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Category Archives: Louisiana Income Tax

Louisiana Tax Deadlines Extended

Leave a comment Posted by on March 27, 2020

COVID 19 Affects Upon All State and Local Taxes:

From March 13, 2020 until at least April 13, 2020, all deadlines under Title 47, Revenue and Taxation of the Louisiana Revised Statutes are suspended. The extension also applies to all legal deadlines, including liberative prescription and peremptive periods applicable to legal proceedings in all courts, administrative agencies, and boards. Proclamation No. JBE 2020-30, 03/16/2020.

The Louisiana Board of Tax Appeals has cancelled all hearings through March 26, 2020 without date and has closed its doors until March 30, though it will likely be amended to April 13, 2020.

State Taxes:

The Louisiana Department of Revenue (LDR) personnel are working remotely since all state offices were closed to public visitors on March 22, 2020 until April 13, 2020. JBE-2020-33. Taxpayers are encouraged to use their LaTAP accounts and LDR email hotlines for inquiries. www. Revenue.Louisiana.com. E-Services are available at https://revenue.louisiana.gov/EServices.

Income Tax:

LDR has administratively and automatically extended the following deadlines for reporting and paying income taxes until July 15, 2020. LDR RIB 2020-009. No requests for extension are required.

Fiscal year filers with deadlines between March 1 and May 30, 2020 are automatically granted an extension of 60 days. Additional extensions may be granted upon request to extend the deadline to November 15, 2020 for individual, fiduciary, and partnership returns and to December 15, 2020 for corporate.

State Sales Taxes, and
Excise Tax

The March 20, 2020 deadline to report and pay February 2020 sales taxes and excise tax (wine shipped direct to consumer and beer) was extended to May 20, 2020. The extension will not incur penalty or interest and requests for extension are not required. LDR RIB 20-008.

State Refunds, Audits, Assessments, Collections and Litigation:

From March 16, 2020 until at least April 13, 2020, deadlines to respond to audit inquiries, assessments, or litigation discovery are suspended. LDR RIB 20-008. Not specifically mentioned is the deadline to claim a refund of a tax overpayment, which is also suspended by JBE- 2020-30. LDR advises that it will cease any collection activity, but interest and penalties will continue to accrue on those amounts.

Wage and Unemployment Tax

Louisiana Workforce Commission announced on March 19 and 24, 2020 that it administratively extended the first quarter reports and payment for unemployment and wage tax deadline to June 30, 2020. http://www.laworks.net/PublicRelations/COVID_19_Information.asp.

Local Taxes:

Sales Taxes

All Parish February 2020 taxes are not due until at least April 13, 2020. JBE 2020-30. Because each Parish has its own collector, each one may administratively extend their own deadlines. Most Parishes allow sales tax account applications at www.loata.org and parish taxes may be reported and paid centrally through https://parishe-file.revenue. louisiana.gov/.

Orleans Parish has extended deadlines to May 20, 2020 to report and pay taxes without penalty or interest for December 2019, January 2020, February 2020, and March 2020 taxes. This might include occupational license tax due January 1, 2020.

East Baton Rouge Parish Mayor-President Broome signed an executive order on March 17, 2020 that extends the March 20, 2020 and April 20, 2020 returns for 30 days. The new deadline to timely report and pay tax is April 20, 2020 for February taxes and May 20, 2020 for March taxes.

Property taxes

The April 1, 2020 deadline to file LAT-5 (business personal property renditions) and the annual report due by public service companies is extended until April 13,2020. JBE 2020-30.

The Louisiana Tax Commission has continued without date all hearings until at least April 13, 2020. It will however continue its work on change order requests, tax sale cancellations, and similar matters while its personnel work remotely. LTC Advisory 02-2020. https://www.latax.state.la.us/FrontPageDocuments/LTC%20Advisory%20re%20COVID-19.pdf

 

 

 

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Louisiana Income Tax, Louisiana Local Sales Taxes, Louisiana State Sales Taxes, Property Tax, Tax Refund, Uncategorized

Taxpayers take Round Two!

