HB2395 Summary

• Amends HRS §231-18 to establish specific circumstances allowing disclosure of tax returns and return information to the Department of Attorney General, law enforcement, and service providers while maintaining confidentiality protections.

• Permits disclosure to attorney general deputies and employees for grand jury proceedings and tax administration litigation if the taxpayer is a party, the return item relates to the proceeding, or the return information relates to a transactional relationship affecting the proceeding.

• Allows disclosure to federal, state, or local law enforcement solely for investigating criminal offenses involving identity theft or fraudulent tax refund claims.

• Permits disclosure to persons necessary for processing, storage, retention, transmission, and reproduction of returns and information, and for equipment maintenance and tax administration services.

• Amends HRS §235-116 to clarify that all income tax return information filed or submitted to any state agency remains confidential except as otherwise provided by law.