Instructions For Form 41 - Idaho State Tax Commission

GENERAL INFORMATION

If you are a farmer's cooperative, your return is due on or before

and Environmental Laboratory. The tax is computed at 8% of

the 15th day of the ninth month following the close of your tax

Idaho taxable income. Corporations are not subject to both the

year. For a calendar year filer, this is September 15.

franchise tax and the corporation tax.

If the last day for filing a return falls on a Saturday, Sunday or

PERMANENT BUILDING FUND

PERMANENT BUILDING FUND T T T T T AX

legal holiday, the return is timely if it is filed on the next work

A corporation required to file an Idaho income tax return must

day .

pay the $10 permanent building fund tax. This includes

homeowners' associations, inactive or nameholder corporations,

EXTENSION OF TIME TO FILE

and nonproductive mining corporations that are registered with

If you cannot file your return by the due date, Idaho allows you

the Idaho Secretary of State to do business in Idaho. The $10

an automatic six-month extension of time to file. To avoid pay-

permanent building fund tax must be paid by each corporation in

ing a penalty, the amount of tax payments you have made must

the unitary group that is required to file an Idaho income tax

be at least 80% of the tax due or 100% of the total tax reported

return, even though only one Idaho group return is filed.

last year. Use Form 41ES to make your payments. Even though

an extension gives you more time to file, the tax is due on the

An S corporation is required to pay the permanent building fund

original due date of the return. When you file your income tax

tax for each nonresident shareholder who meets the Idaho filing

return, the extension period expires and any remaining tax due

requirement but does not report his S corporation income on an

must be paid. You must pay interest on any tax due.

Idaho individual return. If all shareholders file Idaho individual

income tax returns, the S corporation is not required to pay the

Failure to pay the required amount by the original due date will

permanent building fund tax.

result in one of the following penalties:

PENALTIES AND INTEREST

•

a 2% per month penalty if the return is filed and the remaining

Penalties may be imposed on the tax due as follows:

taxes are paid on or before the extended due date, or

•

a 5% per month penalty if either the tax return is not filed or

5% for negligence or disregard of rules

•

the remaining taxes are not paid by the extended due date.

5% per month or fraction of a month to a maximum of 25%

for failure to pay the tax due

•

QUARTERLY ESTIMATED TAX PAYMENTS

50% for filing a false or fraudulent return

•

A corporation must make estimated tax payments to the Idaho

10% for substantial understatement of tax

State Tax Commission if it is required to make federal estimated

payments and the Idaho tax liability is estimated to be $500 or

The minimum penalty is $10.

more. Estimated taxes are filed on Form 41ES. The estimated

payments are due on the 15th day of the 4th, 6th, 9th, and

Interest applies on delinquent tax from the original due date of

12th months of the tax year. For a calendar year filer, this is

the return until the tax is paid at the rate of 7% per year (rate

the 15th of April, June, September, and December.

effective 1-1-99 to 12-31-99).

Estimated taxes are not required for the first year a corporation

T T T T T AX PREP

AX PREP

AX PREPARER CONT

ARER CONT

ARER CONTA A A A A CT BO

ARER CONT

CT BO

CT BOX X X X X

AX PREP

ARER CONT

CT BO

exists in Idaho. The corporation will be sent the necessary

A tax preparer contact box is located directly above the signa-

estimated payment forms.

ture box. This box applies only if you paid a tax preparer to

complete your return. If you check the box, you are authoriz-

ELECTR

ELECTRONIC FUNDS

ONIC FUNDS

ONIC FUNDS TRANSFERS

TRANSFERS

ing the Tax Commission to contact your preparer to resolve

Tax payments of $100,000 or more must be paid by electronic

any questions related to your return.

funds transfer. If you are making an electronic funds transfer for

the first time, contact the Tax Commission at (208) 334-7515

This authorization is valid for up to 120 days from the date the

for further information.

Tax Commission receives the return. If you want the Tax Com-

mission to contact you rather than your preparer, leave the

P P P P P A A A A A YMENTS

YMENTS

box blank.

Make your check or money order payable to the Idaho State Tax

PERIOD/T

YEAR CO

VERED BY RETURN

Commission and attach it to the tax return.

PERIOD/T

PERIOD/TAX

AX YEAR CO

YEAR CO

YEAR COVERED BY RETURN

VERED BY RETURN

Use the 1998 form to file your tax return for calendar year 1998

MINIMUM

MINIMUM T T T T T AX

or the fiscal year beginning in 1998.

The minimum tax of $20 is required for each corporation that

transacts business in Idaho, is registered with the Idaho Secre-

FEDERAL CHECK-THE-BO

FEDERAL CHECK-THE-BOX REGULA

X REGULA

X REGULATIONS

TIONS

tary of State to do business in Idaho, or is exercising its corpo-

Idaho follows the federal entity classification (check-the-box)

rate franchise in Idaho. This includes an S corporation. For a

regulations. Therefore, if an entity is classified or taxed as a

unitary group of corporations, the $20 minimum tax is required

corporation for federal income tax purposes, it will be treated as

for each corporation in the unitary group that is required to file

a corporation for Idaho income tax purposes.

an Idaho income tax return, even though only one Idaho group

return is filed.

QUALIFIED SUBCHAPTER S SUBSIDIARIES (QSSS)

Idaho follows the federal election to treat a qualified subsidiary

The $20 minimum tax is not required to be paid by the follow-

of an S corporation as a QSSS. As a result, the S corporation

ing:

parent and the subsidiary are treated as one corporation. In-

come, deductions, and credits of the QSSS are treated as in-

•

a nonproductive mining corporation

come, deductions, and credits of the parent. Apportionment

•

a corporation not organized for profit that is not required to

attributes of the QSSS are also totaled with the parent's appor-

pay federal tax on unrelated business income (including a

tionment attributes to compute one Idaho apportionment factor.

homeowners' association)

A A A A A CCOUNTING PERIOD

CCOUNTING PERIOD

FRANCHISE

FRANCHISE T T T T T AX

You must use the same accounting period as that used for fed-

The franchise tax is imposed on a corporation for the privilege

eral tax purposes. A change to the annual accounting period

of exercising its corporate franchise in Idaho. This includes a

must have prior approval from the Internal Revenue Service.

corporation in business solely to perform contracts with the

Attach a copy of the federal approval on Form 1128, Application

U. S. Department of Energy at the Idaho National Engineering

to Adopt, Change, or Retain a Tax Year, to your return.

Instructions For Form 41 - Idaho State Tax Commission - 1998 Page 2

Related Articles

Related forms

Related Categories