Leave a comment Posted by on December 23, 2014

boxing glovesThe Louisiana Department of Revenue has lost round two in its fight against the refundable $3,000 income tax credit for the purchase of flex fuel vehicles (FFV).  Judge Scott Gardner ruled for the taxpayers on December 22, 2014 at the 22nd JDC, affirming the decision granting the La. R.S. 47:6035 credit to FFVs in Bolotte v. LDR, 8007 (Bd. Tax App., May 14, 2014).  While we wait for this lead case to complete its appeal process, anyone purchasing a FFV in 2010 has until December 31, 2014 to amend their 2010 tax return to claim the credit.  2011 purchasers have until December 31, 2013 to amend.

Alternative Fuel Vehicles, Louisiana Income Tax ,

Louisiana Tax Amnesty 2014

Leave a comment Posted by on August 28, 2014

It’s back, and better than ever.  Louisiana will waive penalties and half of interest if you qualify for tax amnesty during October 15, 2014 through November 14, 2014.  This year even permits installment agreements.  You should consult your SALT advisor to be sure it is right for you.

More information was provided by LDR at RIB 14-017.

 

Louisiana Income Tax, Louisiana State Sales Taxes

Taxpayer’s Right to Claim Refund Held Open By Collector’s Suit

Leave a comment Posted by on June 21, 2014

Ordinarily, claims for additional taxes or for a refund of taxes paid prescribe within 3 years from the year in which the taxes were due. It is not uncommon, however, for tax collectors and taxpayers to agree, during the course of an audit, to suspend the running of prescription as to potential claims by both parties in order to give them additional time within which to resolve their differences. In a matter handled by our State and Local Tax (SALT) group, the Louisiana Board of Tax Appeals was called upon to review an agreement to suspend prescription and has now rendered a decision which may be of benefit to any taxpayer currently litigating its tax liability.

The taxpayer was audited for corporate income taxes for numerous years. During the audit, the parties executed several of the Department’s stock agreement to suspend the running of prescription. The first agreement was executed in the year the first audit period would have prescribed. Subsequent agreements would include the years included in the prior agreements and any year about to prescribe.

Under the terms of the agreement prescription was suspended as to the claims of both parties until December 31 of the year after the year of execution. The last agreement extended the period of suspension until December 31, 2008. In December of 2008, the Department filed suit against the taxpayer for additional taxes.

While preparing for trial, the taxpayer discovered that its gain on the sale of an asset had been overstated. Under Louisiana law this overpayment could not be raised as a defense in the Department’s suit against the taxpayer. Rather, the only way the overpayment could be recovered was by filing a refund claim. After the trial court’s decision (which abated the assessment) but before it became final, the taxpayer filed its claim with the Department.

The Department failed to act on the claim within a year of its filing, so the taxpayer filed suit at the BTA asking that the Department be ordered to refund the amount claimed. The Department filed an exception of prescription. It was the Department’s position that, under the terms of the agreement, the taxpayer’s claim had to be filed no later than December 31st of 2008. Since the claim wasn’t filed until 2012 it was, according to the Department, untimely. The BTA disagreed.

Ordinarily, the filing of suit by the Department against a taxpayer does not extend the time within which a claim for refund must be filed., The BTA found, however, that under the agreement, the taxpayer agreed to never plead prescription if suit was filed prior to December 31, 2008 and the Department agreed that the period of prescription for claiming a refund was “extended in accordance with the terms of the agreement.” The BTA ruled that what was good for the goose was good for the gander and since the filing of the Department’s suit had interrupted prescription as to its right to seek additional taxes, so too did it interrupt prescription as to the taxpayer’s refund claim.

One can expect the Department to try and effectively overrule this decision by rewriting the agreement to make it more one sided in the goose’s favor. Until then, a taxpayer who is defending a suit filed by a tax collector may have an unexpected opportunity for a refund.

