HAR § 18-235-102 — Records and special returns

(a) In general. Except as provided in subsection (b) any person subject to tax under chapter 235, HRS, or any person required to file a return of information with respect to income, shall keep such permanent books of account or records, including inventories, as are sufficient to establish the amount of gross income, deductions, credits, or other matters required to be reported in any income tax return or return information. The records shall be kept in the English language and shall be made available upon request by the director or designee. (b) Wage earners. Individuals whose gross income includes salaries, wages, or similar compensation for personal services rendered are required to keep records which will enable the director of taxation to determine the correct amount of income subject to tax. It is not necessary, however, that with respect to the income discussed in this subsection that individuals keep the books of account or records required by subsection (a). (c) Exempt organizations. In addition to such permanent books and records as required by subsection (a), with respect to the tax imposed on unrelated business income under section 235-2.4, HRS, every organization exempt from tax under section 235-9, HRS, shall keep permanent books of account or records, including inventories, which are sufficient to show specific items of gross income, receipts, and disbursements.