The bill amends Section 63-3033 of the Idaho Code to revise the provisions regarding the extension of time for certain income tax filings. It establishes that taxpayers will receive an automatic extension of seven months for filing returns, declarations, statements, or other required documents, provided they meet specific payment criteria. Notably, the bill clarifies that this extension does not apply to the payment of taxes, meaning no payment is required to qualify for the extension to file a return. Additionally, it modifies the provisions for taxpayers residing outside the United States and Puerto Rico, extending their filing deadline to the fifteenth day of the seventh month following the close of their taxable year.

The bill also introduces changes to the penalties associated with late payments. It reduces the penalty for late tax payments from two percent to one percent per month if the taxes are paid on or before the extended due date. Furthermore, it stipulates that no penalty will be assessed if the remaining balance due is fifty dollars or less after payments made by the unextended due date, or if reasonable cause for the delay can be established. The act is set to take effect on January 1, 2026.

Statutes affected:
Bill Text: 63-3033