LINDA LINGLEKURT KAWAFUCHIGOVERNORDIRECTOR OF TAXATIONJAMES R. AIONA, JR.

SANDRA L. YAHIRO

LT. GOVERNOR

DEPUTY DIRECTOR

STATE OF HAWAII

DEPARTMENT OF TAXATIONP.O. BOX 259
HONOLULU, HAWAII 96809
PHONE NO: (808) 587-1510
FAX NO: (808) 587-1560

July 9, 2007

DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 2007-18
Re: Extensions of Time for Filing Income Tax Returns
The Department will be proposing amended administrative rules regarding the extension oftime for filing returns for public comment in the near future. These amendments are primarily
intended to conform to the federal practice of granting a single automatic extension of six months.
However, these rules will not be applicable for extensions becoming due on July 20th or August 20thof 2007.
The following details the current rules for extensions of income tax returns that will
apply for extensions becoming due on July 20th or August 20th, 2007:
REQUIREMENTS FOR INDIVIDUAL TAXPAYERS
Individuals are automatically granted an initial 4-month extension without the need to file
anything with the Department. As long as the following conditions are met, an individual taxpayer
is deemed to have made an application for an initial four-month extension to file income tax returns
on the prescribed due date:
1. The tax return is filed on or before the expiration of the initial 4-month extension
period;2. The tax return is accompanied by full payment of any tax not already paid; and3. The taxpayer is not bound by a court order to file a tax return on or before theprescribed due date.
If, during the initial 4-month extension period, an individual still needs more time, theDepartment may grant an additional 2-month extension. The grant of an additional 2-monthextension is subject to the following conditions:
1. The individual must apply for the additional 2 months prior to the expirationof the initial 4-month period by filing a Form N-101B;
2. The application (Form N-101B) must be accompanied by at least 90% of thetax owed, to the extent not already paid;
3. The application (Form N-101B) must explain a reasonable cause for needingan additional 2-months to file an income tax return;Department of Taxation Announcement No. 2007-18
July 9, 2007
Page 2 of 3
4. The tax return must be filed on or before the expiration of the additional 2month extension period;
5. The tax return must be accompanied by full payment of any tax not alreadypaid; and6. The individual must not be bound by a court order to file a tax return on or
before the original due date.
REMINDER: Failure to pay 90 percent of the tax on or before August 20, 2007 or failure to meet
any other condition will result in the extension being deemed invalid and penalties and interest shallbe assessed on the amount of tax owed as if no extension had been granted. In that case, penalties
and interest will be imposed from April 20, 2007 or the original due date for a fiscal year filer.
REQUIREMENTS FOR PARTNERSHIPS, ESTATES, TRUSTS, OR REMICs
Partnerships, estates, trusts, or real mortgage investment conduits are granted an initial 3month extension if the following conditions are met:
1. File an application for automatic extension on or before the due date prescribed bystatute (Form N-100), showing the full amount of properly estimated tax liability;
2. The tax return is filed on or before the expiration of the initial 3-month extension
period;3. The tax return is accompanied by full payment of any tax not already paid; and4. The taxpayer is not bound by a court order to file a tax return on or before theprescribed due date.
If, during the initial 3-month extension period, a partnership, estate, trust or real estate
mortgage investment conduit still needs more time, the Department may grant an additional 3-monthextension. The grant of an additional 3-month extension is subject to the following conditions:
1. The entity must apply for the additional 3 months prior to the expiration of theinitial 3-month period by filing a Form N-100A;
2. The application (Form N-100A) must be accompanied by at least 90% of the tax
owed, to the extent not already paid;
3. The application (Form N-100A) must explain a reasonable cause for needing anadditional 3-months to file an income tax return;
4. The tax return must be filed on or before the expiration of the additional 3-monthextension period;
5. The tax return must be accompanied by full payment of any tax not already paid;
and6. The entity must not be bound by a court order to file a tax return on or before theoriginal due date.
REMINDER: An automatic extension of time for filing a partnership, estate, trust, or real estate
mortgage investment conduit return does not extend the time for filing an income tax return for any
partner, or member of an entity classified as a partnership, any beneficiary of the estate or trust, or aresidual or regular interest holder of a real estate mortgage investment conduit.

Department of Taxation Announcement No. 2007-18
July 9, 2007
Page 3 of 3
REMINDER: Failure to pay 90 percent of the tax on or before the third month following the dateprescribed by statute for filing a return or failure to meet any other condition will result in theextension being deemed invalid and penalties and interest shall be assessed on the amount of tax
owed as if no extension had been granted. In that case, penalties and interest will be imposed fromApril 20, 2007 or the original due date for a fiscal year filer.
REQUIREMENTS FOR CORPORATIONS
Corporations should continue to follow the requirements/conditions of subsection (e) of §18235-98, HAR, in order to receive a single six-month extension.
For more information, please contact the Rules Office at 808-587-1577.

KURT KAWAFUCHI
Director of Taxation