Hawaii House Bill HB2487

Hawaii 2024 Regular Session

• Introduced: 1/24/24
• Refer: 1/26/24

Caption

Relating To Tax Enforcement.

Impact

The bill establishes a mandatory timeline for taxpayers to produce relevant documents within twenty days of receiving a written demand from the tax department. This provision aims to enhance the efficiency of tax audits by ensuring timely compliance. The consequences of failing to produce such documentation can be severe, as the bill includes stipulations that prevent taxpayers from introducing any documents not submitted on time during tax appeals, unless they can prove their non-compliance was due to reasonable cause.

Summary

House Bill 2487 introduces significant amendments to the Hawaii Revised Statutes, specifically targeting tax enforcement protocols. The primary focus of the bill is to streamline the auditing process regarding income tax assessments, placing stringent requirements on taxpayers. It authorizes the director of taxation or designated officials to access extensive financial records, including bank statements and federal tax returns, making it imperative for taxpayers to maintain organized documentation.

Contention

One notable point of contention surrounding HB 2487 is its potential impact on taxpayer rights and the administrative burden it may impose. Critics argue that the bill may unfairly penalize taxpayers who might struggle to gather required documents within the stipulated time frame. Furthermore, there are concerns regarding privacy and the scope of the authorities granted to the taxation department, which some believe could lead to overreach in auditing practices.

Additional_notes

Moreover, the bill delineates the procedures for assessing additional taxes if previous assessments were found lacking, ensuring that taxpayers remain accountable for accurate reporting. Such provisions are intended to safeguard state revenue while calling into question the balance between effective tax collections and equitable treatment of taxpayers.