Idaho State Tax Commission

Combined Reporting

Filing returns

Combined reporting contrasted with consolidated returns

For federal purposes, a unitary group may be filing a federal consolidated return. Idaho law doesn't provide for the filing of a consolidated return. Instead, a unitary group must use the combined reporting method. The combined report is often confused with a consolidated return, but they aren't the same.

The combined reporting method doesn't refer to whether the unitary group files one or more returns. If you file a single return for the group, this is called a group return, and discussed in the next section.

Some differences between a combined report and a federal consolidated return include the following:

 Idaho Combined ReportFederal Consolidated Return
Computation of tax liability Each corporation required to file in Idaho computes its own Idaho tax liability, net operating loss, and credits The affiliated group computes a single income tax liability for the group
Who can be included Unitary group – Parent-subsidiary and brother-sister corporation groups Affiliated group – Only parent-subsidiary groups
Common ownership requirement More than 50% 80% or more
Group return

For convenience, Idaho allows a unitary group to file one Idaho "group return" for the entire unitary group. Group returns don't ignore the corporate identities of the individual corporations. Each corporation is considered a taxpayer even though it's part of a unitary group and regardless of whether a group return is filed or each corporation files its own Idaho income tax return.

Idaho returns must include copies of the federal returns and spreadsheets detailing the information identified in the following table:

ItemIf Filing a Group ReturnIf Filing Separate Returns for Each Idaho Filer
  • Federal taxable income detail
  • Intercompany eliminations
  • State adjustments to federal taxable income
  • Income/loss allocated outside Idaho
  • Everwhere property, payroll and sales amounts
Forms 41 and 42 Include total amounts for the combined group – provide by-company spreadsheets for each corporation in the unitary group Same as if filing a group return
  • Income/loss allocated to Idaho
  • Idaho taxable income
  • Idaho income tax
  • Idaho net operating loss deduction
  • Idaho credits earned/allowed
  • Permanent Building Fund tax
  • Total tax due
Form 41 includes total amounts for all Idaho filers – provide spreadsheets for each Idaho filer Form 41 includes amounts only for filing corporation – provide spreadsheets for each filing corporation
  • Idaho property, payroll, and sales amounts
  • Idaho apportionment factor
Form 42 includes total amounts for all Idaho filers – provide spreadsheets for each Idaho filer Form 42 includes amounts only for filing corporation – provide spreadsheets for each filing corporation

Page last updated September 1, 2020. Last full review of page: September 17, 2018.

This information is for general guidance only. Tax laws are complex and change regularly. We can't cover every circumstance in our guides. This guidance may not apply to your situation. Please contact us with any questions. We work to provide current and accurate information. But some information could have technical inaccuracies or typographical errors. If there's a conflict between current tax law and this information, current tax law will govern.