If you have questions please contact one of our attorneys in the Breazeale, Sachse & Wilson, L.L.P. state and local tax controversy team.

Louisiana Income Tax, Louisiana Income Tax Credit, Louisiana Local Sales Taxes, Louisiana State Sales Taxes

Louisiana Flex Fuel Credit Allowed at Board of Tax Appeals

Leave a comment Posted by on May 27, 2014

On May 14, 2014, the Board of Tax Appeals granted the first flex fuel credit in that matter Bolotte v. LDR, BTA #8007. The decision essentially states that because LDR interpreted La. R.S. 47:6035 as including flex fuel vehicles and that law did not change until July 2013, which was to specifically remove the flex fuel vehicle from qualifying, the credit must be allowed until the July 2013 amendement. One of the 3 board members dissented on the grounds that he does not think the flex fuel vehicle ever qualified for the credit and his opinion generally includes a concern about the overall cost of the credit to the state.

It is certain that the state will appeal.

Should the matter be fully resolved in favor of the taxpayers, those individuals with pending claims will be entitled to their refund.  For those persons that purchases a flex fuel vehicle from 2010 through July 2013, your right to amend your tax return to claim the credit is still available.  LDR will deny it and you would have to appeal within 60 days of the denial in order to preserve your rights.  If you have already claimed your credit and did not appeal the denial, you may file a claim against the state.  Louisiana income tax year 2010 will close on December 31, 2014.

 

Alternative Fuel Vehicles, Louisiana Income Tax, Louisiana Income Tax Credit ,

Sell a Business and Did Not Get La. Capital Gains Tax Exemption?

Leave a comment Posted by on June 24, 2013

If you paid Louisiana individual income tax as a resident or nonresident on the capital gain on the sale of an equity interest in or substantially all of the assets of a pass-through entity (nonpublicly traded corporation, partnership, LLC, or other business entity type), you may qualify for a tax refund.

In 2009, in an effort to stimulate Louisiana business activities, the Louisiana Legislature passed Act 106, effective January 1, 2010, which granted an exemption from individual income tax for the net capital gain on sale of an equity interest or substantially all of the assets of a pass through entity. The exemption is limited to those business entities having a Louisiana commercial domicile. There are several factors considered in determining the commercial domicile, but it can be generally described as the location from which the business is directed or managed. For Louisiana income tax year 2012, $55,004,383 was claimed in tax savings under this exemption.

A similar exemption has been recently struck down in another state because it was found to violate the US Constitution and the court granted the exemption to those taxpayers previously excluded based on the location of commercial domicile.
The Louisiana exemption could also be unconstitutional such that anyone who was precluded from claiming the exemption because the business had a non-Louisiana commercial domicile would be entitled to a refund. Of course to get this refund the statute would have to be challenged in court, which has not yet been done to our knowledge. If you questions about this potential refund, please contact Nicole Gould, one of our attorneys in the Breazeale Sachse & Wilson LLP state and local tax controversy team.

Louisiana Income Tax, Tax Refund ,

Louisiana Tax Reform Proposal

Leave a comment Posted by on March 26, 2013

Cassidy photoDavid Cassidy, Partner

David.Cassidy@bswllp.com

 

 

 

2010 Low Res BW NFG PhotoCropped

Nicole Gould, Of Counsel

Nicole.Gould@bswllp.com

Louisiana Tax Alert

Tim Barfield , Executive Counsel to the Louisiana Department of Revenue, , provided a draft of Governor Jindal’s tax reform bill to the Louisiana House Ways and Means Committee on March 19, 2019.  The bill is scheduled to be introduced in the Legislative Session which opens April 8.The bill is already receiving opposition from parties ranging from various advocacy groups, local governments, business leagues, and religious leaders so it is unlikely that the bill will make it through in its present form, if it makes it all. (Indeed the opposition to the bill is so strong at this point that there is already talk about the Governor convening a special session to take up tax reform.)  We will update you as changes occur. The purpose of this bulletin is to alert you of the proposed tax changes so that you may anticipate how the bill may affect you and your business.    The proposed changes are to:

