HRS § 243-14 — Assessments; limitation


§243-14 Assessments; limitation period;
exceptions; extension by agreement. (a) In any
case of computation of the tax by the director of taxation, as provided in
sections 243-12 and 243-13, the amount of the tax shall be assessed against the
person liable therefor, and notice shall be given to the person of the amount
of tax so assessed with penalties and interest. The notice may be given by
mail, addressed to the person assessed at the person's last known residence or
place of business.
(b) The amount of license taxes imposed by
this chapter shall be assessed or levied, or the overpayment, if any, shall be
credited within three years after filing of the monthly statement, or within
three years of the due date prescribed for the filing of the statement,
whichever is later. No proceeding in court without assessment for the
collection of the taxes or the enforcement of the liability shall begin after
the expiration of the three-year 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.
As to all tax payments for which a refund or credit
is not authorized by this section (including, without prejudice to the
generality of the foregoing, cases of unconstitutionality), the remedies
provided by appeal or by section 40-35 are exclusive.
(c) In the case of a false or fraudulent
statement with intent to evade tax or liability, or of a failure to file a
statement, the tax or liability 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.
(d) Where, before the expiration of the time
prescribed in this section for the assessment, levy, and collection of the tax
or liability, both the department and the taxpayer have consented in writing to
its assessment or levy after the expiration date, the tax or liability may be
assessed or levied, or the overpayment, if any, may be credited at any time
prior to the expiration of the period agreed upon. The period agreed upon may
be extended by a subsequent agreement in writing made before the expiration of
the period previously agreed upon.