HI SB2822

Department of Taxation may require electronic filing of tax returns for employers with withholding tax liability exceeding $40,000 annually and for corporate/partnership income taxpayers.

Department may require electronic filing for businesses with general excise tax liability exceeding $4,000 annually and transient accommodations tax operators with liability exceeding $4,000 annually.

Department must require electronic filing for all taxpayers subject to taxes under chapters 236E, 239, 241, 243, 244D, 245, and 251.

Department must provide an electronic filing option and give at least 90 days' prior written notice before requiring electronic filing.

Taxpayers who fail to file electronically when required face a penalty of 2% of the tax amount, unless failure was due to reasonable cause; individual income taxpayers are explicitly exempted from electronic filing requirements.