Richards v. Idaho State Tax Commission

SCHROEDER, Justice.

This is an appeal by John and Joy Richards from the district court’s grant of summary judgment in favor of the Idaho State Tax Commission (the Commission). After auditing the Richards’ Idaho tax returns, the Commission issued two notices of deficiency. The Commission concluded that the interest income that the Richards received from a shareholder’s loan made by them to Idaho Forest Industries (IFI) was Idaho source income that should have been included on their income tax returns for 1989 and 1990. The Richards appealed the Commission’s findings to the district court. The…