IRS Tax Relief Hawaii: Honolulu Taxpayer & Storm Tax Help

Hawaii has the highest cost of living in the country, and many families here work two or three jobs just to keep up. So when a tax bill lands, there is rarely a cushion to absorb it. Add a season of severe storms, a wildfire, or an earthquake, and paperwork falls behind fast.

Republic Tax Relief helps individuals and business owners who owe the Internal Revenue Service, the Hawaii Department of Taxation, or both. Our licensed enrolled agents, CPAs, and tax attorneys work as one team from our California offices and represent clients in Honolulu and on every inhabited island, from Kauai to the Big Island.

Why a Hawaii Taxpayer Ends Up Owing Both the IRS and the State

Hawaii uses graduated income tax rates, and its top rate has long been one of the highest in the nation. The state has been phasing in tax cuts over several years, which helps with future returns. It does nothing for a balance you already owe, and old balances only grow while penalties and interest run.

Hawaii also builds much of its income tax return from federal figures. When the IRS changes your federal return, a state bill often follows months later. These are the patterns we see most in island households:

• Several jobs, not enough withholding. Two part-time W-2 jobs and a weekend side gig can each withhold correctly on their own and still leave a balance when combined.
• Tips and service income. Hotel, restaurant, and tour workers who report tips unevenly can get a CP2000 notice years later.
• Vacation rental and side business income. A condo rented to visitors brings federal income tax plus state general excise tax and transient accommodations tax. Many owners miss at least one of them.
• Retirement and early withdrawals. Pulling from an IRA or 401(k) to cover rent or repairs often creates a federal bill, and sometimes the 10% early distribution tax.
• Unfiled tax returns after a storm, a fire, a move, or a family loss. Our unfiled tax returns service brings missing federal and Hawaii returns current and stops new penalties.

Not sure which years you owe or how much? Our back tax help confirms every federal and Hawaii balance before anyone makes a promise about your tax debt.

IRS Disaster Tax Relief in Hawaii: Filing and Payment Relief for Those Impacted by Severe Storms, Wildfires, and the Earthquake

Hawaii sees more disaster declarations than most states its size. When one happens, the IRS often announces tax relief that postpones filing and payment deadlines for each affected taxpayer in the covered disaster area. Here is where things stand for recent Hawaii events.

The Kona Low: flooding and mudslides due to severe storms

The IRS grants tax relief to victims of flooding and mudslides due to severe storms that began on March 10, 2026. The disaster declaration covered Hawaii, Honolulu, Kauai, and Maui counties. The relief postpones various tax filing and payment deadlines, first to July 8, 2026, and then, in an update the IRS posted in May, to Aug. 20, 2026 (IRS: Hawaii severe storms relief).

The relief applies to individual income tax returns and payments, quarterly estimated income tax payments, and many business tax returns, including quarterly payroll and excise tax returns. Penalties on payroll and excise tax deposits due during the period were to be abated if deposits were made by the postponed date. The state also offered its own penalty and interest waiver through Form L-115 for state income tax filers.

The Hawaii County earthquake: deadline still open

The IRS has announced tax relief for individuals and businesses in Hawaii County affected by the earthquake that began on May 22, 2026. Affected taxpayers now have until Feb. 1, 2027, to file various federal individual and business tax returns and make tax payments that fall in the postponement period (IRS: Hawaii County earthquake relief).

• Covered: extended individual income tax returns for last year, quarterly payroll and excise tax returns normally due July 31 and Nov. 2, 2026, and estimated tax payments in the window.
• Not covered: last year’s balance due payment that was due on April 15. That money was already late before the earthquake.
• Payment plans: the IRS says an installment agreement stays in effect even if payments due during the window are made by Feb. 1, 2027.

Hurricanes, wildfires, and other recent relief

Simplified summary. Deadlines change, and the IRS may provide additional disaster relief in the future. Check the IRS disaster assistance and emergency relief for individuals and businesses page, and the Hawaii Department of Taxation, before you rely on a date.

How to qualify for tax relief if you live outside the disaster area

The IRS automatically identifies taxpayers by their IRS address of record and applies relief to anyone located in the disaster area. That works for most people. It misses others:

• You moved after the storm. If your address of record is outside the covered disaster area, the IRS may not know you were affected.
• Your records were in the disaster area. Taxpayers whose records needed to meet a deadline were in the covered area can also qualify.
• Relief workers with a recognized government or charitable group in the area may qualify too.

