2005 Idaho Code - 63-3045 — NOTICE OF REDETERMINATION OR DEFICIENCY -- INTEREST

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3045.  NOTICE OF REDETERMINATION OR DEFICIENCY -- INTEREST.
    (1)  (a) If, in the case of any taxpayer, the state tax commission
    determines that there is a deficiency in respect of the tax imposed by
    this title, the state tax commission shall, immediately upon discovery
    thereof, send notice of such deficiency to the taxpayer by registered or
    certified mail or by other commercial delivery service providing proof of
    delivery, whichever is the most cost efficient. The notice shall be sent
    to the taxpayer's last address known to the state tax commission. The
    notice of deficiency shall be accompanied by an explanation of the
    specific reason for the determination and an explanation of the taxpayer's
    right to appeal. Within sixty-three (63) days after such notice is mailed,
    the taxpayer may, at his option, file a protest in writing with the state
    tax commission and obtain redetermination of the deficiency.
    (b)  If the taxpayer files a protest with the tax commission within the
    period set forth in subsection (1)(a) of this section, and such protest
    does not comply with the rules of the tax commission and is therefore
    inadequate to perfect the taxpayer's right to a redetermination of the
    deficiency determination, then, the tax commission shall notify the
    taxpayer, in the same manner as set forth in subsection (1)(a) of this
    section, of such inadequacies, setting forth in said notice the corrective
    action to be taken by the taxpayer to perfect his protest. The taxpayer
    shall thereafter have twenty-eight (28) days from the date of said notice
    to perfect his protest.
    (c)  No assessment of a deficiency in respect to the tax imposed by this
    chapter, and no distraint or proceedings in court for its collection shall
    be made, begun, or prosecuted until such notice has been mailed to the
    taxpayer, nor until all appeal rights relating to the deficiency have
    become final.
    (2)  Following a protest, the taxpayer has the right to a hearing. The
purpose of the hearing is to discuss the deficiency determination and the
taxpayer's protest with a commissioner or duly authorized representative of
the commission. The meeting shall be held informally and evidence shall be
freely admitted regardless of the rules of evidence.
    (3)  Any hearing conducted under the provisions of this section may be
conducted, in whole or in part, by telephone, television, or other electronic
means, if each participant in the hearing has an opportunity to participate in
the entire proceeding while it is taking place.
    (4)  A taxpayer has the right to be represented by, or be accompanied by,
any person of his choice in any proceeding before the tax commission. If the
taxpayer is not present at a proceeding, the representative of that taxpayer
must be designated in writing by the taxpayer as shall be prescribed in
administrative rules or in any manner acceptable to the tax commission.
    (5)  If the taxpayer does not file a protest with the state tax commission
within the time prescribed in subsection (1)(a) of this section, the
deficiency shall be assessed and shall become due and payable upon notice and
demand from the state tax commission.
    (6)  (a) Interest shall apply to deficiencies in tax and refunds of tax.
    Interest shall not apply to any penalty or to unpaid accrued interest.
    Interest relating to deficiencies or refunds accruing after the original
    due date of the return, but not including extensions of the due date,
    shall be computed on the net of any underpayments and overpayments of a
    tax liability required to be shown as due on the same return.
    (b)  Interest upon any deficiency shall be assessed at the same time as
    the deficiency, shall be due and payable upon notice and demand from the
    state tax commission and shall be collected as a part of the tax at the
    rate per annum determined under the provisions of subsection (6)(c) of
    this section from the date prescribed for the payment of the tax. In the
    event any of the deficiency is reduced by reason of a carryback of a net
    operating loss or a capital loss carryback, such reduction in deficiency
    shall not affect the computation of interest under this subsection for the
    period ending with the last day of the taxable year in which the net
    operating loss or capital loss arises.
    (c)  The rate of interest accruing during any calendar year, or portion
    thereof, upon any deficiency, or payable upon an overpayment or refund
    shall be two percent (2%) plus the rate determined under section 1274(d),
    Internal Revenue Code, by the secretary of the treasury of the United
    States as the midterm federal rate as it applies on September 15 of the
    immediately preceding calendar year rounded to the nearest whole number.
    (7)  When the time provisions contained in this section conflict with the
provisions of section 63-4208, Idaho Code, relating to the assessment of taxes
on illegal possession of controlled substances, the provisions of section
63-4208, Idaho Code, shall prevail.