Posted on: Friday, March 7, 2003

Attorney general warns tax filers to be accurate

Advertiser Staff

State Attorney General Mark Bennett has issued an advisory urging Hawai'i residents to file accurate state income tax returns.

Since Jan. 29, three people have been indicted on charges of filing fraudulent tax returns and theft.

Five others have pleaded no contest in court to tax-fraud charges.

A tax-fraud conviction can result in a fine of up to $100,000 and up to three years in prison for each offense.

Bennett said Wednesday that taxpayers should avoid tax preparers who offer to prepare a return for a percentage of money, those who will not sign the return and anyone who says wages earned in Hawai'i are not taxable because Hawai'i is not a state.

Bennett said taxpayers should also be wary of a tax-return preparer who cites the federal Uniform Commercial Code when asked questions about something on a tax return.

Anyone who receives a letter from state of federal authorities advising them that a return is frivolous should contact a licensed attorney or certified public accountant as soon as possible, Bennett said.

He said the state Tax Department usually does not refer cases to his office for prosecution when a taxpayer takes reasonable steps to resolve a problem before a criminal investigation is initiated.