Time And Imposition Of Tax, Returns, Payments, And Partial Payments

Sections 63-3046, 63-3619, 63-3621, 63-3623, 63-3634, Idaho Code 01. Time and Imposition of Tax. (3-31-22) a. Sales Tax. Sales tax is imposed, computed and collected at the time of sale, without regard to the provisions of any contract relating to the time or method of payment. In the case of installment sales, sales on account, or other credit sales, the seller reports as a taxable sale the entire sales price for the month in which the sale is made. No part of the sales tax may be deferred until the time the retailer collects payment from the buyer. A sale occurs when title to property passes through delivery to the customer or absolute and unconditional appropriation to a contract. Lease or rental payments are taxable during the month or other period for which the property is leased or rented. (3-31-22) b. Use Tax. Use tax is determined at the time of the use, storage or other consumption of tangible personal property in Idaho. The tax is reported and payable in accordance with the provisions of this rule. Persons making purchases subject to use tax should apply for a use tax permit number from the Tax Commission. (7-1-26) 02. Returns. (3-31-22) a. Monthly Filing. All retailers and persons subject to use tax are obligated to remit the tax to the state on a monthly basis unless a different reporting period is allowed by the Tax Commission. The remittance will include all sales and use tax due from the first through the last day of the preceding calendar month. (7-1-26) b. Request to File Quarterly or Semiannually. Retailers or persons who owe seven hundred-fifty dollars ($750) or less per quarter and have established a satisfactory record of timely filing and payment of the tax may request permission to file quarterly or semiannually instead of monthly. (3-31-22) c. Request to File Annually. Retailers or persons who have seasonal activities, such as Christmas tree sales or repeating fair booths, may request permission to file annually. Approval of the request is at the discretion of the Tax Commission and is limited to taxpayers who have established a satisfactory record of timely filing and payment of the tax. (7-1-26) d. Variable Filing. If the Tax Commission finds it necessary for the administration of the Sales Tax Act, it may assign an account to a taxpayer with a variable filing requirement. In such a case the taxpayer wouldn’t be obligated to file returns at regular intervals. The Tax Commission may also create one-time filing only accounts for taxpayers who are making a single payment of sales or use tax. (7-1-26) e. Change in Filing Frequency. If the Tax Commission finds it necessary for the efficient administration of the Sales Tax Act, it may require taxpayers reporting taxable sales of less than twelve thousand dollars ($12,000) per year to file annually. (7-1-26) f. Final Report. Whenever a taxpayer who has an obligation to file sales tax returns stops doing business, the taxpayer marks cancel on the last return the taxpayer files. This return ends the taxable year for sales or use tax purposes and constitutes the taxpayer’s final report of sales or use tax activities or liabilities. The taxpayer encloses their seller’s permit with their request for cancellation or sends a written statement that the permit has been IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 105 Page 59 destroyed. If the taxpayer continues business activity after filing a final report, they may be subject to liabilities or penalties. (7-1-26) 03. Valid Return. A tax return or other document filed will meet the conditions prescribed below. Returns missing anything listed below are invalid. They may be rejected and returned to the taxpayer to be redone and refiled. A taxpayer who doesn’t file a valid return is considered to have filed no return. A taxpayer’s failure to properly file in a timely manner may result in penalties. Perfect accuracy isn’t necessary for a valid return, although each of the following conditions is expected: (7-1-26) a. It is submitted on the proper form, as prescribed by the Tax Commission and is complete. (7-1-26) b. If necessary, copies of all pertinent supporting documentation are attached. (7-1-26) c. The tax liability is calculated and has sufficient supporting information, if necessary, to demonstrate how the result was reached. A return that doesn’t provide sufficient information to compute a tax liability doesn’t constitute a valid return. (7-1-26) d. All sales and use tax returns or other documents filed by the taxpayer will include the relevant sales or use tax permit number. (7-1-26) e. The submission shows an honest and genuine effort to satisfy the requirements of the law. (3-31-22) 