State Income Tax Protest (Adapted to BPT/BET — NH Has No General Income Tax)

PETITION FOR REDETERMINATION — BUSINESS PROFITS TAX / BUSINESS ENTERPRISE TAX — NEW HAMPSHIRE

TABLE OF CONTENTS

1. Caption and Filing Block
2. Jurisdiction, Timeliness, and Statement of the Case
3. Statement of Facts
4. Grounds for Redetermination
5. Request for Stay of Collection
6. Request for Hearing
7. Relief Requested
8. Verification
9. Certificate of Service
10. Schedule A — Documents Submitted
11. Schedule B — Reservation of Appeal Rights to BTLA, Superior Court, and NH Supreme Court
12. New Hampshire Practice Notes
13. Sources and References

1. CAPTION AND FILING BLOCK

STATE OF NEW HAMPSHIRE

DEPARTMENT OF REVENUE ADMINISTRATION

HEARINGS BUREAU

109 Pleasant Street, Concord, NH 03301

DRA Account / Taxpayer ID: [________________________________]

Notice of Assessment No.: [________________________________]

Date of Notice of Assessment: [__/__/____]

Tax Type: ☐ Business Profits Tax (RSA 77-A) ☐ Business Enterprise Tax (RSA 77-E) ☐ Combined BPT/BET

Tax Period(s) at Issue: [________________________________]

Total Amount in Dispute: $[________________________________] (tax $[____]; interest $[____]; penalty $[____])

PETITION FOR REDETERMINATION PURSUANT TO RSA 21-J:28-b

Petitioner, by and through undersigned counsel, respectfully petitions the Department of Revenue Administration ("Department" or "DRA") for redetermination of the above-referenced Notice of Assessment, and in support states as follows:

2. JURISDICTION, TIMELINESS, AND STATEMENT OF THE CASE

2.1. Petitioner [TAXPAYER NAME] is a [corporation / LLC / partnership / sole proprietorship] organized under the laws of [STATE], with its principal place of business at [ADDRESS], conducting business activity in New Hampshire within the meaning of RSA 77-A:1, XII and RSA 77-E:1.

2.2. On [DATE OF NOTICE], the Department issued a Notice of Assessment under RSA 21-J:28-a for [BPT / BET / both] for tax period(s) [YEAR(S)] in the total amount of $[AMOUNT] (the "Assessment").

2.3. This Petition is filed within sixty (60) days of the date of the Notice of Assessment, satisfying the jurisdictional time limit set forth in RSA 21-J:28-b, I. Time is computed under RSA 80:55.

2.4. The Department has jurisdiction to redetermine the Assessment under RSA 21-J:28-b. Petitioner has not filed any other administrative or judicial proceeding concerning the Assessment, except as disclosed in Schedule B.

2.5. Petitioner reserves the right to appeal any adverse decision of the Department's Hearings Bureau to the Board of Tax and Land Appeals ("BTLA") or to the Superior Court of [COUNTY] County within thirty (30) days of the Department's notice of decision pursuant to RSA 21-J:28-b, IV, and thereafter to the New Hampshire Supreme Court pursuant to RSA 541 or RSA 21-J:28-b, as applicable.

3. STATEMENT OF FACTS

3.1. Petitioner is engaged in the business of [DESCRIBE BUSINESS ACTIVITY].

3.2. For the tax period(s) at issue, Petitioner timely filed Form [NH-1120 / NH-1065 / NH-1040 / BT-Summary] reporting:

3.3. On [DATE], the Department initiated an audit and issued [#] Information Document Request(s) ("IDRs"). Petitioner timely responded to each IDR, producing [BRIEF DESCRIPTION OF DOCUMENTS].

3.4. On [DATE], the Audit Division issued a Notice of Proposed Adjustment proposing [ADJUSTMENTS]. Petitioner submitted a written response on [DATE] disputing the proposed adjustments.

3.5. Notwithstanding Petitioner's response, on [DATE], the Department issued the Notice of Assessment that is the subject of this Petition.

3.6. Petitioner has at all material times maintained books and records sufficient to substantiate the positions taken on its returns, in accordance with RSA 77-A:8 (BPT recordkeeping), RSA 77-E:8 (BET recordkeeping), and N.H. Code Admin. Rules Rev 300 / Rev 2400.

