Tax News

CCH (cch.taxgroup.com) reports:

  The Hawaii Department of Taxation has announced that it is offering a "Tax Fresh Start Program," running from May 27, 2009 through June 26, 2009, to provide an opportunity for eligible taxpayers to pay back taxes to the state while avoiding penalties and potentially avoiding referral for criminal prosecution. It also offers a 50% reduction in interest from the statutory rate of 8% per annum to 4% per annum. The program is available to all eligible taxpayers owing eligible Hawaii taxes for any taxable period ending before 2008, either because the taxpayer failed to file a return for the taxable period, or previously filed a return for the taxable period but underreported the amount of Hawaii tax due.

  The program covers all taxes that are administered by the department, including the general excise tax, use tax, income tax, and transient accommodations tax, among others. The program may not be used for tax liabilities that are already known to the department. Taxpayers already in a payment plan with the department or who have received a tax bill from the department cannot participate in this program for the tax liability that is the subject of that bill. The taxpayer may, however, report additional liability for that tax period as an underreporter under the Tax Fresh Start Program.

  A taxpayer is ineligible for participation in the program if any of the following applies:

  -- the taxpayer is currently under audit by the department;

  -- the taxpayer is currently under criminal investigation;

  -- the taxpayer is a party to any civil or criminal litigation that is pending on May 27, 2009 with the department;

  -- the taxpayer is currently in the department's collection program;

  -- the taxpayer has been contacted by the department concerning a return for any reason, including a return that has not been filed or an apparent understatement of income;

  -- the taxpayer is under audit by the federal government or has been notified of such an examination; or

  -- the taxpayer has been criminally prosecuted by the criminal investigations unit, or is currently under court jurisdiction.

  If a taxpayer is not eligible for the Tax Fresh Start Program for a particular Hawaii Tax or for a particular taxable period, the taxpayer may still be eligible to apply for participation in the program for a different tax or for a different taxable period. Taxpayers are advised that payment under the Fresh Start Tax Program constitutes an express and absolute relinquishment of any and all administrative and judicial rights of appeal.

  Taxpayers with questions about the program may visit the department's Web site at
www.hawaii.gov/tax.

  Subscribers can view the release, an overview of the Fresh Start Tax Program, and questions and answers regarding the program.

 
News Release , Hawaii Department of Taxation, May 27, 2009