HRS § 231-9.9 — Filing and payment of taxes by electronic funds transfer


§231-9.9 Filing and payment of taxes by
electronic funds transfer. (a) The director of taxation is authorized to
require every person whose tax liability for any one taxable year exceeds
$100,000 and who files a tax return for any tax, including consolidated filers,
to remit taxes by one of the means of electronic funds transfer approved by the
department; provided that for withholding taxes under section 235-62,
electronic funds transfers shall apply to annual tax liabilities that exceed
$40,000. Notwithstanding the tax liability thresholds in this subsection, the
director of taxation is authorized to require any person who is required to
electronically file a federal return or electronically remit any federal taxes
to the federal government, to electronically file a state return and
electronically remit any state taxes under title 14 to the department. The
director is authorized to grant an exemption to the electronic filing and
payment requirements for good cause.
(b) Any person who files a tax return for any
tax and is not required by subsection (a) to remit taxes by means of electronic
funds transfer may elect to remit taxes by one of the means of electronic funds
transfer approved by the department with the approval of the director of
taxation.
(c) If a person who is required under
subsection (a) to file a return electronically or remit taxes by one of the
means of electronic funds transfer approved by the department fails to file
electronically or to remit the taxes using an approved method on or before the
date prescribed therefor, unless it is shown that the failure is due to
reasonable cause and not to neglect, there shall be added to the tax required
to be so remitted a penalty of two per cent of the amount of the tax. The
penalty under this subsection is in addition to any penalty set forth in
section 231-39.
(d) No later than twenty days prior to the
convening of each regular session, the department shall submit a report to the
legislature containing:
(1) The number of taxpayers who were assessed the two
per cent penalty pursuant to subsection (c);
(2) The amounts of each assessment; and
(3) The total amount of assessments collected for the
previous year.