An affected taxpayer outside the disaster area may contact the IRS Special Services line at 866-562-5227 to request relief. If you get a penalty notice from the IRS for a date that falls inside a postponement period, call the number on the notice and ask for the penalty to be removed. Or let us make those calls for you.

Other disaster relief available to affected taxpayers

• Casualty losses. Uninsured disaster losses can be claimed on the return for the disaster year or the year before. Write the disaster name the IRS gives, such as “Hawaii, Severe Storms,” on the return.
• Retirement withdrawals. Qualified disaster distributions may avoid the 10% early distribution tax and can be spread over three years.
• Free copies of old returns. The IRS waives fees for affected taxpayers who request past returns or transcripts.
• Grants are usually not income. Qualified disaster relief payments for living expenses or home repairs are generally excluded from income.

For simple returns, eligible households can use IRS Free File guided tax software at no cost or a volunteer site. Those tools prepare returns. They do not negotiate a balance, stop a levy, or fix several years of filings.

Disaster Relief vs. Back Tax Debt: What Penalty Relief Does Not Fix for an Affected Taxpayer

Every time the IRS has announced tax relief for Hawaii, our phones get busier with a hopeful question: “Does this wipe out what I owe?” Sadly, no. A disaster postponement moves current deadlines. It does not reduce old balances.

The good news: a disaster can support other relief. If the IRS contacts you on a collection or audit matter, explain how the disaster affected you. A fire, a flood, or lost records can support reasonable cause IRS penalty abatement on older penalties, and a lost job can support a hardship status.

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A Real Hawaii IRS Case: The Business Owners Who Stopped Filing

Most tax debt is a money problem, not a crime. This Honolulu case shows what can happen when people follow bad advice and stop filing altogether.

Worried about past years? We review what was filed, pull IRS transcripts, and, where needed, bring in a tax attorney before anything is sent to the IRS.

Hawaii Department of Taxation Collections: Liens, Levies, and Refunds Kept to Pay Your Tax Return Balance

Many people fix the IRS side and let the state bill sit. That is risky. The Hawaii Department of Taxation, headquartered in Honolulu, has its own collection tools and can act without waiting for the IRS.

Hawaii installment agreements and settlements

The Department of Taxation offers installment agreements, and many requests start in Hawaii Tax Online. Interest keeps running, and a missed payment or a missed new return can end the agreement. Settling a Hawaii tax debt for less is uncommon and handled case by case, so an IRS settlement never guarantees a state one.

See how we handle tax lien help, bank levy help, and wage garnishment relief.

General Excise Tax, TAT, and Payroll Debt: Business Tax Help for Hawaii Owners

Hawaii does not have a sales tax. It has the general excise tax, or GET, and that difference trips up new business owners every year. GET is a tax on the business’s gross receipts, including most services, not a tax on the customer.

• GET on nearly everything. Consultants, landscapers, therapists, and food trucks all owe GET on gross receipts, and most counties add a surcharge. Periodic returns plus an annual return are required, even in a year with no income.
• Transient accommodations tax. Vacation rental owners owe state TAT and county TAT on top of GET and income tax. Missing one layer can stack up several years of balances.
• Federal payroll tax deposits. Missed deposits can lead to the Trust Fund Recovery Penalty against owners personally. Start with payroll tax debt relief.
• Hawaii withholding. State income tax withheld from paychecks is filed and paid on its own schedule.
• Tax clearance for contracts. Contractors bidding on state or county work need a tax clearance certificate. An unpaid GET balance can block a job you need to pay the IRS.

The Hawaii businesses we help most often include:

• Builders and trades rebuilding after fires and storms. See construction tax resolution.
• Restaurants, plate lunch spots, and food trucks. Read our restaurant tax resolution insights.
• Medical and dental practices. See tax resolution for medical professionals.
• Vacation rental owners and agents. See real estate tax resolution.
• Online sellers shipping island goods. See e-commerce tax resolution.

Explore our business audit help, business tax resolution services, small business tax relief, and business tax debt relief.

IRS vs. Hawaii Department of Taxation: How Federal and State Tax Problems Compare

If you owe both agencies, the rules are not the same. A plan that satisfies the IRS can still leave Hawaii collecting, and the reverse.

IRS Tax Relief Options for Hawaii Residents: Payment Plans, Offers, CNC, and Penalty Relief

The right option depends on your income, allowable living expenses, equity, and how much time is left on the collection clock. Here is how the main federal programs fit island households.

