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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
733
BY
REVENUE
AND
TAXATION
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
3026B,
IDAHO
CODE,
TO
REVISE
A
2
PROVISION
REGARDING
THE
TIME
FOR
THE
FILING
OF
AN
ELECTION
AS
AN
AF
-
3
FECTED
BUSINESS
ENTITY
AND
TO
MAKE
TECHNICAL
CORRECTIONS;
AMENDING
4
SECTION
63
-
3068,
IDAHO
CODE,
TO
REVISE
PROVISIONS
REGARDING
THE
PERIOD
5
OF
LIMITATIONS
FOR
ISSUING
A
NOTICE
OF
DEFICIENCY
AND
COLLECTION
OF
TAX;
6
AMENDING
SECTION
63
-
3069,
IDAHO
CODE,
TO
REVISE
PROVISIONS
REGARDING
7
NOTICE
OF
ADJUSTMENT
OF
FEDERAL
OR
STATE
TAX
LIABILITY;
AMENDING
CHAP
-
8
TER
30,
TITLE
63,
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
63
-
3070,
9
IDAHO
CODE,
TO
ESTABLISH
PROVISIONS
REGARDING
PARTNERSHIP
INCOME
AND
10
FEDERAL
ADJUSTMENTS;
AMENDING
SECTION
63
-
3072,
IDAHO
CODE,
TO
REVISE
1
1
PROVISIONS
REGARDING
CERTAIN
TIME
PERIODS
FOR
DETERMINATION
OF
CREDITS
12
OR
REFUNDS
OF
IDAHO
INCOME
TAXES;
AND
DECLARING
AN
EMERGENCY
AND
PROVID
-
13
ING
AN
EFFECTIVE
DATE.
14
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
15
SECTION
1.
That
Section
63
-
3026B,
Idaho
Code,
be,
and
the
same
is
hereby
16
amended
to
read
as
follows:
17
63
-
3026B.
AFFECTED
BUSINESS
ENTITIES
-
-
STATE
AND
LOCAL
TAXATION
18
TREATMENT.
(1)
As
used
in
this
section:
19
(a)
"Affected
business
entity"
means
any
partnership
or
S
corporation
20
that
elects
to
be
subject
to
tax
pursuant
to
this
section.
21
(b)
"Affected
business
entity
income"
means,
in
the
case
of
an
electing
22
affected
business
entity,
all
items
of
income,
gain,
loss,
or
deduction
23
derived
from
or
connected
with
Idaho
sources,
except
for
that
portion
of
24
such
income,
gain,
loss,
or
deduction
apportioned
to
an
exempt
entity
25
that
is
a
member
of
the
affected
business
entity.
26
(c)
"Exempt
entity"
means
an
entity
that
is
exempt
from
taxation
under
27
this
chapter.
28
(d)
"Individual"
means
an
individual,
a
trust,
or
an
estate.
29
(e)
"Member"
means:
30
(i)
A
shareholder
of
an
S
corporation,
except
for
exempt
enti
-
31
ties;
32
(ii)
A
partner
in
a
general
partnership,
a
limited
partnership,
or
33
a
limited
liability
partnership,
except
for
exempt
entities;
or
34
(iii)
A
member
of
a
limited
liability
company
that
is
treated
as
a
35
partnership
or
an
S
corporation
for
federal
income
tax
purposes,
36
except
for
exempt
entities.
37
(f)
"Partnership"
has
the
meaning
provided
in
section
63
-
3006B,
Idaho
38
Code.
"Partnership"
includes
a
limited
liability
company
that
is
39
treated
as
a
partnership
for
federal
income
tax
purposes
as
described
in
40
section
63
-
3006A,
Idaho
Code.
41
2
(g)
"S
corporation"
means
a
corporation
or
limited
liability
company
1
that
is
treated
as
an
S
corporation
for
federal
income
tax
purposes.
2
(h)
"Taxable
year"
means
the
taxable
year
of
a
partnership
or
an
S
cor
-
3
poration
for
federal
income
tax
purposes.
4
(2)(a)
A
partnership
or
an
S
corporation
may
elect
in
the
manner
set
5
forth
in
this
section
to
become
an
affected
business
entity
required
to
6
pay
the
tax
under
this
section
in
any
taxable
year.
A
separate
election
7
must
be
made
for
each
taxable
year.
8
(b)
An
election
under
this
section
must
be
made
on
a
form
and
in
the
man
-
9
ner
as
the
state
tax
commission
prescribes
by
rule
or
instruction.
10
(c)
An
election
under
this
section
may
be
made
for
any
taxable
year
by
1
1
filing
the
election
with
a
timely
filed
original
return
for
such
taxable
12
year.
An
election
will
also
be
valid
if
made
by
an
amended
return
for
the
13
taxable
year
filed
before
the
original
due
date
of
the
fifteenth
day
of
14
the
fourth
month
following
the
taxable
year.
15
(d)
An
election
made
under
this
section
must
be
signed
by:
16
(i)
Each
member
of
the
electing
entity
who
is
a
member
at
the
time
17
the
election
is
filed;
or
18
(ii)
Any
officer,
manager,
or
member
of
the
electing
entity
who
is
19
authorized
under
local
law
or
by
the
entity's
organizational
docu
-
20
ments
to
make
the
election
and
who
represents
under
penalty
of
per
-
21
jury
that
he
has
such
authorization.
22
(e)
An
affected
business
entity
is
required
to
pay
the
tax
imposed
by
23
section
63
-
3082,
Idaho
Code,
for
each
member
that
is
not
an
Idaho
resi
-
24
dent.
25
(3)
Each
affected
business
entity
that
is
a
partnership
or
an
S
corpora
-
26
tion
transacting
business
in
this
state
shall,
on
or
before
the
fifteenth
day
27
of
the
fourth
month
following
the
close
of
each
taxable
year,
pay
a
tax
in
an
28
amount
determined
as
follows:
29
(a)
Add
all
of
the
affected
business
entity
income
derived
from
or
con
-
30
nected
with
sources
within
this
state,
as
determined
under
the
provi
-
31
sions
of
this
chapter;
32
(b)
Increase
or
decrease
the
sum
from
paragraph
(a)
of
this
subsection
33
according
to
the
modifications
permitted
or
required
under
this
chapter
34
for
computing
Idaho
taxable
income,
to
the
extent
they
are
attributable
35
to
members
subject
to
tax
under
this
chapter;
36
(c)
Multiply
the
result
from
paragraph
(b)
of
this
subsection
by
the
37
tax
rate
applicable
to
corporations
provided
in
section
63
-
3025,
Idaho
38
Code;
and
39
(d)
Apply
any
allowable
credits
earned
by
the
affected
business
entity,
40
adjusted
by
the
recapture
provisions
of
section
63
-
3029B,
Idaho
Code.
41
All
credits,
including
the
allowable
credits
under
this
section
from
42
another
affected
business
entity
as
adjusted
for
the
recapture
provi
-
43
sions
of
section
63
-
3029B,
Idaho
Code,
shall
flow
through
to
the
members
44
as
otherwise
permitted
under
this
chapter.
Any
unused
credits
that
are
45
allowed
by
law
to
be
carried
forward
to
succeeding
taxable
years
may
be
46
claimed
in
succeeding
taxable
years
for
which
the
affected
business
en
-
47
tity
elects
to
be
subject
to
tax
pursuant
to
this
section.
If
the
af
-
48
fected
business
entity
does
not
make
the
election
under
this
section
in
49
3
any
succeeding
taxable
year,
the
unused
credits
will
flow
through
to
the
1
members
as
otherwise
permitted
under
this
chapter.
2
(4)
If
the
amount
calculated
under
subsection
(3)(b)
of
this
section
3
results
in
a
net
operating
loss,
such
net
operating
loss
may
not
be
passed
4
through
to
the
members
of
the
affected
business
entity
that
makes
the
elec
-
5
tion
under
this
section
but
may
be
carried
forward
to
succeeding
taxable
6
years
for
which
the
affected
business
entity
elects
to
be
subject
to
tax
7
pursuant
to
this
section
until
fully
used.
If
the
affected
business
entity
8
does
not
make
the
election
under
this
section
in
any
succeeding
taxable
year,
9
the
unused
net
operating
loss
will
flow
through
to
the
members
as
otherwise
10
permitted
under
this
chapter.
