Adds to existing law to provide state procedures for certain partnerships to report adjustments to federal taxable income.

This bill relates to income tax. This is to allow Idaho to comply with changes in the Internal Revenue Code that were made as part of the Bipartisan Budget Act of 2015, Public Law 114-74, as amended. Congress created a new efficient method option to avoid the time and expense of auditing large partnerships with 100 or more partners. If the IRS determines that the partnership has calculated their tax liability incorrectly in past years, they notify the partnership of the estimated liability. The partnership is given the option of paying a settlement amount based on that estimate and avoiding the cost and time of conducting the audit. This also saves the partnership the cost and effort of amending the prior year tax returns causing their partners to have to amend their tax returns. Idaho's income tax laws are based on federal taxable income and taxpayers are required to report changes in federaltaxableincome. Thisnewprocedureisn'ttechnicallyachangeinfederaltaxableincomebutnotadopting these changes would leave Idaho with no clear authority to collect the tax liability of large partnerships doing business in Idaho and their resident partners. This bill creates a parallel state option for partnerships to address the state tax liability in the case of a proposed change without the cost and time of the full traditional audit.