Idaho Resolves E-File Issue Affecting Some 2025 Business Tax Returns

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The Idaho State Tax Commission has resolved a recent issue that caused some electronically filed 2025 business income tax returns to be rejected. Tax preparers can now resubmit those returns, according to a news release. The problem was limited to certain business e-file submissions and was not related to Idaho's recent tax conformity updates.

Why it matters

This issue impacted businesses in Idaho that were trying to file their 2025 tax returns electronically. The resolution allows those businesses to properly file their returns and avoid any delays or penalties.

The details

The Tax Commission is also reminding residents that 2025 Idaho income tax returns can now be filed using the state's new conformity deductions, including a larger standard deduction, an enhanced deduction for seniors, and deductions tied to tips from wages, car loan interest, and overtime compensation. Businesses will also see adjustments to deductions related to research and experimentation expenses and bonus depreciation.

• The problem was limited to certain 2025 business e-file submissions.
• The issue has now been resolved, and tax preparers can resubmit the previously rejected returns.
• The deadline to file 2025 Idaho income tax returns is Wednesday, April 15.

What’s next

Taxpayers who filed before March 10 can expect refunds by the end of May, while those filing on or after March 10 should expect refunds within normal processing timeframes.