House committee advances bill extending Idaho tax filing deadline, cutting small penalties

BOISE — The Idaho House Revenue and Taxation Committee on Feb. 24 voted to send House Bill 92 to the full House with a "do pass" recommendation, a move sponsors said would simplify state filing and reduce some penalties for taxpayers.

Representative Jeff Ehlers, R‑Meridian, introduced the bill and told the committee it would extend Idaho's automatic state filing extension from six months to seven months and provide an automatic 12‑month extension for taxpayers in military service. The bill also would eliminate the penalty when a taxpayer owes less than $50 and would reduce the interest rate applied to underpayments from 2% per month to 1% per month. Ehlers said the bill does not change payment due dates.

Tax practitioners who testified said the change would ease administrative burdens. "Let's just let them have the extension. We'll figure out penalties and all of that as we need to, but let's at least get an automatic extension so we can get that behind us," said Matthew Grow, a CPA with Grow Rasmussen and member of the Idaho Society of CPAs' tax committee.

Mark Winn, vice president of tax at Lamb Weston and a member of Idaho tax trade groups, told the committee the additional month is "a big deal" for companies that prepare federal returns first and then state returns. He said he did not expect payment timing to shift substantially and described the existing penalty rate as higher than typical credit‑card rates.

Frederick J. Nicely, senior tax counsel with the Council on State Taxation, submitted written testimony urging approval and noting that state returns rely on federal returns; COST said the extra month should reduce amended state returns and ease administrative burdens on the Idaho State Tax Commission.

Representative Monks moved to send the bill to the floor with a due‑pass recommendation. Committee members approved the motion by voice vote. The committee did not record a roll‑call tally.

The bill's sponsor, Ehlers, and witnesses emphasized the change is intended to reduce surprises for taxpayers who, because of timing differences between federal and state processes, sometimes lack the information needed to make accurate April payments.

House Bill 92 now moves to the full House for further consideration.