Idaho Tax Commission Finds Taxpayers Had Taxable Pass-Through Income, Didn’t File Individual Income Tax Return

The Idaho State Tax Commission Aug. 14 found that Taxpayers failed to provide substantive documentation to show that the individual income tax returns prepared by the Tax Discovery Bureau were incorrect. Taxpayers were the lone shareholder of an S-Corporation, and the income from this business flowed through to their individual returns. The bureau issued a notice of deficiency determination for tax years 2015 through 2017. Taxpayers disagreed with the bureau’s determination of their income and the lack of deductions allowed for dependents and itemized deductions. The commission noted that: 1) Taxpayers filed their returns for tax years 2015 and 2016, ...