2008 Legislation
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HOUSE BILL NO. 345<br /> – Income tax, code reference

HOUSE BILL NO. 345

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Bill Status



H0345...............................................by REVENUE AND TAXATION
IDAHO INCOME TAX ACT - Amends existing law to correct a code reference in
the Idaho Income Tax Act.

01/16    House intro - 1st rdg - to printing
01/17    Rpt prt - to Rev/Tax
01/21    Rpt out - rec d/p - to 2nd rdg
01/22    2nd rdg - to 3rd rdg
01/24    3rd rdg - PASSED - 70-0-0
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
      Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
      Raybould, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
      Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30), Smith(24),
      Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
      Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Harwood
    Title apvd - to Senate
01/25    Senate intro - 1st rdg - to Loc Gov
01/31    Rpt out - rec d/p - to 2nd rdg
02/01    2nd rdg - to 3rd rdg
02/05    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
      Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett(Thorson), Werk
      NAYS -- None
      Absent and excused -- Gannon
    Floor Sponsor - McKague
    Title apvd - to House
02/06    To enrol
02/07    Rpt enrol - Sp signed
02/08    Pres signed
02/11    To Governor
02/13    Governor signed
         Session Law Chapter 10
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 345

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO INCOME TAX; AMENDING SECTION 63-3068, IDAHO  CODE,  TO  PROVIDE  A
  3        CORRECT CODE REFERENCE.

  4    Be It Enacted by the Legislature of the State of Idaho:

  5        SECTION  1.  That  Section 63-3068, Idaho Code, be, and the same is hereby
  6    amended to read as follows:

  7        63-3068.  PERIOD OF LIMITATIONS FOR ISSUING A  NOTICE  OF  DEFICIENCY  AND
  8    COLLECTION  OF TAX. (a) Except as otherwise provided in this section, a notice
  9    of deficiency, as provided in section 63-3045, Idaho Code, for the tax imposed
 10    in this chapter shall be issued within three (3) years  from  either  the  due
 11    date  of the return, without regard to extensions, or from the date the return
 12    was filed, whichever is later.
 13        (b)  If an assessment has been made as provided in this chapter, then such
 14    tax shall be collected either by levy, or by a proceeding  brought  in  court,
 15    within  a  period  of  six  (6)  years from the date of entry of the record of
 16    assessment required by section 63-30445A, Idaho Code, of the tax and provided,
 17    further, that this shall not be in derogation of any of the remedies elsewhere
 18    provided in this chapter.
 19        (c)  In the case of a fraudulent return or a false return with the  intent
 20    to  evade  the tax imposed in this chapter, or a willful attempt in any manner
 21    to defeat or evade the tax imposed in this chapter, a notice of deficiency may
 22    be issued, the tax may be assessed, or a proceeding in court for collection of
 23    such tax may be begun without assessment, at any time.
 24        (d)  In the case of a failure to file a return, for any reason,  a  notice
 25    of  deficiency may be issued, the tax imposed in this chapter may be assessed,
 26    or a proceeding in court for collection of  such  tax  may  be  begun  without
 27    assessment, at any time.
 28        (e)  In  the case of income received during the lifetime of a decedent, or
 29    by his estate during the period of  administration,  a  notice  of  deficiency
 30    shall  be issued, a claim shall be made, the tax shall be assessed or any pro-
 31    ceeding in court without assessment for the collection of such  tax  shall  be
 32    begun,  within  twelve  (12) months after written request for prompt action is
 33    filed with the state tax commission by the executor, administrator,  or  other
 34    fiduciary  representing the estate of such decedent. This subsection shall not
 35    apply if the return for which the request for prompt action  relates  has  not
 36    been filed with the state tax commission.
 37        (f)  When  Idaho  taxable  income or tax credits for any taxable year have
 38    been adjusted as a result of a final federal determination, the period of lim-
 39    itation for issuing a notice of deficiency shall be  reopened  and  shall  not
 40    expire  until the later of one (1) year from the date of delivery of the final
 41    federal determination to the state tax commission by the taxpayer,  three  (3)
 42    years  from the due date of the return, without regard to extensions, or three
 43    (3) years from the date the return was filed. For purposes of this  subsection

