Q: Is there a statute of limitation for assessments or audits of Hawaii GET taxes
I didn’t realize I needed to file GET for Hawaii but did file my 1099s as income for state income taxes. If I had filed GET, there is 3 year statute of limitations but it seems ambiguous if the statute applies since I unknowingly did not file. Since I filed my 1099 for state income, I think the state had obligation to inform me of owing GET within the 12 years they audited for back GET taxes and penalties and interest.
A:
In Hawaii, the statute of limitations for assessments or audits of General Excise Tax (GET) can vary depending on the circumstances.
1. General rule: If you filed your GET returns, the Department of Taxation has 3 years from the due date of the return or the date the return was filed, whichever is later, to assess additional taxes.
2. Failure to file: If you did not file a GET return, there is no statute of limitations for the Department of Taxation to assess taxes, penalties, and interest. They can go back indefinitely.
3. Fraud or substantial understatement: If there is fraud or a 25% or more understatement of taxes, the statute of limitations is extended to 6 years.
Regarding your specific situation, filing your 1099s for state income tax purposes does not necessarily trigger an obligation for the state to inform you about your GET filing requirements. The GET is a separate tax from the state income tax, and the responsibility to file and pay lies with the taxpayer.
However, given the complexity of your situation, it would be best to consult with a qualified tax professional or attorney who specializes in Hawaii tax law. They can provide more specific guidance based on the details of your case and help you navigate any potential assessments or audits from the Department of Taxation.
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