How can I avoid penalties when filing my taxes in Idaho? What to know
Tax Day is nearly here, and some Idaho taxpayers have yet to file their returns.
Procrastinating on your taxes can lead to serious consequences.
You can face penalties for failing to file or pay your taxes on time, according to the Idaho State Tax Commission and Internal Revenue Service.
Here’s what happens if you miss the deadline:
What’s the deadline to file taxes in Idaho?
In Idaho, the deadline to file both state and federal income tax returns for the 2025 tax year is Wednesday, April 15.
Taxpayers who need more time can request a six-month filing extension — but any taxes owed must still be paid by the April deadline to avoid penalties and interest.
This will give you until Oct. 15 to file your federal tax return without facing any penalties, according to the Internal Revenue Service.
What are common reasons for Idaho tax penalties?
According to the Idaho State Tax Commission, you can face a penalty if you:
- Don’t file your tax return on time
- Pay tax due after you file your return
- Don’t have a valid extension and don’t pay tax due by the original due date
- Substantially understate tax due
- Disregard rules without an intent to defraud
- File a false or fraudulent tax return
The minimum penalty you can incur is $10, but fines can quickly escalate, according to the state tax commission.
What happens if my Idaho taxes are overdue?
In Idaho, the penalty for failing to file your tax return on time is 5% interest per month, with a maximum of 25%.
You’ll also be charged 0.5% interest per month from the date you file to the date you pay taxes owed, according to the Idaho State Tax Commission.
Idaho taxpayers can “get an automatic filing extension by making sure they’ve paid enough of their tax by April 15,” the Idaho State Tax Commission said on its website.
To qualify, you need to either pay 80% of the estimated tax you owe for 2025 — or 100% of the total tax reported on your 2024 income tax return.
I have a filing extension. Can I still be penalized?
“Extensions don’t apply to payments,” the Idaho State Tax Commission said. “You must pay in full by the original due date to avoid interest and possible penalties.”
If you file your return before Oct. 15 without sending the remainder of what you owe, you will be charged 0.5% interest per month from the date you file to the date you paid.
If you filed with an extension and didn’t pay until after the extra six months passed, you’ll owe 0.5% per month from the filing date to the payment date, plus an additional 5% per month after Oct. 15.
How much extra do I have to pay for late payments?
If you don’t meet state extension requirements, the fines get higher, the Idaho State Tax Commission said on its website.
The amount you owe will increase by 2% a month from the April 15 deadline until you file and pay.
Waiting until the Oct. 15 deadline passes entirely will result in a maximum 25% penalty charge on taxes due.
What about tax fraud?
“Tax fraud is theft,” the Idaho State Tax Commission, and somes with strict penalties.
If you are caught filing a “false or fraudulent tax return,” you can expect a 50% charge on the accurate amount of taxes due, the Idaho State Tax Commission said.
“The Tax Commission discovers tax crime by routinely analyzing tax returns, conducting tax audits, and through tips from law enforcement, other state agencies and the public,” state officials said in a December news release.
What about federal tax penalties?
According to the IRS, you can owe a federal penalty if you don’t:
- File your tax return on time
- Pay any tax you owe on time and in the right way
- Prepare and file an accurate return
- Provide accurate and timely filed information returns
Filling federal tax returns late results in a penalty of 5% of the tax due, multiplied by 5% per month, the IRS said.
If your return is more than 60 days late, you can be charged up to $525, the federal tax agency said.
The penalty for failing to pay federal taxes is 0.5% of your balance for each month the tax remains unpaid.
“The penalty won’t exceed 25% of your unpaid taxes,” the IRS said
What should I do if I get a penalty notice?
If you receive a penalty notice from the IRS, address it right away to avoid collecting interest on the charge.
Follow these steps:
- Pay the penalty
- Apply for a payment plan
- Provide reasonable cause to remove or reduce a penalty
- Dispute a penalty over the phone or by writing a letter including the notice, what is being disputed and explanation
In Idaho, you can appeal disciplinary action from the tax commission by sending a written protest to the office at any location.
