New Hampshire State Tax Enforcement Decision
Checklist
Introduction
State tax enforcement in New Hampshire occurs when the Department of Revenue
Administration determines that a taxpayer has failed to comply with state tax law. This may involve unfiled business tax returns, unpaid tax balances, incomplete information on returns, or other compliance issues.
Enforcement actions are part of the state’s standard collection and compliance process.
Understanding what enforcement means and what it does not mean helps reduce confusion and allows taxpayers to respond appropriately. Ignoring enforcement notices typically results in escalated collection efforts, including liens, wage garnishment, and other legal actions.
The state follows specific administrative procedures before taking these steps, and taxpayers have opportunities to respond at each stage. Knowing what to expect and when to act helps protect your rights and financial situation.
What State Tax Enforcement Means
State tax enforcement is an official notice or action from the New Hampshire Department of
Revenue Administration indicating that you have a tax compliance problem that requires resolution. Enforcement may include written notices, phone calls, or formal collection actions.
The state may be seeking unfiled business tax returns, unpaid tax balances, additional tax owed from an audit, or verification of previously provided information. Enforcement represents the state’s attempt to collect taxes owed or resolve compliance gaps through administrative procedures.
Why the State Initiates Enforcement Actions
The New Hampshire Department of Revenue Administration initiates enforcement action for common administrative reasons. These include unfiled Business Profits Tax or Business
Enterprise Tax returns when the state has record of business activity; unpaid Meals and Rooms
Tax balances from operators of hotels or restaurants; unpaid tax balances shown on state business tax accounts; returns that lack required information or show calculation errors; discrepancies between information you reported and information the state received from third parties; or debt from prior tax years that remains unresolved. The state is required by law to
pursue collection of taxes owed. Enforcement is a standard administrative process designed to identify and resolve tax compliance issues before they escalate to more serious legal action.
Consequences of Not Responding
If enforcement notices go unaddressed, the state typically escalates its collection efforts. This may include follow-up notices, increased collection activity, or formal legal action to secure payment. The state may place a tax lien on your property, which is a claim against your assets to secure payment of the tax debt.
Wage garnishment may be pursued, which requires employers to withhold a portion of your paycheck for tax payments. The state may suspend or revoke business licenses it has issued for non-compliance. Additional penalties and interest continue to accrue on unpaid balances.
The longer enforcement is unaddressed, the more complicated and costly the resolution typically becomes.
What Enforcement Does Not Mean
Receiving enforcement action does not mean a criminal investigation is underway. Tax enforcement is a civil administrative process, not a criminal one. Enforcement does not automatically mean your property will be seized or your wages will be garnished immediately.
The state follows specific procedures and provides notice before taking these more serious actions. Enforcement does not mean you have no options or right to respond. You are entitled to understand why the action was issued and to provide information or documentation in response.
An enforcement notice is not a final judgment or court order.
Steps to Take After Receiving an Enforcement Notice
Step 1: Read the Entire Notice Carefully
Note the date received, the tax period involved, and the specific issue, such as an unfiled return, an unpaid balance, or missing information. Write down the case or notice number if one is provided. Identify the contact information for the Department of Revenue Administration listed on the notice.
Step 2: Gather Relevant Tax Documents
Collect copies of any business tax returns filed for the years in question, including Business
Profits Tax, Business Enterprise Tax, or Meals and Rooms Tax returns. Gather business income documents such as profit and loss statements, 1099s received, or other business records for the tax periods involved. Locate payment records, bank statements, or cancelled checks
showing tax payments made. Collect correspondence with the state from prior years, if applicable.
Step 3: Review Your Tax Account Status
Contact the New Hampshire Department of Revenue Administration using the phone number on the notice. Request a detailed account statement showing what is owed, what has been paid, penalty amounts, and interest accrued. Ask for clarification on which tax periods are involved.
Request written confirmation of the account status if possible.
Step 4: Determine If a Return Is Missing or Information Is Incomplete
If the notice references an unfiled business tax return, determine whether you actually filed a return for that year. Review your records for filed return confirmations or receipts. If a return was filed but the state has no record, gather evidence of the filing, such as a confirmation number, filing receipts, or bank records showing payment. If no return was filed, identify what business income or taxable activity you had for that year and whether you were required to file.
Step 5: Determine If There Is an Outstanding Tax Balance
If the notice involves unpaid taxes, obtain a detailed breakdown of the amount owed. This should include the original tax, penalties, and interest. Verify that the payments you made were properly credited to your account. Ask the state to confirm the current balance.
