This bill amends Section 63-3042A of the Idaho Code, which pertains to the evidence required for documenting expenditures as deductions or credits for taxpayers. The amendment clarifies that, in the absence of clear and convincing evidence of fraud, a taxpayer's statement or invoice from a credit card company or financial institution will conclusively establish that the expenditure was made by the taxpayer. Additionally, the taxpayer's sworn statement regarding the purpose of the expenditure will also conclusively establish their right to a deduction or credit.

The bill introduces new provisions that require the state tax commission to notify taxpayers in writing about the rules regarding substantiation of deductible expenses paid by electronic means during audits or deficiency assertions. Furthermore, the tax commission must retain proof of this notification. The bill declares an emergency, making it effective on July 1, 2025.

Statutes affected:
Bill Text: 63-3042A