1
1
(5)
A
nonresident
individual
who
is
a
member
is
not
required
to
file
an
12
income
tax
return
under
section
63
-
3030,
Idaho
Code,
for
any
taxable
year
in
13
which
the
only
source
of
income
derived
from
or
connected
with
sources
within
14
this
state
for
such
member,
or
the
member
and
the
member's
spouse
if
a
joint
15
federal
income
tax
return
is
or
shall
be
filed,
is
from
one
(1)
or
more
af
-
16
fected
business
entities
and
such
affected
business
entity
or
entities
file
17
and
pay
the
tax
due
under
this
section.
18
(6)
Each
partnership
and
S
corporation
shall
report
to
each
of
its
mem
-
19
bers,
for
each
taxable
year,
such
member's
pro
rata
share
of
the
tax
imposed
20
under
this
section
on
such
partnership
or
S
corporation
if
it
is
an
affected
21
business
entity.
Such
pro
rata
share
of
the
tax
shall
be
calculated
by
ex
-
22
cluding
the
share
of
any
member
that
is
an
exempt
entity.
23
(7)(a)
Each
individual
who
is
a
member
and
is
not
an
exempt
entity
is
24
entitled
to
a
credit
against
such
tax.
The
credit
will
be
in
an
amount
25
equal
to
the
individual's
pro
rata
share
of
the
tax
paid
under
this
26
section
by
any
affected
business
entity
of
which
the
individual
is
a
27
member.
If
the
amount
of
the
credit
allowed
pursuant
to
this
paragraph
28
exceeds
the
individual's
tax
liability
for
the
tax
imposed
under
this
29
chapter,
the
individual
will
be
paid
a
refund
equal
to
the
balance
of
the
30
unused
credit.
Such
pro
rata
share
of
the
tax
credit
shall
be
calculated
31
by
excluding
the
share
of
any
member
that
is
an
exempt
entity.
32
(b)
Each
individual
who
is
a
member
and
is
not
an
exempt
entity,
as
a
33
resident
or
a
part
-
year
resident
of
this
state,
is
entitled
to
a
credit
34
against
such
tax
for
the
individual's
pro
rata
share
of
taxes
paid
to
an
-
35
other
state
of
the
United
States
or
the
District
of
Columbia
on
income
36
of
any
partnership
or
S
corporation
of
which
the
individual
is
a
mem
-
37
ber
that
is
derived
therefrom.
Any
such
credit
will
be
calculated
in
the
38
manner
prescribed
by
the
state
tax
commission
and
shall
be
consistent
39
with
the
provisions
of
section
63
-
3029,
Idaho
Code.
Such
pro
rata
share
40
of
the
tax
credit
shall
be
calculated
by
excluding
the
share
of
any
mem
-
41
ber
that
is
an
exempt
entity.
42
(8)
Each
corporation
that
is
a
member
and
is
subject
to
the
tax
im
-
43
posed
under
section
63
-
3025
or
63
-
3025A,
Idaho
Code,
is
entitled
to
a
credit
44
against
such
tax.
The
credit
will
be
in
an
amount
equal
to
the
corporation's
45
pro
rata
share
of
the
tax
paid
under
this
section
by
any
affected
business
46
entity
of
which
the
corporation
is
a
member.
Such
credit
will
be
applied
47
after
all
other
applicable
credits
have
been
applied.
Any
balance
of
the
48
credit
not
used
in
the
taxable
year
during
which
the
corporation
reports
the
49
net
income
from
such
affected
business
entities
will
be
paid
as
a
refund
to
50
4
the
corporation.
Such
pro
rata
share
of
the
tax
credit
shall
be
calculated
by
1
excluding
the
share
of
any
member
that
is
an
exempt
entity.
2
(9)
Each
affected
business
entity
that
is
a
member
of
another
affected
3
business
entity
and
elects
to
be
subject
to
the
tax
imposed
under
this
sec
-
4
tion
is
entitled
to
a
credit
against
such
tax.
The
credit
will
be
in
an
amount
5
equal
to
the
affected
business
entity's
pro
rata
share
of
the
tax
paid
under
6
this
section
by
any
affected
business
entity
of
which
the
affected
business
7
entity
is
a
member.
Such
credit
will
be
applied
after
all
other
applicable
8
credits
have
been
applied.
Any
balance
of
the
credit
not
used
in
the
tax
-
9
able
year
during
which
the
affected
business
entity
reports
net
income
will
10
be
paid
as
a
refund
to
the
affected
business
entity.
Such
pro
rata
share
of
1
1
the
tax
credit
shall
be
calculated
by
excluding
the
share
of
any
member
that
12
is
an
exempt
entity.
13
(10)
Each
pass
-
through
entity,
as
defined
in
section
63
-
3006C,
Idaho
14
Code,
that
is
a
member
of
an
affected
business
entity
and
does
not
elect
to
15
be
subject
to
the
tax
imposed
under
this
section
is
entitled
to
a
credit.
16
The
credit
will
be
in
an
amount
equal
to
the
pass
-
through
entity's
pro
rata
17
share
of
the
tax
paid
under
this
section
by
any
affected
business
entity
of
18
which
the
pass
-
through
entity
is
a
member.
Such
credit
will
be
applied
af
-
19
ter
all
other
applicable
taxes
and
credits
have
been
applied.
Any
balance
20
of
the
credit
not
used
in
the
taxable
year
will
be
paid
as
a
refund
to
the
21
pass
-
through
entity.
22
(11)
For
trusts
and
estates
that
distribute
their
income
to
their
bene
-
23
ficiaries
to
be
reported
by
and
taxed
to
said
beneficiaries,
the
credit
pro
-
24
vided
in
subsection
(7)(a)
of
this
section
shall
be
apportioned
between
the
25
trust
or
estate
and
the
beneficiaries
in
the
same
proportion
as
the
income
is
26
allocated
to
and
reported
by
the
trust
or
estate
and
the
beneficiaries.
27
(12)
The
penalty
and
interest
and
penalty
provisions
and
the
collection
28
and
enforcement
procedures
provided
by
sections
63
-
3038
through
63
-
3040,
29
63
-
3042
through
63
-
3065A,
63
-
3071,
63
-
3075,
and
63
-
3078,
Idaho
Code,
shall
30
apply
and
be
available
to
the
state
tax
commission
for
enforcement
of
the
31
provisions
of
this
section
and
collection
of
any
amounts
due
under
this
32
section.
Said
sections
shall,
for
this
purpose,
be
considered
part
of
this
33
section,
and
wherever
liens
or
any
other
proceedings
are
defined
as
income
34
tax
liens
or
proceedings,
they
shall,
when
applied
in
enforcement
or
collec
-
35
tion
under
this
section,
be
described
as
affected
business
entity
tax
liens
36
and
proceedings.
37
SECTION
2.
That
Section
63
-
3068,
Idaho
Code,
be,
and
the
same
is
hereby
38
amended
to
read
as
follows:
39
63
-
3068.
PERIOD
OF
LIMITATIONS
FOR
ISSUING
A
NOTICE
OF
DEFICIENCY
AND
40
COLLECTION
OF
TAX.
(a)
Except
as
otherwise
provided
in
this
section,
a
notice
41
of
deficiency,
as
provided
in
section
63
-
3045,
Idaho
Code,
for
the
tax
im
-
42
posed
in
this
chapter
shall
be
issued
within
three
(3)
years
from
either
the
43
due
date
of
the
return,
without
regard
to
extensions,
or
from
the
date
the
re
-
44
turn
was
filed,
whichever
is
later.
45
(b)
If
an
assessment
has
been
made
as
provided
in
this
chapter,
then
46
such
tax
shall
be
collected
either
by
levy,
or
by
a
proceeding
brought
in
47
court,
within
a
period
of
twelve
(12)
years
from
the
date
of
entry
of
the
48
record
of
assessment
required
by
section
63
-
3045A,
Idaho
Code,
of
the
tax
and
49
5
provided,
further,
that
this
shall
not
be
in
derogation
of
any
of
the
reme
-
1
dies
elsewhere
provided
in
this
chapter.
2
(c)
In
the
case
of
a
fraudulent
return
or
a
false
return
with
the
intent
3
to
evade
the
tax
imposed
in
this
chapter,
or
a
willful
attempt
in
any
manner
4
to
defeat
or
evade
the
tax
imposed
in
this
chapter,
a
notice
of
deficiency
may
5
be
issued,
the
tax
may
be
assessed,
or
a
proceeding
in
court
for
collection
of
6
such
tax
may
be
begun
without
assessment,
at
any
time.
