Overview

If you have filed with New Hampshire Department of Revenue Administration after 1998 , you can pay your Business Enterprise Tax (BET), Business Profit Tax (BPT), and Interest and Dividends Tax (I&D), estimate, extension, return, amended return payments and tax notice.

In phase II of our New Hampshire e-File system you may now pay Business Enterprise Tax (BET), Business Profit Tax (BPT) tax notices payments, file and pay Interest & Dividends Tax return, tax notices payments, Meals & Rentals Tax (M&R) estimate, tax notices payments and file and pay your returns, amended returns and final returns.

New for tax periods beginning on or after 1-1-2004, I&D filers may request a refund and/or credit on their return overpayments.  Once the Department of Revenue has validated your overpayment claim, your refund will be mailed to you by the Department of Treasury within 3 months from the date filed or authorized extension date, whichever is later.    Pursuant to RSA 21-J:28-a, any refund and credit requests may be applied as an offset to any liability with respect to any tax administered by the Department of Revenue.   

When you use this system for the first time, enter your nine digits SSN, FEIN, PTIN or New Hampshire DIN for Business Enterprise Tax (BET), Business Profit Tax (BPT) and Interest & Dividends Tax (I&D).  This number will be referred to as your New Hampshire Identification Number.   You will then create your own PIN. Your PIN must be four digits and cannot contain any spaces. You will also be asked to enter a PIN HINT question as an alternative to entering the system if you forget your PIN.  If you forget your PIN, and the Hint does not help you remember it, contact the Department at (603) 271-2191, M-F 8am-4: 30pm Eastern Time.

For Meals & Rentals Tax (M&R) operators you will need to enter your six-digit license number.  This number will be referred to as your New Hampshire Meals and Rentals Tax license number.

To make an electronic payment, you will need the following information:

1. Tax type (BET/BPT & I&D)
2. Payment type (Estimates, Extensions, Return payments, Amended return and tax notice payments)
3. Taxable period
4. Total payment
5. Bank account type (checking or savings)
6. Bank routing number
7. Bank account number

When you are finished making a payment, you will receive a confirmation number with a date and time stamp. If you exit before getting a confirmation number, your information will not be saved or processed.

A Power of Attorney (POA) check box was added to the return confirmation page for 2004 taxable periods and forward.  By checking this box and providing the electronic signature authorization, you authorize the Department of Revenue to discuss the return with the preparer indicated.  This is a limited POA.  Prepares may be required to submit a form 2848 for other tax matters and/or years.   

When using this system, use the navigational buttons on each screen instead of your browser buttons. Using the Back or Forward buttons on your browser may interfere with making a payment.

The Department has a Demo of our e-file program available to be used if you would like to run through the program before making an actual e-filing. Any information entered on the demo screen will not be retained for future use.

Who Can Use I&D e-File?

Anyone who has filed with the New Hampshire Department of Revenue Administration after 1998 can pay Interest and Dividends Tax (I&D), estimate, extension, return and amended return payments, as well as tax notice payments.  New for tax periods beginning on or after 1-1-2004, I&D taxpayers can e-file returns claiming an overpayment.  Tax periods beginning prior to 1-1-2004 may continue to e-file returns with payment in full or zero balance due by this method.

What Can You File for I&D?

The e-FILE system can be used to make the following payments:

·         I&D Estimate Payment

·         I&D Extension Payment

·         I&D Return Payment

·         I&D Amended Return Payment

Browser Hints

Having trouble-using e-FILE New Hampshire? Receiving an error message while creating your payment select "CONTINUE"? Keep seeing the message that e-FILE New Hampshire is not available?

The trouble might be with your browser settings or with the version of browser you are using.  The browser is the software used to access the Internet, such as Internet Explorer or Netscape Navigator.  Check out these things on your browser:

1.  Browser version must be 5.0 or higher for Internet Explorer; Netscape must be version 4.0 or higher.

2.  Your browser must have 128-bit encryption.  Encryption is the ability of the browser to scramble the contents of a Web site so that no one else can see the information being entered.

To check version and encryption do the following:

For Internet Explorer:

·         Select the Help menu on the top bar of your browser. Select on "About Internet Explorer."

·         Read the version and "cipher strength" (encryption). Version must be 5.0 or higher; cipher strength must be 128-bit.

