Print Friendly HOUSE BILL NO. 467 – Income tax filed, not paid, penalty
HOUSE BILL NO. 467
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H0467...............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law to reduce the penalty applicable to
persons who file income tax returns with the State Tax Commission but do
not pay the tax shown on the return.
02/01 House intro - 1st rdg - to printing
02/02 Rpt prt - to 2nd rdg
02/03 2nd rdg - to 3rd rdg
02/04 3rd rdg - PASSED - 68-0-2
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy,
Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Judd, Kempton, Kendell, Kunz, Lake, Linford, Loertscher,
Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
Stone, Taylor, Trail(Miller), Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Kellogg, Tilman
Floor Sponsor - Gould
Title apvd - to Senate
02/07 Senate intro - 1st rdg - to Loc Gov
02/10 Rpt out - rec d/p - to 2nd rdg
02/11 2nd rdg - to 3rd rdg
02/24 3rd rdg - PASSED - 30-0-5
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Darrington, Deide, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough,
King-Barrutia, McLaughlin, Noh, Parry, Riggs, Risch, Sandy,
Schroeder, Sorensen, Stegner, Stennett, Thorne, Walton, Wheeler,
Absent and excused--Danielson, Davis, Dunklin, Lee, Richardson
Floor Sponsor - Bunderson
Title apvd - to House
02/25 To enrol
02/28 Rpt enrol - Sp signed
02/29 Pres signed
03/01 To Governor
03/03 Governor signed
Session Law Chapter 19
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 467
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE INCOME TAX; AMENDING SECTION 63-3046, IDAHO CODE, TO REDUCE
3 THE PENALTY APPLICABLE TO PERSONS WHO FILE INCOME TAX RETURNS WITH THE
4 STATE TAX COMMISSION BUT DO NOT PAY THE TAX SHOWN ON THE RETURN AND TO
5 MAKE TECHNICAL CORRECTIONS; AND PROVIDING AN EFFECTIVE DATE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-3046, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3046. PENALTIES AND ADDITIONS TO THE TAX IN CASE OF DEFICIENCY. (a) If
10 any part of any deficiency is due to negligence or disregard of rules but
11 without intent to defraud, five per cent percent (5%) of the total amount of
12 the deficiency (in addition to such deficiency) shall be assessed, collected
13 and paid in the same manner as if it were a deficiency.
14 (b) If any part of any deficiency is due to fraud with intent to evade
15 tax, then fifty per cent percent (50%) of the total amount of the deficiency
16 (in addition to such deficiency) shall be so assessed, collected and paid.
17 (c) In the event the return required by this chapter is not filed, or in
18 the event the return is filed but the tax shown thereon to be due is not paid,
19 there may be collected a penalty of five per cent percent (5%) of the tax due
20 on such returns for each month elapsing after the due date of such returns
21 until such the return is filed or the penalty amounts to twenty-five per cent
22 percent (25%) of the tax due on such returns.
23 (d) In the event the return required by this chapter is filed but the tax
24 shown thereon to be due is not paid, there may be collected a penalty of
25 one-half percent (0.5%) of the tax due on such return for each month
26 elapsing after the later of the due date of such return or the date the
27 return was filed until the tax is paid or the penalty amounts to twenty-
28 five percent (25%) of the tax due on such returns.
29 (e) (1) If there is a substantial understatement of tax for any taxable
30 year, there shall be added to the tax an amount equal to ten per cent per-
31 cent (10%) of the amount of any underpayment attributable to such under-
33 (2) For purposes of this subsection, there is a substantial understate-
34 ment of tax for any taxable year if the amount of the understatement for
35 the taxable year exceeds the greater of:
36 (i) Ten per cent percent (10%) of the tax required to be shown on
37 the return for the taxable year, or
38 (ii) Five thousand dollars ($5,000).
39 (3) In the case of a corporation, paragraph ( de)(2)(ii) of this section
40 shall be applied by substituting ten thousand dollars ($10,000) for five
41 thousand dollars ($5,000).
42 (4) For purposes of paragraph ( de)(2) of this section, the term
43 "understatement" means the excess of:
1 (i) The amount of tax required to be shown on the return for the
2 taxable year, over
3 (ii) The amount of the tax imposed which is shown on the return.
4 (5) The amount of the understatement under paragraph (4) shall be reduced
5 by that portion of the understatement which is attributable to:
6 (i) The tax treatment of any item by the taxpayer if there is or was
7 substantial authority for such treatment, or
8 (ii) Any item with respect to which the relevant facts affecting the
9 item's tax treatment are adequately disclosed in the return or in a
10 statement attached to the return.
11 (6) In the case of any item attributable to a tax shelter as defined in
12 section 6661 of the Internal Revenue Code:
13 (i) Paragraph (5)(ii) shall not apply, and
14 (ii) Paragraph (5)(i) shall not apply unless (in addition to meeting
15 the requirements of such paragraph) the taxpayer reasonably believed
16 that the tax treatment of such item by the taxpayer was more likely
17 than not the proper treatment.
18 (7) The state tax commission may waive all or any part of the addition to
19 tax provided by this section on a showing by the taxpayer that there was
20 reasonable cause for the understatement (or part thereof) and that the
21 taxpayer acted in good faith.
22 ( ef) (1) Any person who fails to file a statement of payment to another
23 person required by this chapter, including the duplicate statement of tax
24 withheld on wages, on the date prescribed therefor (including any exten-
25 sion of time for filing) shall, be subject to a penalty of two dollars
26 ($2.00) for each month or part of a month each statement is not so filed,
27 but the total amount imposed on the delinquent person for all such fail-
28 ures during any calendar year shall not exceed two thousand dollars
30 (2) Any employer required to register under the provisions of section
31 63-3035, Idaho Code, who fails to register after receiving written notice
32 from the state tax commission of the requirement to register shall be sub-
33 ject to a penalty of one hundred dollars ($100) for each month or part of
34 a month after the date of the notice during which the failure occurs.
35 (3) The penalties provided in this subsection shall not apply if the per-
36 son shows that the failure to register is due to reasonable cause and not
37 to willful neglect.
38 (4) The state tax commission shall give notice of any penalty provided in
39 this subsection and shall assess the penalties in the manner provided for
40 deficiencies of tax.
41 ( fg) If the penalty to be added to the tax by subsection (a), (b), (c),
42 (d), or (e) or (f) of this section is less than ten dollars ($10.00), the pen-
43 alty to be added to the tax shall be a minimum of ten dollars ($10.00).
44 ( gh) A processing charge to be determined and established annually by the
45 state tax commission shall be collected from any person who draws or delivers
46 a check, draft or order for the payment of money in complete or partial satis-
47 faction of the tax imposed by this chapter if that person does not have suffi-
48 cient funds in or credit with the bank or depository upon which the check,
49 draft or order is drawn. Money collected under this subsection shall be paid
50 to the state tax commission to defer costs of handling such checks, drafts or
52 SECTION 2. This act shall be in full force and effect on and after Janu-
53 ary 1, 2001.
STATEMENT OF PURPOSE
This bill reduces the penalty applicable to persons who
file tax returns with the State Tax Commission but do not
pay the tax shown on the return. The present penalty of
5% per month to a maximum of 25% is reduced to 0.5% per
month. The 25% maximum amount is retained.
No fiscal effect.
Name: Dan John / Ted Spangler
Agency: State Tax Commission
STATEMENT OF PURPOSE/FISCAL NOTE H 467