reglab/statecodes huggingface dataset:
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.799 - PRIORITY ORDER OF CREDITS AND ADJUSTMENTS TO CREDITS

Current through August 31, 2023
Section
				63-3029P, Idaho Code
01.
Tax Liability
. Tax liability
			 is the tax imposed by Sections
			 63-3024,
			 63-3025, and
			 63-3025A, Idaho Code.
			 (4-6-23)
02.
Nonrefundable
			 Credits
. A nonrefundable credit is allowed only to reduce the tax
			 liability. A nonrefundable credit not absorbed by the tax liability is lost
			 unless the statute authorizing the credit includes a carryover provision.
			 Nonrefundable credits apply against the tax liability in the following order of
			 priority: (4-6-23)
a. Credit for taxes paid to
			 other states as authorized by Section
			 63-3029, Idaho Code;
			 (4-6-23)
b. For part-year residents
			 only, the grocery credit as authorized by Section
			 63-3024A, Idaho Code;
			 (4-6-23)
c. Credit for
			 contributions to Idaho educational institutions as authorized by Section
			 63-3029A, Idaho Code;
			 (4-6-23)
d. Investment tax credit
			 as authorized by Section
			 63-3029B, Idaho Code;
			 (4-6-23)
e. Credit for
			 contributions to Idaho youth facilities, rehabilitation facilities, and
			 nonprofit substance abuse centers as authorized by Section
			 63-3029C, Idaho Code;
			 (4-6-23)
f. Credit for equipment
			 using postconsumer waste or postindustrial waste as authorized by Section
			 63-3029D, Idaho Code;
			 (4-6-23)
g. Promoter-sponsored
			 event credit as authorized by Section
			 63-3620C, Idaho Code;
			 (4-6-23)
h. Credit for Idaho
			 research activities as authorized by Section
			 63-3029G, Idaho Code;
			 (4-6-23)
i. Broadband equipment
			 investment credit as authorized by Section
			 63-3029I, Idaho Code; and
			 (4-6-23)
j. Small employer
			 investment tax credit as authorized by Section
			 63-4403, Idaho Code.
			 (4-6-23)
k. Small employer real
			 property improvement tax credit as authorized by Section
			 63-4404, Idaho Code.
			 (4-6-23)
l. Small employer new jobs
			 tax credit as authorized by Section
			 63-4405, Idaho Code.
			 (4-6-23)
m. Credit for live organ
			 donation expenses as authorized by Section
			 63-3029K, Idaho Code.
			 (4-6-23)
n. Idaho child tax credit
			 as authorized by Section
			 63-3029L, Idaho Code.
			 (4-6-23)
o. Credit for employer
			 contributions to employee's Idaho college savings program account as authorized
			 by Section
			 63-3029M, Idaho Code.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.800 - VALID INCOME TAX RETURNS

Current through August 31, 2023
Section
				63-3030, Idaho Code
01.
Requirements of a Valid Income Tax
			 Return
. In addition to the requirements set forth in IDAPA 35.02.01,
			 "Tax Commission Administration and Enforcement Rules," Rule
			 150, an income tax return is to
			 meet the requirements set forth in this rule. Those that fail to meet these
			 requirements are invalid. They may be rejected and returned to the taxpayer to
			 be completed according to these requirements and resubmitted to the Tax
			 Commission. A taxpayer who does not file a valid income tax return is
			 considered to have filed no return. (4-6-23)
02.
Copy of Federal Return
			 Required
. A taxpayer is to include with the Idaho return a complete copy
			 of the federal income tax return including all forms, schedules and
			 attachments. (4-6-23)
03.
Verification of Idaho Income Tax Withheld
. A taxpayer who files an
			 Idaho individual income tax return that is submitted on paper and reports Idaho
			 income tax withheld is to attach appropriate Forms W-2 and 1099 and other
			 information forms that verify the amount of the Idaho income tax withheld and
			 claimed on the Idaho income tax return. Returns filed electronically is to
			 include the W-2 and 1099 information in the electronic record transmitted.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.801 - PERSONS REQUIRED TO FILE INCOME TAX RETURNS

Current through August 31, 2023
Section
				63-3030, Idaho Code
01.
In General
. Persons who meet
			 the filing requirements under Section
			 63-3030, Idaho Code, will file
			 Idaho income tax returns unless otherwise provided in the Idaho Income Tax Act
			 or by federal law. (4-6-23)
02.
Individuals Who Make Elections Under Section
			 63-3022L, Idaho Code
. For
			 taxable years beginning prior to January 1, 2012, if an individual partner,
			 member, shareholder, or beneficiary is qualified and makes an election under
			 Section 63-3022L, Idaho Code, for the
			 entity to pay the tax attributable to his income from the entity, such
			 individual will not be required to file an Idaho individual income tax return
			 for that taxable year. (4-6-23)
03.
Corporations Included in a Unitary Group
. A unitary group of
			 corporations may file one (1) Idaho corporate income tax return for all the
			 corporations of the unitary group that are required to file an Idaho income tax
			 return. Use of the group return precludes the need for each corporation to file
			 its own Idaho corporate income tax return. (4-6-23)
04.
Taxpayers Protected Under
			 Public Law
			 86-272
. A taxpayer whose Idaho business
			 activities fall under the protection of
			 Public Law
			 86-272 is not required to file an Idaho income tax
			 return since the taxpayer is exempt from the tax imposed under the Idaho Income
			 Tax Act. If a taxpayer is a member of a unitary group, it will be included in
			 the combined report although it is exempt from the income tax. The taxpayer's
			 property, payroll, and sales will be included in the computation of the group
			 factor denominators and its business income will be included in the computation
			 of apportionable income for the unitary group. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.805 - JOINT RETURNS

