2000 Legislation
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HOUSE BILL NO. 467 – Income tax filed, not paid, penalty

HOUSE BILL NO. 467

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Daily Data Tracking History



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,
      Whitworth, Williams
      NAYS--None
      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
         Effective: 01/01/01

Bill Text


 H0467
                                                                        
                                                                        
  ||||              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-
 32        statement.
 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:
                                                                        
                                          2
                                                                        
  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
 29        ($2,000).
 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
 51    orders.
                                                                        
 52        SECTION  2.  This act shall be in full force and effect on and after Janu-
 53    ary 1, 2001.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                           RS09416C1 

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. 

                          FISCAL NOTE

No fiscal effect. 

CONTACT
Name: Dan John / Ted Spangler 
Agency: State Tax Commission
Phone:  334-7530  

STATEMENT  OF PURPOSE/FISCAL NOTE                H 467