Latest news with #DOTAX
Yahoo
27-03-2025
- Business
- Yahoo
Kokua Line: Is everybody getting tax ID letter?
Question : Since you have been writing about ID-proofing at Social Security, I wanted to share that I got a letter from the Hawaii tax department requiring me to verify my identity before I could receive my income tax refund. Is everyone getting these letters ? I assumed it was because my identity was misused many years ago but I've never had trouble filing my taxes. Answer : No, not all Hawaii tax filers are receiving identity verification notices in the mail, but some are, as Hawaii's Department of Taxation increases its efforts to prevent the disbursement of fraudulent tax refunds. 'Only a small percentage of taxpayers will receive an identity verification notice. DOTAX utilizes numerous data sources, including information from past and current returns to verify taxpayer identities without requiring additional taxpayer information, ' said Gary Yamashiroya, a spokesperson for the department. These notices arrive through the regular mail and some recipients have contacted DOTAX to ask if they are legitimate. They are, and DOTAX has a website explaining them, at. The letter tells the recipient how to verify their identity via or by mail. The information requested may vary by filer, but in general 'you will need the one-time password provided in the Identity Verification Notice, your Hawai 'i individual income tax returns for the current and three prior years, or copies of documents in JPEG or PNG format, ' the website says. As for why any given tax return is selected for this added level of verification, the website says 'all Hawai 'i individual income tax returns submitted undergo an identity verification review to protect taxpayer identity. Occasionally, additional information is required from the taxpayer to complete the review. The additional review does not indicate there are any issues with the taxpayer's return.' Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Yamashiroya didn't go much beyond that when we asked him what triggers an identity verification notice, replying in an email that 'the information submitted in individual income tax returns is reviewed to verify taxpayer identity and prevent fraudsters from receiving another taxpayer's refund. The criteria for this review are continuously monitored and updated to address emerging identity fraud trends.' DOTAX urges Hawaii filers who receive this notice to verify their identity right away, as 'individual income tax returns and any associated refunds will not be processed until the identity verification review is completed.' Anyone with questions should review the FAQs and video at the aforementioned informational website, and can follow up with DOTAX via an email to if they received a notice and are unable to complete the verification. Meanwhile, regarding identity-proofing required by the U.S. Social Security Administration, the federal agency on Wednesday dropped some limitations on phone service it had said would take effect March 31, and postponed other changes until April 14. People applying for Social Security Disability Insurance, Medicare or Supplemental Security Income who cannot use a 'my Social Security ' account online will be able to complete their claims entirely over the telephone as usual, without having to come into a Social Security office. The agency said it was moving ahead with changes in phone service for certain other claimants and services, but that the new rules wouldn't take effect until April 14, to allow more time for staff training. For full details on Wednesday's update, go to.------------Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813 ; call 808-529-4773 ; or email.------------
Yahoo
13-03-2025
- Automotive
- Yahoo
Kokua Line: Must ride-share drivers pay general excise tax?
Question : Are ride-share drivers required to pay GET in Hawaii ? Most drivers that have picked me up stated they don't have a GET license and don't pay GET. They said Uber and Lyft don't require them to have a GET license as part of the sign-up process. Could the Hawaii Tax Enforcement Division contact the ride-share platforms and make it a requirement to have a GET license as part of the driver sign-up process ? This is what Nevada does. This would increase money given to the state and prevent back-owed taxes due to penalties. Answer : Here's the response from Gary H. Yama shiroya, a spokesperson for the state Department of Taxation : 'Both ride-share companies and their drivers must pay general excise taxes (GET ). 'The companies are treated as 'marketplace facilitators' … As stated in (Tax Information Release No. 2019-03 (Revised ), ), Act 2 deems marketplace facilitators (Uber, Lyft, etc.) to be the retail sellers of all products and services sold through their marketplaces. The GET rate for these sales is 4 % plus any applicable county surcharge. 'Act 2 further deems the sales of marketplace sellers (drivers ) made through marketplace facilitators to be sales at wholesale under section 237-4, HRS, which defines wholesale sales and has a rate of 0.5 %. 'Regarding the second question, the companies are well aware of their responsibility to pay GET and drivers should be aware as in any other similar industry. We agree that as a service to their drivers, ride-share companies should provide guidance and LYFT, for example, does so specifically about Hawai 'i's GET : . Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. 