December 2012 Tax Update
Here's our December 2012 issue of Tax Update — our newsletter for the business community — presented in HTML format for the first time. We've switched from our former PDF format to bring you more frequent and timely issues than we could in the past.
In continuing efforts to safeguard taxpayer information, the Idaho State Tax Commission is making a change to all preprinted tax returns and payment vouchers that we mail containing a scan line (this is the line of numbers at the bottom of the forms).
Effective Jan. 1, 2013, all Social Security numbers (SSNs) and federal Employer Identification Numbers (EINs) will be replaced in the scan lines with a unique Tax Commission account number. This change will not affect any of your accounts, but will ensure that your SSN or EIN isn't visible on returns or payment vouchers that are mailed from our offices. For more information, call the Tax Commission at (800) 972-7660 toll free or 334-7660 in the Boise area.
Remember to complete all required fields and use the correct:
- Federal Employer Identification Number (EIN) that the IRS issued to you. If you're a service provider, don't use your own EIN; use the EIN issued to your clients.
- State account number — this is a 9-digit number that the Tax Commission issued to you, not the one from the Dept. of Labor or any other agency.
- All copies of your W-2s are legible, and use the correct W-2 for the reporting year.
- To file Form 967 with your W-2s. If filing W-2s electronically, please don't send us a paper copy.
- To enter the full SSN for your employees.
For more help, see the sample W-2 on page 13 of A Guide to Idaho Income Tax Withholding [PDF].
Have you considered sending your payments electronically and avoiding the hassle of mailing them? It's safe, secure, and you receive a confirmation for your records. To sign up for these services on our website, visit tax.idaho.gov/epay and read "Learn about electronic payment options."
With ACH Debit, you can schedule your payment date and authorize the state to take the money from your bank account. You can schedule your payment up to 90 days in advance, and it's free! Go to Taxpayer Access Point (TAP).
With ACH Credit, you tell your bank how much money to send the state to pay your taxes. Although ACH doesn't charge a fee, your financial institution may charge you a fee. You must complete a request to receive our bank payment format.
It's not too late to renew your IFTA license for 2013! You have until the end of February to submit your renewal. First, make sure you've filed all quarterly returns and paid all outstanding taxes and fees. The Idaho State Tax Commission is unable to issue your renewal license or decals if your account has outstanding issues. Renewals can't be completed at the Ports of Entry. To renew your license, you can complete the form online at trucking.idaho.gov, mail in the form with your payment, or fax it to the IFTA desk at (208) 334-7650. Payment can be completed over the phone with a credit card at (208) 334-7806 (there is a 3% bank fee).
The Tax Commission is modernizing its check depositing process by implementing electronic depositing. If you submit payment with physical checks after the first of the year, these paper checks will become electronic cash letters and appear as electronic debits in your bank accounts.
- The Idaho income tax return filing deadline in 2013 is Monday, April 15.
- If you choose to e-file, you must file both your federal and state return electronically and file them at the same time. We list software companies that offer electronic filing of business returns for a fee. These companies charge different fees and offer different levels of services for e-filing federal and state returns. You may want to compare these offers to see which one best serves your needs. Note: The Idaho State Tax Commission neither endorses nor guarantees the work, products, or services of these companies.
- Nonresident individual shareholders and partners can have their tax paid on their entity's return, rather than filing their individual returns. An S corporation is required to pay tax calculated at 7.4% of its Idaho taxable income. If the tax is less than $20, a minimum income tax payment of $20 is required. A partnership only pays an income tax, which is calculated at 7.4% of its Idaho taxable income.
If you've been changed from quarterly to monthly filing, be sure to check the tax periods marked on the top of your sales tax, sales tax-related, or withholding payment voucher. If your annual filing cycle was changed to quarterly, you'll be receiving your returns or vouchers in March.
This year the Tax Commission received nearly 1,600 tax returns with payments we couldn't accept because the returns had the wrong months entered for the tax period. If your business makes this mistake, it can negatively impact your account and possibly generate a Notice of Deficiency. For example, if your monthly sales tax is due January 20, 2013, your tax period should be entered as: From 12-01-2012 to 12-31-2012 on your return. (See sample below.)
- PTE-NROA, Idaho Nonresident Owner Agreement (NEW!)
- Wine Direct Shipper Bond Waiver Request Form (NEW!)
- Form BWA, Idaho Beer and Wine Tax Permit Application (revised)
- Idaho Wine Direct Shipping Requirements (revised)
- Form 55, Idaho Credit for Qualifying New Employees (this form has been updated after it was discontinued for two years)
- Form POA, Idaho State Tax Commission Power of Attorney (revised)
Our agency website will soon have a new look early in the New Year, as it adapts to your lifestyle. The new Tax Commission site will expand and contract, so it will be easy to use on any mobile device, wherever you are. Plus, forms will be easier to find, and the site will be easier to search and navigate, including decisions. We'll also be asking for user feedback on the site. And don't miss out on any Tax Commission news; we're tweeting now! Follow us on Twitter: @idahotax