HI SB3176

Requires taxpayers under audit to produce all requested documents and evidence within 30 business days of written demand by the Department of Taxation, or as soon thereafter as the director deems reasonable.

Prohibits taxpayers from introducing documents or evidence in tax appeals or section 40-35 actions if they failed to produce them when demanded, unless the failure was due to reasonable cause and not neglect or refusal.

Adds a new subsection requiring persons to confer with the Department for 30 days after receiving notice of a proposed assessment before the Department finalizes the assessment and levies taxes and penalties.

Applies similar audit and document production procedures to the Hawaii transfer tax (Chapter 236E), general excise tax (Chapter 237), and other tax chapters.

Takes effect July 1, 3000, with application to taxable years beginning after December 31, 2023 for income and excise taxes, and to decedents and transfers after December 31, 2023 for transfer taxes.