Current through August 31, 2023
Sections
				63-3031,
				32-201, and
				32-209, Idaho Code
01.
In General
. (4-6-23)
a. If a married couple files a joint return
			 and the due date for filing a separate return has expired for either spouse,
			 separate returns may not be filed thereafter. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.810 - TIME FOR FILING INCOME TAX RETURNS

Current through August 31, 2023
Section
				63-3032, Idaho Code A fifty-two
				fifty-three (52-53) week year is considered to end on the last day of the
				calendar month ending nearest to the last day of that taxable year.
				(4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.820 - CORPORATE ESTIMATED PAYMENTS: IN GENERAL

Current through August 31, 2023
Section
				63-3036A, Idaho Code
01.
Estimated Tax
. The term
			 estimated tax means the corporation's anticipated tax as imposed by this
			 Chapter including the permanent building fund tax, plus any recapture of Idaho
			 income tax credits, less the sum of any income tax credits. Estimated payments
			 and non-income tax credits are not included as a credit. (4-6-23)
02.
Computation of Estimated
			 Payments
. (4-6-23)
a. The tax required
			 to be reported on the preceding year's return and the tax required to be paid
			 on the current year's return means Idaho taxable income multiplied by the
			 corporate income tax rate with a minimum of twenty dollars ($20), plus the
			 permanent building fund tax, plus the recapture of income tax credits, less
			 income tax credits excluding estimated payments. (4-6-23)
b. An estimated payment is not required if an
			 Idaho return was not required for the previous taxable year.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.821 - CORPORATE ESTIMATED PAYMENTS: PAYMENTS

Current through August 31, 2023
Section
				63-3036A, Idaho Code
01.
Underpayments
. A payment of
			 estimated tax is to be applied to previous estimated payments of estimated tax
			 in the order in which the estimated payments were required to be paid. To the
			 extent the payment exceeds previous underpayments, it applies to the estimated
			 payment then due. (4-6-23)
02.
Overpayments
. (4-6-23)
a. If the
			 estimated payments exceed the actual tax due, the overpayment may be claimed as
			 a credit against the next payment only to the extent it exceeds all
			 underpayments of prior estimated payments. (4-6-23)
b. The overpayment is to be applied to
			 deficiencies of tax, penalties, and interest prior to refund or application to
			 a subsequent year's estimated payment or tax liability. (4-6-23)
c. A refund or credit may not be made to a
			 corporation that fails to file its Idaho income tax return within three (3)
			 years from the due date of the return for which it made the estimated payments.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.822 - CORPORATE ESTIMATED PAYMENTS: ANNUALIZED INCOME INSTALLMENT METHOD

Current through August 31, 2023
Section
				63-3036A, Idaho Code
01.
In General
. (4-6-23)
a. If a corporation uses the annualized
			 income installment method for federal purposes and is required to make
			 estimated payments for Idaho purposes, the corporation may use that method to
			 compute its Idaho estimated tax. If a corporation does not use the annualized
			 income installment method for federal purposes, the corporation may not use
			 that method for Idaho purposes. (4-6-23)
b. See Section
			 6655, Internal Revenue Code, for
			 the determination of annualized income. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.823 - CORPORATE ESTIMATED PAYMENTS: SHORT TAXABLE YEAR

Current through August 31, 2023
Section
				63-3036A, Idaho Code If a short
				taxable year ends before an estimated payment due date, remaining estimated
				payments is to be made on the fifteenth day of the last month of the short
				taxable year. No estimated payment is required if the short taxable year is
				less than four (4) months or if the corporation does not meet the requirements
				to make an estimated payment before the first day of the last month in the
				short taxable year. Examples available at Income Tax Rules Examples.
				(4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.824 - CORPORATE ESTIMATED PAYMENTS: MISCELLANEOUS PROVISIONS

Current through August 31, 2023
Section
				63-3036A, Idaho Code
01.
Unitary Groups Filing Group
			 Returns
. (4-6-23)
a. Each corporation
			 included in a group return that is required to make estimated payments
			 separately computes its estimated tax. (4-6-23)
b. Estimated payments is to be made using the
			 name and the federal employer identification number of the corporation whose
			 name will be on the Idaho corporate income tax return.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.825 - CORPORATE ESTIMATED PAYMENTS: INTEREST ON UNDERPAYMENT