For Netscape Navigator:

·         Select the Help menu on the top bar of the browser.  Select "About Navigator."

·         The version number follows the name, Netscape Navigator.  It must be 4.0 or higher.

·         Scroll down the page until you see RSA on the left side.  The second paragraph starts "This version supports US security, etc."  If RC2-CBC and/or RCfour are listed, the encryption is 128-bit.

3. Your browser must be set to check for new versions of stored pages every visit to the page.

To check your browser's settings for new versions of stored pages, do the following:

 For Internet Explorer:

·         Select the Tools menu on the top bar of your browser. Select "Internet Options"

·         Select the "General Tab." In the middle of that page, under "Temporary Internet Files," select the "Settings" button.

·         At the top of that page, under "Check for newer versions of stored pages," select the FIRST option "Every visit to the page"

·         Select "OK" in the Settings box.

·         Select "OK" again to close the Internet Options box.

For Netscape Navigator:

·         Select the Edit menu on the top bar of your browser. Select "Preferences"

·         Under "Category" on the left side, double-select on "Advanced"

·         Select "Cache" under the title "advanced"

·         On the right side, in the lower half of the pages, where you see "document in cache is compared to document on network," select  "Every time".  Select "OK" to close "Preferences."

For AOL:

·         The default setting is to always look at the stored copy of Internet pages from the hard drive.  This means that once you have trouble with a page or see the "technical difficulties" message, you will always see that old page. 

·         To see a fresh version of a page, each time you get to a new screen, select the "Reload" symbol at the top of your browser or on your keyboard press the "CTRL" and "R" keys at the same time.

4. Your browser must be set to accept "cookies."  Some Web sites store information in a small text file called a "cookie," on your hard drive. The cookie contains information that you provided while using the Web site.  Allowing a Web site to create a cookie does not give that or any other site access to the rest of your computer, and only the site that created the cookie can read it.

To check your browser's settings for cookies, do the following:

 For Internet Explorer:

·         Select the Tools menu on the top bar of your browser.  Select "Internet Options"

·         Select the Security tab.

·         Select Internet in the pictures at the top of the page, and select "Custom Level" button at bottom of page.

·         Scroll down a bit till you see the topic "Cookies."  Select "Enable" for "Allow cookies that are stored on your computer."

·         Select "OK"; select "Yes" for the warning message or select "Apply" if no warning appears.  Then select "OK" to close the Internet Options window.

For Netscape Navigator:

·         Select the Edit menu on the top bar of your browser.  Select "Preferences"

·         Under "Category" on the left side, select "Advanced"

·         On the right side, in the lower half of the page, under "Cookies," select "Accept cookies."  Then select "OK" to close the window.

Logging In

To log in, enter your New Hampshire ID number. This is your SSN, FEIN, PTIN or New Hampshire DIN.  Do not enter hyphens, spaces or any preceding zeros.  For example, a Social Security number of 123-45-6789 would be entered as 123456789.  Please see below for detailed screen instructions to log in with your New Hampshire ID number.

In the drop-down box select SSN (social security number), FEIN (federal employer identification number), PTIN (preparer taxpayer identification number) or DIN (Department identification number assigned to SMLLC's (Single Member Limited Liability Company) and any entity not required to obtain a federal taxpayer identification number or electing to obtain a DIN for NH reporting purposes in lieu of their FEIN or SSN.

·         If a PTIN is entered, it should start with "P", followed by 8 digits.

·         If a DIN is entered, it should start with "NL", followed by 7 digits.

The NH ID type (SSN, FEIN, PTIN or DIN) and number 123456789, P12345678 or NL1234567 must be a combination that you have registered or under which you have previously filed with the Department.

Selecting the BACK button will take you to the "Welcome to e-File New Hampshire" screen.

If no errors have been made, selecting the CONTINUE button will take you to the "Mailing Address" screen.

Selecting the DEMO button will take you through hands on demonstration of the e-File Interest & Dividends Tax program.

Mailing Address

Please enter the business name or the name and address you last filed with the Department.

• Enter Business Name if applicable

• Enter First Name

• Enter Middle Initial

• Enter Last Name

• Enter Address Line 1

• Enter Address Line 2 if applicable

• Enter City

• Enter State

• Enter Zip Code

• Enter Country/Province if filer outside of the United States

• Selecting the BACK button will take you back to the "e-File Interest & Dividends Tax" screen.

