§235-101  Federal returns and assessments,when copies are required.  (a)  In prescribing the form of return thedepartment of taxation may require that a person who is required to file afederal income tax return include in the person's return a reconciliation ofthe return with the person's federal return, or that the person furnish withthe return and as a part thereof a copy of the federal return.

(b)  It shall be the duty of every person whois required by section 235-92 to make a return, to report to the department, asto any taxable year governed by this chapter, if (1) the amount of taxableincome as returned to the United States is changed, corrected, or adjusted byan officer of the United States or other competent authority, or (2) a changein taxable income results from a renegotiation of a contract with the UnitedStates or a subcontract thereunder, or (3) a recomputation of the income taximposed by the United States under the Internal Revenue Code results from anycause, or (4) an amended income tax return is made to the United States.  Thereport shall be made within ninety days after the change, correction,adjustment, or recomputation is finally determined or the amended return isfiled, as the case may be.  The report required by this subsection shall bemade in the form of an amendment of the person's return filed under thischapter.  The amended return shall be accompanied by a copy of the documentissued by the United States under (1) to (3).  The statutory period for theassessment of any deficiency or the determination of any refund attributable tothis report shall not expire before the expiration of one year from the datethe department is notified by the taxpayer or the Internal Revenue Service,whichever is earlier, of such a report in writing.  Before the expiration ofthis one-year period, the department and the taxpayer may agree in writing tothe extension of this period.  The period so agreed upon may be furtherextended by subsequent agreements in writing made before the expiration of theperiod previously agreed upon.

(c)  Whenever, in the opinion of thedepartment, it is necessary to examine any federal income tax return of anytaxpayer or any determination, assessment, or report related thereto, thedepartment may compel the taxpayer to produce for inspection a copy of anyfederal return, copies of all statements and schedules in support thereof, andcopies of all determinations, assessments, and reports related thereto. [L Sp1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-35; HRS §235-101; amL 1978, c 173, §2(18); gen ch 1985; am L 1989, c 18, §1; am L 1993, c 31, §1]