'It should be noted that DOTAX does identify ride-share drivers who are not in compliance and takes appropriate action.' Anyone who needs a GET license can apply via the DOTAX website, at Hawaii Tax Online. For more information, go to Q : Last month, I bought a new car with a temporary dealer plate (paper ). What kind of permanent plate will I be getting ? I don't recall being given a choice. I have a gas car. A : Check with your dealer to be sure, but in general Hawaii car dealers will receive America United 9 /11 organization license plates as the default alternative for standard-issue number plates (and EV plates ) during the shortage of license plates spelling Hawai 'i with an 'okina, said Harold Nedd, a spokesperson for Honolulu's Department of Customer Services. Dealers typically submit the paperwork to obtain permanent license plates for new cars that left the lot with temporary tags, he said. As Kokua Line has explained in past columns, the America United 9 /11 decal organization license plate was chosen as the default alternative during the shortage because it costs the same as a standard plate : $5.50 with no additional annual fee. The red, white and blue license plate decal was first issued in October 2001, to honor the victims of the Sept. 11, 2001, terrorist attacks and to declare solidarity as Americans. Car buyers who want a different organization or specialty plate should let the car dealer know when they are buying the car, and the dealer can order it at that time, Nedd said. The car owner can't order a new plate on their own while it has a temporary dealer tag, he said. Although Kokua Line has mainly written about the shortage of standard number license plates and electric vehicle plates, because that's what readers have asked about, Nedd said there are about 50 categories of Hawaii license plates affected by the shortage of 'okina plates, including for government fleets such as TheBus and the Honolulu Police Department.———Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813 ; call 808-529-4773 ; or email kokualine @ to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813 ; call 808-529-4773 ; or email.------------
Yahoo
14-02-2025
- Business
- Yahoo
Kokua Line: Why can't Hawaii taxpayers use IRS Direct File?
Question : An eligibility check on the website indicates that Hawaii is not one of the 25 states participating in the 'IRS Direct File ' online income tax filing program for federal returns. Why not, and is there any plan to participate in the future ? Answer : 'The Hawai 'i Department of Taxation is planning on participating in the Internal Revenue Service Direct File program for the 2026 filing season, for tax year 2025. DOTAX was unable to currently participate because our resources and staffing were committed to a major Gen Tax system upgrade which started in August of 2023 and was funded by the state Legislature in its 2023 session. Also, the IRS timeline for implementing Direct File for the 2025 tax filing season provided DOTAX with less than a month to design and develop the state's portion. We believe that rushing this critical step would jeopardize the success of Direct File and would require us to limit the number of taxpayers that could participate in the program due to strict eligibility criteria. However, we are engaged in constructive discussions with the IRS to have DOTAX participate in Direct File for the 2026 filing season, for tax year 2025, contingent on the provision of necessary resources for design and implementation currently being requested in our (state ) budget, ' Gary H. Yamashiroya, a DOTAX spokesperson, said in an email. Following up on the funding question, he responded that 'our budget request asks for six new permanent positions and $294, 796 in fiscal year 2026, and seven permanent positions and $664, 592 in fiscal year 2027, in general funds to establish a Tax System Modernization Office and integrate systems with the IRS Direct File program.' You are one of several readers asking about IRS Direct File, , the free, online tax preparation system now available in 25 states, after a successful pilot program in 2024 ; there's no limit on the number of states that can participate. Built in-house by the IRS, Direct File guides the user through their federal tax return, like commercial tax-preparation software. It can import some information directly from the IRS and offers live staff support on weekdays. Direct File can be used on a smartphone, tablet or computer. Although Direct File doesn't handle state returns, once the user submits a U.S. return, the system guides the filer to its state portal so they can prepare their state return without a fee, according to the IRS website. Readers asked about Direct File in 2024, too, after the IRS invited all states to participate after the limited pilot project was deemed successful and Direct File was made permanent. The DOTAX spokesperson said then, in late June, that the department was assessing what it would take to properly integrate Direct File with 'Hawaii's unique tax code and software system.' Hawaii has a no-fee online portal for filing state income taxes, via. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Q : Regarding the license plate shortage, can we still get PVS plates for a new car ? A : Yes. 'Specialty license plates that provide monetary support to the Polynesian Voyaging Society, Haleakala National Park and Hawai 'i Volcanoes National Park ' are available, according to Honolulu's Department of Customer Services. Read more at. Mahalo Many thanks to the fellow who assisted at Sam's Club in town when I could not reach the shelf. Sometimes it's the little things that make it hard to 'age in place.' Also, this man's help allowed me to stay within my monthly food budget by buying in bulk. Sometimes the food items are too heavy for me to lift, or too low or too high for me to reach. I appreciate the help.—A reader------------Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813 ; call 808-529-4773 ; or email.------------