High home values and high living costs cut both ways

The IRS uses national and local expense standards when it reviews what you can pay. Hawaii housing costs are among the highest allowed, which can help keep a payment plan realistic. But Hawaii home equity is also high, and the IRS counts it when you ask to settle for less. Learn how the OIC program works.

Penalty relief can shrink the bill quickly

A first-time abatement can remove IRS penalties for one year if your record is otherwise clean. Taxpayers who do not qualify for disaster tax relief may still qualify for reasonable cause relief. Because penalties and interest can make up a big share of the total, this is one of the first places we look.

For the bigger picture, see our tax debt relief options, IRS payment plans, Currently Not Collectible status, innocent spouse relief, and the truth about the IRS Fresh Start Program.

Tourism, Military, Farming, and Rebuilding: Hawaii Tax Problems We See Often

The island economy creates tax problems that generic national guides miss. These come up again and again in our calls.

• Hospitality and tourism workers. Hotel, restaurant, tour, and activity staff live with seasonal swings, tip income, and hours that drop after a storm or a slow visitor season.
• Military families. Joint Base Pearl Harbor-Hickam, Schofield Barracks, and Marine Corps Base Hawaii bring frequent moves, spouse income in different states, and confusion about which state can tax whom.
• Farmers and ranchers. Kona coffee, macadamia, and ranching income is uneven, and many growers sell direct at farmers markets without tracking GET.
• Contractors and trades. Rebuilding in West Maui and storm repairs statewide brought new contractors, new hires, and new payroll obligations fast.
• Rideshare, delivery, and gig workers. 1099 income with nothing withheld, plus GET that many gig workers never knew applied to them.
• Kupuna on fixed income. Retirees who took a large retirement withdrawal for repairs can owe federal tax they did not expect.

Moving to the Mainland With Hawaii Tax Debt: What Follows You

Many island families eventually move to Las Vegas, the West Coast, or the Pacific Northwest for lower costs. Moving often happens in a hurry, and tax mail goes to an old address. That is when small balances become levies.

Explore our state guides for Nevada, California, Washington, Oregon, and Alaska.

How Our Tax Resolution Services Work for Hawaii Residents Without a Local Office

We want to be upfront: we do not have an office in Hawaii. Our team works from our offices in Corona, California and Laguna Hills, California. California runs two to three hours ahead of Hawaii, so we are already working when your day starts.

The IRS handles nearly all cases by phone, mail, and secure online systems, and it works with authorized representatives from any state. Once you sign the forms, we contact the IRS and the Hawaii Department of Taxation for you. No more 4 a.m. calls to an IRS hold line.

What happens after you call

1. Free confidential consultation. A short call about your letters, any disaster deadlines, and your monthly budget.
2. Authorization on file. We file IRS Form 2848 so the IRS contacts us instead of you, plus Hawaii Form N-848 for state matters.
3. Full investigation. We pull IRS transcripts, check whether a postponement covers you, and review your Hawaii Tax Online account for GET, TAT, and income tax balances.
4. Protection first. Where the law allows, we act to stop the IRS and Hawaii from levying while we build your case.
5. One coordinated plan. We negotiate in the right order and explain every option in plain English.

IRS Tax Relief in Honolulu and on Every Island in Hawaii

A hotel manager in Waikiki, a rancher in Waimea, and a retiree in Kihei face very different IRS problems. We start with Honolulu, then cover every county in the state.

Focus City: Honolulu and Oahu

Islands and Regions We Serve Across Hawaii

Don’t see your town? We help taxpayers in all four Hawaii counties, on every inhabited island. Call 800-676-6014 and we will tell you right away whether we can help. You can also browse all of our service locations.

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Expert Insight: The Risks of Handling Hawaii IRS Problems Alone or With AI

Island families are resourceful, and many try to sort out tax problems on their own before calling anyone. We respect that. But self-managed cases tend to go wrong in a few predictable ways, and some mistakes cannot be undone.