7
(d)
In
the
case
of
a
failure
to
file
a
return,
for
any
reason,
a
notice
8
of
deficiency
may
be
issued,
the
tax
imposed
in
this
chapter
may
be
assessed,
9
or
a
proceeding
in
court
for
collection
of
such
tax
may
be
begun
without
as
-
10
sessment,
at
any
time,
unless
the
taxpayer
had
a
reasonable
belief
that
no
1
1
return
was
required
to
be
filed
under
this
chapter,
in
which
case
any
defi
-
12
ciency,
assessment,
or
proceeding
for
collection
of
such
tax
shall
be
com
-
13
menced
within
three
(3)
years
of
the
time
the
return
was
due.
14
(e)
In
the
case
of
income
received
during
the
lifetime
of
a
decedent,
15
or
by
his
estate
during
the
period
of
administration,
a
notice
of
deficiency
16
shall
be
issued,
a
claim
shall
be
made,
the
tax
shall
be
assessed
or
any
pro
-
17
ceeding
in
court
without
assessment
for
the
collection
of
such
tax
shall
be
18
begun,
within
twelve
(12)
months
after
written
request
for
prompt
action
is
19
filed
with
the
state
tax
commission
by
the
executor,
administrator,
or
other
20
fiduciary
representing
the
estate
of
such
decedent.
This
subsection
shall
21
not
apply
if
the
return
for
which
the
request
for
prompt
action
relates
has
22
not
been
filed
with
the
state
tax
commission.
23
(f)
When
Idaho
taxable
income
or
tax
credits
for
any
taxable
year
have
24
been
adjusted
as
a
result
of
a
final
federal
determination
adjustment
,
the
25
period
of
limitation
for
issuing
a
notice
of
deficiency
shall
be
reopened
and
26
shall
not
expire
until
the
later
of
one
(1)
year
from
the
date
of
delivery
27
of
the
final
federal
determination
to
the
state
tax
commission
by
the
tax
-
28
payer,
date,
three
(3)
years
from
the
due
date
of
the
return,
without
regard
29
to
extensions,
or
three
(3)
years
from
the
date
the
return
was
filed.
For
30
purposes
of
this
subsection
section
the
term
"final
federal
determination
31
adjustment
"
shall
mean
the
final
resolution
of
all
issues
which
were
ad
-
32
justed
by
the
internal
revenue
service
shall
have
the
same
meaning
as
that
33
term
is
defined
in
section
63
-
3070(2)(i),
Idaho
Code,
and
"final
determi
-
34
nation
date"
shall
have
the
same
meaning
as
that
term
is
defined
in
section
35
63
-
3070(2)(h),
Idaho
Code
.
When
the
final
federal
determination
adjustment
36
is
submitted,
the
taxpayer
shall
also
submit
copies
of
all
schedules
and
37
written
explanations
provided
by
the
internal
revenue
service.
Upon
the
38
expiration
of
the
period
of
limitations
as
provided
in
subsections
(a)
and
39
(m)
of
this
section,
only
those
specific
items
of
income,
deductions,
gains,
40
losses,
or
credits
which
were
adjusted
in
the
final
federal
determination
41
adjustment
shall
be
subject
to
adjustment
for
purposes
of
recomputing
Idaho
42
income,
deductions,
gains,
losses,
credits,
and
the
effect
of
such
adjust
-
43
ments
on
Idaho
allocations
and
apportionments.
44
(g)
If
an
adjustment,
which
was
made
within
the
period
of
limitations
45
as
provided
in
this
section,
affects
the
amount
of
tax
credit,
net
operating
46
loss,
or
capital
loss,
claimed
in
a
taxable
year
other
than
the
tax
year
in
47
which
the
adjustment
is
made,
then
adjustments
to
the
credit,
net
operating
48
loss,
or
capital
loss
claimed
in
such
other
tax
year
may
be
made
and
a
result
-
49
6
ing
notice
of
deficiency
may
be
issued
even
though
such
notice
of
deficiency
1
would
otherwise
be
barred
under
the
provisions
of
this
section.
2
(h)
Notwithstanding
any
other
provisions
of
this
section,
when
an
3
amended
Idaho
return
is
filed
within
the
period
of
limitations
as
provided
in
4
subsections
(a)
and
(m)
of
this
section,
the
period
of
limitations
for
issu
-
5
ing
a
notice
of
deficiency
shall
be
three
(3)
years
from
the
date
the
amended
6
return
was
filed.
However,
upon
the
expiration
of
the
period
of
limitations
7
as
provided
in
subsections
(a)
and
(m)
of
this
section,
only
those
specific
8
items
of
income,
deductions,
gains,
losses,
or
credits,
which
were
adjusted
9
in
the
amended
Idaho
return
shall
be
subject
to
adjustment
for
purposes
of
10
recomputing
Idaho
income,
deductions,
gains,
losses,
credits,
and
the
ef
-
1
1
fect
of
such
adjustments
on
Idaho
allocations
and
apportionments.
12
(i)
If
a
taxpayer
has
filed
an
amended
federal
return,
and
no
corre
-
13
sponding
Idaho
amended
return
has
been
filed
with
the
state
tax
commission,
14
then
the
period
of
limitations
for
issuing
a
notice
of
deficiency
shall
be
15
reopened
and
shall
not
expire
until
three
(3)
years
from
the
date
of
deliv
-
16
ery
to
the
tax
commission
by
the
taxpayer
of
the
amended
federal
return.
How
-
17
ever,
upon
the
expiration
of
the
period
of
limitations
as
provided
in
subsec
-
18
tions
(a)
and
(m)
of
this
section,
then
only
those
specific
items
of
income,
19
deductions,
gains,
losses,
or
credits,
which
were
adjusted
in
the
amended
20
federal
return
shall
be
subject
to
adjustment
for
purposes
of
recomputing
21
Idaho
income,
deductions,
gains,
losses,
credits,
and
the
effect
of
such
ad
-
22
justments
on
Idaho
allocations
and
apportionments.
23
(j)
Notwithstanding
any
other
provisions
of
this
section,
a
notice
of
24
deficiency,
related
to
items
on
the
return
of
any
pass
-
through
entity,
as
de
-
25
fined
in
this
section,
which
other
taxpayers
are
required
by
law
to
report,
26
shall
be
issued
to
such
other
taxpayers
within
the
later
of
three
(3)
years
27
from
the
due
date
of
the
other
taxpayers'
return,
without
regard
to
exten
-
28
sions,
three
(3)
years
from
the
date
the
other
taxpayers'
returns
were
filed,
29
or
three
(3)
years
from
the
date
of
filing
of
the
pass
-
through
entity's
re
-
30
turn.
If
the
pass
-
through
entity
files
an
amended
return,
notices
of
defi
-
31
ciency
may
be
issued
to
the
other
taxpayers
within
three
(3)
years
from
the
32
date
the
amended
return
for
the
pass
-
through
entity
was
filed
with
the
state
33
tax
commission.
If
the
pass
-
through
entity
files
an
amended
return
with
the
34
internal
revenue
service,
or
the
internal
revenue
service
issues
a
final
de
-
35
termination
to
the
pass
-
through
entity,
then
the
period
of
limitations
for
36
issuing
a
notice
of
deficiency
to
the
other
taxpayers
shall
be
reopened
and
37
shall
not
expire
until
three
(3)
years
from
the
date
of
delivery
to
the
tax
38
commission
by
the
pass
-
through
entity
of
the
amended
federal
return
or
the
39
later
of
one
(1)
year
from
the
date
of
delivery
to
the
state
tax
commission
40
by
the
pass
-
through
entity
of
the
final
federal
determination
adjustment
,
41
three
(3)
years
from
the
due
date
of
the
pass
-
through
entity's
return,
with
-
42
out
regard
to
extensions,
or
three
(3)
years
from
the
date
the
pass
-
through
43
entity's
return
was
filed.
44
(k)
For
purposes
of
this
section,
"pass
-
through
entity"
means
a
part
-
45
nership,
S
corporation,
trust,
limited
liability
company
or
any
other
en
-
46
tity
whose
items
of
income,
deductions,
gains,
losses
and
credits
must
be
re
-
47
ported
by
other
taxpayer(s).
