HRS §235-130
Paying LIFO recapture tax in installments
If an S corporation owes extra Hawaii income tax because of LIFO recapture, it can pay that extra tax in four equal yearly installments. The first payment is due with the first tax return, and the next three are due with the following three returns. No interest is charged on the later installments before their due dates.
businesses
The statute, as written — LIFO recapture
If an S corporation is subject to last in first out (LIFO) recapture pursuant to section 1363 of the Internal Revenue Code, then: (1) Any increase in the tax imposed by section 235-71 by reason of the inclusion of the LIFO recapture amount in its income shall be payable in four equal installments; (2) The first installment shall be paid on or before the due date (determined without regard to extensions) for filing the return for the first taxable year for which the corporation was subject to the LIFO recapture; (3) The three succeeding installments shall be paid on or before the due date (determined without regard to extensions) for filing the corporation's return for the three succeeding taxable years; and (4) For purposes of computing interest on underpayments, the last three installments shall not be considered underpayments until after the payment due date specified above.
Sections this one refers to
§235-71 Corporate income tax rates and special rules for investment companies
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