Current through August 31, 2023
Section
				63-3046A, Idaho Code
01.
In General
. If a taxpayer is
			 required to pay estimated taxes as provided in Section
			 63-3036A, Idaho Code, and fails to
			 pay the amount of estimated taxes due, interest is due on the underpaid
			 estimated taxes. (4-6-23)
02.
Net Operating Loss and Capital Loss Carrybacks
. If the tax due for
			 the taxable year is reduced after the application of a net operating loss
			 carryback or a capital loss carryback, the interest on underpayment of
			 estimated tax will not be recomputed. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.830 - INFORMATION RETURNS

Current through August 31, 2023
Section
				63-3037, Idaho Code
01.
In General
. Information
			 returns are not required to be filed with the Tax Commission except as follows:
			 (4-6-23)
a. Form 1098, Mortgage Interest
			 Statement, if the property was located in Idaho. (4-6-23)
b. Form 1099-A, Acquisition or Abandonment of
			 Secured Property, if the property was located in Idaho. (4-6-23)
c. Form 1099-B, Proceeds From Broker and
			 Barter Exchange Transactions, if the property was located in Idaho or the
			 service was performed in Idaho. (4-6-23)
d. Form 1099-C, Cancellation of Debt, if the
			 secured property was located in Idaho. (4-6-23)
e. Form 1099-MISC, Miscellaneous Income, if
			 it was issued for transactions related to property located or utilized in Idaho
			 or for services performed in Idaho. (4-6-23)
f. Form 1099-R, Distributions from Pensions,
			 Annuities, Retirement or Profit-Sharing Plans, IRA's, Insurance Contracts,
			 etc., if Idaho income tax was withheld. (4-6-23)
g. Form 1099-S, Proceeds From Real Estate
			 Transactions, if it was issued for transactions related to property located in
			 Idaho. (4-6-23)
h. Form W-2G,
			 Certain Gambling Winnings, if the gambling took place in Idaho.
			 (4-6-23)
i. Form 1099-NEC,
			 Nonemployee Compensation, if it was issued for services performed in Idaho.
			 (4-6-23)
j. Form 1042-S, Foreign
			 Person's U.S. Source Income Subject to Withholding, if the income is from Idaho
			 sources. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.855 - PERMANENT BUILDING FUND TAX

Current through August 31, 2023
Sections
				63-3082 through
				63-3087, Idaho Code
01.
Corporations Included in a Group
			 Return
. The permanent building fund tax applies to each member of a
			 unitary group transacting business in Idaho, authorized to transact business in
			 Idaho, or having income attributable to Idaho and included in a group return,
			 except as provided in Subsection
			 855.05 of this rule.
			 (4-6-23)
02.
Inactive or
			 Nameholder Corporations
. An inactive or nameholder corporation that
			 files Form 41 to pay the twenty dollar ($20) minimum tax must pay the permanent
			 building fund tax. (4-6-23)
03.
Taxpayers Protected Under
			 Public Law
			 86-272
. The permanent building fund tax
			 does not apply to a taxpayer whose Idaho business activities fall under the
			 protection of Public Law
			 86-272, since the taxpayer is exempt from the tax
			 imposed under the Idaho Income Tax Act and is not required to file an income
			 tax return. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.860 - DONATIONS TO TRUST ACCOUNTS

Current through August 31, 2023
Sections
				63-3067A,
				63-3067B, and
				63-3067D, Idaho Code. A donation
				to a trust account may not be withdrawn or reduced once the return or amended
				return on which it was made is filed. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.870 - REQUIREMENTS OF AN IDAHO WITHHOLDING ACCOUNT NUMBER

Current through August 31, 2023
Sections
				63-3035 and
				63-3036, Idaho Code If a business
				is sold, the new employer is to apply for a new withholding account number and
				file separate returns and W-2s. If a change in the form of doing business
				requires a new federal employer identification number, the new entity is to
				apply for a new withholding account number. Neither entity should report wages
				paid by the other entity, nor use the other entity's withholding account
				number. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.871 - STATE INCOME TAX WITHHOLDING REQUIRED

Current through August 31, 2023
Sections
				63-3035 and
				63-3036, Idaho Code
01.
Services Performed Within and
			 Without Idaho
. An employer is required to withhold only on the portion
			 of the employee's total compensation that is reasonably attributable to
			 services performed in Idaho regardless of his post of duty. Compensation may be
			 allocated to Idaho based on workdays, hours, mileage, or commissions.
			 (4-6-23)
02.
Exceptions to
			 Withholding Requirements
. Withholding is not required if: (4-6-23)
a. The salaries, wages, tips, bonuses, and
			 other compensation paid by an employer are for services performed wholly
			 outside Idaho regardless of the residency or domicile of either the employer or
			 employee. (4-6-23)
b. The
			 compensation is paid by the United States Armed Forces to a nonresident serving
			 on active duty in Idaho; (4-6-23)
c. The compensation is paid to an interstate
			 transportation employee of a rail carrier covered by Title 49, Section
			 11502, United States Code, who is
			 a nonresident of Idaho; or (4-6-23)
d. The compensation is paid to an interstate
			 transportation employee of a motor carrier covered by Title 49, Section
			 14503, United States Code, who is
			 a nonresident of Idaho; or (4-6-23)
e. The compensation is paid to an employee of
			 an interstate air carrier covered by Title 49, Section
			 40116, United States Code, who is
			 a nonresident of Idaho and earns fifty percent (50%) or less of his
			 compensation in Idaho; or (4-6-23)
f. The compensation is paid to a master or
			 seaman on a vessel in the foreign, coastwise, intercoastal, interstate, or
			 noncontiguous trade or to an individual employed on a fishing vessel or any
			 fish processing vessel covered by Title 46, Section
			 11108, United States Code; or
			 (4-6-23)
g. The compensation is
			 exempt from federal withholding. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.872 - REPORTING AND PAYING STATE INCOME TAX WITHHOLDING