Selecting the CONTINUE button will take you to the "Login" screen. First time users will be directed to the "Create Your PIN" screen.

Create/Change a PIN

Your PIN allows you to access this system each time you e-file a document.. To create a PIN, select a series of numbers that will be easy to remember. Your PIN must be four digits long with no spaces. Do not use punctuation or any special characters such as ", /, -, #, etc.

Once you create a PIN, we recommend you also create a PIN Hint. Your PIN Hint should be a question to which only you know the answer. For security reasons, you should not use a question that could be easily answered by others, such as, "What is my phone number?"

If you forget your PIN, select HINT on the PIN page. We will ask you for the answer to the question you created. By answering correctly, you will be given access to the system so you can change your PIN.

You can change your PIN at any time by selecting "Change PIN/HINT" on the main menu. Please enter pin and validate to change your pin hint. For security reasons, we recommend changing your PIN often.

Please see below for detailed screen instructions to utilize your PIN and PIN Hint.

Create Your PIN

The first taxpayers log into the e-File New Hampshire system, they will go to this page to set up a PIN and Hint for future access.

A PIN must be entered to establish a user.

The PIN must be four digits.  Do not enter any hyphens, spaces or symbols.

Verify your PIN by re-typing exactly as you typed your PIN under "Create PIN" above.

Your "Hint Question" may be a maximum of 45 characters (alpha-numeric).  Do not enter any hyphens or symbols.

Your "Hint Answer" may be a maximum of 45 characters (alpha-numeric).  Do not enter any hyphens or symbols.

Selecting the BACK button will take you to the "e-File Interest & Dividends Tax" screen.

If no errors have been made, selecting the CONTINUE button will take you to the "Interest & Dividends Tax Main Menu" screen.

Change PIN

This screen allows a taxpayer to change the PIN of an existing account.  If you change your PIN you may also change the Hint Question and Answer.

A PIN must be four digits.  Do not enter any hyphens, spaces or symbols.

Verify your New PIN by re-typing exactly as you typed your New PIN under Create New PIN above. 

Your "Hint Question" may be a maximum of 45 characters (alpha-numeric).  Do not enter any hyphens or symbols.

Your "Hint Answer" may be a maximum of 45 characters (alpha-numeric).  Do not enter any hyphens or symbols.

Selecting the BACK button will take you to the "e-File Interest & Dividends Tax" screen without changing your PIN/Hint.

If no errors have been made, selecting the CONTINUE button will take you to the "Interest & Dividends Tax Main Menu" screen and update your PIN.

Login

Taxpayers will be required to enter their PIN.

Your New Hampshire ID number (SSN, FEIN, PTIN or DIN) as entered previously for this application will be displayed.

Enter your four digit PIN.

If you have forgotten your PIN selecting the HINT button will take you to the "Login Using Hint" Screen.

If you enter your PIN incorrectly multiple times, your access to e-File New Hampshire will be denied and you will be instructed to contact the Department at (603) 271-2191, M-F 8:00am-4:30pm Eastern Time, to have your access reinstated.

Selecting the BACK button will take you to the "e-File Interest & Dividends Tax Welcome" screen.

If no errors have been made, selecting the CONTINUE button will take you to the "Interest & Dividends Tax Main Menu" screen.

Selecting the CHANGE PIN button will take you to the "Change PIN" Screen.

Login Using Hint

This page allows those who have already set up their account but have forgotten their PIN to enter the system by using a previously established answer to a Hint they have already provided.

Your New Hampshire ID number (SSN, FEIN, PTIN or DIN) as entered previously for this application will be displayed.

 The Hint question originally setup by you will be displayed on this page.

You must enter the correct answer to the displayed question to access this system.

Once the proper answer has been given to the Hint Question, you will be taken into the application as if a normal PIN was entered.

If you enter the Answer to the Hint Question incorrectly multiple times, your access to e-File New Hampshire will be denied and you will be instructed to contact the Department at (603) 271-2191, M-F 8am-4: 30pm Eastern Standard Time, to have your access reinstated.

Selecting the BACK button will take you to the "Login" screen.

