HRS § 237-40 — Limitation period


§237-40 Limitation period. (a) General rule. The amount of excise taxes imposed by
this chapter shall be assessed or levied within three years after the annual
return was filed, or within three years of the due date prescribed for the
filing of the return, whichever is later, and no proceeding in court without
assessment for the collection of any of the taxes shall be begun after the
expiration of the period. Where the assessment of the tax imposed by this
chapter has been made within the period of limitation applicable thereto, the
tax may be collected by levy or by a proceeding in court under chapter 231;
provided that the levy is made or the proceeding was begun within fifteen years
after the assessment of the tax. For any tax that has been assessed before
July 1, 2009, the levy or proceeding shall be barred after June 30, 2024.
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or
custody of a court in any proceeding before any court of the United States or
any state, and for six months thereafter;
(3) An offer in compromise under section 231-3(10) is
pending;
(4) During which the taxpayer is outside the State if
the period of absence is for a continuous period of at least six months;
provided that if at the time of the taxpayer's return to the State the period
of limitations on collection after assessment would expire before the
expiration of six months from the date of the taxpayer's return, the period
shall not expire before the expiration of the six months; and
(5) An appeal of the assessment is pending before the
taxation board of review or the tax appeal court, beginning on the date the
notice of appeal is filed and concluding on the date a final decision is issued
or the case is withdrawn or dismissed.
(b) Exceptions. In the case of a false or
fraudulent return with intent to evade tax, or of a failure to file the annual
return, the tax may be assessed or levied at any time; provided that the burden
of proof with respect to the issues of falsity or fraud and intent to evade tax
shall be upon the State.
(c) Extension by agreement. Where, before the
expiration of the period prescribed in subsection (a) or (d), both the
department of taxation and the taxpayer have consented in writing to the
assessment or levy of the tax after the date fixed by subsection (a) or the
credit or refund of the tax after the date fixed by subsection (d), the tax may
be assessed or levied or the overpayment, if any, may be credited or refunded
at any time prior to the expiration of the period agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
(d) Refunds. No credit or refund shall be
allowed for any tax imposed by this chapter, unless a claim for such credit or
refund shall be filed as follows:
(1) If an annual return is timely filed, or is filed
within three years after the date prescribed for filing the annual return, then
the credit or refund shall be claimed within three years after the date the
annual return was filed or the date prescribed for filing the annual return,
whichever is later.
(2) If an annual return is not filed, or is filed
more than three years after the date prescribed for filing the annual return, a
claim for credit or refund shall be filed within:
(A) Three years after the payment of the tax;
or
(B) Three years after the date prescribed for
the filing of the annual return,
whichever is later.
Paragraphs (1) and (2) are mutually exclusive. The
limitation shall not apply to a credit or refund pursuant to an appeal provided
for by section 237-42.