BSW Tax Blog

Federal and Louisiana Taxes

Category Archives: Uncategorized

Louisiana Taxpayers Get Deadline Relief Due to Hurricane Isaac

Leave a comment Posted by on September 12, 2012

Revenue Information Bulletin No. 12-029

September 12, 2012

Tax Relief to Individuals and Businesses Affected by Hurricane Isaac Return Filing and Tax Payment Deadlines Extended

Uncategorized

Keep the Child and Dependent Care Tax Credit in Mind for Summer Planning

Leave a comment Posted by on July 11, 2012

Keep the Child and Dependent Care Tax Credit in Mind for Summer Planning.

Keep the Child and Dependent Care Tax Credit in Mind for Summer Planning
IRS Summertime Tax Tip 2012-01As the calendar moves closer to summer, many parents may be planning the time between school years for their children while they work or look for work. The IRS wants to remind taxpayers that are considering their summer agenda to keep in mind a tax credit that can help them offset some day camp expenses.

The Child and Dependent Care Tax Credit is available for expenses incurred during the summer and throughout the rest of the year. Here are six facts the IRS wants taxpayers to know about the credit:

  1. Children must be under age 13 in order to qualify.
  2. Taxpayers may qualify for the credit, whether the childcare provider is a sitter at home or a daycare facility outside the home.
  3. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.
  4. The credit can be up to 35 percent of qualifying expenses, depending on income.
  5. Expenses for overnight camps or summer school/tutoring do not qualify.
  6. Save receipts and paperwork as a reminder when filing your 2012 tax return. Remember to note the Employee Identification Number (EIN) of the camp as well as its location and the dates attended.

For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Link:

  • IRS Publication 503, Child and Dependent Care Expenses (PDF)
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Federal Tax, Uncategorized

Tax Collector’s Attorney’s Fee in Excess of Statutory 10% of Tax, Interest, and Penalty?

Leave a comment Posted by on May 30, 2012

Nicole F. Gould, M.B.A., J.D.
State and Local Tax Controversy

Of Counsel—Baton Rouge
Phone: 225.381.3165 nicole.gould@bswllp.com

In Livingston Parish School Board, Through its Sales and Use Tax Division v. Highway 43, LLC, et al, 2012-0103 (La. App. 1st Cir., 5/23/2012) the Louisiana First Circuit Court of Appeal has suggested in dicta that the tax collector’s cause of action for reimbursement of attorney’s fees may be in excess of 10% of the tax, penalty and interest.  La. R.S. 47.337.13.1 provides for the tax collector’s reimbursement of attorney’s fees for any collection action of final and due sales taxes in the amount of 10% of the tax, interest and panalty; however, the fees are to be reviewed for reasonableness.  The Louisiana First Circuit Court of Appeal stated that,

“We believe that the attorney fees can be higher or lower than ten percent if that would be reasonable in the instant case.”

However, this is only dicta.  The appellate court made judgment on other issues we are all well-versed in:  the local sales tax collector may proceed in district court for an injuction against the taxpayer’s pursuit of business when the taxes assessed are “due and final”, that any assessed taxes not appealled become “due and final”, and the taxpayer’s failure to file any defense prior to hearing is a bar to asserting any defenses at the hearing.  To read the full opinion, click here:  http://www.la-fcca.org/opiniongrid/opinionpdf/2012%20CA%200103%20Decision%20Appeal.pdf

Louisiana Local Sales Taxes, Uncategorized

Tax Collector's Attorney's Fee in Excess of Statutory 10% of Tax, Interest, and Penalty?

Leave a comment Posted by on May 30, 2012

Nicole F. Gould, M.B.A., J.D.
State and Local Tax Controversy

Of Counsel—Baton Rouge
Phone: 225.381.3165 nicole.gould@bswllp.com

In Livingston Parish School Board, Through its Sales and Use Tax Division v. Highway 43, LLC, et al, 2012-0103 (La. App. 1st Cir., 5/23/2012) the Louisiana First Circuit Court of Appeal has suggested in dicta that the tax collector’s cause of action for reimbursement of attorney’s fees may be in excess of 10% of the tax, penalty and interest.  La. R.S. 47.337.13.1 provides for the tax collector’s reimbursement of attorney’s fees for any collection action of final and due sales taxes in the amount of 10% of the tax, interest and panalty; however, the fees are to be reviewed for reasonableness.  The Louisiana First Circuit Court of Appeal stated that,

“We believe that the attorney fees can be higher or lower than ten percent if that would be reasonable in the instant case.”

However, this is only dicta.  The appellate court made judgment on other issues we are all well-versed in:  the local sales tax collector may proceed in district court for an injuction against the taxpayer’s pursuit of business when the taxes assessed are “due and final”, that any assessed taxes not appealled become “due and final”, and the taxpayer’s failure to file any defense prior to hearing is a bar to asserting any defenses at the hearing.  To read the full opinion, click here:  http://www.la-fcca.org/opiniongrid/opinionpdf/2012%20CA%200103%20Decision%20Appeal.pdf

Louisiana Local Sales Taxes, Uncategorized

Louisiana Resale Certificate is Now Applied For Annually

Leave a comment Posted by on May 30, 2012

David R. Cassidy, B.A., J.D., M.L.
Corporate Tax

Partner—Baton Rouge
Phone: 225.381.8018 david.cassidy@bswllp.com

The Louisiana Department of Revenue has issued a Revenue Information Bulletin on the renewal of resale certificates by buyers. It must now be done on an annual basis. Although vendors can rely on a certificate up to its expiration date, the RIB also provides a website  for verification.  In order to protect itself from an accusation  of negligence by a tax collector for accepting a resale certificate, a vendor, as part of its standard operating procedure, should verify the validity of a  first time buyer’s  resale certificate when it is initially received and verify continuing customers’ certificates on an annual basis. The fact that the certificate has been verified should be noted on the certificate or in the customer’s file.

The RIB can viewed here:

http://revenue.louisiana.gov/forms/lawspolicies/RIB%2012-027.pdf

Vendors can verify a reseller’s ceritificate here:  http://www.revenue.louisiana.gov/sections/business/resalecertificate.aspx

Louisiana Local Sales Taxes, Louisiana State Sales Taxes, Uncategorized ,

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