May 30, 2014
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A taxpayer who purchased a new FFV between 2010 and July 1, 2013, may claim the La. alternative fuel vehicle income tax credit (10% of the purchase price up to $3,000) through an amended Louisiana income tax return. The right to claim a refund for income tax year 2010 will prescribe on December 31, 2014, 2011 in 2015, and so on.
When LDR denies the refund claim (or disallows the credit taken), the taxpayer should promptly file a petition for review with the Louisiana Board of Tax Appeals, as the right to do so prescribes in 60 days from the denial. The petition is very simple and should not have a filing fee. You can see the instructions for filing same at the Board’s website. Taxpayers may be represented at the BTA by a lawyer, a CPA or by themselves. Because the FFV tax credit issue is still working its way through appeal, the newly filed BTA appeals should simply sit and wait.
If a taxpayer failed to appeal the LDR appeal timely, s/he may still file a claim against the state with the Board of Tax Appeals, which has the same prescriptive period as claiming the refund itself. For example, a person making a 2012 claim for the FFV credit for a 2010 FFV purchase was more than likely denied in March 2013. If it wasn’t appealed within 60 days, the taxpayer cannot appeal the denial now but must instead file a claim against the state for the credit. The Board has provided instructions for this on it website as well. The biggest difference between this action and one appealing a refund denial is that a refund will be promptly paid by LDR but a claim against the state must be paid by way of appropriation by the legislature.
If you have any questions, do not hesitate to call us. While some taxpayers have the time and ability to handle such a matter on their own, we are presently representing a group of clients who prefer to have representation through the process.