If no errors have been made, selecting the CONTINUE button will take you to the "Interest & Dividends Tax Main Menu" screen.

Interest & Dividends Tax Main Menu

This page will allow you to select functions you wish to perform for Interest & Dividends Tax.  The selections available are:

·         Make A Payment. Make estimate, extension, return, amended return or tax notice payments for Interest and Dividends taxes.  Choosing this option will take you to the " Select Tax & Payment Types " screen.

·         Make A Payment for Clients' .  Preparers or those filing on behalf of clients can make estimate, extension, return, amended return, or tax notice payments for their clients' Interest and Dividends taxes.  Choosing this option will take you to the " Select File Type " screen where you will select the type of file that you will be sending and define your file layout.

·         File A Return/Amended Return. Taxpayers or tax preparers may file zero returns or returns with payments.  For tax periods beginning on or after 1-1-2004 returns with I&D overpayments may be e-filed.  Choosing this option will take you to the "Interest and Dividends Tax Return" screen where you will be able to fill in your return information.

·         Complete A Saved Return. Taxpayers or tax preparers may save incomplete returns on-line. They can then call up the return to complete once additional information has been gathered. Choosing this option will take you to the "Interest and Dividends Tax Return" screen. If a saved return is on file, it must be completed or deleted, before a new return can be processed.

·         Cancel A Payment .  Taxpayers or tax preparers may cancel a payment made with e-File New Hampshire. A payment can be cancelled up through 2:00 PM Eastern Time on the same day the payment was initiated or, for warehoused payments, up through 2:00 PM Eastern Time on the banking day prior to the payment date. If the payment has been extracted for processing, you will not be able to cancel the payment. Choosing this option will take you to the "Cancel A Payment" screen.

·         Change PIN/Hint.   Taxpayers or tax preparers may change their PIN and PIN Hint.  For security reasons, we recommend changing your PIN and PIN Hint often.  Choosing this option will take you to the " Change PIN " screen.

·         Administer Multiple Users . If your business structure requires you to have multiple users choose this option to authorize the additional users that you specify to make payments.  You will assign each user a PIN to enter the e-File New Hampshire system.  Each person will be able to pay only the tax types or complete other options that you authorize.  Choosing this option will take you to the " Multiple User Contact Information " screen.

·         View Transaction Information.   Select this option to view e-File New Hampshire transactions entered and their associated status.

Selecting the LOGOUT button will take you to the " Thank You " screen.

Make a Payment

Select Tax & Payment Types

This page will allow you to enter the tax type and the payment type for which they are making a payment.  Your previous filing history and the choices that you made when you registered with the Department will determine the options that are available to you.

The name and NH ID Number associated with this application will be displayed.

From the Tax Type drop-down box select: I&D (Interest & Dividends Tax).

From the Payment Type drop-down box select: Estimate, Extension, Return, Amended Return or Tax Notice.

Selecting the BACK button will take you to the "Interest & Dividends Tax Main Menu" screen.

Selecting the CONTINUE button will take you to the payment screen for the tax type and payment type combination that you selected:

·         I&D Estimate Payment

·         I&D Extension Payment

·         I&D Return Payment

·         I&D Amended Return Payment

·         I&D Tax Notice Payment

If you make electronic payments, do not mail us a payment voucher. However, a paper or electronically filed return must be submitted after the end of the taxable period. If you are making an amended return payment, an amended paper or electronically filed return must be submitted to the Department.

Interest & Dividends Tax Estimate Payment

The name and NH ID Number associated with this application will be displayed.

The calendar year will default to the current year based upon the current date (Example 2005). If you are a fiscal year filer, or if you are filing estimated tax payments for a short period, enter the beginning two-digit month, two-digit day and four-digit year. Then enter the ending two-digit month, two-digit day and   four-digit year of the taxable period for which you are making a payment. (Example 10/01/2002 - 09/30/2003) These dates will override the calendar year.

Enter the amount of Interest & Dividends Tax you are paying.

Selecting the BACK button will take you to the "Select Tax & Payment Type" screen.

Selecting the CONTINUE button will take you to the "Interest & Dividends Estimate Summary" screen.

Interest & Dividends Tax Estimate Summary

This screen will display the amount that you input on the "Interest & Dividends Tax Estimate Payment" screen.

