Hawaii Unfiled Sales Tax Returns Checklist
If you operate a business in Hawaii and have not filed the required General Excise Tax returns, understanding what this means and what happens next is important for managing your tax obligations. Unfiled GET returns represent a compliance gap between the state’s tax system and your business records.
Hawaii’s Department of Taxation tracks filing requirements based on your business license and registration status. When returns go unfiled, the state’s automated systems flag the account for follow-up actions.
What This Issue Means
An unfiled General Excise Tax return means that the Hawaii Department of Taxation has not received a required GET return filing for a reporting period when one was due. This occurs when a business is registered to collect general excise tax but has not submitted a return for one or more periods, depending on the filing frequency assigned to that account.
Why the State Requires This
Hawaii requires GET returns to be filed during specific periods based on the business’s tax liability and the state’s registration assignment. GET revenue funds for essential services, so businesses file periodic returns either semiannually, quarterly, or monthly, plus one annual return each year.
What Happens If This Is Ignored
Unaddressed unfiled returns trigger additional notices from the state requesting the missing filings. These notices include instructions for filing and reference penalties or interest charges that will apply.
The failure-to-file penalty is calculated at five percent per month, or part of a month, on the unpaid tax liability up to a maximum of twenty-five percent. Interest charges accrue at two-thirds of one percent per month on unpaid taxes and penalties.
What This Does NOT Mean
An unfiled return notice does not automatically mean that the state has assessed a tax lien or specific tax bill against your account. The notice also does not mean your business license has been revoked, though continued non-compliance could result in collection actions or future licensing actions.
Checklist: What to Do After Receiving This or Identifying
This Issue
Step 1: Locate the Notice or Identify the Unfiled Period
Gather any notices you received from the Hawaii Department of Taxation regarding unfiled returns. Review your business records to identify which reporting periods have no corresponding filing if you did not receive a notice but suspect some periods are missing.
Step 2: Determine Your Filing Frequency
Your business is assigned to file GET returns semiannually, quarterly, or monthly based on your tax liability. Contact the Department of Taxation at 808-587-4242 or toll-free at 1-800-222-3229 to confirm your assigned filing frequency if you are unsure.
Step 3: Gather Business Records for Unfiled Periods
Collect all business records, receipts, invoices, and accounting documents for each unfiled reporting period. Records of gross income received, exemptions claimed, and any deductions applicable under Hawaii tax law must be included.
Step 4: Calculate GET Owed for Each Period
Calculate the total gross income and the GET that should have been paid for each unfiled period using your business records. Hawaii’s current GET rates and any applicable county surcharges should be applied correctly.
Step 5: Contact the Hawaii Department of Taxation
Call the Department of Taxation at 808-587-4242 or toll-free at 1-800-222-3229 to explain the situation and discuss filing options. Ask about current procedures for filing past-due returns and whether penalties may be reduced for reasonable cause.
Step 6: Request Forms and Instructions
Form G-45 is used for periodic returns, and Form G-49 is used for the annual return and reconciliation. Confirm the address where completed returns should be mailed or whether electronic filing is available through Hawaii Tax Online.
Step 7: Complete the Missing Returns Accurately
Each unfiled return form must be filled out with the gross income and tax information calculated from your records. Double-check calculations and ensure all fields are completed with required information such as reporting period, total gross income, tax due, deductions or exemptions, and net amount due.
Step 8: Submit the Completed Returns
Mail or file the completed returns according to the instructions provided by the Department of
Taxation. Electronic filing through Hawaii Tax Online offers a faster processing option if available for your past-due periods.
Step 9: Document Everything
Copies of all returns filed, any correspondence with the Department of Taxation, and proof of submission, such as certified mail receipts or electronic filing confirmations, must be kept. These documents establish a record that you took action to resolve the unfiled status.
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 10: Monitor Your Account for Follow-Up
Allow time for the state to process submitted returns and update your account after filing.
Respond promptly if you receive notices requesting the same returns or asking for additional information.
Common Mistakes to Avoid
Missing deadlines in follow-up notices can cause further complications even after you have filed the missing returns. Submitting incomplete or inaccurate returns may result in rejection or requests for correction, so take time to complete each return fully and verify all figures before submitting.
Without documentation that returns were filed, you cannot prove compliance if disputes arise later, so always retain copies of submitted returns and keep proof of mailing or electronic submission. Failure to respond to state requests for additional information or documentation related to the unfiled returns may be interpreted as continued non-compliance and could escalate to collection actions.
Verify with the state that all unfiled returns have been addressed before considering the matter resolved, as some notices may reference multiple periods.
Frequently Asked Questions
Will I face penalties for unfiled returns?
The state assesses penalties for late filing at five percent per month on the unpaid tax up to a maximum of twenty-five percent. Contact the Department of Taxation to understand what penalties may apply to your account and whether relief options exist based on reasonable cause, or consult a tax professional for guidance on penalty reduction strategies.
How far back do I need to file returns?
The state will identify which specific periods are unfiled based on your account history and the state’s records. The Department of Taxation can tell you exactly which periods need to be addressed to resolve tax collection issues.
Can I file all past returns at once?
Multiple returns can be submitted together, though the state will process each return for its specific period separately. Filing them together may speed up the overall process compared to submitting them individually over time.
What if I cannot locate my business records for unfiled periods?
Contact the Department of Taxation and explain that records are unavailable. A tax professional can help you reconstruct returns based on bank records or other documentation rather than filing a return with false information.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We help with:
20+ years experience • Same-day reviews available