For
further
purposes
of
this
section,
the
term
48
"other
taxpayer"
shall
include,
by
way
of
unlimiting
example,
such
taxpayers
49
as
partners,
shareholders,
beneficiaries,
joint
venturers
or
investors.
50
7
(l)
In
the
case
of
a
duplicate
return
filed
under
section
63
-
217(1)(b),
1
Idaho
Code,
the
limitation
under
this
section
shall
be
the
later
of
one
(1)
2
year
from
the
filing
of
the
duplicate
return
or
the
date
otherwise
applicable
3
under
this
section.
4
(m)
Prior
to
the
expiration
of
the
time
prescribed
in
this
section
for
5
the
issuance
of
a
notice
of
deficiency
for
the
tax
imposed
in
this
chapter,
6
both
the
state
tax
commission,
its
delegate
or
deputy,
and
the
taxpayer
may
7
consent
in
writing
to
extend
the
period
of
time
within
which
a
notice
of
defi
-
8
ciency
may
be
issued.
The
period
so
agreed
upon
may
be
extended
by
subsequent
9
agreements
in
writing
made
before
the
expiration
of
the
period
previously
10
agreed
upon.
When
a
pass
-
through
entity
extends
the
period
of
limitations
1
1
in
accordance
with
this
subsection,
the
period
of
limitations
for
the
other
12
taxpayers
is
automatically
extended
for
the
same
period
for
the
purpose
of
13
issuing
a
notice
of
deficiency
to
the
other
taxpayers
reflecting
the
adjust
-
14
ments
to
the
pass
-
through
entity's
return.
15
(n)
The
expiration
of
the
period
of
limitations
as
provided
in
this
sec
-
16
tion
shall
be
suspended
for
the
time
period
during
which
the
state
tax
com
-
17
mission
is
prohibited
from
issuing
a
notice
of
deficiency,
making
the
as
-
18
sessment,
or
from
collecting
by
levy
or
a
proceeding
in
court,
and
for
thirty
19
(30)
days
thereafter.
20
(o)
For
the
purposes
of
this
section,
"return"
includes
a
notice
of
de
-
21
ficiency
determination
issued
by
the
state
tax
commission
when
no
return
was
22
filed
by
the
taxpayer.
Such
a
return
is
deemed
filed
on
the
date
the
taxes
de
-
23
termined
by
the
state
tax
commission
are
assessed.
24
SECTION
3.
That
Section
63
-
3069,
Idaho
Code,
be,
and
the
same
is
hereby
25
amended
to
read
as
follows:
26
63
-
3069.
NOTICE
OF
ADJUSTMENT
OF
FEDERAL
OR
STATE
TAX
LIABILITY.
(1)
27
Upon
final
determination
of
any
deficiency
or
refund
of
federal
taxes,
the
28
taxpayer
is
required
to
send
written
notice
to
the
state
tax
commission
29
within
one
hundred
twenty
(120)
one
hundred
eighty
(180)
days
of
the
final
30
determination
date
.
31
(2)
Upon
final
determination
of
any
deficiency
or
refund
of
income
tax
32
due
to
another
state
or
territory
to
which
the
credit
for
taxes
paid
another
33
state
or
territory
applies,
as
provided
in
section
63
-
3029,
Idaho
Code,
34
the
taxpayer
is
required
to
send
written
notice
to
the
state
tax
commission
35
within
one
hundred
twenty
(120)
one
hundred
eighty
(180)
days
of
the
final
36
determination
date
.
37
(3)
If
the
notice
required
by
this
section
is
not
sent
by
the
taxpayer
to
38
the
state
tax
commission
within
one
hundred
twenty
(120)
one
hundred
eighty
39
(180)
days
of
the
final
determination
date
,
the
taxpayer
will
be
subject
to
40
the
negligence
penalty
provided
by
section
63
-
3046,
Idaho
Code.
41
(4)
As
used
in
this
section,
"final
determination
date"
has
the
same
42
meaning
as
that
term
is
defined
in
section
63
-
3070(2)(h),
Idaho
Code.
43
(5)
A
taxpayer
subject
to
a
federal
audit
is
eligible
to
make
estimated
44
payments
to
the
state
tax
commission
in
the
same
manner
as
provided
in
sec
-
45
tion
63
-
3070(6),
Idaho
Code.
46
8
SECTION
4.
That
Chapter
30,
Title
63,
Idaho
Code,
be,
and
the
same
is
1
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
2
ignated
as
Section
63
-
3070,
Idaho
Code,
and
to
read
as
follows:
3
63
-
3070.
PARTNERSHIP
INCOME
-
-
FEDERAL
ADJUSTMENTS.
(1)
The
defini
-
4
tions
set
forth
in
this
chapter
shall
apply
to
this
section
unless
modified
5
in
this
section
or
unless
the
context
clearly
requires
another
definition.
6
(2)
As
used
in
this
section:
7
(a)
"Administrative
adjustment
request"
means
a
request
for
an
admin
-
8
istrative
adjustment
filed
by
a
partnership
under
section
6227
of
the
9
Internal
Revenue
Code.
10
(b)
"Audited
partnership"
means
a
partnership
subject
to
a
partner
-
1
1
ship
-
level
audit
resulting
in
a
federal
adjustment.
12
(c)
"Corporate
partner"
means
a
partner
subject
to
tax
under
section
13
63
-
3025
or
63
-
3025A,
Idaho
Code.
14
(d)
"Direct
partner"
means
a
partner
that
holds
an
interest
directly
in
15
a
partnership
or
pass
-
through
entity.
16
(e)
"Exempt
partner"
means
a
partner
that
is
exempt
from
taxation
under
17
this
chapter
except
on
unrelated
business
taxable
income.
18
(f)
"Federal
adjustment"
means
a
change
to
an
item
or
amount
determined
19
by
the
Internal
Revenue
Code
that
is
used
by
a
taxpayer
to
compute
Idaho
20
state
income
tax
owed,
whether
that
change
results
from
action
by
the
21
internal
revenue
service,
including
a
partnership
-
level
audit,
or
from
22
the
filing
of
an
amended
federal
return,
a
federal
refund
claim,
or
an
23
administrative
adjustment
request
by
the
taxpayer.
24
(g)
"Federal
partnership
representative"
means
the
person
the
partner
-
25
ship
designates
for
the
taxable
year
as
the
partnership's
representa
-
26
tive
or
the
person
the
internal
revenue
service
has
appointed
to
act
as
27
the
federal
partnership
representative
pursuant
to
section
6223(a)
of
28
the
Internal
Revenue
Code.
29
(h)
"Final
determination
date"
means
the
following:
30
(i)
Except
as
provided
in
subparagraphs
(ii)
and
(iii)
of
this
31
paragraph,
if
the
federal
adjustment
arises
from
an
internal
rev
-
32
enue
service
audit
or
other
action
by
the
internal
revenue
ser
-
33
vice,
the
final
determination
date
is
the
first
day
on
which
no
34
federal
adjustments
arising
from
that
audit
or
other
action
remain
35
to
be
finally
determined,
whether
by
internal
revenue
service
de
-
36
cision
with
respect
to
which
all
rights
of
appeal
have
been
waived
37
or
exhausted,
by
agreement,
or,
if
appealed
or
contested,
by
a
fi
-
38
nal
decision
with
respect
to
which
all
rights
of
appeal
have
been
39
waived
or
exhausted.
For
agreements
required
to
be
signed
by
a
40
representative
of
the
internal
revenue
service
and
the
taxpayer,
41
the
final
determination
date
is
the
date
on
which
the
last
party
42
signed
the
agreement.
43
(ii)
For
federal
adjustments
arising
from
an
internal
revenue
44
service
audit
or
other
action
by
the
internal
revenue
service,
if
45
the
taxpayer
filed
as
a
member
of
a
combined
report
or
consolidated
46
return
under
Idaho
law,
the
final
determination
date
is
the
first
47
day
on
which
no
related
federal
adjustments
arising
from
such
au
-
48
9
dit
remain
to
be
finally
determined,
as
described
in
subparagraph
1
(i)
of
this
paragraph
for
the
entire
group.
