Idaho: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Idaho
In Idaho, the State Tax Commission will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Idaho State Tax Commission, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the State Tax Commission, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Idaho
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Idaho sales tax return in the event of underpayment, incorrect reportings, etc. The State Tax Commission cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Idaho is three years from the later of either the return filing date or the tax due date. If no return was filed, it becomes seven years from the return due date.
Appealing to the State Tax Commission in Idaho
If you do not agree with a penalty or decision made by the Idaho State Tax Commission, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Tax Commission within the sixty three days after mailing notice of deficiencyTop
Administrative Sales Tax Appeals in Idaho
In the case of administrative appeal, a petition must be filed with Board of Tax Appeals within ninety-one days from the date in which the notice of redetermination is receivedTop
Judicial Sales Tax Appeals in Idaho
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the District Court within ninety-one days after the notice of redetermination is received. Within twenty eight days, the Board of Tax Appeal's decision is mailed
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