HAWAII DEPARTMENT OF TAXATION BACK TAX RELIEF

Get started resolving your state tax liabilities using the information below.  If you still need help, reach out to us using the contact form to the right of this page.

Read Hawaii’s Taxpayer Bill of Rights.

HI-DOT Monthly Payment Plan

Hawaii likes to see their monthly Installment Agreements last about 6 to 12 months.  It is also preferred that a 25% down payment is made before getting into a formal Agreement.  You may also be charged an upfront processing fee for it.

Expect to complete a Statement of Financial Condition for Individuals and one for your Corporation, Partnership, etc. if you are dealing with a business tax.

According to the Hawaii Taxpayer Bill of Rights, you may be eligible for an “Uncollectible” type status, but it’s difficult to get.

State of Hawaii Offer in Compromise

Hawaii does have a Compromise Offer program available for those that qualify.  The OIC form is similar to the IRS form.  You have the same basic reasons for submitting the Offer.

1. Doubt as to Collectibility
2. Doubt as to Liability
3. Exceptional Circumstances (Effective Tax Administration)

And the same basic Payment Terms are offered.

• Lump Sum
• Periodic Payments

Expect to complete Statement of Financial Condition forms and all backup documents to support your Compromise Offer request.

Penalty Relief

Although a Waiver of Penalties is possible, it can be difficult to fit within the state’s definition of Reasonable Cause.  The reason for the penalty must be due to circumstances beyond your control.

If you have a problem with the DOT or are suffering a hardship due to enforced tax collection, contact the HI Taxpayer Advocate Office.