2
(iii)
If
the
federal
adjustment
results
from
filing
an
amended
3
federal
return,
a
federal
refund
claim,
or
an
administrative
ad
-
4
justment
request,
or
if
it
is
a
federal
adjustment
reported
on
an
5
amended
federal
return
or
other
similar
report
filed
pursuant
to
6
section
6225
(c)
of
the
Internal
Revenue
Code,
the
final
determi
-
7
nation
date
is
the
day
on
which
the
amended
return,
refund
claim,
8
administrative
adjustment
request,
or
other
similar
report
was
9
filed.
10
(i)
"Final
federal
adjustment"
means
a
federal
adjustment
that
can
no
1
1
longer
be
modified
because
the
final
determination
date
for
that
fed
-
12
eral
adjustment
has
passed.
13
(j)
"Indirect
partner"
means
a
partner
in
a
partnership
or
pass
-
through
14
entity
that
itself
holds
an
interest
directly
or
through
another
indi
-
15
rect
partner
in
a
partnership
or
pass
-
through
entity.
16
(k)
"Nonresident
partner"
means
an
individual,
trust,
or
estate
part
-
17
ner
that
is
not
a
resident
partner.
18
(l)
"Partner"
means
a
person
that
holds
an
interest
directly
or
indi
-
19
rectly
in
a
partnership
or
other
pass
-
through
entity.
20
(m)
"Partnership
-
level
audit"
means
an
examination
by
the
internal
21
revenue
service
at
the
partnership
level
pursuant
to
sections
6221
22
through
6241
of
the
Internal
Revenue
Code,
as
amended
by
P.L.
114
-
74
and
23
as
in
effect
on
November
2,
2015,
that
results
in
federal
adjustments.
24
(n)
"Reallocation
adjustment"
means
a
federal
adjustment
resulting
25
from
a
partnership
-
level
audit
or
an
administrative
adjustment
request
26
that
changes
the
share
of
one
(1)
or
more
items
of
partnership
income,
27
gain,
loss,
expense,
or
credit
allocated
to
direct
partners.
28
(o)
"Report
of
federal
adjustments"
means
the
taxpayer's
report
of
fi
-
29
nal
federal
adjustments
to
the
Idaho
state
tax
commission,
including
an
30
amended
Idaho
income
tax
return,
information
return,
or
a
uniform
mul
-
31
tistate
report.
32
(p)
"Resident
partner"
means
an
individual,
trust,
or
estate
partner
33
that
is
a
resident
in
Idaho
under
section
63
-
3013,
Idaho
Code,
for
the
34
relevant
tax
period.
35
(q)
"Reviewed
year"
means
the
taxable
year
of
a
partnership
that
is
sub
-
36
ject
to
a
partnership
-
level
audit
from
which
federal
adjustments
arise.
37
(r)
"Tiered
partner"
means
any
partner
that
is
a
partnership
or
pass
-
38
through
entity.
39
(s)
"Unrelated
business
taxable
income"
has
the
same
meaning
as
pro
-
40
vided
in
section
512(a)
of
the
Internal
Revenue
Code.
41
(3)
Unless
an
election
has
been
made
pursuant
to
section
63
-
3026B,
42
Idaho
Code,
a
taxpayer
shall
report
and
pay
any
Idaho
tax
due
with
respect
43
to
final
federal
adjustments
arising
from
an
audit
or
other
action
by
the
44
internal
revenue
service
or
reported
by
the
taxpayer
on
a
timely
filed
45
amended
federal
income
tax
return,
including
a
return
or
other
similar
re
-
46
port
filed
pursuant
to
section
6225(c)(2)
of
the
Internal
Revenue
Code,
or
47
a
federal
claim
for
refund,
by
filing
a
report
of
federal
adjustments
with
48
the
state
tax
commission
for
the
reviewed
year
and,
if
applicable,
paying
the
49
additional
Idaho
tax
owed
by
the
taxpayer
no
later
than
one
hundred
eighty
50
10
(180)
days
after
the
final
determination
date.
This
requirement
shall
not
1
apply
in
the
case
of
final
federal
adjustments
required
to
be
reported
by
a
2
partnership
and
its
partners
using
the
procedures
set
forth
in
subsection
3
(4)
of
this
section
and
final
federal
adjustments
required
to
be
reported
4
for
federal
purposes
pursuant
to
section
6225(a)(2)
of
the
Internal
Revenue
5
Code.
If
an
election
has
been
made
pursuant
to
section
63
-
3026B,
Idaho
Code,
6
the
procedures
and
time
frames
set
forth
in
this
section
shall
apply
to
the
7
electing
partnership
rather
than
the
individual
partners.
8
(4)
Except
for
adjustments
required
to
be
reported
for
federal
pur
-
9
poses
pursuant
to
section
6225(a)(2)
of
the
Internal
Revenue
Code
and
the
10
distributive
share
of
adjustments
that
has
been
reported
as
required
under
1
1
subsection
(3)
of
this
section,
partnerships
and
partners
shall
report
final
12
federal
adjustments
arising
from
a
partnership
-
level
audit
or
an
adminis
-
13
trative
adjustment
request
and
make
payments
as
follows:
14
(a)
A
state
partnership
representative
shall
act
on
behalf
of
the
part
-
15
nership
as
follows:
16
(i)
With
respect
to
an
action
required
or
permitted
to
be
taken
by
17
a
partnership
under
this
subsection,
and
a
proceeding
under
sec
-
18
tion
63
-
3048,
Idaho
Code,
with
respect
to
that
action,
the
state
19
partnership
representative
for
the
reviewed
year
shall
have
the
20
sole
authority
to
act
on
behalf
of
the
partnership.
The
partner
-
21
ship's
direct
partners
and
indirect
partners
shall
be
bound
by
22
those
actions.
23
(ii)
The
state
partnership
representative
for
the
reviewed
year
24
is
the
partnership's
federal
partnership
representative
unless
25
the
partnership
designates
in
writing
another
person
as
its
state
26
partnership
representative.
27
(iii)
The
state
tax
commission
may
establish
reasonable
quali
-
28
fications
and
procedures
for
designating
a
person
other
than
the
29
federal
partnership
representative
to
be
the
state
partnership
30
representative.
31
(b)
Final
federal
adjustments
subject
to
the
requirements
of
this
sub
-
32
section,
except
for
those
subject
to
a
properly
made
election
pursuant
33
to
paragraph
(c)
of
this
subsection,
shall
be
reported
as
follows:
34
(i)
No
later
than
ninety
(90)
days
after
the
final
determination
35
date,
the
partnership
shall:
36
1.
File
a
completed
report
of
federal
adjustments,
includ
-
37
ing
information
required
by
Idaho
law,
with
the
state
tax
38
commission;
39
2.
Notify
each
of
its
direct
partners
of
their
distributive
40
share
of
the
final
federal
adjustments,
including
informa
-
41
tion
required
by
the
state
tax
commission;
and
42
3.
File
an
amended
composite
return
for
direct
partners
as
43
required
pursuant
to
section
63
-
3022L,
Idaho
Code,
or
an
44
amended
withholding
return
for
direct
partners
as
required
45
pursuant
to
section
63
-
3035,
Idaho
Code,
and
pay
the
ad
-
46
ditional
amount
pursuant
to
sections
63
-
3024
and
63
-
3025,
47
Idaho
Code,
that
would
have
been
due
had
the
final
federal
48
adjustments
been
reported
properly
as
required.
49
11
(ii)
Except
as
provided
under
section
63
-
3025,
Idaho
Code,
no
1
later
than
one
hundred
eighty
(180)
days
after
the
final
deter
-
2
mination
date,
each
direct
partner
taxed
pursuant
to
section
3
63
-
3025,
Idaho
Code,
shall:
4
1.
File
a
report
of
federal
adjustments
reporting
its
dis
-
5
tributive
share
of
the
adjustments
reported
under
subpara
-
6
graph
(i)2.
of
this
paragraph,
as
required
under
section
7
63
-
3069,
Idaho
Code;
and
8
2.
Pay
any
additional
amount
of
tax
due
as
if
the
report
of
9
federal
adjustments
had
been
properly
reported,
plus
any
in
-
10
terest
and
penalty
due
under
sections
63
-
3045,
63
-
3046,
and
1
1
63
-
3075,
Idaho
Code,
and
less
any
credit
for
related
amounts
12
paid
or
withheld
and
remitted
on
behalf
of
the
direct
partner
13
under
subparagraph
(i)3.
of
this
paragraph.