Selecting the EDIT button will take you to the "Interest & Dividends Tax Estimate Payment" screen.

Selecting the CONTINUE button will take you to the "Payment Authorization" screen.

Interest & Dividends Tax Extension Payment

The name and NH ID Number associated with this application will be displayed.

The calendar year will default to the current year based on the system date (Example 2005). If you are a fiscal year filer, or if you will be filing a short period return enter the beginning two-digit month, two-digit day and four-digit year. Then enter the ending two-digit month, two-digit day and four-digit year of the taxable period for which you are making a payment. (Example 10/01/2002 - 09/30/2003) These dates will override the calendar year.

Enter the amount of Interest & Dividends Tax you are paying.

Selecting the BACK button will take you to "Select Tax & Payment Type" screen.

Selecting the CONTINUE button will take you to the "Interest & Dividends Estimate Summary" screen.

Interest & Dividends Tax Extension Payment Summary

This screen will display the amount you input on the "Interest & Dividends Tax Extension" screen.

Selecting the EDIT button will take you to the "Interest & Dividends Tax Extension" screen.

Selecting the CONTINUE button will take you to the "Payment Authorization" screen.

Interest & Dividends Tax Return Payment

The name and NH ID Number associated with this application will be displayed.

From a drop-down box select the calendar year for which you are making a payment.  The options available to you begin with the current year and the three prior years.  If you are a fiscal year filer, or if you will be filing a short period return, enter the beginning two-digit month, two-digit day and four-digit year. Then enter the ending two-digit month, two-digit day and four-digit year of the taxable period for which you are making a payment. (Example 10/01/2002 - 09/30/2003) These dates will override the calendar year.

Enter the amount of Interest & Dividends Tax you are paying.

Enter the amount of interest you are paying.

Interest Calculations per 21-J: 28

To calculate interest, use the following formula:

Amount of Tax Due   X   Daily Decimal Rate   X   Number of Days Late Per Period

For Example:

On August 15, 2003, you file your 2001 Interest & Dividends Tax Return payment of $1000.00, which was due April 15, 2002. The interest due is calculated as follows:

The New Hampshire statutes governing interest rates were amended in 1995 [CH 268]. Starting on January 1, 1998, and determined annually thereafter, the New Hampshire interest rates are based upon the rates set by the federal government under Internal Revenue Code § 6621(a)(2).  RSA 21-J: 28, II provides that the "annual underpayment rate" is tied to the underpayment rate specified in the Internal Revenue Code of 1986, as in effect on the September 1 immediately preceding such calendar year, plus 2 percentage points.  RSA 21-J: 28, III provides that the "overpayment rate" (the interest rate paid on refunds) is to be 3 percentage points less than the rate set in RSA 21-J: 28, paragraph II.

Enter the amount of penalties that you are paying.

·         FAILURE TO PAY: A penalty equal to 10% of any nonpayment or underpayment of taxes shall be imposed if the taxpayer fails to pay the tax when due. If the failure to pay is due to fraud, the penalty shall be 50% of the amount of the nonpayment or underpayment.

·         FAILURE TO FILE: A taxpayer failing to timely file a complete return may be subject to a penalty equal to 5% of the tax due for each month or part thereof that the return remains unfiled or incomplete.  The total amount of this penalty shall not exceed 25% of the balance of tax due.  Calculate this penalty starting from the original due date of the return until the date a complete return is being filed.

·         UNDERPAYMENT PENALTY: As of January 1, 2004 if your tax is $500 or more, you are required to make estimated tax payments during the tax year, unless you meet an exception. Prior to January 1, 2004, you are required to make estimated payments if your tax is $200 or more.  To calculate your penalty for nonpayment or underpayment of estimates, or to determine if you qualify for an exception from filing estimate payments, complete Form DP-2210/2220. Form DP-2210/2220 may be obtained at our website or by calling the Department of Revenue Administration forms line at (603) 271-2192.

Taxpayers are advised of New Hampshire Statute RSA 21-J:33-a. Substantial Understatement Penalty as follows:

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 or RSA 83-C, or RSA 83-E, 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 items tax treatment are adequately disclosed in the return or in a statement attached to the return.

If your return requires adequate disclosure, you cannot use e-file, please file a paper return.