Current through August 31, 2023
Sections
				63-3035 and
				63-3036, Idaho Code
01.
Payment of State Income Tax
			 Withheld
. (4-6-23)
a. In General. An
			 employer must remit monthly any state income tax withheld. These monthly
			 payments are due on or before the 20th day of the following month. However,
			 employers who owe seven hundred fifty dollars ($750) or less per calendar
			 quarter may, at the discretion of the Tax Commission, be allowed to remit the
			 tax withheld on or before the last day of the month following the end of the
			 quarter. Employers who owe less than seven hundred fifty dollars ($750)
			 annually may be allowed to remit the tax withheld annually on or before January
			 31. When a filing cycle is changed, the change will take effect on January 1 of
			 the following year. (4-6-23)
b.
			 Semimonthly Filers. (4-6-23)
i. An employer
			 who withholds state income taxes that meet or exceed the monthly or annual
			 threshold amounts provided in Section
			 63-3035, Idaho Code, and listed in
			 Subparagraph 872.01.b.ii., of this rule, will remit the tax withheld based on
			 semimonthly withholding periods. The first semimonthly withholding period
			 begins on the first day of the month and ends on the 15 th day of the same
			 month with payment made no later than the 20th day of the same month. The
			 second period begins on the 16th day of the month and ends on the last day of
			 the same month with payment made no later than the fifth day of the following
			 month. (4-6-23)
ii. Threshold
			 amounts:
Withholding Periods
							 Beginning
Monthly Threshold
							 Amounts
Annual Threshold
							 Amounts
On or After July 1, 2005
$20,000
$240,000
On or After July 1, 2019
$25,000
$300,000
(4-6-23)
iii. An employer who meets the threshold
			 amounts provided in Section
			 63-3035, Idaho Code, and listed in
			 Subparagraph 872.01.b.ii. of this rule, but only has one (1) monthly pay
			 period, may request approval by the Tax Commission to pay and report monthly.
			 The request should include verification of monthly payroll.
			 (4-6-23)
c.
			 Farmer-Employers. Generally an employer who is a farmer will remit state income
			 tax withheld on or before the last day of January. However, an employer who is
			 a farmer will remit the state income tax withheld on or before the last day of
			 the month following the end of the quarter if he is a covered employer required
			 to file with the Department of Commerce and Labor. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.873 - EMPLOYEE'S WITHHOLDING ALLOWANCE CERTIFICATES

Current through August 31, 2023
Section
				63-3035, Idaho Code
01.
Verification
. The Tax
			 Commission may request verification of the marital status or withholding
			 allowances claimed by an employee on federal Form W-4. If the employee fails to
			 verify the claimed marital status or withholding allowances, a Notice of
			 Deficiency as provided by Section
			 63-3045, Idaho Code, may be
			 issued. If a Notice of Deficiency is issued but is not protested or is upheld
			 on appeal, the Tax Commission will issue an order specifying the marital status
			 and maximum number of withholding allowances the employee is allowed for Idaho
			 withholding purposes. (4-6-23)
02.
Notification
. The Tax Commission is to notify the employer of the
			 order. The order is effective immediately on receipt by the employer and is to
			 remain in effect the rest of the calendar year, unless the employee files
			 federal Form W-4 claiming fewer allowances than ordered. The employer is liable
			 to the Tax Commission for any deficiencies that result from withholding in
			 excess of the maximum number of withholding allowances specified in the most
			 recent Tax Commission order. (4-6-23)
03.
Petition for Changes
. An
			 employee subject to a Tax Commission order may petition the Tax Commission for
			 a change to the order. If the employee establishes that a material change of
			 circumstances has occurred, the Tax Commission will issue a new order and
			 notify the employer. The determination of the Tax Commission on any change to
			 the order is final. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.874 - EMPLOYEE'S WAGE AND TAX STATEMENTS

