2010 Idaho Code
TITLE 63 REVENUE AND TAXATION
CHAPTER 30 INCOME TAX
63-3022L INDIVIDUALS WHO ARE OFFICERS, DIRECTORS OR OWNERS OF AN INTEREST IN A PASS-THROUGH ENTITY OR BENEFICIARIES OF A TRUST OR ESTATE.

TITLE 63

REVENUE AND TAXATION

CHAPTER 30

INCOME TAX

63-3022L. Individuals who are officers, directors, shareholders, partners or members of a corporation or partnership or beneficiaries of a trust or estate. [effective until january 1, 2011.] (1) Individuals who are officers, directors, shareholders, partners or members of a corporation or partnership transacting business in Idaho or who are beneficiaries of a trust or estate with income taxable in Idaho may elect to have Idaho tax relating to income described in subsection (2) of this section reported and paid by the corporation, partnership, trust or estate. Income subject to the election in this subsection shall be taxed at the rate applicable to corporations. The election shall be made on the return of the corporation, partnership, trust or estate from which the income is received. The election in this section is not available to an individual who has Idaho taxable income in addition to income described in subsection (2) of this section.

(2) The election in subsection (1) of this section applies to:

(a) Wages, salary and other compensation paid by the corporation, partnership, trust or estate to such officers, directors, shareholders, partners, members or beneficiaries to the extent the compensation is Idaho taxable income of the individual to whom it is paid; and

(b) The share of any income, loss, deduction or credit of an S corporation, partnership, trust or estate required to be included on such shareholder’s, partner’s, member’s or beneficiary’s Idaho return.

(c) When the gross income attributable to an individual under paragraphs (a) and (b) of this subsection (2) is less than the filing requirement of the individual under section 63-3030, Idaho Code, the income is not income under this subsection.

(3) If no election is made and an officer, director, shareholder, partner, member, or beneficiary of a corporation, partnership, trust or estate transacting business in Idaho fails to file an Idaho income tax return reporting all or any part of the items described in subsection (2) of this section or fails to pay any tax due thereon, such corporation, partnership, trust or estate shall be liable for tax on such items at the rate applicable to corporations.

(4) The provisions of this section shall not apply to a corporation, other than an S corporation, with less than fifty percent (50%) of its income taxable within this state.

63-3022L. Individuals who are officers, directors or owners of an interest in a pass-through entity or beneficiaries of a trust or estate. [effective january 1, 2011.] (1) Individuals who are officers, directors or owners of an interest in a pass-through entity, as defined in section 63-3006C, Idaho Code, transacting business in Idaho or who are beneficiaries of a trust or estate with income taxable in Idaho may elect to have Idaho tax relating to income described in subsection (2) of this section reported and paid by the pass-through entity. Income subject to the election in this subsection shall be taxed at the rate applicable to corporations. The election in this section is not available to an individual who is an Idaho resident.

(2) The election in subsection (1) of this section applies to:

(a) Wages, salary and other compensation paid by the pass-through entity to such officers, directors, owners of an interest in a pass-through entity or beneficiaries to the extent the compensation is Idaho taxable income of the individual to whom it is paid; and

(b) The share of any income, loss, deduction or credit of a pass-through entity required to be included on such individual's Idaho return.

(3) The election in subsection (1) shall be made at the time and in the manner prescribed in the rules of the state tax commission and once made is irrevocable for the taxable year. A new election may be made each year. The state tax commission may, by rule, provide for continuing elections or for the renewal of elections or both.

(4) If no election is made under subsection (1) of this section, the pass-through entity shall withhold taxes as required in section 63-3036B, Idaho Code.