Selecting the BACK button will take you to the "Select Tax & Payment Type" screen.

Selecting the CONTINUE button will take you to the "Interest & Dividends Tax Return Summary" screen .

Interest & Dividends Tax Return Payment Summary

This screen will display a total based on the calculation of the payment amount plus interest and penalties.

Selecting on the EDIT button will take you to the "Interest & Dividends Tax Return Payment" screen.

Selecting on the CONTINUE button will take you to the "Payment Authorization" screen.

Interest & Dividends Tax Amended Return Payment

If you discover an error was made on your I&D return after it was filed, an amended return should be promptly filed by completing a corrected Interest & Dividends Tax Return.  If the amended return indicates that additional tax, interest and/or penalties are due, you may make the payment(s) by using e-File New Hampshire.  You can use e-File New Hampshire to receive a refund or credit on an amended return for tax periods beginning on or after 1-1-2004.

The name and NH ID associated with this application will be displayed.

From a drop-down box select the calendar year for which you are making a payment. Amended returns must meet Statute of Limitations rules as defined in RSA 21-J: 29, which can be found at our web site. If you are a fiscal year filer, or if you will be filing a short period return, enter the beginning two-digit month, two-digit day and four-digit year. Then enter the ending two- digit month, two-digit day and four-digit year of the taxable period for which you are making a payment. (Example 10/01/2002 - 09/30/2003) These dates will override the calendar year.

Enter the amount of Interest & Dividends Tax you are paying.

Enter the amount of interest you are paying.

Interest Calculations per 21-J: 28

To calculate interest, use the following formula:

Amount of Tax Due   X   Daily Decimal Rate   X   Number of Days Late Per Period

For Example:

On August 15, 2003, you file your 2001 Interest & Dividends Tax Return payment of $1000.00, which was due April 15, 2002. The interest due is calculated as follows:

The New Hampshire statutes governing interest rates were amended in 1995 [CH 268] to require that starting on January 1, 1998, and determined annually thereafter, the New Hampshire interest rates would be based upon the rates set by the federal government under Internal Revenue Code § 6621(a)(2).  RSA 21-J:28, II provides that the "annual underpayment rate" is tied to the underpayment rate specified in the Internal Revenue Code of 1986, as in effect on the September 1 immediately preceding such calendar year, plus 2 percentage points.  RSA 21-J:28, III provides that the "overpayment rate" (the interest rate paid on refunds) is to be 3 percentage points less than the rate set in RSA 21-J:28, paragraph II.

Enter the amount of penalties that you are paying.

·         FAILURE TO PAY: A penalty equal to 10% of any nonpayment or underpayment of taxes shall be imposed if the taxpayer fails to pay the tax when due. If the failure to pay is due to fraud, the penalty shall be 50% of the amount of the nonpayment or underpayment.

·         FAILURE TO FILE: A taxpayer failing to timely file a complete return may be subject to a penalty equal to 5% of the tax due for each month or part thereof that the return remains unfiled or incomplete.  The total amount of this penalty shall not exceed 25% of the balance of tax due.  Calculate this penalty starting from the original due date of the return until the date a complete return is being filed.

·         UNDERPAYMENT PENALTY: As of January 1, 2004 if your tax is $500 or more, you are required to make estimated tax payments during the tax year, unless you meet an exception. Prior to January 1, 2004, you are required to make estimated payments if your tax is $200 or more.  To calculate your penalty for nonpayment or underpayment of estimates, or to determine if you qualify for an exception from filing estimate payments, complete Form DP-2210/2220. Form DP-2210/2220 may be obtained at our website or by calling the Department of Revenue Administration forms line at (603) 271-2192.

Taxpayers are advised of New Hampshire Statute RSA 21-J33-a. Substantial Understatement Penalty as follows:

III. 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 or RSA 83-C, or RSA 83-E, 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.

IV. 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 items tax treatment are adequately disclosed in the return or in a statement attached to the return.

If your return requires adequate disclosure, you cannot use e-file, please file a paper return.

Selecting the BACK button will take you to the "Select Tax & Payment Type" screen.

Selecting the CONTINUE button will take you to the "Interest & Dividends Tax Amended Return Summary" screen.

Interest & Dividends Tax Amended Return Payment Summary

This screen will display information entered on the previous screen and calculate the total payment amount due.

