Bill Text: HI SB1200 | 2014 | Regular Session | Introduced

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Bill Title: Taxation; Unauthorized Inspection of Tax Returns and Tax Return Information

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB1200 Detail]

Download: Hawaii-2014-SB1200-Introduced.html

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THE SENATE	S.B. NO.	1200
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO UNAUTHORIZED INSPECTION OF TAX RETURNS AND TAX RETURN INFORMATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Chapter 231, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     ″§231-___  Unauthorized wilful inspection of returns and return information.  (a)  The unauthorized wilful inspection of:

     (1)  Any return;

     (2)  Return information; or

     (3)  Information which can identify a particular taxpayer that is received by the department for the purposes of tax administration which is:

         (A)  Obtained from the Internal Revenue Service or other taxing authority; or

         (B)  Derived by an employee of the State or a county therein, an employee of another state, a person under contract with the State or an officer, director, or employee thereof;

         (C)  Derived by a person obtaining unauthorized access to a return, document, or information while the return, document, or information, including a return, document, or information stored in computer systems or computer files, is in the custody of the department or of any other person or entity described in this subsection; or

         (D)  Derived from any other source, by a State or other government employee is prohibited.  A violation of this subsection shall be punished by a fine of not more than $1,000 per return, document, or taxpayer, as the court determines, with respect to which information was inspected, or by imprisonment for not more than one year, or both.

     (b)  The determination by the director of taxation that an employee of the department, in contravention of this subsection, wilfully inspected information where the inspection was unauthorized and not protected by the good faith provision of this subsection, shall be grounds for dismissal of the employee.

     (c)  A violation, as determined by the director of taxation, of this subsection by any officer, director, or employee of any person under contract with the department shall be grounds for prohibiting the officer, director, or employee from working on the contract.  A violation, as determined by the director of taxation, of this subsection by a person under contract with the department, or an officer, director, or employee thereof, shall also be cause for terminating a current contract between the department and for prohibiting the contractor from entering into a future contract with the department.

     (d)  For the purpose of this section:

     (1)  "Inspection" means any examination of a return or return information.

     (2)  "Return" means any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of title 14 that is filed with the department by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed.

     (3)  "Return information" means a taxpayer's identity, the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, or any other data, received by, recorded by, prepared by, furnished to, or collected by the department with respect to a return or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under title 14 for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense.

     (4)  "Unauthorized inspection" means any examination of a return or return information without official business purpose or when an inspection is not required to perform assigned duties.  Unauthorized inspection includes, but is not limited to, the inspection of the returns or return information of friends, relatives, and the employee's own records."

     SECTION 2.  Statutory material to repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	BY REQUEST

 

 

Report Title:

Taxation; Unauthorized Inspection of Tax Returns and Tax Return Information

 

Description:

Codifies the Department of Taxation's current unauthorized inspection policies and procedures, which were adopted in conformance with the prohibitions of the Taxpayer Browsing Protection Act of 1997 and Internal Revenue Code section 7123A, including criminal penalty provisions.

 

 

 

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