14
(c)(i)
Subject
to
the
limitations
provided
in
subparagraph
(iii)
15
of
this
paragraph,
an
audited
partnership
making
an
election
un
-
16
der
this
paragraph
shall,
no
later
than
ninety
(90)
days
after
the
17
final
determination
date,
file
a
completed
report
of
federal
ad
-
18
justments,
including
the
information
required
by
section
63
-
3069,
19
Idaho
Code,
and
notify
the
state
tax
commission
that
it
is
making
20
the
election
under
this
subsection.
21
(ii)
Subject
to
the
limitations
provided
in
subparagraph
(iii)
of
22
this
paragraph,
an
audited
partnership
making
an
election
under
23
this
paragraph
shall,
no
later
than
one
hundred
eighty
(180)
days
24
after
the
final
determination
date,
pay,
in
lieu
of
taxes
owed
by
25
its
direct
and
indirect
partners,
an
amount
determined
according
26
to
this
subparagraph
as
follows:
27
1.
Exclude
from
final
federal
adjustments
the
distributive
28
share
of
these
adjustments
reported
to
a
direct
exempt
part
-
29
ner
not
subject
to
tax
under
section
63
-
3025,
Idaho
Code;
30
2.
For
the
total
distributive
shares
of
the
remaining
final
31
federal
adjustments
reported
to
direct
corporate
partners
32
subject
to
tax
under
section
63
-
3025,
Idaho
Code,
and
to
di
-
33
rect
exempt
partners
subject
to
tax
under
section
63
-
3025,
34
Idaho
Code,
apportion
and
allocate
such
adjustments
as
35
provided
in
section
63
-
3027,
Idaho
Code,
and
multiply
the
36
resulting
amount
by
the
highest
tax
rate
under
section
37
63
-
3024,
Idaho
Code;
38
3.
For
the
total
distributive
shares
of
the
remaining
final
39
federal
adjustments
reported
to
nonresident
direct
partners
40
subject
to
tax
under
section
63
-
3024,
Idaho
Code,
determine
41
the
amount
of
the
adjustments
that
is
Idaho
source
income
un
-
42
der
section
63
-
3026A,
Idaho
Code,
and
multiply
the
resulting
43
amount
by
the
highest
tax
rate
under
section
63
-
3024,
Idaho
44
Code;
45
4.
For
the
total
distributive
shares
of
the
remaining
final
46
federal
adjustments
reported
to
tiered
partners:
47
(A)
Determine
the
amount
of
the
adjustments
of
a
type
48
subject
to
sourcing
to
Idaho
under
section
63
-
3026A,
49
Idaho
Code,
then
determine
the
portion
of
this
amount
50
12
that
would
be
sourced
to
Idaho
by
applying
rules
pro
-
1
mulgated
by
the
state
tax
commission;
2
(B)
Determine
the
amount
of
the
adjustments
of
a
type
3
not
subject
to
sourcing
to
Idaho
by
a
nonresident
part
-
4
ner
under
section
63
-
3026A,
Idaho
Code;
5
(C)
Of
the
amount
determined
in
subparagraph
(ii)4.(A)
6
and
(B)
of
this
paragraph,
determine
the
portion
that,
7
pursuant
to
rules
promulgated
by
the
state
tax
commis
-
8
sion,
is
properly
allocable
to
nonresident
indirect
9
partners
or
other
partners
not
subject
to
tax
on
the
10
adjustments
or
the
portion
that
can
be
excluded
un
-
1
1
der
procedures
for
alternative
reporting
and
payment
12
method
allowed
under
paragraph
(e)
of
this
subsection;
13
5.
Multiply
the
total
of
the
amounts
determined
in
subpara
-
14
graph
(ii)4.(A)
and
(B)
of
this
paragraph
reduced
by
the
15
amount
determined
in
subparagraph
(ii)4.(C)
of
this
para
-
16
graph
by
the
highest
tax
rate
under
section
63
-
3024,
Idaho
17
Code;
18
6.
For
the
total
distributive
shares
of
the
remaining
final
19
federal
adjustments
reported
to
resident
direct
partners
20
subject
to
tax
under
section
63
-
3024,
Idaho
Code,
multiply
21
that
amount
by
the
highest
tax
rate
under
section
63
-
3024,
22
Idaho
Code;
and
23
7.
Add
the
amounts
determined
in
subparagraph
(ii)2.,
24
3.,
5.,
and
6.
of
this
paragraph,
along
with
interest
25
and
penalty
as
provided
in
sections
63
-
3045,
63
-
3046,
and
26
63
-
3075,
Idaho
Code.
27
(iii)
Final
federal
adjustments
subject
to
this
election
ex
-
28
clude:
29
1.
The
distributive
share
of
final
audit
adjustments
that
30
under
section
63
-
3027,
Idaho
Code,
and
rules
promulgated
by
31
the
state
tax
commission,
must
be
included
in
the
unitary
32
business
income
of
any
direct
or
indirect
corporate
part
-
33
ner,
provided
it
can
be
reasonably
determined
by
the
audited
34
partnership;
and
35
2.
Any
final
federal
adjustments
resulting
from
an
adminis
-
36
trative
adjustment
request.
37
(iv)
An
audited
partnership
not
otherwise
subject
to
any
report
-
38
ing
or
payment
obligation
to
the
state
of
Idaho
that
makes
an
elec
-
39
tion
under
this
subsection
consents
to
be
subject
to
Idaho
laws
re
-
40
lating
to
reporting,
assessment,
payment,
and
collection
of
Idaho
41
tax
calculated
under
the
election.
42
(d)
The
direct
and
indirect
partners
of
an
audited
partnership
that
are
43
tiered
partners,
and
all
of
the
partners
of
those
tiered
partners
that
44
are
subject
to
tax
under
sections
63
-
3024
and
63
-
3025,
Idaho
Code,
are
45
subject
to
the
reporting
and
payment
requirements
of
paragraph
(b)
of
46
this
subsection,
and
the
tiered
partners
are
entitled
to
make
the
elec
-
47
tions
provided
in
paragraphs
(c)
and
(e)
of
this
subsection.
The
tiered
48
partners
or
their
partners
shall
make
the
required
reports
and
payments
49
no
later
than
ninety
(90)
days
after
the
time
for
filing
and
furnishing
50
13
statements
to
tiered
partners
and
their
partners
as
established
under
1
section
6226
of
the
Internal
Revenue
Code
and
the
federal
regulations
2
thereunder.
The
state
tax
commission
may
promulgate
rules
to
estab
-
3
lish
procedures
and
interim
time
periods
for
the
reports
and
payments
4
required
by
tiered
partners
and
their
partners
and
for
making
the
elec
-
5
tions
under
this
subsection.
6
(e)
Under
procedures
adopted
by
the
state
tax
commission,
an
audited
7
partnership
or
tiered
partner
may
enter
into
an
agreement
with
the
state
8
tax
commission
to
use
an
alternative
reporting
and
payment
method,
in
-
9
cluding
applicable
time
requirements
or
any
other
provision
of
this
10
subsection,
if
the
audited
partnership
or
tiered
partner
demonstrates
1
1
that
the
requested
method
will
reasonably
provide
for
the
reporting
and
12
payment
of
taxes,
penalties,
and
interest
due
under
the
provisions
of
13
this
subsection.
Application
for
approval
of
an
alternative
reporting
14
and
payment
method
must
be
made
by
the
audited
partnership
or
tiered
15
partner
within
the
time
for
election
as
provided
in
this
paragraph
or
16
paragraph
(c)
of
this
subsection,
as
appropriate.
17
(f)(i)
The
election
made
pursuant
to
paragraph
(c)
or
(e)
of
this
18
subsection
is
irrevocable
unless
the
state
tax
commission,
in
its
19
discretion,
determines
otherwise.
20
(ii)
If
properly
reported
and
paid
by
the
audited
partnership
or
21
tiered
partner,
or
by
a
partnership
that
has
filed
an
election
un
-
22
der
section
63
-
3026B,
Idaho
Code,
the
amount
determined
in
para
-
23
graph
(c)(ii)
of
this
subsection,
or
similarly
under
an
optional
24
election
under
paragraph
(e)
of
this
subsection,
will
be
treated
25
as
paid
in
lieu
of
taxes
owed
by
its
direct
and
indirect
partners,
26
to
the
extent
applicable,
on
the
same
final
federal
adjustments.