  1. Repeal individual income tax which represents a significant portion of the state’s revenue.
  2. Repeal the  corporate income and franchise tax.  This change is presently in HB 178, but the Administration’s version is coming.
  3. Increase the state sales and use tax rate from 4% to 5.88%.
  4. Broaden the state (but not the local) sales and use tax to include services which are not currently taxed., “Service” is defined as “all activities engaged in for other person, natural or juridical, for a fee, retainer, commission, or other monetary charge or consideration, which involve predominantly the performance of a service as distinguished from the selling of property.”
  5. Repeal certain sales and use tax exemptions.

To determine the impact of the Governor’s proposal you should consider every transaction you or your business enter into. If any transaction is not among the exempt transactions set out below then, you will be required to pay or collect and remit tax on those services and transactions.  Under the draft bill, a service is taxable even if that service was not the principal reason for you entering into a transaction.

Proposed Taxable Services:

All Services, unless specifically exempted, are taxable; however the administration has a “target” list of services to be taxed.

 

Mining

 213113+ Support services for other   mining

Transportation

 Transit and ground passenger   transportation services
487 + 488 Scenic and sightseeing   transportation services and support activities for transportation
492 Couriers and messengers   services

Professional   Services

 5412 Accounting, tax preparation,   bookkeeping, and payroll services
5413 Architectural, engineering, and   related services
5414 Specialized design services
541511 Custom computer programming   services
541512 Computer systems design   services
541513 Other computer related   services, including facilities management
54161 Management, scientific, and   technical consulting services
54162+9 Environmental and other   technical consulting services
5417 Scientific research and   development services
Advertising related services
54192 Photographic Services
54194 Veterinary services
54199 All other miscellaneous   professional, scientific, and technical services

Business   Services

 5613 Employment services
5615 Travel arrangement and   reservation services
5611 Office administrative services
5612 Facilities support services
5614 Business support services
5616 Investigation and security   services
5617 Services to buildings and   dwellings
5619 Other support services
562 Waste management and   remediation services

Information

 5152 Cable and other subscription   services
518 Data processing-hosting ISP-web   search portals
519 Other information services

Financial   Services

 52429 Insurance related support   services

Entertainment

 7111 Performing arts
7113 Promotional services for   performing arts and sports and public figures
7115 Independent artists, writers,   and performers
712 Museum, heritage, zoo, and   recreational services

Personal   Services

 8121 Personal care services
8129 Other personal services

Proposed Nontaxable Services:

 

(1)               Services already taxed will not be subject to the state’s 5.88% rate , but will instead to continue to be taxed at the old state rate, 4%, and local sales tax rate.  Therefore, the following are exempt from the additional tax under the proposal:

  1. Furnishing of hotel rooms,
  2. Sale of admissions to certain events,
  3. Furnishing parking facilities,
  4. Certain printing services,
  5. The furnishing of cleaning or storage services for clothes, furs, rugs, and the like,
  6. Furnishing of cold storage, and,
  7. Repairing tangible personal property:

(2)               Services performed by an employee for his employer are not taxable.

(3)               Services performed directly for the state, a political subdivision of the state, the United States government, or the agencies of the United States government are not taxable.

(4)               Purchases and resales of advertising time or space from media outlets.

(5)               The following services enumerated in the North American Industrial Classification System, 2007, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President shall be exempt from the tax levied and imposed by this Chapter:

(a)    Industry 23112 Support Activities for Oil and Gas Operations.

(b)   Sector 22 Utilities.

(c)    Sector 23 Construction.

(d)   Subsector 481 Air Transportation.

(e)    Subsector 482 Rail Transportation.

(f)    Subsector 483 Water Transportation.

(g)   Subsector 484 Truck Transportation.

(h)   Subsector 486 Pipeline Transportation.

(i)     Subsector 491 Postal Service.

