Hawaii – Offers in Compromise

SALT Report 2831 – Due to the recent passage of Act 6, Laws 2013, the Hawaii Department of Taxation issued guidance regarding the amendments to the requirements for submitting an offer in compromise.  Specifically, Act 6 requires that all offers in compromise submitted to the Department of Taxation be accompanied by a minimum payment.

In the case of a lump sum offer in compromise, a minimum of 20% of the proposed amount must accompany the offer.  For an offer in compromise that will be paid in installments, an amount equal to the first installment payment must accompany the offer.

In some cases, the Department may waive the payment requirement if the individual meets the low-income guidelines established by the Internal Revenue Service.

For Further Information

Hawaii Department of Taxation – Announcement No. 2013-05