27
The
direct
partners
or
indirect
partners
may
not
take
any
deduc
-
28
tion
or
credit
for
this
amount
or
claim
a
refund
of
the
amount
in
29
this
state.
Nothing
in
this
paragraph
precludes
a
direct
resident
30
partner
from
claiming
a
credit
against
taxes
paid
to
this
state
31
pursuant
to
section
63
-
3029,
Idaho
Code,
for
any
amounts
paid
by
32
the
audited
partnership
or
tiered
partner
on
the
resident
part
-
33
ner's
behalf
to
another
state
or
local
tax
jurisdiction
in
accor
-
34
dance
with
the
provisions
of
section
63
-
3029,
Idaho
Code.
35
(g)
Nothing
in
this
section
shall
be
construed
to
prevent
the
state
36
tax
commission
from
assessing
direct
partners
or
indirect
partners
for
37
taxes
they
owe,
using
the
best
information
available,
in
the
event
that
38
a
partnership
or
tiered
partner
fails
for
any
reason
to
timely
make
any
39
report
or
payment
required
by
this
section
or
by
section
63
-
3026B,
Idaho
40
Code.
41
(5)
The
state
tax
commission
shall
make
adjustments
as
needed
for
any
42
additional
tax,
interest,
and
penalties
arising
from
final
federal
adjust
-
43
ments
arising
from
an
audit
by
the
internal
revenue
service,
including
a
44
partnership
-
level
audit,
or
reported
by
the
taxpayer
on
an
amended
federal
45
income
tax
return
or
as
part
of
an
administrative
adjustment
request
by
the
46
dates
provided
in
this
subsection.
47
(a)
If
a
taxpayer
files
with
the
state
tax
commission
a
report
of
fed
-
48
eral
adjustments
or
an
amended
Idaho
tax
return
as
required
within
the
49
period
specified
in
subsection
(3)
or
(4)
of
this
section,
the
state
50
14
tax
commission
may
adjust
any
amounts,
including
in
-
lieu
-
of
amounts,
1
taxes,
interest,
and
penalties
arising
from
those
federal
adjustments
2
if
the
state
tax
commission
issues
a
notice
of
deficiency
determination
3
to
the
taxpayer
no
later
than:
4
(i)
The
expiration
of
the
limitations
period
specified
in
section
5
63
-
3068
or
63
-
3072,
Idaho
Code;
or
6
(ii)
The
expiration
of
the
one
(1)
year
period
following
the
date
7
of
the
filing
with
the
state
tax
commission
of
the
report
of
fed
-
8
eral
adjustments.
9
(b)
If
the
taxpayer
fails
to
file
the
report
of
federal
adjustments
10
within
the
period
specified
in
subsection
(3)
or
(4)
of
this
section,
1
1
as
appropriate,
or
the
report
of
federal
adjustments
filed
by
the
tax
-
12
payer
omits
final
federal
adjustments
or
understates
the
correct
amount
13
of
tax
owed,
the
state
tax
commission
may
assess
amounts
or
additional
14
amounts,
taxes,
interest,
and
penalties
arising
from
the
report
of
fed
-
15
eral
adjustments
if
it
mails
a
notice
of
deficiency
determination
to
the
16
taxpayer
by
a
date
that
is
the
latest
of
the
following:
17
(i)
The
expiration
of
the
limitations
period
specified
in
section
18
63
-
3068,
Idaho
Code;
19
(ii)
The
expiration
of
the
one
(1)
year
period
following
the
date
20
the
report
of
federal
adjustments
was
filed
with
the
state
tax
com
-
21
mission;
or
22
(iii)
Absent
fraud,
the
expiration
of
the
six
(6)
year
period
fol
-
23
lowing
the
final
federal
determination
date.
24
(6)
A
taxpayer
may
make
estimated
payments
to
the
state
tax
commission,
25
following
the
process
prescribed
by
the
state
tax
commission,
of
Idaho
tax
26
expected
to
result
from
a
pending
internal
revenue
service
audit
prior
to
27
the
due
date
of
the
report
of
federal
adjustments
without
having
to
file
the
28
report
with
the
state
tax
commission.
The
estimated
tax
payments
shall
be
29
credited
against
any
tax
liability
ultimately
found
to
be
due
to
Idaho
and
30
shall
limit
the
accrual
of
further
statutory
interest
on
that
amount.
If
the
31
estimated
tax
payments
exceed
the
final
tax
liability
and
statutory
inter
-
32
est
ultimately
determined
to
be
due,
the
taxpayer
is
entitled
to
a
refund
or
33
credit
for
the
excess,
provided
the
taxpayer
files
a
report
of
federal
ad
-
34
justments
claiming
a
refund
or
credit
of
tax
pursuant
to
section
63
-
3072,
35
Idaho
Code,
no
later
than
one
(1)
year
following
the
final
federal
determi
-
36
nation.
37
(7)(a)
Except
for
final
federal
adjustments
required
to
be
reported
for
38
federal
purposes
under
section
6225(a)(2)
of
the
Internal
Revenue
Code,
39
a
taxpayer
may
file
a
claim
for
refund
or
credit
of
tax
arising
from
fed
-
40
eral
adjustments
made
by
the
internal
revenue
service
on
or
before
the
41
later
of:
42
(i)
The
expiration
of
the
last
day
for
filing
a
claim
for
refund
43
or
credit
of
Idaho
tax
pursuant
to
section
63
-
3072,
Idaho
Code,
in
-
44
cluding
any
extensions;
or
45
(ii)
One
(1)
year
from
the
date
a
report
of
federal
adjustments
46
prescribed
in
subsection
(3)
or
(4)
of
this
section,
as
applica
-
47
ble,
was
due
to
the
state
tax
commission,
including
any
extensions
48
pursuant
to
subsection
(8)
of
this
section.
49
15
(b)
The
report
of
federal
adjustments
shall
serve
as
the
means
for
1
the
taxpayer
to
report
additional
tax
due,
report
a
claim
for
refund
2
or
credit
of
tax,
and
make
other
adjustments,
including
to
its
net
op
-
3
erating
losses,
resulting
from
adjustments
to
the
taxpayer's
federal
4
taxable
income.
5
(8)(a)
Unless
otherwise
agreed
in
writing
by
the
taxpayer
and
the
state
6
tax
commission,
any
adjustments
by
the
state
tax
commission
or
by
the
7
taxpayer
made
after
the
expiration
of
the
time
period
set
forth
in
sec
-
8
tion
63
-
3068,
Idaho
Code,
shall
be
limited
to
changes
to
the
taxpayer's
9
tax
liability
arising
from
federal
adjustments.
10
(b)
The
time
periods
provided
for
in
section
63
-
3069,
Idaho
Code,
may
be
1
1
extended:
12
(i)
Automatically,
upon
written
notice
to
the
state
tax
commis
-
13
sion,
by
sixty
(60)
days
for
an
audited
partnership
or
tiered
part
-
14
ner
that
has
ten
thousand
(10,000)
or
more
direct
partners;
or
15
(ii)
By
written
agreement
between
the
taxpayer
and
the
state
tax
16
commission
pursuant
to
section
63
-
3068(m),
Idaho
Code.
17
(c)
Any
extension
granted
under
this
subsection
for
filing
the
report
18
of
federal
adjustments
extends
the
last
day
prescribed
by
law
for
as
-
19
sessing
any
additional
tax
arising
from
the
adjustments
to
federal
tax
-
20
able
income
and
the
period
for
filing
a
claim
for
refund
or
credit
of
21
taxes
pursuant
to
section
63
-
3068,
Idaho
Code.
22
SECTION
5.
That
Section
63
-
3072,
Idaho
Code,
be,
and
the
same
is
hereby
23
amended
to
read
as
follows:
24
63
-
3072.
CREDITS
AND
REFUNDS.
(a)
Subject
to
the
provisions
of
subsec
-
25
tions
(b),
(c)
and
(h)
of
this
section,
where
there
has
been
an
overpayment
26
of
the
tax
imposed
by
the
provisions
of
this
chapter,
the
amount
of
such
over
-
27
payment
shall
be
credited
against
any
tax
administered
by
the
state
tax
com
-
28
mission
which
tax
is
then
due
from
the
taxpayer,
and
any
balance
of
such
ex
-
29
cess
shall
be
refunded
to
the
taxpayer.