4. GROUNDS FOR REDETERMINATION

Ground I — Erroneous Determination of Apportionment Factor (BPT)

4.1. The Assessment misapplies the single sales factor apportionment formula required by RSA 77-A:3 by [DESCRIBE ERROR — e.g., misclassifying receipts as New Hampshire-source, failing to apply market-based sourcing for services under RSA 77-A:3, II(a)].

4.2. Properly computed, the New Hampshire apportionment factor is [____]% rather than the [____]% used by the Department.

Ground II — Disallowance of Statutory Deductions (BPT)

4.3. The Department erroneously disallowed Petitioner's deduction for [reasonable compensation under RSA 77-A:4, III / net operating loss carryforward under RSA 77-A:4, XIII / IRC § 179 expensing as conformed by RSA 77-A:1, XX] in the amount of $[____].

4.4. The deduction is supported by [CONTEMPORANEOUS DOCUMENTATION] and complies with the substantive standards established in [CITE CASE LAW OR REV RULES].

Ground III — Misapplication of BET Tax Base (RSA 77-E)

4.5. The Department's recomputation of the enterprise value tax base under RSA 77-E:3 improperly includes [interest paid to related party / dividends paid / compensation] that is not properly attributable to New Hampshire activity.

4.6. The BET filing threshold for tax periods beginning on or after January 1, 2025, is gross business receipts of more than $298,000 or an enterprise value tax base of more than $298,000. [Petitioner did not exceed this threshold and therefore had no obligation to file. / Alternatively, properly computed, Petitioner's enterprise value tax base is below the threshold.]

Ground IV — BET Credit Against BPT Improperly Denied

4.7. RSA 77-E:13 entitles Petitioner to apply BET paid as a credit against BPT liability for the same tax period. The Department's failure to apply the credit results in double taxation contrary to the statutory scheme.

Ground V — Penalties Should Be Abated

4.8. The Assessment imposes failure-to-file or failure-to-pay penalties under RSA 21-J:33. Petitioner had reasonable cause for the position taken on its return, including [reliance on professional advice / good-faith interpretation of ambiguous statute / written advice from the Department under RSA 21-J:42], and penalties should be abated.

Ground VI — Interest and Dividends Tax Repeal (if applicable)

4.9. [For tax periods ending on or after January 1, 2025 only] The former Interest and Dividends Tax (RSA Chapter 77) was repealed in its entirety effective January 1, 2025, by 2023 N.H. Laws ch. 79 (HB 2). The Department lacks statutory authority to assess any I&D tax for tax periods ending on or after that date.

Ground VII — Constitutional Challenge (if applicable)

4.10. The Assessment, as applied, violates the Commerce Clause (U.S. Const. art. I, § 8, cl. 3) under the four-prong Complete Auto test, the Due Process Clause, and Part I, Article 12 of the New Hampshire Constitution by [DESCRIBE CONSTITUTIONAL DEFECT].

5. REQUEST FOR STAY OF COLLECTION

5.1. Pursuant to RSA 21-J:28-b, the timely filing of this Petition operates to suspend enforced collection of the disputed Assessment pending the Department's decision.

5.2. Petitioner requests that the Department refrain from issuing tax warrants, levies, liens (RSA 21-J:28), or other collection actions until this Petition is finally resolved (including any appeal to the BTLA, Superior Court, or New Hampshire Supreme Court).

5.3. Petitioner acknowledges that statutory interest under RSA 21-J:28 will continue to accrue on any unpaid balance ultimately determined to be due.

6. REQUEST FOR HEARING

6.1. Pursuant to RSA 21-J:28-b, II and RSA 541-A, Petitioner requests an adjudicative hearing before the DRA Hearings Bureau on all factual and legal issues raised herein.

6.2. Petitioner requests [in-person / remote videoconference] hearing at [CONCORD / OTHER LOCATION].

6.3. Petitioner reserves the right to present documentary evidence, lay witness testimony, and expert testimony, including [CPA / appraiser / industry expert].

