There is a newer version
of
this Section
2020 New Hampshire Revised Statutes
Title I - The State and Its Government
Title 21-J - Department of Revenue Administration
Section 21-J:33-a - Substantial Understatement Penalty.
Universal Citation: NH Rev Stat § 21-J:33-a (2020)
21-J:33-a Substantial Understatement Penalty. –
I. If there is a substantial understatement of tax imposed under RSA 77, RSA 77-A, RSA 77-E, RSA 78-A, RSA 78-C, RSA 82-A, RSA 83-C, or RSA 84-A for any taxable period, there shall be added to the tax an amount equal to 25 percent of the amount of any underpayment attributable to such understatement.
II. For the purposes of this section, there is a substantial understatement of tax for any taxable period if the amount of the understatement for the taxable period exceeds the greater of:
(a) 10 percent of the tax required to be shown on the return for the taxable period; or
(b) $5,000.
III. For the purposes of paragraph II, the term "understatement" means the excess of:
(a) The amount of the tax required to be shown on the return for the taxable period, over
(b) The amount of the tax imposed which is shown on the return.
IV. The amount of the understatement as defined in paragraph III shall be reduced by that portion of the understatement which is attributable to:
(a) The tax treatment of any item by the taxpayer if there is or was substantial authorization for such treatment; or
(b) Any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return.
I. If there is a substantial understatement of tax imposed under RSA 77, RSA 77-A, RSA 77-E, RSA 78-A, RSA 78-C, RSA 82-A, RSA 83-C, or RSA 84-A for any taxable period, there shall be added to the tax an amount equal to 25 percent of the amount of any underpayment attributable to such understatement.
II. For the purposes of this section, there is a substantial understatement of tax for any taxable period if the amount of the understatement for the taxable period exceeds the greater of:
(a) 10 percent of the tax required to be shown on the return for the taxable period; or
(b) $5,000.
III. For the purposes of paragraph II, the term "understatement" means the excess of:
(a) The amount of the tax required to be shown on the return for the taxable period, over
(b) The amount of the tax imposed which is shown on the return.
IV. The amount of the understatement as defined in paragraph III shall be reduced by that portion of the understatement which is attributable to:
(a) The tax treatment of any item by the taxpayer if there is or was substantial authorization for such treatment; or
(b) Any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return.
Source. 1991, 163:10; 299:4; 390:5. 1993, 4:3; 350:3. 1997, 347:2, eff. April 29, 2001. 2014, 158:10, eff. June 30, 2014. 2017, 156:226, eff. Jan. 1, 2019.
Disclaimer: These codes may not be the most recent version. New Hampshire may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
