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



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



(c)  Whenever, in the opinion of the
department, it is necessary to examine any federal income tax return of any
taxpayer or any determination, assessment, or report related thereto, the
department may compel the taxpayer to produce for inspection a copy of any
federal return, copies of all statements and schedules in support thereof, and
copies of all determinations, assessments, and reports related thereto. [L Sp
1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-35; HRS §235-101; am
L 1978, c 173, §2(18); gen ch 1985; am L 1989, c 18, §1; am L 1993, c 31, §1]