(j)     Industry 51913 Internet Publishing and Broadcasting and Web Search Portals.

(k)   Sector 52 Finance and Insurance, except Industry Group 5242 Agencies, Brokerages and Other Insurance Related Activities.

(l)     Subsector 531 Real Estate, except Industry 53113 Lessors of Miniwarehouses and Self-Storage Units and Industry 531130 Lessors of Miniwarehouses and Self-Storage Units.

(m) Industry Group 5411 Legal Services.

(n)   Sector 55 Management of Companies and Enterprises.

(o)   Sector 61 Educational Services.

(p)   Sector 62 Health Care and Social Assistance.

(q)   Industry Group 8122 Death Care Services.

(r)     Industry Group 8131 Religious Organizations.

(s)    Industry Group 8132 Grantmaking and Giving Services.

(t)     Industry Group 8133 Social Advocacy Organizations.

(u)   Industry Group 8134 Civic and Social Organizations.

(v)   Industry Group 8139 Business, Professional, Labor, Political, and Similar Organizations.

Louisiana Income Tax, Louisiana State Sales Taxes

IRS Makes A Quaint Review: Taxable and Nontaxable Income

Leave a comment Posted by on February 18, 2013

Taxable and Nontaxable Income.

IRS Tax Tip 2013-12, February 12, 2013

Most types of income are taxable, but some are not. Income can include money, property or services that you receive. Here are some examples of income that are usually not taxable:

  • Child support payments;
  • Gifts, bequests and inheritances;
  • Welfare benefits;
  • Damage awards for physical injury or sickness;
  • Cash rebates from a dealer or manufacturer for an item you buy; and
  • Reimbursements for qualified adoption expenses.

Some income is not taxable except under certain conditions. Examples include:

  • Life insurance proceeds paid to you because of an insured person’s death are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
  • Income you get from a qualified scholarship is normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts used for room and board are taxable.

All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering – the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return.

If you received a refund, credit or offset of state or local income taxes in 2012, you may be required to report this amount. If you did not receive a 2012 Form 1099-G, check with the government agency that made the payments to you. That agency may have made the form available only in an electronic format. You will need to get instructions from the agency to retrieve this document. Report any taxable refund you received even if you did not receive Form 1099-G.

For more information and examples, see Publication 525, Taxable and Nontaxable Income. The booklet is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Federal Tax, Louisiana Income Tax ,

Withholding Tax Payment Schedule Restates Existing Law For Simplicity

Leave a comment Posted by on January 23, 2013

RULE
Department of Revenue
Policy Services Division

IncomeWithholding TaxPayment (LAC 61:I.1516)

Under the authority of R.S.47:1511, R.S.47:1519, and R.S.47:114 and in accordance with the provisions of the Administrative Procedure Act, R.S.49:950 et seq., the Department of Revenue, Policy Services Division, adopts LAC 61.I.1516.

Pursuant to Act 107 of the 2012 Regular Legislative Session relative to Returns and Payment of tax, this Rule provides for payment and due dates for payment of tax by every employer or person who deducts and withholds any amount from any wage as required by Louisiana law.

Title 61  REVENUE AND TAXATION
Part I. Taxes Collected and Administered by the Secretary of Revenue, Chapter 15. Income

Withholding Tax

§1516. Payment

A. All employers or persons who deduct and withhold any amount from any wage pursuant to R.S. 47:114 shall remit payment on a quarterly basis.

B. The due dates for quarterly payments are:

1. first quarterApril 30;

2. second quarterJuly 31;

3. third quarterOctober 31;

4. fourth quarterJanuary 31.

C. Exceptions

1. When the amount deducted or withheld within any calendar month from the combined wages of all employees is an amount equal to or greater than $500.00 but less than $5,000, the taxes withheld shall be paid monthly. Payment is due on the last day of the month following the close of the monthly period.

