This bill amends Section 63-3033 of the Idaho Code to revise the provisions regarding the extension of time for certain income tax filings. The automatic extension period for taxpayers is changed from six months to seven months from the original due date, provided that the taxpayer has paid at least eighty percent of the total tax due. Additionally, the bill clarifies that the extension to file a return does not extend the time for the payment of taxes, and no payment is required to qualify for the extension to file. It also modifies the extension period for taxpayers residing outside the United States and Puerto Rico, changing it from the sixth month to the twelfth month for those in military service, and establishing a new seventh-month deadline for those not in military service.

Furthermore, the bill introduces changes to the penalties associated with underpayment of taxes. It reduces the penalty rate from two percent to one percent per month for taxes paid on or before the extended due date. The bill also 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 can be established. The act is set to take effect on January 1, 2026.

Statutes affected:
Bill Text: 63-3033