You're not alone if you've received a notice from the New Hampshire Department of Revenue Administration informing you of tax penalties. Many taxpayers face penalties for reasons such as filing a tax return after the due date, failing to pay the full amount they owe, or underpaying estimated tax throughout the year. These penalties can proliferate, adding interest and fees that increase the total amount due and place additional financial pressure on individuals and businesses.
Fortunately, New Hampshire offers a process called penalty abatement, which allows eligible taxpayers to request relief from specific penalties. While not guaranteed, you may qualify for abatement if you can show reasonable cause—circumstances beyond your control prevented you from meeting your tax obligations on time. This guide will explain how to apply for relief, what documentation is required, and how to strengthen your request.
Understanding your rights and options can help reduce or eliminate unnecessary charges. Whether you're a few days late filing your return or have received a letter about a larger balance, taking timely action is essential. If you're unsure where to begin or need more detailed information about your situation, this guide can help. You’ll also learn how to get help from the state or a tax professional and what to do after you decide on your request.
The New Hampshire Department of Revenue Administration may assess various penalties when taxpayers fail to comply with state tax rules. Knowing which penalties qualify for abatement is the first step toward seeking relief. While penalties vary by tax type, the most common penalties may be reduced or eliminated if you qualify under the reasonable cause standard.
When a required return is not filed by the due date, the state may assess a penalty based on the number of days late. This penalty applies to individuals and businesses, including tax types such as business profits tax, Business Enterprise Tax, and Interest and Dividends Tax.
This penalty is assessed when taxpayers do not pay the full amount due by the required date. Failure to pay the amount you owe may result in additional charges even if the return is filed on time. Interest will also continue to accrue until the full balance is paid.
If you fail to make timely and sufficient estimated tax payments throughout the year, you may face this penalty. It often affects those with self-employment income, investment earnings, or business profits. The amount depends on how much was underpaid and the period involved.
Businesses and entities like partnerships and S corporations may be penalized for failing to file required informational returns promptly. These penalties are calculated based on the number of returns filed late and the length of the delay.
Some tax types require payment to be made electronically. If a taxpayer submits payment by paper check instead of the approved method, the department may assess an additional penalty for not following the required procedures.
If taxpayers significantly understate their tax liability, they may be charged this penalty. It is typically assessed when the difference between the correct and reported taxes exceeds a certain percentage or threshold. This penalty can apply to both individuals and businesses.
While penalties may be abated for reasonable cause, it’s important to note that interest is generally not eligible for relief. Interest continues to accrue from the original due date of the tax until the full amount is paid, even if penalties are waived. Always review the notice or letter to confirm what penalties have been assessed and the time allowed to respond.
To qualify for penalty abatement in New Hampshire, you must demonstrate that your failure to file or pay tax occurred despite exercising ordinary business care and prudence. In other words, your situation must meet the reasonable cause standard set by the New Hampshire Department of Revenue Administration (NHDRA).
The NHDRA typically considers the following situations when evaluating a request for penalty relief:
While reasonable cause can justify some penalty relief, the following common reasons are generally not accepted:
All penalty abatement requests must be submitted within 60 days of the date listed on the notice of assessment. You must also fully comply with all other tax filing and payment obligations. If the penalty was assessed due to fraud, it is not eligible for abatement.
New Hampshire offers two ways to apply for penalty relief: through its secure online platform or by submitting a paper form. Whichever method you choose, your request must include a clear explanation, proper identification, and any relevant documentation.
Mail your completed packet to:
New Hampshire Department of Revenue Administration
Hearings Bureau
PO Box 1467
Concord, NH 03302-1467
All requests—whether submitted online or by mail—must be filed within 60 days from the date listed on your penalty notice. The NHDRA will use the postmark date to determine timeliness for mailed requests. To protect your submission, consider using certified mail with a return receipt.
The success of your penalty abatement request depends heavily on how well you explain your situation. The NHDRA reviews each request on a case-by-case basis, so a well-written and properly documented explanation can significantly improve your chances.