Current through August 31, 2023
Sections
				63-3035 and
				63-3036, Idaho Code
01.
Form and Information
			 Required
. Federal Form W-2 (W-2) or a form of similar size and design
			 may be used. In addition to the information required by the Internal Revenue
			 Code, total Idaho wages paid, Idaho income tax withheld, Idaho withholding
			 permit number, and the name of the state must be shown in the appropriate
			 boxes. Incomplete, incorrect or altered forms are not acceptable and may be
			 returned to the employer for correction. (4-6-23)
02.
Furnishing Forms W-2 to
			 Employees
. The employer must furnish each employee a W-2 before February
			 1, or at the request of the employee within thirty (30) days after termination
			 of his employment. (4-6-23)
03.
Filing Forms W-2 With the Tax Commission
. On or before the last
			 day of January, each employer must file with the Tax Commission a state copy of
			 the W-2 for each employee to whom Idaho taxable wages were paid, regardless of
			 whether Idaho income tax was withheld. If the employer had no employees and
			 subsequently did not pay wages or withhold tax, no W-2s are required.
			 (4-6-23)
04.
Corrected Forms
			 W-2
. If a corrected W-2 is filed with the Internal Revenue Service, the
			 W-2c must be filed with the Tax Commission. (4-6-23)
05.
Employers With Fifty or More Idaho
			 Employees
. Each employer with fifty (50) or more Idaho employees who is
			 required to file W-2s electronically by Section
			 6011, Internal Revenue Code, must
			 file through electronic filing with Idaho. In addition to the information
			 required by the Internal Revenue Code, the electronic filing must also include
			 the employer's Idaho withholding account number, Idaho wages, and Idaho
			 withholding. Employers who are required to file electronically but fail to do
			 so are subject to the provisions of Section
			 63-3046(e)(1),
			 Idaho Code, and treated as if no W-2s were filed. (4-6-23)
06.
Services Performed Within and
			 Without Idaho
. If services are performed within and without Idaho, the
			 state wages shown on the W-2 furnished to the employee must include the portion
			 of the employee's total wages reasonably attributed to services performed
			 within Idaho as determined using the calculations in Rule
			 270 of these rules.
			 (4-6-23)
07.
Extension of
			 Time to File Form W-2
. The Tax Commission may allow a one (1) month
			 extension of time to file the W-2s. (4-6-23)
a. The employer must file a written request
			 by the due date of the W-2s that identifies the reason for the extension.
			 (4-6-23)
b. The employer must file
			 the W-2s within one (1) month of the due date. A penalty of two dollars ($2)
			 per W-2 per month not filed may be applied if the W-2s are not submitted by the
			 due date. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.877 - BACKUP WITHHOLDING BY PASS-THROUGH ENTITIES

Current through August 31, 2023
Sections
				63-3022L and
				63-3036B, Idaho Code
01.
In General
. A pass-through
			 entity that is transacting business in Idaho or an estate or trust that has
			 income taxable in Idaho must withhold Idaho income tax from the owner's or
			 beneficiary's share of income and guaranteed payments from the pass-through
			 entity that is required to be included in the individual's Idaho taxable income
			 unless exempt from backup withholding by Section
			 63-3036B, Idaho Code, or this
			 rule. For purposes of this rule, pass-through entity means "pass-through
			 entity" as defined in Section
			 63-3006C, Idaho Code. The
			 provisions of this rule do not affect the withholding requirements set forth in
			 Sections 63-3035,
			 63-3035A, or
			 63-3036, Idaho Code, and related
			 rules. (4-6-23)
02.
Exceptions to Backup Withholding
. Backup withholding by a
			 pass-through entity is not required on the income of the following pass-through
			 owners and beneficiaries: (4-6-23)
a. Owners
			 and beneficiaries who are not natural persons, including corporations,
			 partnerships, trusts, and estates. (4-6-23)
b. Unit holders of a publicly traded
			 partnership as defined by Section
			 7404(b), Internal
			 Revenue Code, if the publicly traded partnership: (4-6-23)
i. Is treated as a partnership for purposes
			 of the Internal Revenue Code; and (4-6-23)
ii. Has agreed to file an annual information
			 return. The information return must be in the form of a schedule included with
			 the partnership's Idaho Partnership Return of Income reporting the name,
			 address, taxpayer identification number, and other information requested by the
			 Tax Commission of each unit holder with a distributive share of partnership
			 income in Idaho in excess of five hundred dollars ($500) for the taxable year.
			 (4-6-23)
c. Resident
			 individuals and part-year resident individuals who have income other than from
			 a passthrough entity. (4-6-23)
d.
			 Nonresident individuals if: (4-6-23)
i. The
			 pass-through entity has reported and paid the tax relating to the individual on
			 a composite return pursuant to Section
			 63-3022L, Idaho Code.
			 (4-6-23)
ii. Such individual's
			 share of income and guaranteed payments of the pass-through entity from Idaho
			 sources is less than one thousand dollars ($1,000) for the taxable year in
			 which the income is subject to tax; (4-6-23)
iii. The income is subject to withholding
			 under Section
			 63-3035 or
			 63-3036, Idaho Code; or
			 (4-6-23)
iv. The individual has
			 signed and the pass-through entity has approved an Idaho nonresident owner
			 agreement. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.880 - CREDITS AND REFUNDS

Current through August 31, 2023
Section
				63-3072, Idaho Code
01.
Overpayment
. The term
			 overpayment includes: (4-6-23)
a. A voluntary
			 and unrequested payment greater than an actual tax liability.
			 (4-6-23)
b. An excessive amount
			 that an employer withholds pursuant to Sections
			 63-3035 and
			 63-3036, Idaho Code.
			 (4-6-23)
c. An excessive amount
			 that a pass-through entity withholds pursuant to Section
			 63-3036B, Idaho Code.
			 (4-6-23)
d. All amounts erroneously
			 or illegally assessed or collected. (4-6-23)
e. The term overpayment does not include an
			 amount paid pursuant to a final determination of tax, including a compromise
			 and closing agreement, decision of the Tax Commission, decision of the Board of
			 Tax Appeals, or final court judgment. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.885 - INTEREST ON REFUNDS

