HRS § 231-9.2 — Offers in compromise


[§231-9.2] Offers in compromise. (a)
Requests for compromises authorized under section 231-3 shall be submitted to the
department and accompanied by the following:
(1) In the case of a lump-sum offer in compromise, twenty
per cent of the amount of the offer; or
(2) In the case of a periodic payment offer in compromise,
payment in the amount of the first proposed installment. Any failure to make an
installment other than the first installment due under the offer in compromise,
during the period the offer is being evaluated by the department, may be treated
by the department as a withdrawal of the offer in compromise.
(b) Where an offer in compromise is not accepted
by the department for any reason, payments made under subsection (a) shall be applied
to the tax first assessed or other amounts imposed under title 14.
(c) The department may waive the payment requirements
under subsection (a) for individual taxpayers who meet the low-income certification
guidelines published by the Internal Revenue Service for the period in which the
request for compromise has been submitted.
(d) The director of taxation shall prepare any
forms that may be necessary to meet the requirements of this section. In addition
to any other administrative requirements, the director of taxation may also require
the taxpayer to furnish reasonable information to ascertain the validity of the
request for payment waiver made under subsection (c).
(e) The department may adopt rules pursuant to
chapter 91 necessary to effectuate the purposes of this section.
(f) As used in this section:
"Lump-sum offer in compromise" means any
offer of payments made in five or fewer installments.
"Periodic payment offer in compromise"
means any offer of payments made in six or more installments.