IDAPA 35.01.01.286 — S CORPORATIONS OPERATING WITHIN AND WITHOUT IDAHO (RULE 286)

Sections 63-3027 and 63-3030(a)(4), Idaho Code
01.
In General. An S corporation that operates within and without Idaho must apply the principles of
allocation and apportionment of income set forth in Section 63-3027, Idaho Code, and related rules to determine the
extent of S corporation income that is derived from or related to Idaho sources. The use of a combined report,
however, is available only to C corporations.
(4-6-23)
02.
Information Provided to Shareholders. An S corporation must provide to each shareholder
information necessary for the shareholder to compute his Idaho income tax. Such information must include: (4-6-23)
a.
The shareholder's share of each pass-through item of income and deduction;
(4-6-23)
b.
The shareholder's share of each Idaho addition and subtraction;
(4-6-23)
c.
The shareholder's share of Idaho qualifying contributions, Idaho tax credits, and tax credit
recapture;
(4-6-23)
d.
The shareholder's share of income allocated to Idaho;
(4-6-23)
e.
The S corporation's apportionment factor; and
(4-6-23)
f.
The shareholder's distributive share of S corporation gross income.
(4-6-23)
03.
Protection Under Public Law 86-272. An S corporation whose Idaho business activities fall under
the protection of Public Law 86-272 is exempt from the taxes imposed by Sections 63-3025 and 63-3025A, Idaho
Code, including the minimum tax.
(4-6-23)
04.
Qualified Subchapter S Subsidiary. A corporation that is a qualified subchapter S subsidiary
(QSSS) must include its apportionment attributes with its parent's apportionment attributes to compute one Idaho
apportionment factor for the S corporation. If the S corporation and its qualified subchapter S subsidiaries are
carrying on more than one unitary business, each unitary business must allocate and apportion its income pursuant to
Rule 340.03.
(4-6-23)