HI HB1490

Adds a new penalty provision to Chapter 231, Hawaii Revised Statutes for taxpayers who fail to respond to department inquiries or information requests during tax examinations or investigations.

Penalty amount cannot exceed 25 percent of the assessed tax.

Director of Taxation may waive or reduce the penalty if the failure to respond was due to reasonable cause and not neglect.

Does not apply to rights, duties, penalties, or proceedings that matured or began before the act's effective date.

Effective July 1, 2050.