This bill amends Section 63-3042A of the Idaho Code to clarify the evidence required for taxpayers to document expenditures as deductions or credits. It establishes that a taxpayer's statement or an invoice from a credit card company or financial institution will conclusively prove that an expenditure was made by the taxpayer, provided there is no evidence of fraud. Additionally, the taxpayer's sworn statement regarding the purpose of the expenditure will also confirm 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 act is set to take effect on July 1, 2025, following the declaration of an emergency.

Statutes affected:
Bill Text: 63-3042A