DAVID Y. IGE

MARIA E. ZIELINSKI

GOVERNORDIRECTOR OF TAXATIONSHAN TSUTSUIDAMIEN A. ELEFANTE

LT. GOVERNOR

DEPUTY DIRECTOR

STATE OF HAWAII

DEPARTMENT OF TAXATIONP.O. BOX 259
HONOLULU, HAWAII 96809

PHONE NO: (808) 587-1540
FAX NO: (808) 587-1560

March 29, 2017

DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 2017-03
RE:

Verified Practitioner Registration and Representing Taxpayers before the Department

This Tax Announcement provides information about representing another taxpayer before
the Department of Taxation (Department) and outlines the Department’s new policy of requiring
those representing taxpayers to register with the Department in most circumstances.
I. Taxpayers’ Information Confidential
Tax returns and other tax information transmitted to the Department by taxpayers is
confidential in nearly all circumstances. Accordingly, persons representing taxpayers before theDepartment in any capacity must prove they have been granted sufficient authority by thetaxpayer before the Department can disclose taxpayer information to the representative.
II. Verified Practitioner Registration with the Department Required
Starting on July 1, 2017, any person who represents a taxpayer in a professional capacity
before the Department must register and obtain a Verified Practitioner Identification Number(VPID). Representing a taxpayer before the Department includes being authorized to discuss,present, receive and inspect confidential tax information and to perform acts on behalf of thetaxpayer.
The following persons are deemed to be representing taxpayers in a professional capacity
and will be required to register and obtain a VPID prior to representing taxpayers before theDepartment:(1)

Attorneys;(2)

Accountants;(3)

Enrolled Agents;(4)

Enrolled Actuaries - enrolled as an actuary by the Joint Board for the Enrollmentof Actuaries under 29 U.S.C. § 1242 (the authority to practice before the Internal
Revenue Service is limited by section 10.3(d) of Circular 230);

Department of Taxation Announcement No. 2017-03
March 29, 2017
Page 2 of 4

(5)

Enrolled Retirement Plan Agents - enrolled as a retirement plan agent under therequirements of Circular 230 (the authority to practice before the Internal Revenue
Service is limited by section 10.3(e)); and(6)All other persons who represent taxpayers and receive compensation for theirservices.

Please note that practitioners in the first five categories must register for a VPID
regardless of whether they receive compensation for their services. Practitioners may register
online at http://hitax.hawaii.gov or by filing Form PPS-12 1 which is available at
http://tax.hawaii.gov/assistance/practitioner. The Department encourages online registration as
the processing times will be faster. There is no fee for this registration.
Upon receiving the online registration, the Department will verify the registration
information, create a Verified Practitioner profile, and issue a VPID to the practitioner. Once theVPID is issued, the practitioner will be deemed a “Verified Practitioner” by the Department.
Verified Practitioners will be able to gain electronic access to their clients’ tax accounts andutilize the Practitioner Priority Service described below.
In general, Verified Practitioners must use their VPIDs to identify themselves on Form N848 and all other documents authorizing representation before the Department.
The purpose of practitioner registration is to assist the Department in accurately
identifying representatives and to ensure that unauthorized disclosure of tax information does notoccur. This policy also protects representatives’ privacy by allowing the use of the VPID ratherthan a Social Security Number (SSN) on documents authorizing representatives to accesstaxpayer information or represent a taxpayer.
III. Registration Optional for Tax Matters Representatives
A Tax Matters Representative (TMR) is a person who represents a taxpayer before theDepartment, but is not required to register under Section II as a Verified Practitioner. A TMR
may represent a taxpayer before the Department by using his or her full SSN or TMR
Identification Number (TMRID). TMRs include, but are not limited to:1(1)

Family members and friends (provided that they are not acting in a capacity thatwould require registration under Section II);

(2)

Officers of a corporation, association, or governmental unit or agency;(3)

General partners in a partnership;(4)

Full-time employees of the taxpayer; andForm PPS-12 is the Verified Practitioner Registration Form. It may be used by people who are required to register as aVerified Practitioner under Section II.

Department of Taxation Announcement No. 2017-03
March 29, 2017
Page 3 of 4(5)Fiduciaries (provided that they do not receive compensation for services
rendered).

TMRs may obtain a TMRID by registering online at http://hitax.hawaii.gov or by filing
Form TMR-12 which is available at http://tax.hawaii.gov/forms. The Department encourages
online registration as the processing times will be faster. There is no fee for this registration.
Upon receiving the online registration or completed Form TMR-12 2, the Department willverify the registration information, create a representative profile, and issue a TMRID to therepresentative. Once the TMRID is issued, the representative will be deemed a “Tax Matters
Representative” by the Department. Obtaining a TMRID will allow the representative tocomplete Form N-848 without using his or her full SSN and will allow the representative torequest electronic access to the tax account of the represented taxpayer.
IV. Power of Attorney (Form N-848)
Form N-848 is the power of attorney form used to grant a party authority to access tax
information or represent a taxpayer before the Department. Form N-848 is used to authorize arepresentative to receive the taxpayer’s tax information and to perform acts the taxpayer canperform with respect to the tax types and periods for which authority is granted.
Filed on or before June 30, 2017
Any Form N-848 filed on or before June 30, 2017 that only requires the last four digits of
the representative’s SSN will remain valid and effective until December 31, 2017. After thisdate, a new Form N-848 with the VPID, TMRID or full SSN will need to be submitted to theDepartment in order to access taxpayer accounts and information.
Filed on or after July 1, 2017
As of July 1, 2017, the Department will no longer accept any version of Form N-848 witha revised date prior to 2016. Form N-848 will be revised to require either the VPID for Verified
Practitioners or the TMRID or full SSN for Tax Matters Representatives. The Department will
not accept earlier versions of Form N-848 that did not require one of these identifying numbers.
Form N-848 requiring no identifying number
Any Form N-848 that does not require any form of the representative’s identificationnumber shall be invalid as of the date of this Tax Announcement. A new Form N-848 thatcomplies with this section must be filed with the Department to continue representation.

2Form TMR-12 is the Tax Matters Representative Registration Form. It may be used by Tax Matters Representatives who aredescribed in Section III.

Department of Taxation Announcement No. 2017-03
March 29, 2017
Page 4 of 4V. Practitioner Priority Service
Upon successful registration, Verified Practitioners will have access to the Practitioner
Priority Service (PPS). The PPS offers tax practitioners a separate and dedicated connection tothe Department’s Taxpayer Services functions. The PPS is available by telephone, email, andfax to help tax practitioners with tax account issues such as locating and applying payments,
explaining notices and letters, providing procedural guidance, and assisting with other taxpayer
account inquiries.
The PPS is not available for discussion of tax law or appeal questions, tax clearances,collection cases, penalty and interest waivers, or any issue regarding an account that is under
audit or investigation. For more information about the PPS please visit
http://tax.hawaii.gov/assistance/practitioner.

MARIA E. ZIELINSKI
Director of Taxation
HRS section explained: § 231-3
HAR section explained: § 18-231-3-14.26