Bonding

Section 63-3625, Idaho Code 01. Posting Security. The Tax Commission may require a retailer to post security to ensure collection and remittance of sales and use taxes for cause including: (7-1-26) a. A retailer failing to file sales tax returns. (3-31-22) b. A retailer failing to remit in full taxes due upon any sales tax return. (3-31-22) c. A retailer with a consistent history of delinquency either in the filing of returns or payment of tax. (3-31-22) d. The submission of a check for the payment of taxes which is subsequently dishonored. (3-31-22) e. The filing of a fraudulent return or any return which fails to report all taxable transactions for the period for which the return relates. (3-31-22) f. A retailer evidencing serious financial instability which, in the opinion of the Tax Commission, creates reasonable doubt as to the ability of the retailer to pay over sales and use taxes collected. (7-1-26) 02. Written Demand. The written demand for security will be sent to the retailer by the Tax Commission by certified mail or by personal service. Failure of the retailer to post the demanded security can be grounds for revocation of the retailer’s seller’s permit following proper notice and hearing. (7-1-26) IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 117 Page 69 03. Forms of Security. The Tax Commission will accept the following as security: (7-1-26) a. Surety bond. A surety bond issued by a bonding company with the power of an attorney affixed thereto which grants the issuing agent the power to obligate the company for this type of liability. (3-31-22) b. Cash bond. Preferably in the form of a cashier’s check. (7-1-26) c. Pledged savings accounts. This type of security may be furnished, providing the savings account is opened with a bank or savings and loan association and an assignment of the account is executed by the taxpayer or authorized individual and accepted by the bank or savings and loan association. If the business is a sole proprietorship, the savings account may be in the business name or individual’s name. If it is a partnership, the account will be jointly in the names of the partners. In the instance of a corporation, it can be in the corporation’s name with the assignment properly executed by the officer or officers with the delegated authority to sign documents for the corporation. (7-1-26) 05. Release of Security. Security which has been previously posted may be released by the Tax Commission upon receipt of a written request from the retailer if, after careful review of the circumstances, the Tax Commission determines that security is no longer needed. A request may be made one (1) year after posting the security. Security will also be released upon the retailer’s termination of its retail activities. In either case, if the Tax Commission deems necessary, an audit may be conducted prior to the release of any security. (7-1-26)