Bill Text: HI HB425 | 2013 | Regular Session | Amended

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Bill Title: Tax Administration; Offers in Compromise

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-04-10 - Act 006, 4/5/2013 (Gov. Msg. No. 1106). [HB425 Detail]

Download: Hawaii-2013-HB425-Amended.html

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STAND. COM. REP. NO. 1054

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 425

       H.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 425, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO OFFERS IN COMPROMISE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to establish payment requirements under state law for offers in compromise that are submitted to the Department of Taxation.

 

     Your Committee received testimony in support of this measure from the Department of Taxation.

 

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that an offer in compromise, if accepted by the Department of Taxation, is an agreement between a taxpayer and the Department of Taxation that settles the taxpayer's tax liabilities for less than the full amount owed.  This measure would treat offers in compromise in the same manner as federal treatment under the Internal Revenue Code, thereby conforming offers in compromise for federal and state tax payments.

 

     Your Committee further finds that this measure will reduce the number of frivolous offers in compromise applications by requiring that offers in compromise be accompanied by:

 

     (1)  Twenty per cent of the amount offered, in the case of a lump-sum offer in compromise; or

 

     (2)  The first installment, in the case of a periodic payment offer in compromise.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 425, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

		____________________________ DAVID Y. IGE, Chair