                                       2

  1    the  term "final federal determination" shall mean the final resolution of all
  2    issues which were adjusted by the internal revenue  service.  When  the  final
  3    federal  determination  is submitted, the taxpayer shall also submit copies of
  4    all schedules and written explanations provided by the internal  revenue  ser-
  5    vice.  Upon the expiration of the period of limitations as provided in subsec-
  6    tions (a) and (m) of this section, only those specific items of income, deduc-
  7    tions, gains, losses, or credits which were  adjusted  in  the  final  federal
  8    determination shall be subject to adjustment for purposes of recomputing Idaho
  9    income, deductions, gains, losses, credits, and the effect of such adjustments
 10    on Idaho allocations and apportionments.
 11        (g)  If  an adjustment, which was made within the period of limitations as
 12    provided in this section, affects the amount  of  tax  credit,  net  operating
 13    loss,  or  capital  loss, claimed in a taxable year other than the tax year in
 14    which the adjustment is made, then adjustments to the  credit,  net  operating
 15    loss, or capital loss claimed in such other tax year may be made and a result-
 16    ing  notice  of deficiency may be issued even though such notice of deficiency
 17    would otherwise be barred under the provisions of this section.
 18        (h)  Notwithstanding any other provisions of this section, when an amended
 19    Idaho return is filed within the period of limitations as provided in  subsec-
 20    tions  (a)  and  (m)  of this section, the period of limitations for issuing a
 21    notice of deficiency shall be three (3) years from the date the amended return
 22    was filed. However, upon the expiration of the period of limitations  as  pro-
 23    vided in subsections (a) and (m) of this section, only those specific items of
 24    income,  deductions,  gains,  losses,  or  credits, which were adjusted in the
 25    amended  Idaho  return  shall  be  subject  to  adjustment  for  purposes   of
 26    recomputing  Idaho  income, deductions, gains, losses, credits, and the effect
 27    of such adjustments on Idaho allocations and apportionments.
 28        (i)  If a taxpayer has filed an amended federal return, and no correspond-
 29    ing Idaho amended return has been filed with the state  tax  commission,  then
 30    the period of limitations for issuing a notice of deficiency shall be reopened
 31    and  shall  not  expire until three (3) years from the date of delivery to the
 32    tax commission by the taxpayer of the amended federal  return.  However,  upon
 33    the expiration of the period of limitations as provided in subsections (a) and
 34    (m)  of  this  section,  then only those specific items of income, deductions,
 35    gains, losses, or credits, which were adjusted in the amended  federal  return
 36    shall  be  subject  to  adjustment  for  purposes of recomputing Idaho income,
 37    deductions, gains, losses, credits, and the  effect  of  such  adjustments  on
 38    Idaho allocations and apportionments.
 39        (j)  Notwithstanding  any  other  provisions  of this section, a notice of
 40    deficiency, related to items on the return  of  any  pass-through  entity,  as
 41    defined  in this section, which other taxpayers are required by law to report,
 42    shall be issued to such other taxpayers within the later of  three  (3)  years
 43    from  the  due  date  of the other taxpayers' return, without regard to exten-
 44    sions, three (3) years from the date the other taxpayers' returns were  filed,
 45    or  three  (3)  years  from  the  date  of filing of the pass-through entity's
 46    return. If the pass-through entity files an amended return, notices  of  defi-
 47    ciency  may  be  issued to the other taxpayers within three (3) years from the
 48    date the amended return for the pass-through entity was filed with  the  state
 49    tax  commission.  If  the pass-through entity files an amended return with the
 50    internal revenue service, or the  internal  revenue  service  issues  a  final
 51    determination  to  the pass-through entity, then the period of limitations for
 52    issuing a notice of deficiency to the other taxpayers shall  be  reopened  and
 53    shall  not  expire  until three (3) years from the date of delivery to the tax
 54    commission by the pass-through entity of the amended  federal  return  or  the
 55    later of one (1) year from the date of delivery to the state tax commission by

                                       3

  1    the  pass-through  entity  of the final federal determination, three (3) years
  2    from the due date of the  pass-through  entity's  return,  without  regard  to
  3    extensions,  or three (3) years from the date the pass-through entity's return
  4    was filed.
  5        (k)  For purposes of this section, "pass-through entity" means a  partner-
  6    ship,  S-corporation,  trust,  limited  liability  company or any other entity
  7    whose items of income, deductions, gains, losses and credits must be  reported
  8    by  other  taxpayer(s).  For further purposes of this section, the term "other
  9    taxpayer" shall include, by way of unlimiting example, such taxpayers as part-
 10    ners, shareholders, beneficiaries, joint venturers or investors.
 11        (l)  In the case of a duplicate return filed under  section  63-217(1)(b),
 12    Idaho  Code,  the  limitation under this section shall be the later of one (1)
 13    year from the filing of the duplicate return or the date otherwise  applicable
 14    under this section.
 15        (m)  Prior  to  the  expiration of the time prescribed in this section for
 16    the issuance of a notice of deficiency for the tax imposed  in  this  chapter,
 17    both  the  state  tax commission, its delegate or deputy, and the taxpayer may
 18    consent in writing to extend the period of time within which a notice of defi-
 19    ciency may be issued. The period so agreed upon may be extended by  subsequent
 20    agreements  in  writing  made  before  the expiration of the period previously
 21    agreed upon. When a pass-through entity extends the period of  limitations  in
 22    accordance  with this subsection, the period of limitations for the other tax-
 23    payers is automatically extended for the same period for the purpose of  issu-
 24    ing  a  notice of deficiency to the other taxpayers reflecting the adjustments
 25    to the pass-through entity's return.
 26        (n)  The expiration of the period of limitations as provided in this  sec-
 27    tion shall be suspended for the time period during which the state tax commis-
 28    sion is prohibited from issuing a notice of deficiency, making the assessment,
 29    or  from collecting by levy or a proceeding in court, and for thirty (30) days
 30    thereafter.
 31        (o)  For the purposes of this section, "return" includes a notice of defi-
 32    ciency determination issued by the state tax commission  when  no  return  was
 33    filed  by  the  taxpayer.  Such a return is deemed filed on the date the taxes
 34    determined by the state tax commission are assessed.

Statement of Purpose / Fiscal Impact



                        STATEMENT OF PURPOSE

                              RS 17324                      

This bill corrects an erroneous cross reference between two 
sections of the Idaho Code.  In 2006, the legislature 
enacted H.B. 433 which moved some text then in section 63-
3044, Idaho Code, to section 63-3045A, Idaho Code, relating 
to the requirement that the State Tax Commission make a 
record of tax assessments. The 2006 bill neglected to 
correct a cross reference in section 63-3068, Idaho Code to 
the information that was moved.  This bill corrects that 
oversight.  




                              FISCAL NOTE


No fiscal effect. 





CONTACT
Name:  	Ted Spangler/Dan John 
Agency:	State Tax Commission 
Phone: 	(208) 334-7530


STATEMENT OF PURPOSE/FISCAL NOTE         	        H 345