6.4. Estimated hearing time: [____] hours.

7. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully requests that the Department:

• A. Abate the Assessment in full;
• B. In the alternative, redetermine the Assessment to reflect the correct tax liability of $[____] (or such lesser amount as the Hearings Officer may find);
• C. Abate all penalties imposed under RSA 21-J:33;
• D. Suspend all collection activity pending final disposition;
• E. Refund any amounts paid in excess of the redetermined liability, with statutory interest pursuant to RSA 21-J:28, II; and
• F. Grant such other and further relief as is just and equitable.

8. VERIFICATION

STATE OF [_______________]

COUNTY OF [_______________]

I, [NAME], being duly sworn, depose and say that I am the [OFFICER TITLE] of Petitioner; that I am authorized to execute this Petition on its behalf; that I have read the foregoing Petition for Redetermination and the schedules attached thereto; and that the statements of fact contained therein are true and correct to the best of my knowledge, information, and belief.

[________________________________]

[NAME, TITLE]

Sworn to and subscribed before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public / Justice of the Peace

(My Commission Expires: [_______________])

9. CERTIFICATE OF SERVICE

I hereby certify that on the [____] day of [_______________], 20[____], I filed the foregoing Petition for Redetermination with the New Hampshire Department of Revenue Administration, Hearings Bureau, by [hand delivery / certified U.S. Mail, return receipt requested / GTC electronic filing], addressed to:

NH Department of Revenue Administration
Hearings Bureau
109 Pleasant Street
PO Box 457
Concord, NH 03302-0457

[________________________________]

[ATTORNEY NAME], NH Bar No. [####]

Counsel for Petitioner

[FIRM NAME, ADDRESS, TELEPHONE, EMAIL]

10. SCHEDULE A — DOCUMENTS SUBMITTED

☐ Copy of Notice of Assessment dated [__/__/____]
☐ Copies of Petitioner's BPT/BET returns for tax periods at issue
☐ Audit workpapers and IDR responses
☐ Notice of Proposed Adjustment and Petitioner's written response
☐ Apportionment workpapers and supporting documentation
☐ Reasonable compensation study (if applicable)
☐ Affidavit of [NAME] dated [__/__/____]
☐ Expert report of [NAME] dated [__/__/____]
☐ Power of Attorney (Form DP-2848)
☐ Other: [________________________________]

11. SCHEDULE B — RESERVATION OF APPEAL RIGHTS TO BTLA, SUPERIOR COURT, AND NH SUPREME COURT

11.1. Appeal to BTLA or Superior Court (30 days). Pursuant to RSA 21-J:28-b, IV, Petitioner reserves the right to appeal any adverse decision of the Department's Hearings Bureau within thirty (30) days of the notice of decision to either:

(a) The New Hampshire Board of Tax and Land Appeals, 107 Pleasant Street, Johnson Hall, Concord, NH 03301 (filing fee currently $65); or

(b) The Superior Court of the county in which Petitioner resides or has a place of business.

The forums are mutually exclusive. The hearing before the BTLA or Superior Court is de novo; however, legal issues are limited to those previously raised before the Department, except for constitutional claims or those for which good cause is shown. RSA 21-J:28-b, V.

11.2. Appeal to New Hampshire Supreme Court. From a final decision of the BTLA, an appeal lies directly to the New Hampshire Supreme Court under RSA 541. From a final decision of the Superior Court, an appeal lies directly to the New Hampshire Supreme Court under N.H. R. Sup. Ct. 7. There is no intermediate appellate court in New Hampshire.

11.3. Related Proceedings. [None / List any pending or prior administrative or judicial proceeding involving the same Assessment or tax periods.]