Current through August 31, 2023
Sections
				63-3073 and
				63-3045, Idaho Code
01.
Computation
. Except as
			 provided in Subsection
			 885.03, the Tax Commission is to
			 compute interest on a net refund as follows: (4-6-23)
a. Refunds of income tax withheld. The Tax
			 Commission will pay interest on refunds of withholding if the refund is paid
			 more than sixty (60) days after the due date of the income tax return or the
			 date it was filed, whichever is later. For purposes of this rule, the refund is
			 considered paid on the date it is postmarked. If a taxpayer unduly delays the
			 processing of his refund by failing to respond promptly to requests for
			 information or in any other way, the Tax Commission may deduct time
			 attributable to the delay from the total processing time to determine whether
			 interest is to be paid and from what date. Unless reasonable cause is
			 established, undue delay occurs if the taxpayer's delay is more than sixty (60)
			 days. Pursuant to this subsection, interest is computed from the due date, or
			 extended due date, of the return. (4-6-23)
b. Tentative payments. The Tax Commission may
			 not pay interest on a refund resulting from an estimated or tentative payment.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.890 - NOTICE OF ADJUSTMENT OF FEDERAL TAX LIABILITY

Current through August 31, 2023
Section
				63-3069, Idaho Code
01.
Written Notice
. (4-6-23)
a. Written notice will include copies of all
			 Revenue Agents' reports, and any other documents and schedules required to
			 clarify the adjustments to taxable income. If the final determination results
			 in a refund of state taxes, an amended Idaho income tax return must accompany
			 the written notice to be a valid claim for refund. (4-6-23)
b. Written notice included with an income tax
			 return for a year or years other than the year subject to the federal
			 adjustment does not constitute the required notification.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.891 - NOTICE OF ADJUSTMENT OF STATE OR TERRITORY TAX LIABILITY

Current through August 31, 2023
Sections
				63-3069 and
				63-3069A, Idaho Code
01.
Final Determination
. The
			 term final determination of any deficiency or refund of income tax due to
			 another state or territory as used in Section
			 63-3069, Idaho Code, means the
			 final resolution of all issues that were adjusted by the other state or
			 territory. (4-6-23)
02.
Written Notice
. (4-6-23)
a.
			 Written notice is to include copies of all reports issued by the other state or
			 territory, and any other documents and schedules required to clarify the
			 adjustments to taxable income of the state or territory. If the final
			 determination results in a refund of Idaho taxes, an amended Idaho income tax
			 return must accompany the written notice to be a valid claim for refund.
			 (4-6-23)
b. Written notice included
			 with an income tax return for a year or years other than the year subject to
			 the adjustment by the state or territory does not constitute the required
			 notification. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.895 - PERIOD OF LIMITATION ON ASSESSMENT AND COLLECTION OF TAX

Current through August 31, 2023
Sections
				63-3068 and
				63-3069A, Idaho Code
01.
Federal Determination
. The
			 additional one (1) year period of limitation provided in Sections
			 63-3068(f)  and
			 63-3068(j), Idaho
			 Code, does not begin to run if the final federal determination is delivered to
			 the Tax Commission by someone other than the taxpayer or the taxpayer's
			 representative. The Internal Revenue Service and other taxing agencies are not
			 representatives of taxpayers. (4-6-23)
02.
State or Territory
			 Determination
. The additional one (1) year period of limitation provided
			 in Section
			 63-3069A(2)(b),
			 Idaho Code, does not begin to run if the final determination of income tax due
			 to another state or territory is delivered to the Tax Commission by someone
			 other than the taxpayer or the taxpayer's representative. Taxing agencies of
			 other states or territories are not representatives of taxpayers.
			 (4-6-23)
03.
Protest of a
			 Notice of Deficiency
. If a taxpayer protests a Notice of Deficiency, the
			 expiration of the period of limitations provided in Section
			 63-3068, Idaho Code, is suspended.
			 (4-6-23)
04.
Waiver of the
			 Period of Limitation
. If a taxpayer executes a waiver to extend the
			 period of limitation, the waiver will state the taxpayer's name as shown on the
			 tax return. If a group return is filed, the waiver applies to each corporation
			 included in the combined group. (4-6-23)
05.
Duplicate Returns
. If a
			 return is filed pursuant to Section
			 63-217(1)(b),
			 Idaho Code, where the taxpayer establishes by competent evidence that the
			 return was deposited in the United States mail or with a qualifying private
			 delivery service (See IDAPA 35.02.01, "Tax Commission Administration and
			 Enforcement Rules," Rule
			 010) on or before the date for
			 filing and the Tax Commission has notified the taxpayer that it has not
			 received the return, the taxpayer is to submit a duplicate return within
			 fifteen (15) days of such notification for the newly filed return to qualify as
			 a duplicate return. The period of limitations for a duplicate return is the
			 later of one (1) year from the filing of the duplicate return or the date
			 provided for in Section
			 63-3068, Idaho Code.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.896 - REQUEST FOR PROMPT ACTION BY THE TAX COMMISSION