Selecting the EDIT button will take you to the "Interest & Dividends Tax Amended Return Payment" screen.

Selecting the CONTINUE button will take you to the "Payment Authorization" screen.

Interest & Dividends Tax Notice Payment

If you are liable for any additional penalties or fees not listed on this screen, you must send a paper check to the Department.

 Enter the amounts from the bottom right portion of your tax notice in dollars and cents. Example 1045.63.

The taxpayer name and NH ID Number associated with this application will be displayed.

The calendar year will default to the current year based upon the current date (Example 2005). If you are a fiscal year filer, or if you are making a tax notice payment for a short period, enter the beginning two-digit month, two-digit day and four-digit year. Then enter the ending two-digit month, two-digit day and four-digit year of the taxable period for which you are making a payment. (Example 10/01/2002 - 09/30/2003) These dates will override the calendar year.

Enter the amount of Tax you are paying.

Enter the amount of Interest you are paying.

Enter the amount of Failure to Pay Penalty you are paying.

Enter the amount of Failure to File Penalty you are paying.

Enter the amount of Under Payment of Estimated Tax Penalty you are paying.

Enter the amount of Additional Interest you are paying.

Payments will be applied according to Administrative Rule Rev 220.01.

Part Rev 220 Payment Processing

Rev 220.01 Partial Payments.

(a) Payments, when made in an amount less than the total amount due, shall be applied to the taxpayer's liability in the following sequence:

(1) First, against the penalties assessed under RSA 21-J, and protested check fees assessed under the provisions of RSA 6:11 -a;

(2) Second, against interest assessed under RSA 21-J; and

(3) Third, against tax due as assessed in accordance with the specific tax statutes administered by the department.

(b) Interest shall continue to accrue on any tax liability remaining unpaid until the total outstanding tax liability had been paid.

Source.   #1323, eff. 2-28-79; ss by #2115-a, eff 08/10/82; ss by #2820, eff 08/17/84 ; ss by #4615, eff 05/24/89 ; #5247, eff 10/11/91; ss and moved by #6027, eff 04/27/95 (from Rev 103.01); ss by #6749, eff 05/19/98

Selecting the BACK button will take you to the "Select Tax & Payment Type" screen.

 Selecting the CONTINUE button will take you to the "Interest & Dividends Tax Notice Payment Summary" screen.

Interest & Dividends Tax Notice Payment Summary

This screen will display a total based on the calculation of the total tax amount plus interest plus penalties.

Selecting the EDIT button will take you to the "Interest & Dividends Tax Notice Payment" screen.

Selecting the CONTINUE button will take you to the "Payment Authorization" screen.

Interest & Dividends Tax Return

This page will allow the taxpayer to file their Interest and Dividends Tax Return. For tax periods beginning prior to 1/1/2004 only returns with payment in full or zero balance due returns can be accepted. For tax periods beginning on or after 1/1/2004 taxpayers may file overpayments resulting in a refund and/or credit to the next year. The taxpayer name and NH ID Number associated with this application will be displayed.

If you have previously saved a return, select "Complete a Saved Return" from the Main Menu to display. A saved return will start at Step 1. You must tab forward through the return to reach the section where you left off.

STEP 1 :  The calendar year will default to the current year based on the system date (Example 2005). If you are a fiscal year filer or if you will be filing a short period return, enter the beginning two-digit month, two-digit day and four-digit year. Then enter the ending two-digit month, two-digit day and four-digit year of the taxable period for which you are making a payment (Example 10/01/2002 - 09/30/2003). These dates will override the calendar year. Individuals cannot file short year returns. If the taxpayer dies during the taxable period, the return dates would encompass the entire year, however the income earned would be reported for only that portion of the year prior to the date of death.  If you established or abandoned residency during the year, see instructions in Step 4.

New Address :  Select if you need to change your address. A New Address screen will pop up for you to fill in. Selecting "BACK" will return you to the Interest and Dividends Tax Return screen without saving any information. Selecting "SUBMIT NEW ADDRESS" will save your new address information and close this window. You will then return to the Interest and Dividends Tax Return screen.

STEP 2: Entity Type : Only one entity type can be selected.

