Idaho Instructions for Form 850 - Idaho Sales and Use Tax

Instructions for Form 850 - Idaho Sales and Use Tax
Form 850 Instructions, Sales and Use Tax 2023
Form 850 — Instructions
Sales and Use Tax Return
General. Returns are due by the 20th of the
month following the reporting period covered.
Each return shows the period covered and the
due date. You must file a signed return for each
filing period even when no tax is due.
Electronic filing. You can file your return,
make changes to your account, and cancel
your permit online at tax.idaho.gov/gototap.
Change in operation/ownership. You must
notify the Tax Commission of any of the
following:
•	 Changes in partners or officers
•	 Restructuring of ownership
•	 Address changes
•	 New or additional locations
Report these changes at tax.idaho.gov/ibr or
by mailing us a completed Form IBR-1, Idaho
Business Registration.
New owner. If you’re a new owner of a
business, don’t file a return addressed to
the former owner. Permits aren’t transferable.
Apply for a new permit at tax.idaho.gov/ibr
or by mailing us a completed Form IBR-1.
Contact us with questions.
Change of mailing address. Check the
“Mailing Address Change” box on your tax
return and provide the new address.
Cancel permit. If this is your last return, check
the “Cancel Permit” box on your tax return and
provide the date the business closed.
Total sales. Report the total sales made within
the reporting period. This includes all cash
and credit sales, even if you haven’t received
payment.
Total sales include all wholesale and retail
sales in any of the following categories:
•	 Sales originating in Idaho with an Idaho
destination
•	 Sales originating in Idaho with an
out-of-state destination
EIN00004

09-28-2023 

•	 Sales originating outside Idaho with an Idaho
destination
•	 Sales of labor and tangible personal property
•	 Barter transactions
Total sales don’t include:
•	 Lodging sales reported for you by
Short-Term Rental Marketplaces
•	 Sales reported for you by Marketplace
Facilitators
Nontaxable sales. Enter the amount of all
nontaxable sales for the period.
Sales that are nontaxable include:
•	 Sales shipped or delivered outside of Idaho
•	 Sales made to exempt entities
•	 Wholesale sales
•	 Repair labor
Items subject to use tax. Idaho imposes a use
tax on the storage, use, or other consumption of
tangible personal property in Idaho that you didn’t
pay sales tax on. Enter the cost of the items you
bought during this period, including items you
withdrew from your resale inventory for use by
your business.
Adjustments. Use this line to claim an
adjustment. You must provide a letter explaining
the adjustments. Adjustments claimed are subject
to approval.
Penalties. You may owe a penalty if you:
•	 File a return by the due date but don’t pay all
of the tax you owe (0.5% of the tax per month
to a maximum of 25%)
•	 Don’t file a tax return by the due date (5% of
the tax per month to a maximum of 25%)
Note: You owe the entire month of penalty
even if your payment or return is only one day
late. The minimum penalty is $10.
Interest. Interest accrues on overdue tax from
the original due date of the return until you pay
the tax.

Page 1 of 2

Form 850 — Instructions

(continued)

Payments $100,000 or more. Idaho law
requires you to use ACH Debit or ACH Credit.

Rates are as follows:
01/01/2024 – 12/31/2024, 6% per year
01/01/2023 – 12/31/2023, 5% per year
01/01/2022 – 12/31/2022, 3% per year
01/01/2021 – 12/31/2021, 2% per year
Payments. We apply payments in this order:
1.	Bad check fees
2.	Interest
3.	Tax
4.	Penalty

Pay by check. Make your check or money
order payable to the Idaho State Tax
Commission and include it with your return.
Mail paper returns and payments to:
Idaho State Tax Commission
PO Box 76
Boise ID 83707-0076

Pay electronically. How you can pay
electronically using one of these options:
•	 ACH Debit
•	 ACH Credit
•	 Credit card
•	 Debit card
•	 E-check
You can access payment options at
tax.idaho.gov/epay.
Note: If you pay electronically and file a paper
return, note at the top of the return which one
you used.

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
EIN00004

09-28-2023 

Page 2 of 2