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Photo By George F. Lee, Graphic By Kip Aoki, Star-Bulletin

Cutting it close

Last-minute isle tax filers can
go to several places
to get help

By Tim Ruel
Star-Bulletin

PROCRASTINATORS take note: You have only one week left to delay the inevitable.

Evidently, there are plenty of you out there. As of the end of March, 43 percent of Hawaii taxpayers had not filed their federal tax returns, due April 17. And 67 percent had not filed their state returns, due April 20.

Of course, the state and federal governments frown on those who fail to file on time -- assessing penalties on top of the taxes owed.

And while filing for an automatic four-month extension may sound like a good idea, filers still must make an estimate of what they think they will owe and pay it by the April deadlines. Failure to do so, or a bad estimate in the taxpayer's favor, also will lead to penalties.

Still, last-minute scramblers in Hawaii have plenty of help available.

First off, you have until midnight on the deadline days to drop off your tax returns. Envelopes must be postmarked by midnight April 17 for federal returns. (Filers get two extra days this year because the usual filing date, April 15, falls on a Saturday.) The downtown post office at King and Richards streets and the Honolulu Airport post office will have outside dropoffs up until midnight.

From 5 p.m. until midnight on April 20th, the state Tax Department will let drivers stop at the curb by its office at 830 Punchbowl, and drop off state returns.

"You pull up, process your envelop, we've got it," says Linda Cacpal, acting chief of the department's Taxpayer Services Branch.

To prevent late filing, the department also has teamed up with the American Association of Retired Persons and the Internal Revenue Service to sponsor free income tax help at 50 sites statewide.

Program volunteers prepare basic tax returns and complete forms for claiming credits. The program, called Tax-Aide, aims to serve the disadvantaged, but is open to everyone.

The Legal Aid Society of Hawaii on Bethel Street is one of the Tax-Aide sites. The nonprofit legal corporation primarily handles family and housing litigation, and wants to help parents get the Earned Income Tax Credit.

The credit is available to families with total income under $30,580. A family of four making $16,000 a year can get up to $3,400 back in taxes.

"It's a big, big benefit for low-income workers," says Legal Aid Executive Director Victor Geminiani.

Legal Aid alone has helped more than 75 taxpayers this year, and hopes to assist 300 next year through state funding for outreach.

Meanwhile, taxpayers who don't need help but still haven't filed can speed federal income filing by doing it electronically. Residents can file on the phone, through a paid tax professional or on the Internet. The state doesn't offer electronic filing yet.

Nearly one-third of those in Hawaii who have returned their tax forms used the electronic option this year. That's up from 18 percent last year, typical of growth in most Western states, says Shawn George, IRS regional communications specialist in Seattle.

FEDERAL TAX INFORMATION Filing deadline: Monday, April 17. Where to get forms and last-minute answers: Prince Kuhio Kalanianaole Federal Building, IRS office, 300 Ala Moana. Hours: 8 a.m. to 6:30 p.m. today and Wednesday; 8 a.m. to 4:30 p.m. on Tuesday, Thursday and Friday; 8:30 a.m. to 12:30 p.m. on Saturday; 12:30 p.m. to 5:30 p.m. on Sunday; 8 a.m. to midnight on April 17. For 24-hour federal tax help: 1-800-829-1040 Forms by mail or recorded info: 1-800-829-4477. Forms by fax: Call 1-703-368-9694 from a phone at your fax machine and request forms by return fax. To charge a payment to American Express, Discover or MasterCard accounts: 1-888-272-9829. Includes service fee. Forms and help on the Internet: http://www.irs.gov STATE TAX INFORMATION Filing deadline: Thursday, April 20. Where: Princess Ruth Keelikolani Building, 830 Punchbowl St. Office hours: Monday-Friday, 7:45 a.m. to 4:30 p.m. For state tax help: Call 587-4242 on Oahu during office hours or 1-800-222-3229. To request tax forms and CD-ROM by mail: Call 587-7572 or 1-800-222-7572, or go to http://www.state.hi.us/tax/tax.html on the Web. LAST-MINUTE TAX TIPS Remember the keiki: Many federal taxpayers with children may qualify for a $500-per-child credit, up from $400 last year. Avoid penalties: The IRS will charge 9 percent interest, compounded daily, on taxes not paid this year by April 17. The penalty for those who file but don't pay enough is 0.5 percent per month, if the total tax they pay is less than 90 percent of the actual tax. The state government also charges interest penalties. High-tech help: The state Tax Department sells an $12.50 CD-ROM with tax forms, laws and opinions dating back several years. Hurry up and wait: Residents who filed in March could wait between eight and 10 weeks to get their state tax refund. For those who waited until the last minute, it could take up to three months. TAX AID To find nearby free help with income tax preparation, call Aloha United Way ASK-2000 at 275-2000, or the city and county Elderly Affairs Division at 523-4545. From the neighbor islands, call the IRS at 1-800-829-1040 or the American Association of Retired Persons at 1-888-227-7669.