• Assuming disaster relief fixed everything. People hear that the IRS has announced relief and stop opening their mail. The old balance keeps growing, and the levy notice gets missed.
• Forgetting the state is not automatic. IRS disaster relief usually applies itself. Hawaii’s waiver usually has to be requested, and it often has a different deadline.
• Calling GET a sales tax. Owners who think customers owe the tax often never set it aside, then face years of GET and penalties at once.
• Fighting the clock. IRS phone hours for Hawaii follow Pacific time, so lines open in the dark. Hours on hold before work lead to rushed, incomplete answers on calls that matter.
• Trusting AI on Hawaii rules. Chatbots mix up federal and state disaster dates, describe GET as a retail sales tax, or invent a “Maui tax forgiveness program.” A confident wrong answer leads to a costly decision.
• Pasting private data into public tools. Uploading returns, bank statements, or your Social Security number to a free chatbot creates a privacy risk you cannot take back. AI also cannot sign a power of attorney, pull transcripts, or talk to a revenue officer.

Want to learn more first? Read our common IRS notices guide, IRS tax relief insights, and IRS collections defense.

Why Hawaii Taxpayers Choose Republic Tax Relief

Hiring help with tax debt is a trust decision. Since 2005, founding partner Mark Ladd and our in-house team of enrolled agents, CPAs, and tax attorneys have helped individuals and businesses resolve IRS and state tax problems. We work every case ourselves, with no outsourcing.

• Federal and Hawaii handled together. One team, one budget, one plan for every agency.
• Disaster-aware case reviews. We check every postponement window before we accept a single penalty as correct.
• We know GET and TAT. State and county layers shape how we sequence a business case.
• Mainland move experience. Nevada, California, Washington, and Oregon balances are part of our everyday work.
• Honest answers. If a settlement is not realistic, we say so and show you a better path.
• Recognized work. See our awards and recognition.

Results vary based on each taxpayer’s facts and finances. Past results do not guarantee a similar outcome.

Hawaii IRS Tax Relief Frequently Asked Questions

Can you help me if you don’t have an office in Hawaii?

Yes. IRS cases are handled by phone, mail, and secure online systems, and we represent you under a signed power of attorney. Our team works from California and serves clients in all four Hawaii counties.

Does IRS disaster relief erase the taxes I already owe?

No. Disaster relief postpones filing and payment deadlines that fall inside the relief window and removes late penalties for those dates. It does not reduce balances from earlier years, but a disaster can support other relief, such as reasonable cause penalty abatement or a hardship status.

I live on the Big Island. What does the earthquake relief cover?

The IRS postponed many federal filing and payment deadlines for Hawaii County taxpayers to Feb. 1, 2027, for dates falling on or after May 22, 2026. It covers extended returns and quarterly filings in that window, but not last year’s balance due payment from April.

I moved after the storms. How do I get disaster relief?

The IRS applies relief by your address of record. If that address is outside the covered disaster area but you were affected, or your records were there, call IRS Special Services at 866-562-5227, or let us request the relief for you.

Is the Hawaii general excise tax the same as a sales tax?

No. GET is a tax on the business’s gross receipts, including most services. Businesses may pass the cost along, but the business owes the tax either way and must file even in a year with no income.

Can Hawaii collect my state tax debt if I move to the mainland?

Yes. Moving does not end a Hawaii tax debt. The state can keep refunds, file liens, and has sought outside law firms to enforce Hawaii tax liens out of state.

Can you handle my Hawaii state tax debt and my IRS debt together?

Yes. We review both balances, build one household budget, and negotiate with the IRS and the Hawaii Department of Taxation in the right order so the two plans fit together.

Can the IRS take my wages or bank account in Hawaii?

Yes. After the required notices, including a final notice of intent to levy, the IRS can levy wages, bank accounts, and other assets. Acting before that final notice expires keeps the most options open, including the right to a hearing.

What should I bring to my free consultation?

Any IRS or Hawaii letters, your latest tax return if you have one, and a rough idea of your monthly income and bills. If records were lost in a storm or fire, that is fine. We can request IRS transcripts for you.

More answers: tax relief questions, penalty abatement questions, IRS payment plan questions, and business tax debt questions.

Sources

• IRS: Tax Relief for Taxpayers Impacted by Severe Storms in the State of Hawaii
• IRS: Tax Relief for Taxpayers Impacted by the Earthquake in Hawaii County
• U.S. Attorney’s Office, District of Hawaii: Hawaii Couple Sentenced for Tax Violations

Republic Tax Relief is a private firm and is not affiliated with the IRS, the Hawaii Department of Taxation, or any Hawaii county. This page offers general guidance, not legal or tax advice for your specific situation. Tax laws, disaster deadlines, and agency procedures change, so consult a qualified tax professional or contact the IRS directly before acting.

Free Consultation: Speak With a Tax Relief Professional About Your Hawaii Tax Debt

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