Bill > H0381

This bill amends Idaho tax law to strengthen protections for taxpayers during tax audits or deficiency proceedings by requiring the State Tax Commission to proactively notify taxpayers about their rights regarding expense substantiation. Specifically, the bill adds a new requirement that when the state tax commission conducts an audit or challenges a deduction paid by credit card, debit card, or electronic means, they must notify the taxpayer in writing about existing provisions that allow taxpayers to substantiate expenses through credit card statements or financial institution records and their own sworn statements. Under the current law, a taxpayer's credit card statement or financial institution record is considered conclusive proof of an expenditure, and the taxpayer's sworn statement about the deductible purpose is considered conclusive proof of the deduction's legitimacy, unless there is clear evidence of fraud. The bill mandates that the tax commission not only follow these rules but also document that they have provided this notification to the taxpayer, adding an extra layer of procedural transparency and taxpayer protection. The bill is set to take effect on July 1, 2025, and was enacted with an emergency clause.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0381/