Office of Information Practices

U Memo 20-3
October 29, 2019
Corporate Taxpayer’s Audit File

The Department of Taxation (TAX) properly withheld the records in a corporate Taxpayer’s audit file under the exception to disclosure of records, which by their nature, must be confidential in order for the government to avoid the frustration of a legitimate government function.  See HRS § 92F-13(1) (2012).  The release of such records would frustrate TAX’s ability to perform its tax compliance function as the records were prepared in anticipation of civil litigation.  However, TAX’s description of the withheld records as simply “those that fall within the exception to the government records disclosure provision set forth in section 92F-13(3), HRS” was inadequate.  While it was not required to list and describe each individual record being withheld, TAX should at least have listed types or categories of records that were in the file and were being withheld.  See HAR § 2-71-14(b)(1).