Principle: The DRA must follow procedural safeguards before collecting unpaid taxes through liens or levies, ensuring constitutional due process.
6. Penalties and Interest
The Rev rules specify when and how penalties and interest are applied to late or insufficient tax payments.
Reasonable cause and good faith efforts can sometimes waive penalties.
Interest accrues as specified by statute until full payment is made.
7. Confidentiality and Disclosure
The DRA is bound to keep taxpayer information confidential, with strict rules on who can access such information.
Unauthorized disclosure can result in legal penalties.
8. Summary
The New Hampshire Department of Revenue Administration operates under a detailed set of administrative rules designed to fairly administer the state’s tax laws.
These rules cover tax assessment, appeals, enforcement, confidentiality, and taxpayer rights.
Courts in New Hampshire generally defer to the DRA’s expertise but require that procedural fairness and due process be observed.
Case law supports the DRA’s authority to assess and collect taxes, while affirming taxpayer protections such as the right to appeal and the right to due process.
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