Hawaii officials to scrutinize cash transactions
Associated Press
HONOLULU — Beginning next week, state tax officials will be going into the community to educate businesses about the new Cash Economy Enforcement Act of 2009.
The law that took effect July 1 provides the Department of Taxation with additional tools to investigate tax violations, especially those involving cash-based transactions.
The department says cash-based transactions are those involving goods or services that are paid for substantially in cash.
The act establishes the Special Enforcement Section within the department. The section may issue citations for noncompliance with state tax laws, as well as cease-and-desist notifications.
The department says that during initial outreach efforts, no citations will be issued.