Hawaii Has The USA's Highest Overall Tax Burden - WalletHub

[terracore]

1 Annual GET reconciliation filing (required even if there is nothing to reconcile)

That was the one that always went on my nerves.  I tried to discuss this one time… wasted time discussing wasted time.

One year they moved up a filing, might have been when they were short of money, 2009?  So of course I filed “late” and they wanted the interest and penalty.  I asked if they notified payers by mail? No. By email? No.  “We posted it on our website.”  

I asked her, “how often do you think I look at your website?”  Apparently that was my problem, and one more thing I should do.

My friend who was audited asked why.  The auditor flat out told him it was because of the rail being over budget and they were ordered to go find more money somewhere.  Pretty much the only options were looking for unpaid taxes or beating people up for their lunch money. He was targeted specifically because of charging a mix of wholesale and retail GET (they are different rates) because he was a manufacturer and sold to both stores and the public. To them that looked suspicious enough to warrant an audit.  

Most people in his shoes would have just charged the wholesale GET to the stores and did all the private sales under the table. We can see where his honesty got him.  Flagged and financially flogged.

[HiloJulie]

While not trying to start a bicker here, but for any self-employed business owner and for less than a $1,000, one could buy a computer software program that would virtually perform all the required tasks with respect to ALL of Hawaii's burdensome tax structures, either filing the required items electronically or at a minimum, print out a form for you to sign. Even fancier software programs can initiate a wire transfer or write a check. Even fancier than that programs can transfer the needed data into federal and state business and income tax filings.

I have an acquaintance who works in the GET Tax office here in Hilo and she tells me the biggest mistakes she sees self-employed people make with respect to GET, is NOT charging their customers the appropriate 4.712% rate and thus "eating" the 4.5% amount having to be paid to the state on gross revenues every month, which if properly charged, makes the collection and payment of GET a "pass through" matter.

Another mistake is in fact charging the customer the appropriate 4.712% GET rate, but then thinking they can "pocket" the amount collected until it's time to file the GET return every month.

And lastly, GET is payable upon actual "cash receipts" in any given month and not what you actually invoice your customer in a month, assuming you have established payment terms. Unless you are running a business that does more than 32 million a year in sales, but if that's the case, then "your people" take care of tax issues!

At any event, depending on the size of one's business, even a really small business, a simple program like Quicken can be easily set up to perform these tax matters. 

Now, off to contemplate the number of banker lamps on their desk and green visor wearing accountants who made this can of IPA possible for me to enjoy!

[HereOnThePrimalEdge]

any self-employed business owner and for less than a $1,000, one could buy a computer software program that would virtually perform all the required tasks 

I ran a small business.  I used Quickbooks.  You would write good copy for Intuit in their advertising fantasy world.  In the real world after you pay $400 or $500 you discover it doesn’t work that way.  It works, but not push a button and you’re done.

[TomK]

Now, off to contemplate the number of banker lamps on their desk and green visor wearing accountants who made this can of IPA possible for me to enjoy!

I recommend London Pride - https://www.beeradvocate.com/beer/profile/71/222/ 

They brew an IPA, which is OK, but their best is the ESB. I don't know if you can buy it locally, but the draft ESB beer is excellent.

https://www.fullersbrewery.co.uk/collect...oducts/esb

Kadota Liquor might sell it or order it for you. It's the southern competitor to Theakston's.

[kalakoa]

Many years ago ... I ordered a beer, but the bartender poured me a Fuller's ESB instead.

I said "that's not what I ordered" and he told me "when I have Fuller's on tap, that's what you'll drink."

He was right. Nothing comes close to fresh draft Fuller's ESB.

[leilanidude]

AND THEN.... there is the county, state, and federal bureaucracy to process and audit all those filings and payments. Some of them are going to get kicked back, and the tax filings have to be amended.
----------
@terracore - you are right on with your rant!

I had a decent sized computer business many years ago in another blue state. We got sent several notices that we had underpaid our sales tax. We contacted our tax guy. he said, nope they are wrong. The amounts came to about $4000 over several months. He said he could fight it for us but it would cost about $3000. Business partner and I went to the state office and finally got to talk to the auditor.

Auditor looked over our paperwork, said "Yep, we sent this out in error. It wasn't for your company"
He then made a comment that even when they know the state knows it made an error like that they don't bother to send out corrected notices. Most companies just pay it and go on.

[loffelkopffl]

any company that would just pay it and move on are a bunch of morons

[Punatang]

^^^^  I agree with spoonhead

[HiloJulie]

Political based rants, tall tales and wild claims aside, the primary reason any taxpayer fails any type of tax based audit is failing to be able to produce the documentation used to substantiate the claimed income, expense or deduction.

[HereOnThePrimalEdge]

reason any taxpayer fails any type of tax based audit 

But we’re not just talking about audits here.  We’re also discussing incompetence at the tax office.

For instance I was once penalized for filing one of my many taxes late.  I checked my bank account, the state had accepted and cashed my check before the due date.  I called and the official treated me like a child.  Told me to pay on time.  I asked what happened to my payment which they accepted.  In an exasperated tone she agreed to look.  She found a credit for the year 2010 (my payment was for 2020).  They had applied the wrong date in their system.  She made light of it, funny ha ha to her.  I then asked if I had a credit?  And why wasn’t the credit from 2010 applied to 2020?  She wasn’t sure.  Apparently they just keep the money.  

It was resolved but wasted my time, and treated like an idiot to boot.