Idaho State Statutes - Idaho Attorney Directory

63-3022L - INDIVIDUALS WHO ARE OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS OR MEMBERS OF A CORPORATION OR PARTNERSHIP OR BENEFICIARIES OF A TRUST OR ESTATE

INDIVIDUALS WHO ARE OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS
OR MEMBERS OF A CORPORATION OR PARTNERSHIP OR BENEFICIARIES OF A TRUST OR
ESTATE. (1) Individuals who are officers, directors, shareholders, partners or
members of a corporation or partnership transacting business in Idaho or who
are beneficiaries of a trust or estate with income taxable in Idaho may elect
to have Idaho tax relating to income described in subsection (2) of this
section reported and paid by the corporation, partnership, trust or estate.
Income subject to the election in this subsection shall be taxed at the rate
applicable to corporations. The election shall be made on the return of the
corporation, partnership, trust or estate from which the income is received.
The election in this section is not available to an individual who has Idaho
taxable income in addition to income described in subsection (2) of this
section.
(2) The election in subsection (1) of this section applies to:
(a) Wages, salary and other compensation paid by the corporation,
partnership, trust or estate to such officers, directors, shareholders,
partners, members or beneficiaries to the extent the compensation is Idaho
taxable income of the individual to whom it is paid; and
(b) The share of any income, loss, deduction or credit of an S
corporation, partnership, trust or estate required to be included on such
shareholder's, partner's, member's or beneficiary's Idaho return.
(c) When the gross income attributable to an individual under paragraphs
(a) and (b) of this subsection (2) is less than the filing requirement of
the individual under section 63-3030, Idaho Code, the income is not income
under this subsection.
(3) If no election is made and an officer, director, shareholder,
partner, member, or beneficiary of a corporation, partnership, trust or estate
transacting business in Idaho fails to file an Idaho income tax return
reporting all or any part of the items described in subsection (2) of this
section or fails to pay any tax due thereon, such corporation, partnership,
trust or estate shall be liable for tax on such items at the rate applicable
to corporations.
(4) The provisions of this section shall not apply to a corporation,
other than an S corporation, with less than fifty percent (50%) of its income
taxable within this state.

Click here to visit the Official Idaho State Statutes