New Hampshire Code of Administrative Rules
Rev - Department of Revenue Administration
Chapter Rev 900 - INTEREST AND DIVIDENDS TAX
Part Rev 908 - PENALTIES
Section Rev 908.02 - Understatement of Taxpayer's Liability by Tax Preparer

(a) For the purposes of RSA 21-J:33, b, I, "Substantial portion" means any instance where the efforts of the tax preparer have affected more than 25% of the taxpayer tax liability.

(b) An individual or company providing more than typing, reproducing or other mechanical assistance shall be deemed to be a tax preparer when the individual or company uses computer software which makes determinations about the applicability of tax laws or the characterization of income and the allowability of deductions or credits.

(c) The penalty provided in RSA 21-J:33-b, III shall be assessed when any part of an understatement of tax is the result of a tax preparer's willful neglect or intentional disregard of the statute or departmental rules unless the taxpayer shall have adequately disclosed the tax treatment of an item on the return or in a statement attached to the front of the return.

(d) The penalty provided in RSA 21-J:33-b, IV shall be applied when any part of an understatement of tax is the result of a preparer's willful attempt to understate the taxpayer's tax liability; or

(e) A tax preparer shall have willfully attempted to understate a tax liability of a taxpayer in the following instances:

(f) If, in an adjudicative proceeding or a judicial decision, it is established there was no understatement of liability and, if previously paid by the preparer, the penalty imposed by RSA 21-J:33-b shall be abated and refunded.

(g) The refund of the penalty shall be made without any consideration of any period of limitation for the issuance of a refund.