“Due to a power outage during a winter storm on March 15, I could not access my computer systems or internet for 5 days. My return, originally due by March 20, was filed on March 23 once service was restored. Attached is documentation from my utility provider confirming the outage dates.”
A clear, fact-based explanation and strong documentation help establish your credibility and support your claim. If you're unsure about what qualifies, you may want help from a qualified tax advisor familiar with New Hampshire tax relief procedures.
Even if you meet the reasonable cause criteria, errors in your request can lead to denial. The New Hampshire Department of Revenue Administration carefully reviews each submission, and minor missteps may prevent you from receiving the relief you seek.
Filing after the 60-day window shown in your notice is one of the most common reasons a request is rejected. The state considers the mailing or online submission date the official filing date. Please mark the deadline on your calendar and submit your request early to ensure a smooth process.
A strong written explanation without evidence may still result in a denial. The department needs proof to verify your claim. Always include documents that support your reasonable cause, such as a doctor’s note, FEMA declaration, or correspondence showing technical difficulties.
Some explanations—though honest—are not accepted as valid causes for relief. If your request says you forgot, misunderstood the law, or didn’t have enough money to pay, it’s unlikely to be approved. The Department expects taxpayers to know their obligations and take reasonable steps to comply.
Omitting key fields—like your taxpayer identification number, tax period, or notice number—can delay your request or lead to automatic denial. Ensure every form section is filled out completely and accurately before sending it.
It’s not enough to describe what happened—you must explain how that event directly prevented you from filing or paying your return by the due date. Creating a simple timeline of events can help you clarify your case.
Once your request is received, the New Hampshire Department of Revenue Administration will review it and notify you of the outcome. Processing times vary depending on the complexity of your situation and the department’s current workload.
If you are uncertain about how to interpret the results or what to do next, don’t hesitate to call us or consult a qualified tax professional for help.
Before you send your penalty abatement request, use this checklist to ensure your submission is complete and accurate. A well-prepared request improves your chances of receiving relief and helps avoid unnecessary delays.
Submitting a complete and well-documented request shows the Department you are serious about resolving the issue and helps move the process forward more efficiently.
New Hampshire penalty abatement allows you to request relief from penalties for failure to file or pay your tax return on time. Interest, however, is usually not waived and continues to accrue on the amount you owe until the full payment is made. Even if your penalties are removed, you must still pay any remaining interest unless it results from a department error. See your notice for exact details.
You may apply for penalty relief even if you haven’t paid the full amount due. While the penalties may be reduced, interest will still accrue on the unpaid tax. If you cannot pay the full amount immediately, you should file your return by the due date and request a payment plan. Showing that you’re trying to pay can help support your reasonable cause claim.
You may receive a response from the New Hampshire Department of Revenue Administration within 30 to 90 days. The review time depends on the complexity of your request, the documentation you send, and the volume of other submissions. The Department may contact you by letter or notice if additional information is needed. To help ensure a smooth process, please submit all required documents with your initial application.
You will receive a letter explaining the reason if your request is denied. You may revise and send a new request if key information or documents were missing. You also have the right to appeal to the Board of Tax and Land Appeals or the Superior Court. To strengthen your case, get help from a tax professional who can guide you through your next steps.
No, New Hampshire does not offer an automatic first-time penalty abatement like the IRS. Every request must meet the reasonable cause standard. If the incident is your first time being late, your compliance history may help support your request. Be sure to include clear explanations and supporting documents, and file your request by the 60-day deadline stated in your penalty notice.
You can apply for penalty relief for multiple tax periods if they involve the same reasonable cause. Ensure you include all required tax return periods, notice numbers, and documentation when you send your request. If the reasons differ, explain each clearly. The Department may request additional information depending on the months or amounts involved.
Requesting penalty relief will not automatically trigger an audit. However, the Department will review your request and the information you provide. Be sure your explanation matches what you filed on your tax return. If your documents are clear and your timeline is accurate, your explanation will help prevent additional scrutiny. If you have questions, call us or get help before submitting your request.
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