If Joint Return is selected, a Spouse Information window will pop up. Selecting "BACK" will return you to the Interest and Dividends Tax Return without saving any information. Once spouse name and social security number are filled in, select "SUBMIT SPOUSE INFORMATION" to save the information and close this window. You will then return to the Interest and Dividends Tax Return screen.

If Partnership return is selected, enter the percentage of ownership by New Hampshire residents.

If Fiduciary return is selected, enter the percentage of New Hampshire beneficiaries.

Special Return Type:  Select the appropriate box and enter the date of the event. Also enter the social security number if a final return for a deceased individual.

Amended Return Type:  Select this box if an amended return. Do not file IRS adjustments using the e-File system.

Selecting  "BACK" will return you to the "Interest and Dividends Main Menu" screen.

Selecting "CONTINUE" will bring you to Page 2 of the "Interest and Dividends Tax Return".

Selecting "SAVE AND EXIT" will save this return and exit the application. Note that if a Saved Return is on file, you must complete or delete that return before starting a new return.

STEP 3:

Line 1(a) Enter ALL Interest Income. For individual and joint filers the amount to be reported is from Line 8(a) of IRS Form 1040 or 1040A. For partnerships and fiduciary filers, the amount to be reported is the total of all interest income reported on your federal return. NOTE:  All interest income, which is not taxable to NH, will be deducted on Line 4.

Line 1(b) Enter ALL ordinary Dividend Income. For individual and joint filers the amount to be reported is from Line 9 of IRS Form 1040 or 1040A. NOTE:  All dividend income, which is not taxable to NH, will be deducted on Line 4.

Line 1(c) Enter ALL federally tax-exempt interest income. For individual and joint filers the amount to be reported is from Line 8(b) of IRS Form 1040 or 1040A Unless specifically exempt by New Hampshire law, all federally tax-exempt income is taxable to New Hampshire. NOTE:  All federal tax-exempt interest income, which is not taxable to NH, will be deducted on Line 4.

Line 1(d) Select Calculate for the system to add Lines 1(a) through 1(c) and display the total for you.

Line 2 Distributions Subject to the NH Interest and Dividends Tax - List the actual cash or property distributions you received or constructively received from S Corporations, partnerships with transferable shares, trusts or estates with transferable shares, or the return of capital from qualified investment capital companies when the investment is returned within three years of the original deduction. These distributions are subject to tax in NH as a "dividend". (Transferable means that you can freely transfer your shares without causing a dissolution of the organization or without prior approval of the other members.) All publicly traded partnerships fall into this category. NOTE:  All non-taxable income will be deducted on Line 4.

In Column I, enter the entity code number from the screen, which represents the type of entity of the payer. Entity codes are 2=S-Corporations; 3=Partnerships; 4=Trusts or Estates; 5=other.

In Column II, enter the name of the payer.

In Column III, enter the payer's social security number or federal employer identification number, if known.

In Column IV, enter the total cash amount or property distribution received or constructively received. This amount may not correspond to any line on your Federal Form 1040 or your Federal Schedule K-1 tax return. NOTE:  This is not a tax on pass-through portfolio income, gains or losses from a Federal Schedule K-1; therefore, do not include any pass-through gains or losses from Federal Schedule K-1.

Line 3 Select Calculate for the system to add Lines 1(d) plus Line 2 and display the total for you.

Line 4 Interest and Dividends Income not Taxable to NH - Items in this category should only be deducted if they were previously included in Lines 1(a), 1(b), 1(c) or 2.

In Column I, enter the reason code number that corresponds to the reason the income is not subject to the Interest & Dividends Tax. Select button "SELECT HERE FOR REASON CODES" for a list of code numbers.

In Column II, enter the name of the payer.

In Column III, enter the payer's social security number or federal employer identification number, if known.

In Column IV, enter the non-taxable amount.

Line 4(a) Enter the subtotal of Column IV Non-Taxable Income above.

Line 4(b) If additional space is needed, prepare a supplemental schedule and enter the total here. This information must be provided upon request and should be saved with your return.

Line 4(c) The application will calculate the sum of 4(a) and 4(b) and display.

Line 4(d) Part-year Resident Non-taxable Pro-rata Share: A part-year resident is a resident who established or abandoned residency during the year. Part-year residents may prorate interest and dividend income. Individuals filing as part year residents may deduct the amount of taxable