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Abandoned tax licenses set to be purged

The Maui News

The state Department of Taxation announced July 1 that it has published a notice to revoke tax licenses due to abandonment.

By law, a tax license is considered abandoned if the license holder has not filed its quarterly and annual returns for a period of five or more years. The department is providing an additional two-year grace period for a total of seven years of inactivity before revoking tax licenses due to abandonment.

The department is required to post a notice of intent to revoke the licenses by publishing a notice on its website for at least 45 days. The notice, Tax Announcement 2019-07, was posted to the department’s website June 28.

Taxpayers are urged to check the status of their tax licenses by visiting the department’s website at tax.hawaii.gov and clicking “Search Tax Licenses.”

≤ If a license has a “pending revoke” status and the license holder wishes to retain the tax license, the taxpayer must either file missing returns or submit a petition (letter) to the director of taxation explaining why revocation should not occur by Sept. 30.

≤ If a taxpayer does not need to keep the tax license, no action needs to be taken. The tax license will automatically be revoked after Sept. 30.

Moving forward, the department will be revoking abandoned licenses at least annually.

The obligation to pay taxes remains regardless of whether a license is revoked due to abandonment or otherwise closed. The status of a tax license has no effect on liability for payment of taxes, fees, penalties or interest accrued or imposed. Also, license holders are required to file missing returns and are subject to audit review.