Current through August 31, 2023
Section
				63-3068(e), Idaho
				Code
01.
Requirements of a Valid
			 Request for Prompt Action
. The personal representative, executor,
			 administrator, or other fiduciary representing the estate of a decedent is to
			 file the request for prompt action in writing with the Tax Commission. The
			 request must meet the following qualifications: (4-6-23)
a. It must be filed after the applicable
			 return has been filed; (4-6-23)
b.
			 It must be filed separately from any other document; (4-6-23)
c. It must identify the taxpayer by name and
			 identification number and the taxable periods for which the prompt action is
			 requested; and (4-6-23)
d. It must
			 clearly state that it is a request for prompt action pursuant to Section
			 63-3068(e), Idaho
			 Code. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.900 - RESPONSIBILITY FOR PAYMENT OF CORPORATE TAXES AND PENALTIES

Current through August 31, 2023
Section
				63-3078, Idaho Code. The Tax
				Commission or its delegate may issue a jeopardy assessment or take any other
				action necessary to assess and collect the amounts due from liable individuals.
				The action may include the filing of a lien on the property of the individual
				found liable, or seizure and sale of his property or any other means of
				collection. The liable individuals are to have the remedies provided in
				Sections 63-3045,
				63-3049,
				63-3065, and
				63-3074, Idaho Code.
				(4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.940 - IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005 AS MODIFIED BY 2006 LEGISLATION - DEFINITIONS

Current through August 31, 2023
Title 63, Chapter 44, Idaho Code. For purposes of administering
				the Idaho Small Employer Incentive Act of 2005, as modified by 2006
				legislation, and Rules
				940 through
				944 of these rules, the following
				definitions apply: (4-6-23)
01.
Buildings and Structural Components
. Buildings and structural
			 components means buildings and structural components of buildings as defined in
			 Federal Treasury Regulation Section
			 1.48 -1 for Internal Revenue Code
			 Section 48 repealed by
			 Public Law
			 101-508. (4-6-23)
02.
New Plant and Building
			 Facilities
. New plant and building facilities are facilities where
			 employees are physically employed. (4-6-23)
03.
Investment in New Plant
.
			 Investment in new plant means new plant and building facilities: (4-6-23)
a. That are constructed or erected by the
			 taxpayer, or (4-6-23)
b. That are
			 acquired by the taxpayer and whose original use begins with the taxpayer after
			 such acquisition. Original use means the first use to which the property is
			 put, whether or not such use corresponds to the use of such property by the
			 taxpayer. Property used by the taxpayer prior to its acquisition does not
			 qualify as new plant. (4-6-23)
c.
			 That qualify for the investment tax credit under Section
			 63-3029B, Idaho Code, or is a
			 building or structural components of buildings. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.941 - IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005 AS MODIFIED BY 2006 LEGISLATION: IN GENERAL

Current through August 31, 2023
Sections
				63-4401 and
				63-4406, Idaho Code
01.
Pass-Through Entities
. The
			 income tax credits may be earned by a partnership, S corporation, estate, or
			 trust and passed through to the partner, shareholder, or beneficiary. See Rule
			 785 of these rules for the method
			 of attributing the credits, for pass-through entities paying tax, and the
			 application of limitations on passthrough credits. (4-6-23)
02.
Reorganizations, Mergers and
			 Liquidations
. The small employer investment tax credit and real property
			 improvement tax credits are subject to recapture in accordance with Section
			 47, Internal Revenue Code, as in
			 effect prior to the enactment of
			 Public Law
			 101-508. Exceptions included in Section
			 47(b), Internal
			 Revenue Code, to the general recapture rules, including a mere change in the
			 form of conducting the trade or business and transactions to which Section
			 381(a), Internal
			 Revenue Code, applies will not cause recapture to occur so long as the property
			 is retained in such trade or business as qualified investment in new plant and
			 the taxpayer retains a substantial interest in such trade or business. To the
			 extent that provisions of the Internal Revenue Code allow an acquiring taxpayer
			 to succeed to and take into account unused investment credits of the
			 distributor or transferor taxpayer, such provisions apply to the acquiring
			 taxpayer with regard to any unused Idaho small employer investment tax credits
			 and real property improvement tax credits. See Rule
			 946 of these rules for information
			 related to the recapture required by an acquiring taxpayer. (4-6-23)
03.
Relocations
. The relocation
			 from one (1) project site to a new project site within the state may not create
			 new eligibility for the current or any succeeding business entity.
			 (4-6-23)
04.
Unitary
			 Taxpayers
. A corporation included as a member of a unitary group may
			 elect to share the small employer investment tax credit, real property
			 improvement tax credit, and new jobs tax credit it earns with other members of
			 the unitary group. Before the corporation may share the credit, it must claim
			 the credit to the extent allowable against its tax liability. The credit
			 available to be shared is the amount of each credit carryover and credit earned
			 for the taxable year that exceeds the limitations provided for each credit. The
			 limitation is applied against the tax computed for the corporation that claims
			 the credit. Credit shared with another member of the unitary group reduces the
			 carryforward. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.942 - IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005 AS MODIFIED BY 2006 LEGISLATION: SMALL EMPLOYER TAX INCENTIVE CRITERIA

