What happens if you don't file a tax return

(a) If any operator or plan manager fails to make a return as required by this chapter, the director must estimate the tax liability of the operator or plan manager from any information the director obtains, and according to the estimate, assess the taxes, interest, and penalty due to the city from the operator or plan manager, give notice of the assessment to the operator or plan manager, and make demand upon the operator or plan manager 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 must cause the return to be examined and may conduct further audits or investigations as the director considers necessary. If the director determines that there is a deficiency in the payment of any tax due under this chapter, the director must assess the taxes and interest due the city, give notice of the assessment to the persons liable, and make demand upon the persons for payment. (c) The director shall first give notice to the taxpayer of the proposed assessment, and the taxpayer shall thereupon have an opportunity within 30 days to confer with the director. After the expiration of 30 days from the notification, the director shall assess the gross rental, gross rental proceeds, or fair market rental value or any portion thereof which the director believes has not theretofore been assessed, and shall give notice to the taxpayer of the amount of the tax, and the amount thereof shall be paid within 20 days after the date the notice was mailed, properly addressed to the taxpayer at the taxpayer's last known address or place of business. No preliminary notice shall be necessary where the amount of the tax is calculated by the director from gross rental, gross rental proceeds, or fair market rental value reported by the taxpayer as subject to the tax; in such cases, the tax shall be due and payable on the 10th day after the date the statement was mailed. (d) 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 HRS Chapter 231, if the levy is made or the proceeding was begun within 15 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 HRS § 231-3(10), is pending; and (4) During which the taxpayer is outside the city 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 city 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. (e) 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 city. (f) Where, before the expiration of the period prescribed in subsection (c), the director 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.