N.H. Rev. Stat. § 21-J:33-c

Current through Chapter 381 of the 2024 Legislative Session

Section 21-J:33-c - Penalties for Aiding and Abetting Understatement of Tax Liability

I. Any person shall pay a penalty with respect to each return in each tax period in the amount of $1,000, who:

(a) Aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document in connection with any matter arising under statutes and rules administered by the department; and

(b) Knows that such portion will be used in connection with any material matter arising under statutes and rules administered by the department; and

(c) Knows that such portion, if so used, will result in an understatement of liability for tax of another person.

II. For the purposes of this section:

(a) The term "procures" shall mean ordering or causing a subordinate to do an act.

(b) The term "subordinate" includes any other person over whose activities the person has direction, supervision or control, whether or not a director, officer, employee, or agent of the taxpayer involved.

(c) The term "understatement of liability" means any understatement of the net amount payable with respect to any tax imposed or any overstatement of the net amount creditable or refundable with respect to any such tax.

(d) A person furnishing typing, reproducing or other mechanical assistance shall not be treated as having aided or assisted in the preparation of any portion of a return, affidavit, claim, or other document.

III. This penalty shall apply whether or not the understatement is with the knowledge or consent of the persons authorized or required to present the return, affidavit, claim or other document.

IV. The commissioner shall have the authority under this chapter and RSA 80 to administer and enforce this section.

V. When the amount of the understatement of liability, which is attributable to the tax treatment of any item with respect to the relevant facts affecting the item's tax treatment, is adequately disclosed in the return or in a statement attached to the return, then this penalty shall not apply.

VI. Any person penalized under RSA 21-J:33-b shall not also be subject to any penalties under this section.

RSA 21-J:33-c

1991, 163:10, eff. May 27, 1991.