Current through August 31, 2023
Section
				63-4402, Idaho Code
01.
In General
. The small
			 employer tax incentive criteria are the minimum requirements a taxpayer must
			 meet in order to be eligible for small employer tax incentives. To meet the
			 small employer tax incentive criteria, a taxpayer must satisfy the following
			 requirements at the project site, during the project period: (4-6-23)
a. Making capital investment in new plant and
			 building facilities totaling five hundred thousand dollars ($500,000) or more;
			 (4-6-23)
b. Increasing employment
			 by at least ten (10) new employees who meet the requirements of Section
			 63-4402(2)(j)(ii)(1),
			 Idaho Code; (4-6-23)
c. Employment
			 increases more than the ten (10) new employees described in Paragraph 942.01.b.
			 of this rule will meet the requirements of Section
			 63-4402(2)(j)(ii)(2),
			 Idaho Code; and (4-6-23)
d. Once
			 the increase in employment has been reached, maintaining that increased
			 employment in Idaho for the remainder of the project period.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.944 - IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005 AS MODIFIED BY 2006 LEGISLATION - SMALL EMPLOYER REAL PROPERTY IMPROVEMENT TAX CREDIT

Current through August 31, 2023
Sections
				63-4404 and
				63-4406, Idaho Code
01.
Buildings and Structural Components
			 of Buildings
. (4-6-23)
a. To qualify
			 for the small employer real property improvement tax credit, buildings and
			 structural components of buildings must meet the following requirements:
			 (4-6-23)
i. The buildings and structural
			 components of buildings must be new as defined in Subsection
			 940.03 of these rules.
			 Structural components placed in service as part of a renovation of an existing
			 building do not qualify. (4-6-23)
ii. The buildings and structural components
			 of buildings must be placed in service at the project site.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.000 - LEGAL AUTHORITY

Current through August 31, 2023
In accordance with Sections
				63-105,
				63-3624,
				63-3635, and
				63-3039, Idaho Code, the State Tax
				Commission has promulgated rules implementing the provisions of the Idaho Sales
				Tax Act. They are the State Tax Commission's official statement of policy
				relating to interpretations and applications of the Idaho Sales Tax Act.
				(3-31-22)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.001 - TITLE AND SCOPE

Current through August 31, 2023
01.
Title
. These rules are titled IDAPA 35.01.02, "Idaho Sales and Use
			 Tax Administrative Rules." (3-31-22)
02.
Scope
. These rules are
			 construed to reach the full jurisdictional extent of the state of Idaho's
			 authority to impose an excise tax upon each sale at retail of the sales price
			 of all property subject to taxation under this act and on the storage, use, or
			 other consumption in this state of tangible personal property.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.002 - ADMINISTRATIVE APPEALS

Current through August 31, 2023
This chapter allows administrative relief as provided in
				Sections 63-3045,
				63-3045B,
				63-3049,
				63-3620,
				63-3620A,
				63-3621,
				63-3622,
				63-3623B,
				63-3626,
				63-3631,
				63-3633, and
				63-3634, Idaho Code.
				(3-31-22)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.011 - MIXED TRANSACTIONS

Current through August 31, 2023
Sections
				63-3609,
				63-3612,
				63-3613, Idaho Code.
01.
Retail Sales of Tangible Personal
			 Property Together with Services
. The sales tax applies to retail sales
			 of tangible personal property. It does not apply to the sale of services except
			 as stated in statute or rule. However, when a sale of tangible personal
			 property includes incidental services, the tax applies to the total amount
			 charged, including fees for any incidental services except separately stated
			 transportation and installation fees. The fact that the charge for the tangible
			 personal property results mainly from the labor or creativity of its maker does
			 not turn a sale of tangible personal property into a sale of services. The cost
			 of any product includes labor and manufacturing skill. To determine whether a
			 transaction is a retail sale of tangible personal property or a sale of
			 services, the following tests are applied. (3-31-22)
a. To determine whether a transfer of
			 tangible personal property is a taxable retail sale or is merely incidental to
			 a service transaction, the proper test is to determine whether the transaction
			 involves a consequential or inconsequential professional or personal service.
			 If the service rendered is inconsequential, then the entire transaction is
			 taxable. If a consequential service is rendered, then it will be determined
			 whether the transfer of the tangible personal property is an inconsequential
			 part of the transaction. If so, then none of the consideration paid is taxable.
			 (3-31-22)
b. To determine whether a
			 mixed transaction qualifies as a sale of services, the object of the
			 transaction will be determined; that is, is the buyer seeking the service
			 itself, or the property produced by the service. (3-31-22)
c. When a mixed transaction involves the
			 transfer of tangible personal property and the performance of a service, both
			 of which are consequential elements whose costs may be separately stated, then
			 two (2) separate transactions exist. The one attributable to the sale of
			 tangible personal property is taxable while the other is not.
			 (3-31-22)