2005 Idaho Code - 63-3046 — PENALTIES AND ADDITIONS TO THE TAX IN CASE OF DEFICIENCY

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3046.  PENALTIES AND ADDITIONS TO THE TAX IN CASE OF DEFICIENCY. (a) If
any part of any deficiency is due to negligence or disregard of rules but
without intent to defraud, five percent (5%) of the total amount of the
deficiency (in addition to such deficiency) shall be assessed, collected and
paid in the same manner as if it were a deficiency.
    (b)  If any part of any deficiency is due to fraud with intent to evade
tax, then fifty percent (50%) of the total amount of the deficiency (in
addition to such deficiency) shall be so assessed, collected and paid.
    (c)  (1) In the event the return required by this chapter is not filed on
    or before the due date (including extensions) of the return, there may be
    collected a penalty of five percent (5%) of the tax due on such returns
    for each month elapsing after the due date (including extensions) of such
    returns until the return is filed.
    (2)  In the event the return required by this chapter is filed but the tax
    shown thereon to be due is not paid, there may be collected a penalty of
    one-half percent (0.5%) of the tax due on such return for each month
    elapsing after the later of the due date of such return or the date the
    return was filed until the tax is paid.
    (d)  (1) If there is a substantial understatement of tax for any taxable
    year, there shall be added to the tax an amount equal to ten percent (10%)
    of the amount of any underpayment attributable to such understatement.
    (2)  For purposes of this subsection, there is a substantial
    understatement of tax for any taxable year if the amount of the
    understatement for the taxable year exceeds the greater of:
         (i)  Ten percent (10%) of the tax required to be shown on the return
         for the taxable year, or
         (ii) Five thousand dollars ($5,000).
    (3)  In the case of a corporation, paragraph (d)(2)(ii) of this section
    shall be applied by substituting ten thousand dollars ($10,000) for five
    thousand dollars ($5,000).
    (4)  For purposes of paragraph (d)(2) of this section, the term
    "understatement" means the excess of:
         (i)  The amount of tax required to be shown on the return for the
         taxable year, over
         (ii) The amount of the tax imposed which is shown on the return.
    (5)  The amount of the understatement under paragraph (4) shall be reduced
    by that portion of the understatement which is attributable to:
         (i)  The tax treatment of any item by the taxpayer if there is or was
         substantial authority for such treatment, or
         (ii) Any item with respect to which the relevant facts affecting the
         item's tax treatment are adequately disclosed in the return or in a
         statement attached to the return.
    (6)  In the case of any item attributable to a tax shelter as defined in
    section 6661 of the Internal Revenue Code:
         (i)  Paragraph (5)(ii) shall not apply, and
         (ii) Paragraph (5)(i) shall not apply unless (in addition to meeting
         the requirements of such paragraph) the taxpayer reasonably believed
         that the tax treatment of such item by the taxpayer was more likely
         than not the proper treatment.
    (7)  The state tax commission may waive all or any part of the addition to
    tax provided by this section on a showing by the taxpayer that there was
    reasonable cause for the understatement (or part thereof) and that the
    taxpayer acted in good faith.
    (e)  (1) Any person who fails to file a statement of payment to another
    person required by this chapter, including the duplicate statement of tax
    withheld on wages, on the date prescribed therefor (including any
    extension of time for filing) shall, be subject to a penalty of two
    dollars ($2.00) for each month or part of a month each statement is not so
    filed, but the total amount imposed on the delinquent person for all such
    failures during any calendar year shall not exceed two thousand dollars
    ($2,000).
    (2)  Any employer required to register under the provisions of section
    63-3035, Idaho Code, who fails to register after receiving written notice
    from the state tax commission of the requirement to register shall be
    subject to a penalty of one hundred dollars ($100) for each month or part
    of a month after the date of the notice during which the failure occurs.
    (3)  The penalties provided in this subsection shall not apply if the
    person shows that the failure to register is due to reasonable cause and
    not to willful neglect.
    (f)  If the penalty to be added to the tax by subsection (a), (b), (c)(1),
(d) or (e) of this section or by section 63-3033, Idaho Code, is less than ten
dollars ($10.00), the penalty to be added to the tax shall be a minimum of ten
dollars ($10.00).
    (g)  Total penalties imposed under subsections (a), (c) and (d) of this
section and under section 63-3033, Idaho Code, shall not exceed twenty-five
percent (25%) of the tax due on the return.
    (h)  A processing charge to be determined and established annually by the
state tax commission shall be collected from any person who draws or delivers
a check, draft or order for the payment of money in complete or partial
satisfaction of the tax imposed by this chapter if that person does not have
sufficient funds in or credit with the bank or depository upon which the
check, draft or order is drawn. Money collected under this subsection shall be
paid to the state tax commission to defer costs of handling such checks,
drafts or orders.