Idaho Tax Commission Modifies Deficiency Notice, Upholds 1099-R, Loss Adjustments

The Idaho Tax Commission has issued a decision modifying a Notice of Deficiency Determination issued to the taxpayer for the relevant tax years. The taxpayers, who were 100 percent owners of an S-Corporation, protested adjustments made by the Intrastate Income Tax Audit Bureau regarding unreported rollover distributions, passthrough business losses, and credits for income taxes paid to other states. The Commission found that the taxpayers were entitled to a credit for taxes paid to Alabama but upheld the Bureau’s adjustments regarding the taxable 1099-R distribution and the disallowance of passthrough business losses from the S-Corporation, as the taxpayers failed to ...