On October 6, 2026, the Hawaii Department of Taxation issued Announcement No. 2026-10, stating that it will adopt the federal information return thresholds under Internal Revenue Code (IRC) sections 6041 and 6041A for payments made after December 31, 2025.
All persons engaged in a trade or business in Hawaii must file an information return with the Department if they paid another person $2,000 or more during the year for salaries, wages, commissions, fees, or other compensation for services, or for interest (except as provided in IRC section 6049), rents, royalties, annuities, pensions, gains, profits, or foreign items.
For third party settlement organizations, Hawaii conforms to IRC section 6050W. An information return must be filed if, in 2026, total payments exceed $20,000 and the number of transactions exceeds 200.
The Department encourages filers to use the Combined Federal/State Filing (CF/SF) Program, which, with prior approval, allows Hawaii information to be reported through the IRS filing, with no separate state filing needed. Filers not using CF/SF must mail or deliver their returns, with Form N-196, to the following addresses, as direct electronic filing is not currently accepted:
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In person: Hawaii Department of Taxation, 830 Punchbowl St., Room 124, Honolulu, HI 96813-5094
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By mail: Hawaii Department of Taxation, P.O. Box 3559, Honolulu, HI 96811-3559
To review Announcement No. 2026-10 in greater detail, click here.
