How to Fill Out and Submit Idaho Form 967: Filing, Deadlines, and Corrections

Idaho Form 967 is the Annual Withholding Report that reconciles the Idaho income tax you withheld from employees and other payees against the payments you sent to the Idaho State Tax Commission during the calendar year. It is due January 31 of the following year, and starting with tax year 2025 most filers must submit it online through the Tax Commission’s Taxpayer Access Point (TAP).¹

Who Has to File

You owe a Form 967 for the year if either of the following was true at any point during that year:

You had an active Idaho withholding account.
You withheld Idaho income tax.

The first trigger catches businesses that withheld nothing. If your account was open even one day of the reporting year, file a Form 967 with zeros across the board. A zero return keeps the account in good standing and avoids a late-filing penalty.¹

If you have stopped paying wages for good, close the account instead of filing zero returns year after year. You can cancel the withholding permit through TAP when you file your final return, or through the Tax Commission’s Business Taxpayer Self-Service page.²

What to Pull Together Before You Start

Have these on hand:

Your nine-digit Idaho withholding account number (on prior filings or in TAP).
Your federal EIN.
Every W-2 you issued for the year, with Idaho wages in Box 16 and Idaho withholding in Box 17.
Any 1099 forms where you withheld Idaho tax, such as 1099-Rs for pension or annuity distributions.
Your payroll records: gross wages, deductions, and net pay for each run.
A log of every withholding payment you sent to the Tax Commission, with dates and amounts. The Tax Commission publishes a “Record of Idaho Withholding Payments” worksheet for this.¹

Before you touch the form, compare the total Idaho tax withheld on your W-2s and 1099s against the total payments you remitted. If they don’t match, the Tax Commission suggests checking for math errors, verifying payment amounts and dates, confirming you included only Idaho withholding and not federal or another state’s, and looking for W-2c corrections you issued during the year.¹

Filling Out the Twelve Lines

The form is short. Round every amount to the nearest whole dollar (down at 49 cents or less, up at 50 cents or more).³

Line 1: total Idaho taxable wages from all your W-2s.
Line 2: total Idaho tax withheld from all W-2s (Box 17) plus any 1099s with Idaho withholding.
Line 3: total Idaho withholding payments you actually sent to the Tax Commission during the year.
Line 4: Line 2 minus Line 3. A positive number is tax still owed; a negative number is an overpayment.
Line 5: penalty on any balance due (zero if Line 4 is zero or a credit).
Line 6: interest on any balance due (zero if Line 4 is zero or a credit).
Line 7: Lines 4, 5, and 6 added together.
Line 8: number of W-2s you are submitting.
Line 9: number of 1099s with Idaho withholding you are submitting, including any filed through the Combined Federal/State Filing Program.
Line 10: Line 8 plus Line 9.
Line 11: penalty for late W-2s or 1099s, if any (see below).
Line 12: Line 7 plus Line 11. Put the result on Line 12a if you owe or Line 12b if you are due a refund. Fill in one, not both.³

When Line 3 exceeds Line 2, you overpaid during the year, and the instructions direct you to enter the credit amount on Line 12b.³

How to Submit It

Filing Through TAP

TAP is the primary filing channel. If you have only a few W-2s, log in and enter each one by hand. For bulk uploads, you will use an EFW2 file following the Social Security Administration’s Publication 42-007 layout with the Idaho state-specific additions.⁴ To upload:

Log in to TAP.
On the Home page, find your withholding account and click “Upload an EFW2 file” (or “Upload a 1099 file” for 1099 data).
Click “Choose File,” select the correct file type, enter a description, and browse to your file.
Click “Save.”¹

File once. If you upload a bulk file, don’t also key in the W-2s manually or mail paper copies.¹

When E-Filing Is Mandatory

Idaho mirrors the IRS threshold. If the IRS requires you to file information returns electronically (currently 10 or more), Idaho requires the same. Submit on paper when you were supposed to e-file and the Tax Commission will reject the return and treat you as a non-filer, which triggers late-filing penalties.¹

Paper Filing

If you have fewer than 10 information returns and prefer paper, mail the completed Form 967 along with copies of your W-2s and any 1099s with Idaho withholding to:

Idaho State Tax Commission
PO Box 76
Boise, ID 83707-0076¹

Mailed returns must be postmarked by the January 31 deadline.⁵

Deadline, Penalties, and Interest

Form 967 is due January 31 of the year after the calendar year you are reporting. The form covering tax year 2025 is due January 31, 2026. W-2s are also due January 31. If you are submitting 1099s separately rather than through the Combined Federal/State Filing Program, those are due by the last day of February.³

File the return late and the penalty is 5% of the unpaid withholding tax for each month or partial month it is late. File on time but pay late and the penalty drops to 0.5% per month until you pay. The minimum penalty is $10 either way, and the combined penalty cannot exceed 25% of the tax due.⁶

Late W-2s and 1099s carry a separate penalty of $2 per month or partial month for each form, with a $10 minimum and a $2,000 maximum across all late statements in a calendar year. That amount goes on Line 11.⁶

Any unpaid balance accrues interest from the original due date until you pay. The 2026 rate is 6% per year. Interest goes on Line 6.³

Fixing a Return After You File

Discover an error after filing (a wrong withholding amount, a missing W-2, an incorrect Social Security number) and you have to correct it on paper, even if you e-filed originally. Complete a new Form 967 with the right numbers, check the “Amended” box, attach any corrected W-2s (on federal Form W-2c) and 1099s with Idaho withholding, and mail everything to:

Idaho State Tax Commission
PO Box 76
Boise, ID 83707-0076⁴

If you need a copy of the original Form 967 to prepare the correction, or a file-layout problem caused every W-2 in your upload to report incorrectly, call the Tax Commission at (208) 334-7660 in the Boise area or (800) 972-7660 toll-free.⁴

How Long to Keep the Records

Hold on to your payroll records, withholding payment records, copies of W-2s and 1099s, and the filed Form 967 for at least four years. That matches both the Tax Commission’s requirement and the IRS minimum for employment tax records. Records tied to 2021 qualified sick leave, family leave, or employee retention credit claims have a six-year IRS retention requirement.⁷

1
Idaho State Tax Commission. Filing Form 967
2
Idaho State Tax Commission. Business Taxpayer Self-Service
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Idaho State Tax Commission. Form 967 — Instructions Annual Withholding Report
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Idaho State Tax Commission. W-2 E-Filing Guide
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Idaho State Tax Commission. Employers Can E-File 967 Forms Today
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Idaho State Legislature. Idaho Code 63-3046 – Penalties and Additions
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Idaho State Tax Commission. Withholding Recordkeeping