July 22, 2025
NH TAX AMNESTY PROGRAM OFFERS A SHORT WINDOW FOR PENALTY AND INTEREST RELIEF
To encourage the payment of past-due New Hampshire taxes and boost State revenue going into the biennium, the Governor has signed HB 2 into law, creating a limited-time Tax Amnesty Program.
Under this new law:
“Notwithstanding the provisions of any other law to the contrary, with respect to taxes administered and collected by the department of revenue administration, an amnesty from the assessment or payment of all penalties and interest exceeding 50 percent of the applicable interest, as calculated pursuant to RSA 21-J:28 on the date of payment for the tax period, shall apply to unpaid taxes reported and paid in full between December 1, 2025 and February 15, 2026, regardless of whether previously assessed.
This amnesty shall only apply to taxes due but unpaid on or before June 30, 2025. Without in any way limiting the authority otherwise vested in the commissioner under the law, the commissioner may consider the failure to pay such amounts during such amnesty period as a factor when abating or not abating any interest or penalty for good cause or other reasons.”
Senate Finance Chairman James Gray, noted that this type of amnesty is offered roughly only once every 10 to 15 years as a way to encourage payment and promote compliance. He also pointed to recent upgrades to the Department of Revenue’s computer systems, which now more easily compare state and federal tax returns making enforcement more robust. As a result, taxpayers who do not take advantage of the amnesty may face stricter scrutiny after the short term window closes on February 15, 2026.
Notable Observations:
- The scope of the amnesty is broad, extending to all taxes administered and collected by the NH DRA. The amnesty has limits, however, and does not apply to local real estate taxes as they are not administered or collected by the NH DRA.
- Taxpayers only have two and a half months to apply for amnesty which leaves little time for negotiation, so taxpayers may want to consider the benefit of settling their tax liability quickly, rather than engaging in a drawn-out negotiation.
- The NH DRA rarely concedes interest, so the fact that interest is discounted by 50% is meaningful given the current underpayment rate on NH tax obligations is 10%.
- No Technical Information Release has been issued by the NH DRA yet about the amnesty. We expect a TIR or press release to be forthcoming this Fall to provide procedural information on how to take advantage of the amnesty.
Don’t let your clients miss this opportunity to settle their NH tax debts at a reduced cost. Contact our tax team at Devine Millimet today to learn how you can take advantage of the Tax Amnesty Program, save money, avoid penalties, and ensure compliance before the window closes.
