Hawaii GET License Revocation and Business Closure
Guide: What It Means and What to Do
Introduction
If your Hawaii General Excise Tax (GET) license has been revoked or you are closing a
business that holds a GET license, understanding what happens next is essential. A revoked
GET license means the Hawaii Department of Taxation has canceled your legal authorization to conduct business activities in Hawaii.
This can occur for reasons such as failure to file GET returns (Forms G-45 or G-49), nonpayment of GET, or other compliance violations. When a GET license is revoked, your business can no longer legally conduct business activities in Hawaii. The Hawaii Department of
Taxation updates the tax license list by revoking licenses due to abandonment on July 1 each year, providing 45 days’ notice to allow taxpayers to address any issues.
Failing to address this action does not resolve the underlying tax obligations and typically triggers enforcement actions, penalties, and ongoing collection efforts. This document explains what license revocation means, why it happens, what it does not automatically mean, and the specific steps to address it.
What This Issue Means
A revoked GET license means the state has officially terminated your authorization to conduct business activities in Hawaii. When a GET license is revoked, it becomes invalid for all business operations. This is different from voluntary closure or temporary suspension.
The revocation is a formal administrative action taken by the Hawaii Department of Taxation, typically documented in a written notice sent to your business address or the address on file with the state. GET is a business privilege tax on gross receipts from business activities, and the legal liability for GET rests with the business entity.
Why the State Issues License Revocations
The Hawaii Department of Taxation revokes GET licenses for specific compliance failures.
Common triggers include failure to file required GET returns (Form G-45 for periodic filing or
Form G-49 for annual reconciliation), failure to pay GET owed, failure to renew the license when required, or violation of other tax laws or regulations.
The state may also revoke a license if the business location is no longer operational or if the state determines the business should no longer hold a license. The Hawaii Department of
Taxation provides 45 days’ notice before revoking licenses due to abandonment on July 1 each year, allowing taxpayers to search for tax licenses and address issues before revocation. If you are uncertain about why your GET license was revoked, contact the Hawaii Department of
Taxation directly for clarification.
What Happens If This Is Ignored
If a revoked GET license is ignored and the business continues to operate, the business is conducting activities without legal authorization. All business activities in Hawaii require a valid
GET license, and operating without a license violates Hawaii tax law and is subject to enforcement by the Special Enforcement Section.
Liability for gross receipts from business activities continues regardless of license status. The business remains liable for GET on all taxable gross receipts, regardless of whether it holds a valid license.
The state continues collection efforts for unpaid GET, which may include penalties of 5% per month up to a 25% maximum for failure to file, interest at two-thirds of 1% per month
(approximately 8% annually), wage levies that allow the Department to withhold 25% of gross wages, bank levies, and further license actions.
The longer the debt remains unpaid, the larger the total amount owed becomes due to accumulated interest and penalties. Responding early and addressing the revocation typically prevents these more serious collection actions.
What This Does NOT Mean
A revoked GET license does not necessarily mean that your business entity has been dissolved. The revocation does not automatically cancel your business registration with the state or other business licenses you may hold. It also does not mean all GET obligations disappear. Any GET owed before the revocation remains due and collectible by the state.
A revoked license does not prevent you from reapplying for a new GET license in the future.
However, this would require addressing the original reasons for revocation and meeting all current requirements. You cannot legally operate a business in Hawaii without a valid GET license, as doing so violates Hawaii tax law, regardless of business type.
Steps to Address License Revocation or Business
Closure
Step 1: Locate the Revocation Notice
Find the written notice from the Hawaii Department of Taxation that states your GET license is revoked. The Department provides 45 days’ notice before revoking licenses due to abandonment on July 1 each year. Check all the mail received in recent months. If you cannot locate it, contact the department directly to confirm the revocation and request a copy of the notice.
Step 2: Review the Notice for Specific Details
Read the notice carefully to identify the effective date of revocation, the reason stated for revocation, any deadline mentioned for response or action, contact information for the department official handling the case, and any GET owed or referenced.
Step 3: Determine If GET Is Owed
Contact the Hawaii Department of Taxation to obtain the total amount of unpaid GET (if any), accumulated penalties (5% per month up to 25% maximum), and interest (2/3 of 1% per month), any unfiled returns that must be addressed, and the account balance and payment status.
