HI HB425

Establishes payment requirements for offers in compromise submitted to the Department of Taxation, conforming state law to federal Internal Revenue Code treatment.

Requires lump-sum offers in compromise to be accompanied by 20 percent of the amount offered as payment.

Requires periodic payment offers in compromise to be accompanied by the first installment payment.

Reduces frivolous offer in compromise applications by implementing upfront payment requirements that mirror federal standards.

Received support from the Department of Taxation and comments from the Tax Foundation of Hawaii.