Voluntary Disclosure Agreement

Did you just find out about your Hawaii tax return obligations and have multiple years to catch-up on? We will assess if the voluntary disclosure agreement (VDA) process is right for you.

The Hawaii Department of Taxation has a voluntary disclosure process allowing taxpayers to come forward disclosing their non-compliance in filing and paying Hawaii taxes. In exchange, the department of taxation may waive penalties and related interest on the penalties and taxpayers may avoid criminal tax investigation, civil audit, assessment and collection. It also allows for possible limiting the tax look back period to ten-years from the year of disclosure. This process requires taxpayers to provide specific information, facts and circumstances and not have previously received a tax notice relating to their disclosure.

100% success rate for voluntary disclosure agreements processed in the last few years.

Situation: We just learned that we were supposed to file Hawaii tax returns (income tax, GET, TAT). We have been renting our property for years and will incur a lot of penalties for not filing and paying these taxes!

Our Solution: We understand what a shock it is! We have been helping people in your same situation for years to request a voluntary disclosure agreement (VDA) to waive penalties and relating interest on the penalties. We have 100% success in obtaining penalty waivers and work directly with a Hawaii tax department contact to efficiently process these waivers.

VDA - Q&A

Question: Who is eligible for voluntary disclosure?

Answer: A taxpayer who has not been contacted by the department of taxation prior to initiating the voluntary disclosure process, not under federal or state audit or criminal investigation, or has not previously participated in the voluntary disclosure process during the previous five years.

Question: Does a taxpayer have to file all back years of required Hawaii tax returns?

Answer: Through the voluntary disclosure program, the department of taxation may limit the look-back period to ten years. However, the department of taxation may extend the period depending on questionable business practices or conduct by the taxpayer.

Question: How long does the VDA process take?

Answer: We usually receive conditional approval from the Department of Taxation within one week from submission on taxpayer's facts and circumstances for consideration is submitted for approval. Once conditional approval is obtained, we submit the required look-back period tax returns, and usually obtain final approval in about 1-2 weeks on behalf of the taxpayer. In total, assuming complete information is provided, it takes about a month from start to final approval.

Question: What type of taxes are included in the VDA process to waive penalties and audit limits?