TAXATION – Amends existing law to require the State Tax Commission to provide certain notices to taxpayers regarding the substantiation of deductible expense.

This bill (H 381) changes Idaho tax law to make it easier for taxpayers to prove deductions for expenses paid by credit/debit card or electronic means. It requires the State Tax Commission to send written notice to taxpayers during audits or disputes about such deductions, explaining that their credit card statement or sworn statement about the expense’s purpose is conclusive evidence (unless fraud is proven). The notice must be retained by the Commission as proof it was provided. This directly affects Idaho taxpayers claiming deductions for electronic payments, effective July 1, 2025.