IDAPA 35.01.01.885 — INTEREST ON REFUNDS (RULE 885)

Sections 63-3073 and 63-3045, Idaho Code
01.
Computation. Except as provided in Subsection 885.02, the Tax Commission is to compute
interest on a net refund as follows:
(4-6-23)
a.
Refunds of income tax withheld. The Tax Commission will pay interest on refunds of withholding
if the refund is paid more than sixty (60) days after the due date of the income tax return or the date it was filed,
whichever is later. For purposes of this rule, the refund is considered paid on the date it is postmarked. If a taxpayer
unduly delays the processing of his refund by failing to respond promptly to requests for information or in any other
way, the Tax Commission may deduct time attributable to the delay from the total processing time to determine
whether interest is to be paid and from what date. Unless reasonable cause is established, undue delay occurs if the
taxpayer's delay is more than sixty (60) days. Pursuant to this subsection, interest is computed from the due date, or
extended due date, of the return.
(4-6-23)
b.
Tentative payments. The Tax Commission may not pay interest on a refund resulting from an
estimated or tentative payment.
(4-6-23)
02.
Refunds from Net Operating Loss and Capital Loss Carrybacks. Refunds from net operating
loss and capital loss carrybacks include refunds from credits carried to years other than the year to which the net
operating loss or capital loss deduction applies. Interest on these refunds is computed from the last day of the loss
year.
(4-6-23)