The State of Hawaii has alleged that Reverse Mortgage Funding (RMF) is delinquent for years of unpaid taxes.
According to a report in Reverse Mortgage Daily (RMD), the State of Hawaii’s Department of Taxation has appointed a delinquent tax collection assistant to monitor RMF’s bankruptcy proceedings in order “determine whether obligations regarding tax liabilities are being satisfied.” The state claimed that the company failed to file the required State of Hawaii general excise, county surcharge and withholding tax returns between 2014 and 2022.
“The [company] did not […] meet the requirement of all applicable state laws and to pay all state taxes by not filing all Hawaii state tax returns,” the state alleged in a document reviewed by RMD. “Thus, Hawaii is unable to determine the amount of the [company’s] priority and unsecured taxes.”
The state added RMF did not file required state income tax returns from 2015 to 2022 and never “provided any documentation to support adjustment of Hawaii’s claims. Unless the [company] can provide proof that the amounts in Hawaii’s Proof of Claim are erroneous, Hawaii’s claims are valid and should be allowed.”
Representatives in charge of RMF’s liquidation process did not comment on RMD’s report. A hearing on the issue is scheduled for Sept. 26.