04. Extension of Time to File. (7-1-26) a. The Tax Commission may, for good cause, grant authority for a taxpayer to file for an extension of time by filing an estimated return. When filing the Extension of Time estimated return, the taxpayer attaches a written request which sets forth the reason for estimating. The Tax Commission will review each request to determine if there is good cause for filing an Extension of Time estimated return. If the Tax Commission determines that the request should be denied, the taxpayer will be notified in writing and a penalty will apply to any delinquent tax due when the original return is filed. (7-1-26) b. If the return for any period is filed on an estimated basis, the estimated return is to be filed timely and reconciled to actual figures by filing an original return within one (1) month of the due date. Any additional tax due as a result of reconciliation is to be remitted when the original return is filed and should include interest on any unpaid balance due from the due date of the return. (7-1-26) c. The estimated tax remitted is to be at least ninety percent (90%) of the total sales and use tax due for the period or one hundred percent (100%) of the total sales and use tax due for the same month of the prior year. If the estimated tax paid is less than these requirements, a five percent (5%) penalty may be applied to the remaining tax due. (7-1-26) d. Taxpayers wishing to file an Extension of Time estimated return will need to contact the Tax Commission to obtain the necessary forms. (7-1-26) 05. Sale and Use Tax Returns. The original return will be completed with the amount of total sales, nontaxable sales, taxable sales, items subject to use tax, and tax due inserted in the blanks. Payment will accompany the return. A complete sales and use tax return will be filed by each retailer or person subject to use tax. This return will be on a form prepared and mailed to the taxpayer by the Tax Commission. If the original is lost or destroyed, a substitute form will be supplied upon request. (7-1-26) a. Retailers Report Own Use and Nontaxed Transactions. All retailers report any sales or purchases on which no sales or use tax was collected or paid. Goods sold or produced and consumed by the retailer, items withdrawn from stock for personal use or employee use, stock removed and used for gift or promotional purposes, or any combination of such uses are taxable. (3-31-22) b. Reporting Adjustments. Any adjustments for additional tax due or credits claimed should be made IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 106 Page 60 on the next return due after the adjustments are discovered. These adjustments are to be shown on the line designated for adjustments on the return form and will be accompanied by an explanation and any documents that support the claimed adjustment. (7-1-26) 06. Payment of Tax. (3-31-22) a. Payment to Accompany Return. The sales and use tax return filed is to be accompanied by a remittance of the total amount due as shown on the return. Checks or other negotiable instruments should be made payable to the Tax Commission. (7-1-26) b. Payment of One Hundred Thousand Dollars ($100,000) or Greater. All taxes due to the state are to be paid by electronic funds transfer whenever the amount due is one hundred thousand dollars ($100,000) or greater. (7-1-26) c. Remittance of Collections--Bracket Exception. Retailers are obligated to remit all taxes collected from buyers, except any difference that may result from use of the bracket system described in Section 068. Any taxes erroneously collected in excess of those properly due should be refunded to the buyer by the retailer. If the retailer either cannot or doesn’t make the refund during the period for which the return is due, then the retailer reports the erroneously collected taxes on the return and pay them to the Tax Commission. If the erroneously collected taxes are subsequently refunded to the buyer from whom they were collected, the retailer may claim a credit or refund of sales taxes in accordance with Section 117. Under no circumstances may a retailer retain any amount collected as sales or use tax which is greater than the retained amount authorized under the bracket system by Section 068. (7-1-26) 07. Filing Dates--General Rule. The filing date for all sales or use tax returns is the twentieth day of the calendar month immediately following the last day of the reporting period, unless otherwise allowed by these rules. This is the filing due date for all regular monthly, quarterly, semiannual, and annual accounts. If the twentieth is a Saturday, Sunday, or legal holiday, the return is due on the next following day which isn’t a Saturday, Sunday, or legal holiday. (7-1-26)