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H 92

TAXATION – Amends existing law to revise provisions regarding the extension of time for certain filing deadlines.

68th Legislature, 1st Regular Session (2025)

House Bill 92 grants Idaho taxpayers an automatic six-month extension for income tax filings, reduces penalties, and simplifies the filing process for complex returns.

U.C. to be returned to Revenue & Taxation Committee
#government #taxandtaxation #income
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Bill Summary · H 92

Summary of House Bill 92 (H 92)

Bill Information

  • Bill Number: H 92
  • Title: TAXATION – Amends existing law to revise provisions regarding the extension of time for certain filing deadlines.
  • Status: U.C. to be returned to Revenue & Taxation Committee
  • Introduced: January 30, 2025
  • Classification: Bill
  • Subject: Government, Tax and Taxation, Income

Purpose and Intent

House Bill 92 aims to simplify the process for Idaho taxpayers seeking extensions on their income tax filings. The bill recognizes the complexities involved in filing tax returns, particularly for individuals with complicated financial situations, and seeks to provide a more user-friendly approach to filing deadlines.

Key Provisions

The bill proposes several significant changes to the existing tax filing extension process:

  1. Automatic Filing Extension:

    • All Idaho taxpayers will receive an automatic six-month extension to file their income tax returns, provided they have paid at least 80% of their total tax due by the original due date.

  2. Elimination of Failure-to-File Penalty:

    • The bill eliminates the penalty for failing to file a return by the original due date.

  3. Reduction of Failure-to-Pay Penalty:

    • The penalty for failing to pay taxes due will be reduced from 2% per month to 1% per month.

  4. Extended Due Date:

    • The new extended due date for filing returns will be the 15th day of the seventh month following the close of the taxable year.

  5. Provisions for Taxpayers Outside the U.S.:

    • Taxpayers residing outside the U.S. and Puerto Rico will have specific provisions for extended filing deadlines, aligning with federal guidelines.

  6. Interest on Taxes Due:

    • Interest will accrue on any unpaid taxes from the original due date until payment is made, with specific provisions for taxpayers entitled to federal extensions.

Impact

  • Taxpayers: The bill is expected to benefit all Idaho taxpayers, particularly those with complex returns who often require extensions.
  • State Revenue: The legislation is projected to reduce penalty revenues collected by the State Tax Commission by approximately $1.7 million annually.
  • Administrative Costs: The implementation of this bill will incur a one-time administrative cost of about $50,000 for system updates and testing.

Procedural Aspects

  • The bill was introduced on January 30, 2025, and has undergone several legislative actions, including being reported out of committee and scheduled for readings. As of February 28, 2025, it is set to be returned to the Revenue & Taxation Committee for further consideration.

Effective Date

  • If passed, the provisions of this act will take effect on January 1, 2026.

This summary provides an overview of House Bill 92, highlighting its purpose, key provisions, and potential impacts on taxpayers and state revenue.

Compiled from official sources — confirm details with the bill’s official record.

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