New Hampshire Code of Administrative Rules
Rev - Department of Revenue Administration
Chapter Rev 300 - BUSINESS PROFITS TAX
Part Rev 307 - RETURNS, DECLARATIONS, AND EXTENSIONS
Section Rev 307.11 - Corrections Resulting From United States Internal Revenue Service Audit Changes

Universal Citation: NH Admin Rules Rev 307.11

Current through Register No. 13, March 27, 2025

(a) Business organizations shall report all federal audit changes as provided in RSA 77-A:10 when filing the appropriate Form DP-87, "Report of Change for IRS Adjustment Only", in accordance with (d)-(g) below, by attaching a clear and legible copy of the federal revenue agent's report, closing agreement and court decision where applicable.

(b) For purposes of this section, federal audit changes shall have been finally determined when:

(1) The business organization has:
a. Made payment on any additional income tax liability resulting from the federal audit; and

b. Not filed a petition for redetermination or claim for refund for the portions of the audit on which payment was made;

(2) The business organization has received a refund from the U.S. Department of the Treasury resulting from the federal audit;

(3) The business organization has signed federal Form 870 or other United States Internal Revenue Service form consenting to the deficiency or accepting any over-assessment;

(4) The business organization's time period for filing its federal petition for redetermination to the United States tax court has expired;

(5) The business organization enters into a closing agreement with the United States Internal Revenue Service as provided in section 7121 of the IRC as amended; or

(6) A decision from the U.S. Tax Court, U.S. District Court, U.S. Court of Appeals, U.S. Court of Claims or the U.S. Supreme Court becomes final.

(c) Notwithstanding paragraph (b), any federal audit that results in a refund that is referred to the Joint Committee on Taxation of the U.S. Congress shall be deemed finally determined when the business organization has received such refund from the U.S. Department of Treasury.

(d) A separate Form DP-87, shall be prepared for:

(1) Each business organization; and

(2) Each year affected by the federal audit.

(e) Form DP-87 shall be submitted under separate cover.

(f) Payment of any additional liability shall accompany Form DP-87.

(g) The principal New Hampshire business organization shall complete and file Form DP-87 on behalf of all members of the combined group included within a combined return covering the years of the federal audit.

(h) The statute of limitations shall only be opened for a federal audit change on a return for the items of income, expense and apportionment that are directly affected by the specific changes within the federal revenue agent's report, closing agreement or court decision.

#4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06

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