HB 13 Summary

• Adds new section 63-3070 to Idaho Code establishing state procedures for partnerships to report federal tax adjustments resulting from IRS audits or administrative adjustment requests.

• Requires partnerships and partners to file a report of federal adjustments with the Idaho state tax commission within 120 days after the final federal determination date and pay any additional Idaho tax owed.

• Allows audited partnerships to elect to pay a single amount in lieu of taxes owed by direct and indirect partners, with the payment calculated using highest applicable tax rates based on partner types (corporate, resident, nonresident, tiered, exempt).

• Establishes statute of limitations for state assessment: one year from filing the federal adjustment report under normal circumstances, or up to six years from the final federal determination date if adjustments are omitted or understated (absent fraud).

• Declares an emergency and provides retroactive application to January 1, 2021.