Tax Resolution Case Results | Honolulu, Hawaii

Hawaii GE Tax Audit: $21 Million Reported, Zero Owed

An active trader reported his mark-to-market trading on Schedule C, and one year showed more than $21 million in gross income. The Hawaii Department of Taxation opened a General Excise tax audit for 2020–2022. At 4%, GE tax on that one year alone would have topped $800,000 before penalties (our estimate). We showed that his trading was not a GE-taxable business. The Department closed the audit with no adjustments, so he owed $0 in tax, $0 in penalties, and $0 in interest.

Federal Offer in Compromise: $105,833 Settled for $10,237

A retired professional owed the IRS $105,833 for six tax years, and the IRS rejected his first offer. We took the case to IRS Appeals, where the Appeals Officer agreed to recommend acceptance of a $10,237 offer, which would eliminate more than 90% of the balance.

Hawaii Income Tax Settlement: $58,557 Settled for $18,000

A taxpayer was already in state collections on income tax from 1999–2005. The balance was $58,557, and $37,914 of it was interest. We negotiated a settlement with the Department of Taxation, and the state accepted $18,000. That wiped out more than $40,000, about 69% of the debt, in roughly four months.

Hawaii GE Tax Audit, 11 Years Unfiled: $37,714 Cut to $17,927

A rental owner had never filed General Excise returns for 2014–2024 and was assessed $37,714. The state denied penalty relief and offered $33,919. We went back to the auditor and his supervisor and got the amount reduced to $17,927. That saved $19,786, and the case closed with a zero balance in about 12 weeks.

“My wife and I sought the help of Tax Resolution Services of Hawaii for a … relative who failed to pay or file certain state tax returns for many years. She was facing a large bill from the State of Hawaii with substantial penalties and interest. Steve was very generous with his time in our initial phone meeting and very upfront about the difficulties of the case. He was never pushy. He never promised a positive outcome. Steve did a tremendous job of securing a very favorable settlement of the issue… We chose Tax Resolution Services of Hawaii in part because they specialized in Hawaiian tax matters and were well acquainted with the relevant state agencies.” — Google review (5 stars)

State Residency Audit: Assessment Reversed, Full Refund

A Hawaii taxpayer living and working in Japan was hit with a state assessment. It treated $363,189 of foreign wages as Hawaii income and added a $5,911 penalty. We filed a written protest proving nonresidency. The state dropped the assessment and refunded his withholding in full.

“They drafted a complete response to the state on my behalf and submitted it for me after review. They were able to work with me even though I reside out of state, even working after hours some days to accommodate me… they made the process totally stress free. In the end, we got our desired outcome VERY quickly.” — Google review (5 stars)

IRS Levy Stopped on $121,856

A couple received an IRS final notice of intent to levy for $121,856, and their passports had been flagged. We filed their missing return and resolved the current year. Then we put a $1,800-a-month installment agreement in place covering every year, which stopped the levy.

Hawaii GE Tax: Levy and Seizure Stopped on $415,000

A Hawaii business owed more than $415,000 in GE tax for 2019–2024. The state was threatening to levy and seize its property. We negotiated a $3,000-a-month installment agreement, so the business kept operating and its accounts were protected.

“Everyone I came into contact with at Tax Resolution Services of Hawaii were extremely helpful, kind, and professional. We went over the issues we were having, and they provided us with all our options as well representation. Highly recommend them to anyone in need of any tax help.” — Google review (5 stars)

IRS Balance Reduced to Zero

A family’s 2024 return drew an extra $5,265 assessment because about $4,400 of their W-2 withholding was missing. We corrected the record with the IRS. Their 2024 balance went to zero, and their 2025 refunds are on the way.

Facing a Tax Problem Like These?

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