RE: Implementation of New Computer System to Process General Excise, Use,
Employer's Withholding, and Transient Accommodations Tax Returns

Upon implementation, taxpayers will be assigned a single identification number for transient accommodations tax, general excise tax, use tax, and employer’s withholding tax. All transient accomodations tax registration numbers will automatically be changed to the registrant’s general excise tax license number so that taxpayers who are already registered will not have to re-register.

Taxpayers will continue to file separate monthly, quarterly or semiannual and annual general excise/use, employer’s withholding, and transient accommodations tax returns. Although these tax return forms have been revised to incorporate recent law changes and the new system’s requirements, taxpayers may continue to use their previously issued preprinted forms until the end of 1990. Transient accomodations tax returns with the original registration number printed on them will automatically be credited to the correct account. The revised forms with the new identification numbers will be sent to all registrants for 1991.

Several forms have been replaced or changed and should not be used after October 31, 1990. For example, the Application for General Excise License and Employer’s Withholding Identification Number (Form G-HW-5) and the Operator’s Registration for Transient Accommodations Tax (Form TA-3) have been replaced with a single Application for General Excise, Use, Employer’s Withholding, and Transient Accommodations Identification Number (Form GEW-TA-3). The general excise, employer’s withholding, and transient accommodations amended tax return forms and the extension request forms also have undergone substantial revision and should not be used after October 31, 1990.

New or revised forms may be obtained from any district tax office during business hours or by calling the Oahu District Office’s Forms Request Code-a-Phone (available 24-hours a day) at 548-7572. Callers on the neighbor islands or in the continental United States may call toll-free by dialing 1-800-222-7572. Please make every effort to obtain the new forms, as the Department will not be able to accept or accomodate the old forms after November 30, 1990.

The following suggestions are offered to ensure that taxpayers’ general excise/use, employer’s withholding, and transient accommodations tax returns are processed in a timely and error free manner.

1. Make sure the taxpayer’s name and identification number are clearly written on the return.

 
2. When completing general excise and transient accommodations tax returns, there must be an amount or a zero entered in each column of each applicable line. This applies to both original and amended tax returns. For example, if gross income is reported in column A of a particular activity, but no exemptions or deductions are claimed,a zero (“0”) must be entered in column B.  If columns A and B are left blank, but an amount is entered in column C, a common shortcut, a processing error will result.

 
3. When completing amended general excise tax and amended transient accommodations tax returns,enter an amount on all business activity lines which were reported on the original tax returns.  Do not just report the amended amounts. All lines originally reported must be completed even though they are not being corrected.

 
4. Any general excise or transient accommodations tax exemptions or deductions claimed must be separately listed on the reverse side of the return and the total amount of the exemptions and deductions listed entered on the appropriate line on the front.  This applies to both original and amended tax returns. For example, a general contractor claiming deductions for amounts paid to licensed subcontractors must separately list each subcontractor’s name and general excise tax license number as well as the amount paid to the subcontractor and claimed as a deduction.

 
5. Check to make sure that there are no mathematical errors.

 
6. Remember that the periodic and annual general excise, withholding, and transient accommodations tax returns must be signed by the individual taxpayer or by someone such as a partner or corporate officer, etc., who is authorized to sign the returns on the taxpayer’s behalf.

/s/
RICHARD F. KAHLE, JR.
Director of Taxation