30
(b)
Except
in
regard
to
amounts
withheld
as
provided
in
section
31
63
-
3035,
63
-
3035A
or
63
-
3036,
Idaho
Code,
or
amounts
paid
as
estimated
32
payments
under
section
63
-
3036A,
Idaho
Code,
or
amounts
paid
as
backup
33
withholding
under
section
63
-
3036B,
Idaho
Code,
a
claim
for
refund
of
tax,
34
penalties,
or
interest
paid
shall
be
made
within
the
later
of
three
(3)
35
years
of
the
due
date
of
the
return,
without
regard
to
extensions,
or
three
36
(3)
years
from
the
date
the
return
was
filed,
and
a
claim
for
credit
of
tax,
37
penalties,
or
interest
paid
shall
be
made
within
the
later
of
ten
(10)
years
38
of
the
due
date
of
the
return,
without
regard
to
extensions,
or
ten
(10)
years
39
from
the
date
the
return
was
filed.
However,
with
regard
to
remittances
40
received
with
an
extension
of
time
to
file,
or
a
tentative
return,
a
claim
41
for
credit
or
refund
of
such
remittances
shall
be
made
within
three
(3)
years
42
from
the
due
date
of
the
return
without
regard
to
extensions.
43
(c)
With
regard
to
amounts
withheld
as
provided
in
section
63
-
3035,
44
63
-
3035A
or
63
-
3036,
Idaho
Code,
or
amounts
paid
as
estimated
payments
under
45
section
63
-
3036A,
Idaho
Code,
or
amounts
paid
as
backup
withholding
under
46
section
63
-
3036B,
Idaho
Code,
a
claim
for
refund
shall
be
made
within
three
47
(3)
years
from
the
due
date
of
the
return,
without
regard
to
extensions,
48
for
the
taxable
year
in
respect
to
which
the
tax
was
withheld
or
paid,
and
a
49
16
claim
for
credit
shall
be
made
within
ten
(10)
years
from
the
due
date
of
the
1
return,
without
regard
to
extensions,
for
the
taxable
year
with
respect
to
2
which
the
tax
was
withheld
or
paid.
However,
with
regard
to
an
individual
3
who
is
entitled
to
an
extension
of
time
as
provided
in
section
7508
of
the
4
Internal
Revenue
Code,
the
three
(3)
year
period
provided
in
this
subsection
5
for
claiming
a
credit
or
refund
shall
be
extended
by
the
number
of
days
disre
-
6
garded
under
section
7508
of
the
Internal
Revenue
Code.
7
(d)
Notwithstanding
any
other
provisions
of
this
section,
when
Idaho
8
taxable
income
and/or
tax
credits
for
any
taxable
year
have
been
adjusted
9
as
a
result
of
a
final
federal
determination
adjustment
,
the
period
of
lim
-
10
itations
for
claiming
a
refund
or
credit
of
tax,
penalties,
or
interest
1
1
shall
be
reopened
and
shall
not
expire
until
the
later
of
one
(1)
year
from
12
the
date
of
delivery
of
the
final
federal
determination
to
the
taxpayer
by
13
the
internal
revenue
service
date
,
three
(3)
years
from
the
due
date
of
the
14
return,
without
regard
to
extensions,
or
three
(3)
years
from
the
date
the
15
return
was
filed.
For
purposes
of
this
subsection,
the
term
"final
federal
16
determination
adjustment
"
shall
mean
the
final
resolution
of
all
issues
17
which
were
adjusted
by
the
internal
revenue
service
have
the
same
meaning
as
18
that
term
is
defined
in
section
63
-
3070(2)(i),
Idaho
Code,
and
"final
deter
-
19
mination
rate"
shall
have
the
same
meaning
as
that
term
is
defined
in
section
20
63
-
3070(2)(h),
Idaho
Code
.
When
the
final
federal
determination
adjustment
21
is
submitted,
the
taxpayer
shall
also
submit
copies
of
all
schedules
and
22
written
explanations
provided
by
the
internal
revenue
service.
Upon
the
23
expiration
of
the
period
of
limitations
as
provided
in
subsections
(b)
and
24
(h)
of
this
section,
only
those
specific
items
of
income,
deductions,
gains,
25
losses
or
credits
which
were
adjusted
in
the
final
federal
determination
26
adjustment
shall
be
subject
to
adjustment
for
purposes
of
recomputing
Idaho
27
income,
deductions,
gains,
losses,
credits,
and
the
effect
of
such
adjust
-
28
ments
on
Idaho
allocations
and
apportionments.
29
(e)
If
a
claim
for
credit
or
refund
relates
to
an
overpayment
attribut
-
30
able
to
a
net
operating
loss
carryback
incurred
in
a
taxable
year
commencing
31
in
2012
or
earlier,
or
a
capital
loss
carryback,
in
lieu
of
the
period
of
lim
-
32
itations
prescribed
in
subsection
(b)
of
this
section,
the
period
shall
be
33
that
period
which
ends
with
the
expiration
of
the
fifteenth
day
of
the
for
-
34
tieth
month
following
the
end
of
the
taxable
year
of
the
net
operating
loss
35
or
capital
loss
which
results
in
such
carryback.
Claims
for
net
operating
36
losses
carried
back
from
taxable
years
commencing
after
2012
shall
be
made
37
pursuant
to
section
63
-
3022,
Idaho
Code.
38
(f)
If
an
adjustment,
which
was
made
within
the
period
of
limitations
39
as
provided
in
this
section,
affects
the
amount
of
tax
credit,
net
operating
40
loss,
or
capital
loss,
claimed
in
a
taxable
year
other
than
the
tax
year
in
41
which
the
adjustment
is
made,
then
adjustments
to
the
credit,
net
operating
42
loss,
or
capital
loss,
claimed
in
such
other
tax
year
may
be
made
and
a
claim
43
for
credit
or
refund
of
tax,
penalties
or
interest
may
be
made
even
though
44
such
claim
would
otherwise
be
barred
under
the
provisions
of
this
section.
45
(g)
In
the
case
of
a
duplicate
return
filed
under
section
63
-
217(1)(b),
46
Idaho
Code,
the
limitations
under
this
section
shall
be
the
later
of
one
(1)
47
year
from
the
filing
of
the
duplicate
return
or
the
date
otherwise
applicable
48
under
this
section.
49
17
(h)
Prior
to
the
expiration
of
the
time
prescribed
in
this
section
for
1
credit
or
refund
of
any
tax
imposed
by
the
provisions
of
this
chapter,
both
2
the
state
tax
commission
or
its
delegate
or
deputy
and
the
taxpayer
may
con
-
3
sent
in
writing
to
extend
such
period
of
time.
The
period
so
agreed
upon
may
4
be
extended
by
subsequent
agreements
in
writing
made
before
the
expiration
5
of
the
period
previously
agreed
upon.
When
a
pass
-
through
entity
extends
the
6
period
of
limitations
in
accordance
with
the
provisions
of
this
subsection
7
the
period
of
limitations
for
the
other
taxpayers
is
automatically
extended
8
for
the
same
period
for
the
purpose
of
claiming
a
credit
or
refund
of
tax,
9
penalties
or
interest
by
the
other
taxpayers
reflecting
the
pass
-
through
en
-
10
tity
adjustments.
1
1
(i)
The
expiration
of
the
period
of
limitations
as
provided
in
this
sec
-
12
tion
shall
be
suspended
for
the
time
period
between
the
issuance
by
the
state
13
tax
commission
of
a
notice
under
either
section
63
-
3045
or
63
-
3065,
Idaho
14
Code,
and
the
final
resolution
of
any
proceeding
resulting
from
the
notice.
15
(j)
Appeal
of
a
state
tax
commission
decision
denying
in
whole
or
in
16
part
a
claim
for
credit
or
refund
shall
be
made
in
accordance
with
and
within
17
the
time
limits
prescribed
in
section
63
-
3049,
Idaho
Code.
18
(k)
For
purposes
of
this
section,
"return"
includes
a
notice
of
defi
-
19
ciency
determination
issued
by
the
state
tax
commission
when
no
return
was
20
filed
by
the
taxpayer.
Such
a
return
is
deemed
filed
on
the
date
the
taxes
de
-
21
termined
by
the
state
tax
commission
are
assessed.
22
SECTION
6.
An
emergency
existing
therefor,
which
emergency
is
hereby
23
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
24
July
1,
2026.
25