2. When the amount deducted or withheld within any calendar month from the combined wages of all employees is an amount equal to or greater than $5,000, the taxes withheld shall be paid semimonthly. For wages paid during the first 15 days of a calendar month, the due date is the last calendar day of that month. For wages paid between the sixteenth day and the last day of a calendar month, the due date is the fifteenth day of the following month.

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:114, R.S. 47:1511, R.S. 47:1519, and R.S. 47:1520.

HISTORICAL NOTE: Promulgated by the Louisiana Department of Revenue, Policy Services Division, LR 39:000 (January 2013).

Tim Barfield
Executive Counsel

§1520. Withholding by Professional Athletic Teams

A. – C. …

D. Due Date of Withholding Return and Payment. A withholding payment must be submitted for each game played in Louisiana. The payment must be submitted on or before the last day of the month following the month in which the game was played. A withholding return must be submitted for each quarter in which a game was played in Louisiana to reconcile all payments made within that quarter. The withholding return must be submitted quarterly on or before the last day of the month following the quarter in which the game was played.

E. – F. …

AUTHORITY NOTE: Adopted in accordance with R.S. 39:100.1, R.S. 47:164(D), R.S. 47:295, R.S. 47:1511, R.S. 47: 114 and R.S. 47:1602.1.

HISTORICAL NOTE: Promulgated by the Department of Revenue, Policy Services Division, LR 30:91 (January 2004), amended LR 39:000 (January 2013).

Tim Barfield
Executive Counsel

 

Louisiana Income Tax

Louisiana to Repeal Income Tax? LDR Tax Facts January 2013 Building A Case For It.

Leave a comment Posted by on January 17, 2013

http://taxtopics.revenue.louisiana.gov/2013/01/17/know-the-facts-sales-taxes-income-taxes/

Know the Facts: Sales Taxes & Income Taxes

January 17, 2013 at 10:59 am · Filed under LDR News Release · Tagged , , , , ,

BATON ROUGE – With news outlets continuing to report on the Governor’s goal of eliminating personal and corporate income taxes, some comparisons have been made between the sales tax and the income tax, and what it means for individuals and the state. Here are some facts and figures to keep in mind: 

1. Sales tax is a MORE STABLE form of revenue compared to the personal income tax. According to the Louisiana Revenue Estimating Conference (REC) and the Louisiana Department of Revenue (LDR), sales tax collections have historically been MORE STABLE than personal income tax collections.  (REC Historical Data; LDR Annual Reports). Additionally, according to R. Alison Felix, who authored “The Growth and Volatility of State Tax Revenue Sources in the Tenth District,” state sales taxes have proven to be a more stable source of revenue for year-to-year budgetary expenditures.”

2. Over a 30-year period, the nonpartisan Tax Foundation used 26 different economic studies to determine sales taxes were MORE BENEFICIAL for economic growth than both personal and corporate income tax. (Tax Foundation Special Report No. 207 December 18, 2012)

3. Eliminating personal income tax will create a business climate that encourages MORE BUSINESS INVESTMENT and MORE JOBS. According to the nonpartisan Tax Policy Center, America’s economy would steadily grow by “0.6 percent larger than otherwise after two years; 1.8 percent larger after ten years; and 3.6 percent larger in the very long run” if the nation switched to a tax system that relied on sales tax, not income tax. (Tax Policy Center)

4. Sales tax grows with the economy. When compared to other sources of revenue, sales tax is relatively stable during economic downturns resulting in more revenue as the need arises.

5. Governor Jindal’s proposal will KEEP the Constitutional protections for the exemptions of food for home consumption, prescription medicine, and residential utilities. These exemptions result in the average individual or family with income under $30,000 per year having almost half of their annual purchases exempt from state sales tax. These progressive provisions lessen the impact of the sales tax on lower income individuals and families.

6. In order to offset unfair impacts to low income groups, Governor Jindal’s proposal will set aside funding to operate an Earned Income Tax Credit or a similar mechanism.

Louisiana Income Tax, Louisiana Local Sales Taxes, Louisiana State Sales Taxes

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