NH Form DP-2210 uses WRONG penalty rate

[fek8]

The NH DP-2210 Turbo tax form claims that the penalty rate is 7% for underpayments through 12/31/2020 (line 17) and that the rate for underpayments from 1/1/2021 through 4/15/2021 (line 20) is ALSO the same 7%.

BUT - when you read the instructions from the NH Tax authority, they show that the penalty rate for the period from 1/1/2021 to 12/31/2021 is only 5%.  https://www.revenue.nh.gov/forms/2021/documents/dp-2210-2220-instructions-2020.pdf  SO, what is the scoop?  Is it 5% or is it 7%.

[LenaH]

The New Hampshire penalty is 7% for the entire year.

The link for the instructions you gave, as well as the instructions I tried to pull from the website, do not seem to work at the moment, but I have attached a picture below of the 2020 DP-2210 form. As shown below, the rate assessed (as shown on Line 19 and 20) is 7% for the entire year. 

[fek8]

Here is the chart that raised the question in my mind.  It give the appearance that there is a different rate (5%) for that part of the late pre-payments that occurred from 1/1/2021 to 12/31/2021 (which also includes the time from 1/1/2021 to 4/15/2021 - when the final tax payment is made).

[LenaH · Accepted solution]

Yes. The 5% underpayment penalty is for payments that cover tax year 1/1/21-12/31/21, not payments that were made in 2021. 

@fek8