Information and Options to Resolve Your State Tax Debt

Can’t pay your taxes?

We can help! DOTAX is committed to work with you to address your tax issues. Not filing your taxes can lead to serious consequences such as audits, garnishments, bank levies etc.

If you cannot pay-off your tax debt, please file your return(s) by the deadline and pay as much as possible. Once you receive a bill, you may apply for either a Payment Plan or an Offer in Compromise.

Payment Plan

A Payment Plan is payment in monthly installments towards your debt.

How do I apply?

Offer in Compromise

An Offer in Compromise (OIC) is a written agreement with the State to settle unpaid tax debt for less than the total amount due.

There are five basic requirements.

  1. You are unable to generate future income due to retirement or health issues (a long-term disability or a certified permanent medical condition).
  2. The value of your total assets (real property, cash, investments etc.) are less than the tax debt.
  3. You have no significant passive income streams (i.e. rental, investment, business income) to pay-off your debt.
  4. You have filed the required tax returns through the current period.
  5. You have not previously received tax relief such as a tax liability discharged through bankruptcy, written off past statute, an innocent spouse relief or any prior settlement.

Meeting these requirements does not guarantee an approval. All applications require documentation which will be reviewed and verified.

Complete and send the following:

In addition, submit the following documents unless clearly inapplicable:

  • ___  Statements showing premium amounts for all insurance (auto, home, health, renters, etc.). Coverage page of homeowners and renters’ insurance policies and the first page of all insurance policies
  • ___  Federal Income tax returns for the last 3 tax years
  • ___  Any and all contracts and notes receivables
  • ___  All judgments, including divorces
  • ___  Real property: Name and address of encumbrance/lien holder and proof of remaining balance. Your interest in all
    deeds to real property. Realtor’s valuation and current year’s county assessor’s valuation. If renting, provide rent or
    lease agreement
  • ___  Vehicles: Registration certificate(s) issued by the Department of Licensing, verification encumbrances against all
    vehicles and current statements. Verification on the determined values, including cars, boats, trucks, motor homes,
    airplanes, etc.
  • ___  Pre or ante nuptial agreement, affidavits from parties under penalty of perjury adherence to said agreements
  • ___  Trust that you are the beneficiary or have an interest
  • ___  Pay check statement last six months
  • ___  Court ordered payments (child/spousal support, fines, etc.)
  • ___  Monthly expenses not already covered (utility bills, transportation, etc.)
  • ___  Doctors papers if claiming ill health or disabled
  • ___  Source of funds for offer
  • ___  Federal Offer in Compromise and letter of acceptance

How do I apply?

For faster processing, send your pdf documents via web message on Hawaii Tax Online (HTO).

To set-up an account on HTO, visit Hawaii Tax Online at https://hitax.hawaii.gov, or send all applicable forms and documents to:
By mail:
Department of Taxation – Collections Branch
P.O. Box 259
Honolulu, HI 96809-0259
By Fax:
(808) 587-1720

For more information, TAX FACTS 2000-2 Offer in Compromise.

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Page Last Updated: January 27, 2026