IDAPA 35.01.01.558 — SALES FACTOR: COSTS OF PERFORMANCE ELECTION FOR COMMUNICATIONS

COMPANIES (RULE 558).
Section 63-3027(15), Idaho Code
01.
Election. A communications company as defined in Section 63-3027(1)(e), Idaho Code, shall
source gross receipts from transactions other than sales of tangible personal property pursuant to Section 63-
3027(13), Idaho Code, and Rules 546, 548, 549, as applicable, unless it elects to source such gross receipts pursuant
to Section 63-3027(15), Idaho Code, and Rule 559. The election is made by attaching a written statement of the
election to the return. The statement must affirmatively state whether (1) all the income-producing activity is
performed in this state, or (2) the income-producing activity is performed both in and outside this state and a greater
proportion of the income producing activity is performed in this state than in any other state, based on costs of
performance. This election may not be changed for a taxable year after the return for that year has been filed. An
election under Section 63-3027(15), Idaho Code, and Rule 559 is independent from any election made pursuant to
Section 63-3027(10)(b), Idaho Code, and Subsection 310.03.
(4-6-23)
02.
Election Binding for Future Years. The election is binding for all years thereafter; a change off
election in future years may only occur with the written permission of the tax commission. A petition to change the
election must include an explanation of the legal or factual basis for requesting the change and a computation of the
taxpayer's Idaho taxable income and tax liability computed using both the prior reporting method and the method the
taxpayer is petitioning to use for the year of change. The written petition requesting the change of reporting method
must be filed with the Tax Commission at least thirty (30) days prior to the due date for filing the tax return. (4-6-23)