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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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.  582

 

Honolulu, Hawaii

                , 2013

 

RE:   H.B. No. 425

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 425 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to require offers in compromise that are submitted to the Department of Taxation to be accompanied by certain payments.

 

     The Tax Foundation of Hawaii submitted comments on the measure.

 

     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.  Under current administrative rules, each offer in compromise submitted to the Department of Taxation must be accompanied by a payment in the amount of the compromise, or a substantial deposit if the offer allows installment payments.

 

     Your Committee also finds that this measure would codify the requirement that offers in compromise be accompanied by twenty per cent of the amount offered, in the case of a lump-sum offer in compromise, or the first installment, in the case of a periodic payment offer in compromise.  Your Committee recognizes that these payment requirements are similar to those that apply to offers in compromise under the Internal Revenue Code.

 

     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity and style.

 

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

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

		____________________________ SYLVIA LUKE, Chair