Step 6: Verify Information on Prior Returns If Applicable
If the enforcement relates to discrepancies between what you reported and what the state received, gather the relevant return and supporting documents. Review income documents and business records for accuracy. Identify any corrections or amendments that may need to be filed.
Step 7: Document Your Communications
Keep a written record of all phone calls with the Department of Revenue Administration, including the date, time, person spoken with, and what was discussed. Save copies of all notices and correspondence received from the state. Send any required responses in writing and keep copies for your records.
Step 8: Respond in Writing to the Enforcement Notice Within the Deadline
If a deadline is stated in the notice, mark it clearly on your calendar. Prepare a written response addressing the specific issue raised. Include relevant documents and explain any circumstances that affect the issue. Send your response by certified mail, with a return receipt requested, to the address listed on the notice. Keep a copy for your records.
Step 9: Consider Whether to File a Missing Return or Amend an Existing
Return
If the enforcement relates to an unfiled business tax return, file the return as soon as possible.
Include all business income for that tax period. If the return relates to a prior year, file it promptly even though it is late. If the enforcement involves an incomplete return, file an amended return with the missing or corrected information.
Step 10: Arrange Payment or Request a Payment Plan If Appropriate
If an unpaid tax balance exists, contact the Department of Revenue Administration to discuss payment options. Ask whether you can pay the balance in full. If you cannot pay in full, ask about payment plan options. Get details on how to arrange any agreed-upon payment plan.
- Do not ignore enforcement notices or assume the issue will resolve on its own.
- Do not miss deadlines stated in enforcement notices.
- Do not send responses or payment to an incorrect address.
- Do not send payment without specifying which tax period or account the payment
- Do not assume that paying one tax period resolves all years under enforcement.
- Do not provide incomplete or vague responses to the state’s requests for information.
- Do not discard enforcement notices or correspondence until the issue is resolved.
- Do not delay filing a missing return, hoping the issue will go away.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 11: Request Written Confirmation of Resolution
Once you have responded to the enforcement notice and taken necessary steps, request written confirmation from the state that the issue has been resolved. Ask for a revised account statement if applicable. Keep confirmation letters on file.
What Happens After You Respond
After you respond to enforcement action, the state typically reviews your response and supporting documents. If you filed a missing return or provided the required information, the state processes the return and updates your account. If a payment or payment arrangement has been made, the state applies it to your balance and may issue a confirmation.
The state may contact you if additional information is needed or if your response is incomplete.
Processing timeframes vary depending on the complexity of the issue and the state’s workload.
You should receive updated account information or a follow-up notice within a reasonable timeframe.
Common Mistakes to Avoid applies to.
Frequently Asked Questions
How long does the state give me to respond to an enforcement notice?
Response deadlines vary depending on the type of notice. The specific deadline should be stated in the notice itself. If no deadline is clearly stated, contact the Department of Revenue
Administration for clarification.
Can I request an extension if I need more time to gather documents?
The state’s policies on deadline extensions are not clearly stated in publicly available guidance.
Contact the Department of Revenue Administration directly to ask about extension options.
What if I disagree with what the state says I owe?
If you believe the enforcement amount is incorrect, provide documentation supporting your position in your written response. Include tax returns, payment records, or correspondence showing your calculation.
Can I set up a payment plan if I cannot pay the full amount owed?
Yes, contact the Department of Revenue Administration and ask about payment plan options.
Details on plan eligibility, terms, and how to apply are available directly from the department.
Will enforcement action appear on my credit report?
Tax liens do not appear on consumer credit reports as of April 2018. Tax liens are public records but are not reported to credit bureaus.
What if I file the missing return but cannot pay the tax owed immediately?
Filing the return is a separate step from paying the balance. Contact the Department of
Revenue Administration to discuss payment options once the return is filed.
How long does it take for the state to process my enforcement response?
Processing timeframes are not specified in public guidance and may vary based on the complexity of the issue and the department's workload. Ask for an estimated timeframe when submitting your response.
Moving Forward
State tax enforcement is a serious administrative process that requires prompt attention and a factual response. Understanding what enforcement means and what steps to take reduces confusion and helps resolve the issue more efficiently.
Responding to notices, providing accurate information, and communicating with the Department of Revenue Administration are essential steps. Taking action early typically prevents escalation to more serious collection actions.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
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