12. NEW HAMPSHIRE PRACTICE NOTES

• No general state income tax. New Hampshire imposes no broad-based personal income tax on wages, salaries, or earned income. The former Interest & Dividends Tax (RSA ch. 77) was fully repealed effective January 1, 2025, pursuant to 2023 N.H. Laws ch. 79 (HB 2). For tax periods ending on or before December 31, 2024, I&D returns and any associated assessments remain enforceable; tax periods ending on or after January 1, 2025, are not subject to I&D tax.
• Two surviving "income-style" business taxes. The Business Profits Tax (RSA 77-A; 7.5% rate) is a net-income tax on businesses with gross business income exceeding $109,000. The Business Enterprise Tax (RSA 77-E; 0.55% rate) is a value-added tax on the sum of compensation, interest, and dividends paid; the 2025 filing threshold is $298,000 (adjusted biennially). BET paid is creditable against BPT liability under RSA 77-E:13.
• 60-day petition deadline is jurisdictional. RSA 21-J:28-b, I. The deadline runs from the date of the Notice of Assessment, not the date of receipt. There is no informal extension; an untimely petition will be dismissed for lack of jurisdiction.
• Hearings Bureau procedure. The Hearings Bureau operates under RSA 541-A and Rev 200 administrative rules. The Department has up to 120 days to act on a timely petition (approve, deny, or commence an adjudicative proceeding). RSA 21-J:28-b, II.
• Forum selection at appeal — irrevocable. When appealing the Hearings Bureau decision, the taxpayer must elect either BTLA or Superior Court within 30 days. The election cannot be undone. BTLA proceedings are less formal and lower-cost; Superior Court proceedings allow broader discovery and may be preferable where a jury-style fact dispute or constitutional question predominates.
• Direct appeal to NH Supreme Court. New Hampshire has no intermediate appellate court. Final orders of the BTLA are appealable under RSA 541; final Superior Court judgments are appealable as of right under N.H. R. Sup. Ct. 7.
• Burden of proof. The Notice of Assessment is presumptively correct. The taxpayer bears the burden of proving the Assessment is erroneous by a preponderance of the evidence. Appeal of Public Service Co. of N.H., 122 N.H. 1062 (1982).
• Penalty abatement under Taxpayer Bill of Rights. RSA 21-J:42 authorizes abatement of any penalty attributable to erroneous written advice from the Department on which the taxpayer reasonably relied. Document any such reliance contemporaneously.
• Recordkeeping. Records substantiating BPT/BET positions must be retained until the statute of limitations on assessment has run (generally three years from the later of the return due date or the filing date — six years for substantial omission).

13. SOURCES AND REFERENCES

• RSA 21-J (Department of Revenue Administration) — https://gc.nh.gov/rsa/html/I/21-J/21-J-mrg.htm
• RSA 21-J:28-b (Appeal for Redetermination or Reconsideration) — https://gc.nh.gov/rsa/html/I/21-J/21-J-28-b.htm
• RSA 77-A (Business Profits Tax) — https://gc.nh.gov/rsa/html/V/77-A/77-A-mrg.htm
• RSA 77-E (Business Enterprise Tax) — https://gc.nh.gov/rsa/html/V/77-E/77-E-mrg.htm
• RSA Chapter 77 (former Interest & Dividends Tax — repealed 1/1/2025) — https://gc.nh.gov/rsa/html/V/77/77-mrg.htm
• 2023 N.H. Laws ch. 79 / HB 2 (I&D repeal) — https://www.gencourt.state.nh.us/
• NH DRA TIR 2025-001 (I&D Repeal) — https://www.revenue.nh.gov/sites/g/files/ehbemt736/files/documents/2025-001-technical-information-release-repeal.pdf
• NH DRA Repeal of I&D Tax (announcement) — https://www.revenue.nh.gov/news-and-media/repeal-nh-interest-and-dividends-tax-now-effect
• NH Board of Tax and Land Appeals — https://www.btla.nh.gov/
• NH DRA Hearings Bureau FAQ — https://www.revenue.nh.gov/faq/hearings.htm
• NH DRA Audit Division — https://www.revenue.nh.gov/about-dra/audit-division
• NH Taxpayer Bill of Rights (RSA 21-J:40 to 21-J:44) — https://www.revenue.nh.gov/resource-center/taxpayer-assistance/taxpayer-bill-rights
• N.H. Code Admin. Rules Rev 300 (BPT) and Rev 2400 (BET) — https://www.revenue.nh.gov/resource-center/laws-rules
• Appeal of Public Service Co. of N.H., 122 N.H. 1062 (1982) (burden of proof)
• Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977) (Commerce Clause)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. New Hampshire has no general personal income tax; the former Interest & Dividends Tax was fully repealed effective January 1, 2025. An attorney licensed in New Hampshire must review and customize this petition before filing. Statutory citations, rates, thresholds, and deadlines change; verify all authorities at gencourt.state.nh.us and revenue.nh.gov before use.