Penalties and Interest
Late Filing of Return.
The penalty for failure to file a return on time is assessed on the tax due at a rate of 5% per month, or part of a month, up to a maximum of 25%.
Extensions. If you are unable to file your Hawaii tax return by April 20, 2020, you are automatically granted a 6-month extension without the need to file anything with the Department unless an additional tax payment must be made. As long as the following conditions are met, you are deemed to have made an application for the 6-month extension to file an income tax return on the prescribed due date:
1. On or before April 20, 2020, 100% of the properly estimated tax liability is paid;
2. The tax return is filed on or before the expiration of the 6-month extension period;
3. The tax return is accompanied by full payment of any tax not already paid; and
4. A court has not ordered you to file the tax return on or before the prescribed due date.
Properly estimated tax liability means you made a bona fide and reasonable attempt to locate and gather all of the necessary information to make a proper estimate of tax liability for the taxable year.
If you must make an additional payment of tax on or before April 20, 2020 in order to meet the condition requiring payment of 100% of the properly estimated tax liability, file Form N-200V with your payment. Federal Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, may not be used in lieu of Form N-200V.
Interest at the rate of 2/3 of 1% per month or part of a month shall be assessed on unpaid taxes and penalties beginning with the first calendar day after the date prescribed for payment, whether or not that first calendar day falls on a Saturday, Sunday, or legal holiday.
Failure to pay tax after filing timely returns.
The penalty for failure to pay the tax after filing a timely return is 20% of the tax unpaid within 60 days of the prescribed due date.
Underpayment of estimated taxes.
You may be subject to a penalty for not paying enough estimated tax if the total of your withholding and timely estimated tax payments were less than the smaller of:
1. 60% of your 2019 tax, or
2. 100% of your 2018 tax. Your 2018 tax return must cover a 12-month period.
There are special rules for farmers and fishermen.
For more information, see Form N-210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts.