HRS §231-10.6
Rules explaining tax penalties for preparers and taxpayers
This section requires rules to be written that clearly explain penalties and fines under title 14 for tax mistakes like understating taxes or promoting abusive shelters. Federal guidance can help interpret these rules. Any penalty must be approved by the director before it is charged.
The statute, as written — Rules or administrative guidance
Rules, including temporary rules, providing examples and safe harbors shall be implemented to explain in clear and unambiguous terms the penalties and fines provided under any provision of title 14 that may be imposed against a return preparer or taxpayer for understatement of tax liabilities, promotion of abusive tax shelters, erroneous claims for refund or credit, or substantial understatements or misstatements of tax. Federal laws and administrative guidance may be used to interpret this section. Any such penalties or fines shall first be approved by the director before assessment.
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