2005 Idaho Code - 63-3068 — PERIOD OF LIMITATIONS FOR ISSUING A NOTICE OF DEFICIENCY AND COLLECTION OF TAX

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3068.  PERIOD OF LIMITATIONS FOR ISSUING A NOTICE OF DEFICIENCY AND
COLLECTION OF TAX. (a) Except as otherwise provided in this section, a notice
of deficiency, as provided in section 63-3045, Idaho Code, for the tax imposed
in this chapter shall be issued within three (3) years from either the due
date of the return, without regard to extensions, or from the date the return
was filed, whichever is later.
    (b)  If an assessment has been made as provided in this chapter, then such
tax shall be collected either by levy, or by a proceeding brought in court,
within a period of six (6) years from the date of entry of the record of
assessment required by section 63-3044, Idaho Code, of the tax and provided,
further, that this shall not be in derogation of any of the remedies elsewhere
provided in this chapter.
    (c)  In the case of a fraudulent return or a false return with the intent
to evade the tax imposed in this chapter, or a willful attempt in any manner
to defeat or evade the tax imposed in this chapter, a notice of deficiency may
be issued, the tax may be assessed, or a proceeding in court for collection of
such tax may be begun without assessment, at any time.
    (d)  In the case of a failure to file a return, for any reason, a notice
of deficiency may be issued, the tax imposed in this chapter may be assessed,
or a proceeding in court for collection of such tax may be begun without
assessment, at any time.
    (e)  In the case of income received during the lifetime of a decedent, or
by his estate during the period of administration, a notice of deficiency
shall be issued, a claim shall be made, the tax shall be assessed or any
proceeding in court without assessment for the collection of such tax shall be
begun, within twelve (12) months after written request for prompt action is
filed with the state tax commission by the executor, administrator, or other
fiduciary representing the estate of such decedent. This subsection shall not
apply if the return for which the request for prompt action relates has not
been filed with the state tax commission.
    (f)  When Idaho taxable income or tax credits for any taxable year have
been  adjusted as a result of a final federal determination, the period of
limitation for issuing a notice of deficiency shall be reopened and shall not
expire until the later of one (1) year from the date of delivery of the final
federal determination to the state tax commission by the taxpayer, three (3)
years from the due date of the return, without regard to extensions, or three
(3) years from the date the return was filed. For purposes of this subsection
the term "final federal determination" shall mean the final resolution of all
issues which were adjusted by the internal revenue service. When the final
federal determination is submitted, the taxpayer shall also submit copies of
all schedules and written explanations provided by the internal revenue
service. Upon the expiration of the period of limitations as provided in
subsections (a) and (m) of this section, only those specific items of income,
deductions, gains, losses, or credits which were adjusted in the final federal
determination shall be subject to adjustment for purposes of recomputing Idaho
income, deductions, gains, losses, credits, and the effect of such adjustments
on Idaho allocations and apportionments.
    (g)  If an adjustment, which was made within the period of limitations as
provided in this section, affects the amount of tax credit, net operating
loss, or capital loss, claimed in a taxable year other than the tax year in
which the adjustment is made, then adjustments to the credit, net operating
loss, or capital loss claimed in such other tax year may be made and a
resulting notice of deficiency may be issued even though such notice of
deficiency would otherwise be barred under the provisions of this section.
    (h)  Notwithstanding any other provisions of this section, when an amended
Idaho return is filed within the period of limitations as provided in
subsections (a) and (m) of this section, the period of limitations for issuing
a notice of deficiency shall be three (3) years from the date the amended
return was filed. However, upon the expiration of the period of limitations as
provided in subsections (a) and (m) of this section, only those specific items
of income, deductions, gains, losses, or credits, which were adjusted in the
amended Idaho return shall be subject to adjustment for purposes of
recomputing Idaho income, deductions, gains, losses, credits, and the effect
of such adjustments on Idaho allocations and apportionments.
    (i)  If a taxpayer has filed an amended federal return, and no
corresponding Idaho amended return has been filed with the state tax
commission, then the period of limitations for issuing a notice of deficiency
shall be reopened and shall not expire until three (3) years from the date of
delivery to the tax commission by the taxpayer of the amended federal return.
However, upon the expiration of the period of limitations as provided in
subsections (a) and (m) of this section, then only those specific items of
income, deductions, gains, losses, or credits, which were adjusted in the
amended federal return shall be subject to adjustment for purposes of
recomputing Idaho income, deductions, gains, losses, credits, and the effect
of such adjustments on Idaho allocations and apportionments.
    (j)  Notwithstanding any other provisions of this section, a notice of
deficiency, related to items on the return of any pass-through entity, as
defined in this section, which other taxpayers are required by law to report,
shall be issued to such other taxpayers within the later of three (3) years
from the due date of the other taxpayers' return, without regard to
extensions, three (3) years from the date the other taxpayers' returns were
filed, or three (3) years from the date of filing of the pass-through entity's
return. If the pass-through entity files an amended return, notices of
deficiency may be issued to the other taxpayers within three (3) years from
the date the amended return for the pass-through entity was filed with the
state tax commission. If the pass-through entity files an amended return with
the internal revenue service,  or the internal revenue service issues a final
determination to the pass-through entity, then the period of limitations for
issuing a notice of deficiency to the other taxpayers shall be reopened and
shall not expire until three (3) years from the date of delivery to the tax
commission by the pass-through entity of the amended federal return or the
later of one (1) year from the date of delivery to the state tax commission by
the pass-through entity of the final federal determination, three (3) years
from the due date of the pass-through entity's return, without regard to
extensions, or three (3) years from the date the pass-through entity's return
was filed.
    (k)  For purposes of this section, "pass-through entity" means a
partnership, S-corporation, trust, limited liability company or any other
entity whose items of income, deductions, gains, losses and credits must be
reported by other taxpayer(s). For further purposes of this section, the term
"other taxpayer" shall include, by way of unlimiting example, such taxpayers
as partners, shareholders, beneficiaries, joint venturers or investors.
    (l)  In the case of a duplicate return filed under section 63-217(1)(b),
Idaho Code, the limitation under this section shall be the later of one (1)
year from the filing of the duplicate return or the date otherwise applicable
under this section.
    (m)  Prior to the expiration of the time prescribed in this section for
the issuance of a notice of deficiency for the tax imposed in this chapter,
both the state tax commission, its delegate or deputy, and the taxpayer may
consent in writing to extend the period of time within which a notice of
deficiency may be issued. The period so agreed upon may be extended by
subsequent agreements in writing made before the expiration of the period
previously agreed upon. When a pass-through entity extends the period of
limitations in accordance with this subsection, the period of limitations for
the other taxpayers is automatically extended for the same period for the
purpose of issuing a notice of deficiency to the other taxpayers reflecting
the adjustments to the pass-through entity's return.
    (n)  The expiration of the period of limitations as provided in this
section shall be suspended for the time period during which the state tax
commission is prohibited from issuing a notice of deficiency, making the
assessment, or from collecting by levy or a proceeding in court, and for
thirty (30) days thereafter.
    (o)  For the purposes of this section, "return" includes a notice of
deficiency determination issued by the state tax commission when no return was
filed by the taxpayer. Such a return is deemed filed on the date the taxes
determined by the state tax commission are assessed.