Hawaii – Dual Tax Penalties

SALT Report 1664 – The Hawaii Department of Taxation issued guidance regarding the passage of HB 1695 Act 185 which prohibits dual tax penalties from being imposed due to incorrect state tax returns.
Specifically, HB 1695 prevents the imposition of a 20% penalty for erroneous claims for refund or credit if a 20% penalty has already been imposed on a taxpayer for understating or misstating the tax underpayment.
This applies to taxable periods beginning after December 31, 2011.
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