2014 Louisiana Tax Amnesty Program to deliver $142 million to the State

BATON ROUGE – The 2014 Tax Amnesty Program has processed more than 41,000 applications and settlements, which is projected to deliver more than $142 million for the Amnesty Fund, the Louisiana Department of Revenue (LDR) announced Thursday.

“I was pleased with the response that we received from taxpayers fulfilling their obligations to the state during this year’s Amnesty period,” said Secretary of Revenue Tim Barfield. “In the coming weeks, we will continue to process applications that were submitted by the deadline, and we expect some additional upside as the mail comes in.”

In total, the Department is projecting over $169 million in Amnesty collections, of which $142 million will go into the Amnesty Fund and, as provided under the Amnesty statute, $27 million will be retained by LDR to pay an estimated $4 million of expenses for administering this year’s Amnesty Program and provide $23 million of self-generated funds to replace penalties and fees waived. Of the $169 million, the Department has received $136 million in payments, is awaiting receipt of $10 million relating to settlement payments mailed prior to the deadline, and projects $23 million through installment payments to be made by May 1, 2015.

“The increase in amnesty funds is welcome news for the state budget as we work to create a plan to eliminate the shortfall created by declining oil prices,” said Commissioner of Administration Kristy Nichols. “Some of these payments may be used to reduce the impact of expenditure cuts on state agencies and taxpayers.”

Of the $169 million collected, approximately $112 million relate to resolutions of audit and litigation cases, which generally are contested matters involving businesses, and $57 million relate to delinquent tax collections which generally involve individuals and small businesses.

The 2014 Tax Amnesty Program gave eligible taxpayers the chance to bring their accounts up to date by paying all taxes due, with a waiver of all penalties and 50 percent of the interest.

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Louisiana Tax Amnesty 2014 ends today

BATON ROUGE – In the remaining available hours, the Louisiana Department of Revenue encourages individuals and businesses who have fallen behind on their taxes to take advantage of Louisiana Tax Amnesty 2014 before it expires.

“This amnesty period should be very attractive to those behind on their taxes.” Secretary of Revenue Tim Barfield said. “Not only are we waiving applicable penalties and 50 percent of accrued interest, we are also providing a payment plan option. We encourage individuals to apply before it’s too late.”

Also, for taxpayers involved in audit and litigation discussions who haven’t had a chance to resolve their disputed matters, they can take advantage of amnesty by paying the undisputed portion (“compromise amount”) of their assessments by today’s amnesty deadline. Within 30 days from the end of amnesty, the Secretary will determine if amnesty is granted for the compromise amount paid.

“Under the Secretary’s direction, the agency will consider if the compromise amount paid, reflects serious doubt as to: (1) the taxpayer’s liability for the judgment or assessment; (2) the collectability of the entire amount in dispute; or, (3) whether the administration and collection costs involved would exceed the amount of the dispute, judgment or assessment.” said, Shone Pierre, LDR General Counsel.

For delinquent taxpayers, the 2014 tax amnesty program also offers the opportunity for eligible taxpayers to pay their overdue taxes in installments over a six-month period. Installment agreements require a down payment of at least 20 percent of the amount owed, with final payment due no later than May 1, 2015.

The 30-day tax amnesty program ends at 11:59 p.m. on Friday, Nov. 14, 2014. Louisiana Tax Amnesty 2014 gives delinquent taxpayers and non-filers the opportunity to bring their accounts up to date. The Louisiana Department of Revenue will waive all applicable penalties, along with 50 percent of accrued interest, when taxpayers pay 100 percent of their tax balance and the remaining 50 percent of the interest.

Taxpayers can apply for amnesty online at www.ldrtaxamnesty.com. An application can be completed in approximately five minutes.

There are approximately 450,000 noncompliant tax accounts in Louisiana owing $1.8 billion, according to the Department of Revenue’s records.

Noncompliant taxpayers have a limited amount of time to take advantage of amnesty. For more information, visit www.ldrtaxamnesty.com or call 866-782-9241.

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Louisiana Tax Amnesty 2014 approaches final week

BATON ROUGE – Individuals and businesses who have fallen behind on their taxes have seven days remaining to take advantage of Louisiana Tax Amnesty 2014.

“With only one week left to apply, we are reminding noncompliant taxpayers to take advantage of tax amnesty,” Secretary of Revenue Tim Barfield said. “We encourage anyone who has fallen behind on their taxes to look into the amnesty program before the opportunity ends.”

The 30-day tax amnesty program, which ends at 11:59 p.m. on November 14, 2014, gives delinquent taxpayers and non-filers the opportunity to bring their accounts up to date. The Louisiana Department of Revenue will waive all applicable penalties, along with 50 percent of accrued interest, when taxpayers pay 100 percent of their tax balance.

Taxpayers can apply for amnesty online at www.ldrtaxamnesty.com. An application can be completed in approximately five minutes.

The 2014 tax amnesty program also offers the opportunity for eligible taxpayers to pay their overdue taxes in installments over a six-month period. Installment agreements require a down payment of at least 20 percent of the amount owed, with final payment due no later than May 1, 2015.

There are approximately 450,000 noncompliant tax accounts in Louisiana owing $1.8 billion, according to the Department of Revenue’s records.

Noncompliant taxpayers have a limited amount of time to take advantage of amnesty. According to Act 822 of the 2014 legislative session, after the conclusion of an amnesty period scheduled for 2015, there will be no new amnesty program administered by the Department of Revenue until at least 2025.

For more information, visit www.ldrtaxamnesty.com or call 866-782-9241.

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State offers filing extensions to businesses affected by severe weather

BATON ROUGE – Filing extensions are available on a case-by-case basis to Ouachita Parish businesses affected by severe weather on October 13, 2014, the Louisiana Department of Revenue (LDR) announced Wednesday.

