HI HB119

Establishes a one-time tax amnesty program running from October 31, 2011 through December 31, 2011 that waives all penalties for unpaid taxes from periods ending on or before December 31, 2010, provided taxpayers pay owed taxes in full.

Allows installment payment agreements for taxpayers experiencing severe hardship, requiring 25% payment upfront with the balance paid in monthly installments, though failure to pay voids amnesty terms.

Excludes from amnesty eligibility any taxpayer under criminal investigation or litigation for tax evasion, fraud, or nonpayment, and does not apply to real property taxes or taxes under chapter 249.

Shifts burden of proof to the Department of Taxation in administrative proceedings if a taxpayer introduces credible evidence of disputed factual issues, provided the taxpayer complied with substantiation requirements and maintained proper records.

Authorizes equitable relief waiving tax liability when the Department finds it inequitable and unjust to hold a taxpayer liable, including spousal relief situations, when no other relief is available under title 14.