New Hampshire Plan Set for Refunds of Tax on Income from Out-of-State Banks

Procedures have been established to issue refunds for New Hampshire interest and dividends tax that was illegally collected on interest from out-of-state bank deposits and dividends from stock in out-of-state stock banks during the period 1991 through 1994. (Imposition of the tax on income from out-of-state banks but not New Hampshire banks was ruled unconstitutional in the class action suit of Smith v. New Hampshire Department of Revenue, New Hampshire Superior Court, Merrimack County, Nos. 95-E-0059, 95-E-0063, 95-E-0082, 95-E- 0091, 95-E-0092, 95-E-0128, 95-E-0129, and 95-E-0136, August 10, 2000.) Taxpayers who have filed timely refund claims will be notified regarding the status of their claims by March 1, 2004.

Refund Procedure

Upon review of each claim, a taxpayer will receive one of three possible notices from the Department: (1) a notice of refund indicating that a refund is due, which will be sent to the taxpayer within 20 days after issuance of the notice; (2) a notice that no refund is due; or (3) a notice of request for additional information that must be supplied within 30 days of the notice, unless the taxpayer requests a 30-day automatic extension.

Request for Redetermination

A request for redetermination of the refund amount must be filed with the Department within 30 days of the notice, unless the taxpayer files for a 30- day automatic extension. If failure to file a redetermination request within 30 days is because of an accident, mistake, or misfortune, a taxpayer may file the request within 60 days of the notice and up to 90 days upon written request. A taxpayer who contests the Department's redetermination must file an appeal with the Merrimack County Superior Court within 30 days of the notice of redetermination.

Deceased Taxpayers

If the original taxpayer is deceased, the executor, surviving spouse, or claimant for the estate, must send a completed Form NH-1310 in order for the refund check to be issued to a person other than the original taxpayer.

Address Changes

A taxpayer whose address has changed since filing a refund claim should send written notification of the taxpayer's current address to Department of Revenue Administration, Discovery Bureau, P.O. Box 299, Concord, NH 03302- 0299. The notification should include the taxpayer's name, old address, new address, Social Security number or federal identification number, and be signed by the taxpayer.

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