There are no magic wands in tax disputes, but the current New Hampshire Department of Revenue Administration (DRA) tax amnesty program is about as close as it gets. Through the amnesty program, all penalties and half of the interest on New Hampshire state-level taxes can be waived. The amnesty window is open currently and closes after February 15, 2026. This article summarizes eligibility, process, strategy, and policy.
Who is eligible to participate?
Taxpayers of all shapes and sizes may participate. Amnesty is available for all types of taxes administered by the DRA (e.g., Business Profits Tax, Business Enterprise Tax, Interest & Dividends Tax, etc.). This is a DRA-only program, inapplicable to the IRS or local property taxes. Amnesty is available for all types of taxpayers (e.g., individuals, corporations, LLCs, etc.). There are no limitations based on the size of the taxpayer, the amount of tax due, or the state of residence of the taxpayer.
The critical eligibility constraint is timing. The amnesty period runs from December 1, 2025, through February 15, 2026. There is no amnesty outside of this narrow window. Further, amnesty only applies to taxes which are unpaid and were due on or before June 30, 2025. Note that timing, not procedural posture, determines eligibility. It does not matter whether the DRA has assessed the amount due, the taxpayer has appealed the amount due, or even if a return has been filed involving the tax at issue. However, unfortunately for prompt taxpayers, the amnesty program does not provide refunds for amounts paid prior to the amnesty window which would have been eligible for amnesty had they been paid during the window.
How to participate?
Participation is simple. Within the amnesty window, the taxpayer: (1) files outstanding tax returns, if any; (2) pays the unpaid tax; (3) pays half the interest; and voila! All penalties and half the interest disappear. There is no application, no special form, no negotiation, and no DRA discretion. Again, the key is to act before the amnesty window closes. The taxpayer is responsible for calculating the amount of tax and interest payable.
How to decide whether to participate?
Liquidity largely drives the answer. Any eligible taxpayer facing penalties and interest has upside to participating. Rates for both vary, with penalties ranging from about 5% to 50% and interest currently at 9% of the tax due. These can be difficult and costly to remove. Amnesty offers a uniquely smooth path to resolution. However, for some taxpayers, the cash to participate simply is not available. The amnesty program requires immediate payment of 100% of tax due and 50% of interest due.
Participation in amnesty does not forfeit appeal rights. Taxpayers can continue appeals initiated before amnesty or initiate new appeals after amnesty. The DRA will refund amounts paid through amnesty if it is determined later that those amounts were not properly due (i.e., following a successful appeal). Taxpayers with high confidence in their positions may prefer not to participate, rather than participate and await a refund later. Although they should note that DRA guidance includes an ominous statement that DRA may weigh non-participation in amnesty when considering future penalty abatement requests.
What’s in it for the State?
This tax amnesty program is a product of expedience, not generosity. The State of New Hampshire is willing to accept a certain but lesser amount immediately, foregoing potential collection of a larger amount in the future. Where taxpayers come forward and initiate payments through amnesty, it reduces administrative burden on the DRA, freeing up resources to pursue other revenue. Amnesty may incentivize some taxpayers who should have been—but had not been—filing New Hampshire tax returns to come into compliance voluntarily. From the DRA perspective, that is found money. Further, amnesty provides an opportunity for the DRA to close out historic liabilities. Interest & Dividends Tax was repealed effective last year, but liabilities remain outstanding from years prior to repeal.
DRA Commissioner Lindsey Stepp said informally that results are far exceeding expectations. Through December, amnesty receipts totaled roughly nine times the conservative estimate used for budgeting. She said most of that revenue is from Business Profits Tax and Business Enterprise Tax, followed by Interest & Dividends Tax. After the amnesty program closes, Commissioner Stepp will report granular detail to policymakers, informing future budgets and tax administration. The DRA last ran a similar amnesty program in 2015, and Commissioner Stepp does not expect it to occur again any time soon.
Conclusion
The current DRA amnesty program offers a win-win for taxpayers and the State. Taxpayers with New Hampshire liabilities should discuss with their tax advisors whether they should act by February 15, 2026. Now may be the ideal time to resolve those liabilities efficiently.