The extensions apply to the following tax filing and remittance dates for the month of October:

Tax Due Date Extension Date
Semi-monthly Withholding Remittance October 15, 2014 November 14, 2014
Alcoholic Beverage Tax Return October 15, 2014 November 14, 2014
Sales Tax Return October 20, 2014 November 14, 2014
911 Service Fee October 20, 2014 November 14, 2014
Statewide Hotel/Motel Sales Tax Return October 20, 2014 November 14, 2014
Hazardous Waste Tax Return October 20, 2014 November 14, 2014
Beer Tax Return October 20, 2014 November 14, 2014
Withholding Returns & Remittances October 31, 2014 November 14, 2014
 To apply for an extension, taxpayers in the affected area must submit to the Department of Revenue a written statement explaining why the return or remittance cannot be submitted on time by attaching it to the tax return or mailing it to:

Louisiana Department of Revenue

Post Office Box 201

Baton Rouge, LA 70821-0201

For more information, call the LDR Customer Service Center at 855-307-3893.

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Louisiana Tax Amnesty 2014 begins, gives delinquent taxpayers a chance to settle up

BATON ROUGE –A one-month amnesty program is underway for individuals and businesses who have fallen behind on their taxes.

Louisiana Tax Amnesty 2014 begins today and continues through 11:59 p.m. on November 14, 2014. During the amnesty program, delinquent taxpayers and non-filers can bring their accounts up to date by paying 100 percent of taxes owed, all applicable fees and 50 percent of applied interest. The Louisiana Department of Revenue will waive the remaining half of the interest along with 100 percent of any penalties.

“This is the perfect opportunity for noncompliant taxpayers to bring their accounts up to date,” Secretary of Revenue Tim Barfield said. “If you’ve fallen behind on your obligations, this is your chance to make it right.”

Taxpayers can apply for amnesty online at www.ldrtaxamnesty.com. An application can be completed in about five minutes.

New this year is the opportunity for eligible taxpayers to pay their overdue taxes in installments over a six-month period. Installment agreements require a down payment of at least 20 percent of the amount owed, with final payment due no later than May 1, 2015.

According to LDR records, there are about 450,000 noncompliant tax accounts in Louisiana owing $1.8 billion.

Noncompliant taxpayers have a limited amount of time to take advantage of amnesty. According to Act 822 of the 2014 legislative session, after the conclusion of an amnesty period scheduled for 2015, there will be no new amnesty program administered by the Department of Revenue until at least 2025.

For more information, visit www.ldrtaxamnesty.com or call 866-782-9241.

#LATaxAmnesty

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Free Online Training – LaWage

Did you know LDR has a training course on how to file W2s, L3s and 1099s electronically with the state? LaWage is the web application to submit these documents electronically.

The LaWage Online Taxpayer Education Course is one of dozens of free training resources available at www.revenue.louisiana.gov/courses. Click the link and scroll to the Business Online Filing Help section of the page

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Countdown to Amnesty

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Tax preparer sentenced to prison for fraud

John Labee

John Labee

BATON ROUGE – A Slidell tax preparer who pled guilty to defrauding his clients and the State of Louisiana will spend three-and-a-half years in prison.

John Labee (Booking Photo) admitted to 6 felony counts of issuing worthless checks to the Louisiana Department of Revenue (LDR). East Baton Rouge Parish District Judge Bonnie Jackson sentenced him on Tuesday, September 23, to 46 months in prison at hard labor, five years of post-release supervised probation, and ordered him to pay restitution to LDR in the amount of $50,000. Failure to pay restitution will result in Labee serving an additional 14 months behind bars.

Labee was arrested in September 2011 on charges that included filing more than 500 fraudulent state individual income tax returns on behalf of clients of Innovative Professional Financial Services, a tax preparation business he operated in Slidell. The returns contained fabricated income tax withholding statements, overstated withholdings, and incorrectly reported tax deductions. In addition, Labee was charged with submitting worthless checks to the Department of Revenue for the payment of his clients’ tax debts.

A joint anti-fraud initiative between the Department of Revenue and the state Attorney General’s Office targets a wide range of felonies including but not limited to computer fraud, mail fraud, filing or maintaining false public records and issuing worthless checks.

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Revenue Ruling 14-001: Qualified Subchapter S Subsidiary Exclusion

The purpose of this Revenue Ruling is to determine whether a domestic corporation, that was incorporated outside of Louisiana, that is a one hundred percent owned subsidiary of a parent corporation may amend Louisiana income tax returns in order to apply the QSub exclusion, provided that the parent corporation files original Louisiana income and franchise tax returns, including all of the income of the QSub in the parent corporations net income.

[…]

Conclusion:

Neither La. R.S. 47:287.732.1 nor RIB 04-003 provide any prohibition against the filing of amended returns in order to claim the QSub exclusion.  In fact, according to RIB 04-003, the QSub exclusion can be “made by simply filing returns” that follow preferred methods.

Click here to read the full text of Revenue Ruling 14-001, including analysis of a hypothetical scenario supporting the conclusion.

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Notice of Intent – Remittance of Tax Under Protest, Suit or Petitions to Recover

The Louisiana Department of Revenue has issued Notice of Intent LAC 61:I:4907 – Remittance of Tax Under Protest, Suit or Petitions to Recover.

The primary purpose of this proposed regulation is to amend LAC 61:I.4907 relative to changes resulting from Act 198 of the 2014 Regular Session of the Louisiana Legislature and to more accurately align the regulation with the provisions of R.S. 47:1576.

Click here to read the full text of Notice of Intent LAC 61:I:4907

 

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