Step 4: Gather All Business Tax Records
Collect documents related to your GET account, including copies of previously filed GET returns
(Forms G-45 and G-49), bank statements showing gross receipts or revenue, records of business transactions during any periods in question, documentation of any payments made to the department, and receipts or records of inventory and business operations.
Step 5: Address Any Unfiled Returns
If GET returns are unfiled, determine which periods require filed returns, gather gross receipts and tax information for those periods, file the returns through the Hawaii Department of
Taxation’s system or by mail, and include payment if GET is due. Form G-45 is used for periodic returns, and Form G-49 is used for annual reconciliation.
Step 6: Contact the Hawaii Department of Taxation
Reach out to the appropriate division handling your GET account by phone at (808) 587-1589
(Honolulu main office) or visit the website at tax.hawaii.gov. Request to speak with the official assigned to your case and explain your situation, and ask about the next steps.
Step 7: Discuss Your Options With the Department
During your contact with the state, inquire about payment plan options if GET is owed (debts under $10,000 can be arranged through Hawaii Tax Online; over $10,000 requires direct
contact), whether penalties may be reviewed or reduced under state guidelines, requirements to reinstate or reapply for a GET license if applicable, and whether the business intends to continue operating.
Step 8: If Closing the Business, Provide Written Notification
If you are permanently closing the business, send a written letter to the Hawaii Department of
Taxation stating the closure date, including your GET license number and business name, providing the business address on file, and requesting confirmation that the license closure has been processed.
Step 9: File a Final GET Return
If the business is closing, file a final Form G-45 for the period through the closure date. Clearly mark it as “FINAL RETURN” on the form. Report all gross receipts and GET owed through the closure date (GET is calculated on gross business receipts, not just sales), and submit payment if GET is due.
Step 10: Pay Any Remaining Balance
If GET, penalties, or interest are owed, make a full payment. If payment in full is not possible, contact the state to discuss payment plan options. Keep records of all payments made and request written confirmation of payment from the state.
Step 11: Request Written Confirmation
Ask the Hawaii Department of Taxation for written confirmation that the revocation was processed, confirmation of final account status, a letter stating the account is settled or indicating any remaining balance, and documentation of the license closure date.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 12: Keep All Correspondence
Retain copies of the original revocation notice, all letters sent to the state, responses from the department, payment receipts and confirmations, and any final account statements.
What Happens After Completion
After you have completed these steps, the Hawaii Department of Taxation typically processes your submission and updates your account status. If all required GET returns are filed and all
GET is paid, your account may be marked as settled or closed. The state may issue a final account statement or confirmation letter.
If you owe GET and have arranged a payment plan, the department will monitor your account for timely payments. If the business is permanently closed and properly reported to the state, no further GET filings will be required. If any returns remain unfiled or any balance remains unpaid, the state may continue collection efforts or escalate enforcement action.
The statute of limitations for the Department to assess or levy additional GET is generally three years from the date the annual return was filed or three years from the due date, whichever is later.
Understanding Your Obligations
A revoked GET license is a serious administrative action under state regulations that requires prompt attention and a clear understanding of your responsibilities as a business owner or applicant. This checklist outlines the steps to address the revocation period, file outstanding
GET returns, pay outstanding amounts, request extensions when necessary, and formally close your business through the proper Application process if closure is your intention.
The Hawaii Department of Taxation, including its Customer Services Department, can explain your account status, Office Hours, telephone contact options, appeal rights, and whether an administrative hearing is available to review the revocation based on reasonable cause and supporting evidence.
All businesses operating in Hawaii must obtain and maintain a GET license, and GET applies broadly to most business activities, including services, regardless of insurance coverage or business size. Failing to resolve revocation issues can lead to additional legal issues, court costs, or, in limited circumstances, escalation into criminal offenses. However, most cases remain administrative rather than criminal.
Using official documents as a guide, sending required materials by certified mail, and carefully reviewing different versions of guidance on the Department’s website using browser tools help ensure accurate compliance and avoid misunderstandings when comparing obligations or submitting appeals.
Facing State Tax Enforcement Action?
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