On October 17, 2019, the Hawaii Department of Taxation released Tax Information Release No. 2019-03 (“TIR”), which provided guidance regarding Hawaii’s Gross Excise Tax (“GET”) marketplace collection provisions effective January 1, 2020. On December 13, 2019, the Department issued a Revised 2019-03 to clarify the GET and use tax liability of marketplace facilitators and marketplace
Last month, the Hawaii Department of Taxation launched the Administrative Appeals and Dispute Resolution (AADR) Program, an informal appeals process intended to resolve tax disputes without litigation. Taxpayers may apply for AADR if they received a Proposed Notice of Assessment, a Final Notice of Assessment, or a Notice and…
Several states are turning to contingent-fee audit contractors, sometimes referred to as “bounty hunters,” as a means of increasing corporate income tax collections. Bounty hunter firms are compensated based on the tax assessed, thus encouraging these firms to aggressively assess taxpayers.
Not surprisingly, contingent-fee-based auditors are supporting legislation in several states that would require state tax agencies to enter into contingent-fee audit contracts. Contingent-fee audits are viewed by corporate taxpayers (and some courts) as unfair, hostile, and bad public policy because the auditors have a financial stake in the outcome of the audit.