Question: Now that the IRS has granted a blanket extension on a lot of federal tax deadlines for the fire victims, will DOTAX do the same for state-level taxes?
Answer: No, that’s not the plan. “At this time, (the Hawaii Department of Taxation) does not anticipate implementing a blanket extension of deadlines and will carefully and diligently consider taxpayers’ requests on a case-to-case basis,” spokesperson Gary H. Yamashiroya said Monday in an email.
DOTAX announced Aug. 11 that taxpayers affected by the wildfires in Maui and Hawaii counties could request “extensions to file and pay Hawai‘i taxes, for waivers of any penalties and interest, and for relief based on interruptions to mail delivery, on a case-by-case basis.” Such relief can be sought by eligible taxpayers for any of the taxes that DOTAX administers, including general excise, transient accommodations, net income, tobacco and liquor, the announcement said.
“Actual taxes owed will be unaffected, however requests for the extension of deadlines and/or the waiver or reduction of penalties and/or interest will be considered,” Yamashiroya said in Monday’s email. For instructions on requesting relief, see Tax Announcement 2023-03 at tax.hawaii.gov.
As for federal taxes, the U.S. Internal Revenue Service announced Friday that wildfire victims in Maui and Hawaii counties now have until mid-February to file certain federal individual and business tax returns and to make tax payments.
Individuals and households that reside in or have a business in the disaster area designated by the Federal Emergency Management Agency qualify for this relief, which postpones some filing and payment deadlines that occurred from Aug. 8, 2023, through Feb. 15, 2024. This relief is automatic for any taxpayer whose “IRS address of record” is within the disaster area — they don’t need to contact the IRS to request it.
The Feb. 15 deadline will apply to:
>> Quarterly estimated income tax payments normally due on Sept. 15 and Jan. 16.
>> Quarterly payroll and excise tax returns normally due on Oct. 31 and Jan. 31.
>> Calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15.
>> Calendar-year corporations whose 2022 extensions run out on Oct. 16.
>> Calendar-year tax-exempt organizations whose extensions run out on Nov. 15.
>> In addition, penalties for failing to make payroll and excise tax deposits due on or after Aug. 8 and before Sept. 7 will be abated as long as the deposits are made by Sept. 7.
>> Also, individuals who had a valid extension to file their 2022 income tax return by Oct. 16 now have until Feb. 15 to do so. However, if they owe any tax it must be paid by Oct. 16, because tax payments related to 2022 income tax returns were originally due April 18, which predates the disaster period, the IRS said.
The Disaster Assistance and Emergency Relief for Individuals and Businesses web page on the IRS website “has details on other returns, payments and tax-related actions qualifying for relief during the postponement period,” the IRS said in a news release. For more information, go to www.irs.gov or 808ne.ws/irswf.
Q: I can’t help but notice some vehicles with license plate covers that are tinted, making it difficult to see. Is it legal?
A: No, any cover that obscures the license plate — even a clear one — would be against state law, according to Hawaii Revised Statutes 249-7(b), which says that “number plates shall at all times be displayed entirely unobscured and be kept reasonably clean.”
The case notes for this law say that “violation does not require that the license plate numbers, specifically, be obstructed.”
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
