Internal revenue code, definition

TAXATION – Amends existing law to update the definition of “Internal Revenue Code.”

RS29934 / H0006

This bill relates to income taxes. It is the annual bill to update references to the Internal Revenue Code (IRC). The bill conforms the Idaho income tax code to changes made to the IRC that affect the 2022 tax year. The Idaho income tax code uses federal taxable income as a starting point for both businesses and individuals. Our tax forms use federal adjusted gross income as a starting point. Idaho uses a static conformity to a specific date, currently January 1, 2022. This bill updates Idaho Code section 63-3004, to January 1, 2023. Using federal taxable income as a starting point saves a tremendous amount of duplicate work. The Idaho Legislature can still decide to which items it will conform to. Not conforming at all would cause a lot of extra work and confusion for individuals, businesses, and the tax preparation industry.

The fiscal impact is estimated to be neutral for the 2023 fiscal year. Subsequent years are small amounts of increased revenue from more flexible withdrawal rules.

Bill Text

Statement of Purpose / Fiscal Note

Bill on Idaho Legislature site