County tax assessment when you don't file a return

A. If any person fails to make a return as required by this chapter, the director or designee must estimate the tax liability of the person from any information the director or designee obtains, and according to the estimate, assess the taxes, interest, and penalty due to the County from the person, give notice of the assessment to the person, and make demand upon the person for payment. The assessment is presumed correct unless, upon an appeal duly taken, the contrary is proved by the person assessed. The burden of proof on appeal to disprove the correctness of assessment is on the person assessed. B. After a return is filed under this chapter, the director or designee must cause the return to be examined and may conduct further audits or investigations as the director or designee considers necessary. If the director or designee determines that there is a deficiency in the payment of any tax due under this chapter, the director or designee must assess the taxes and interest due the County, give notice of the assessment to the persons liable, and make demand upon the persons for payment. C. Except as provided by this section, the amount of taxes imposed by this chapter must be assessed or levied within three years after the annual return was filed, or within three years of the due date prescribed for the filing of the return, whichever is later. Without an assessment, no proceeding in court for the collection of any of the taxes may be commenced after the expiration of the period. Where the assessment of the tax imposed by this chapter has occurred within the applicable period of limitation, the tax may be collected by levy or by a proceeding in court under chapter 231, Hawaiʻi Revised Statutes, if the levy is made or the proceeding was begun within fifteen years after the assessment of the tax. Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section must be suspended for the period: 1. The taxpayer agrees to suspend the period. 2. The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months after the court is no longer in control or custody. 3. An offer in compromise under section 231-3(10), Hawaiʻi Revised Statutes, is pending. 4. During which the taxpayer is outside the County if the period of absence is for a continuous period of at least six months. However, if at the time of the taxpayer's return to the County the period of limitations on collection after assessment would expire before the expiration of six months from the date of the taxpayer's return, the period does not expire before the expiration of the six months. D. In the case of a false or fraudulent return with intent to evade tax, or of a failure to file the annual return, the tax may be assessed or levied at any time. The burden of proof with respect to the issues of falsity or fraud and intent to evade tax rests with the County. E. Where, before the expiration of the period prescribed in subsection C, the director or designee and the taxpayer have consented in writing to the assessment or levy of the tax after the date fixed by subsection C, the tax may be assessed or levied at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. ( Ord. No. 5273 , § 2, 2021)