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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Notice of Intent – Income Tax Credits for Solar Energy Systems

The Louisiana Department of Revenue has issued Notice of Intent LAC 61:I:1907 – Income Tax Credits for Solar Energy Systems.

The primary purpose of this proposed regulation is to amend LAC 61:I.1907 to update the income tax regulation relative to changes resulting from Act 428 of the 2013 Regular Session of the Louisiana Legislature.

Click here to read the full text of LAC 61:I:1907.

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LDR Emergency Rule – Louisiana Tax Delinquency Amnesty Act of 2014

The Louisiana Department of Revenue has issued Emergency Rule LAC 61:I:4915 – Louisiana Tax Delinquency Amnesty Act of 2014.

The rule provides guidelines for implementing and administering installment plans for the 2014 Louisiana Tax Delinquency Amnesty Program. The rule is effective October 1, 2014, and remains in effect for the maximum period allowed under the administrative act.

Click here to read the full text of LAC 61:I:4915.

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Tax preparer arrested for fraudulent tax credit claims

BATON ROUGE – A Tallulah woman faces more than 30 felony counts related to a $60,000 tax fraud scheme, the Louisiana Department of Revenue reported Monday.

Investigators say Chetoria Tyler (Booking Photo), of 216 Allen Street in Tallulah, submitted fraudulent income tax returns on behalf of clients of her tax preparation business, TC Enterprises. She is the 33rd person arrested under a joint anti-tax fraud initiative of the Department of Revenue and the state Office of the Attorney GeneraChetoria Tyler - 216 Allen Street, Tallulahl.

Tyler is charged with filing 2012 and 2013 Louisiana Individual Income Tax returns containing false claims for state child care tax credits. Ten of her clients told investigators they did not have any dependents and did not provide Tyler with information claiming they did.

The phony tax credit claims resulted in $61,447 in fraudulent income tax refunds issued to Tyler’s clients. False or inflated tax credit claims are a common technique among unscrupulous tax preparers who promise clients larger tax refunds than they would receive otherwise.

In addition to the false returns filed on behalf of clients, Tyler is charged with failing to report income she earned from her tax preparation work, and with inflating the withholding data on her own state individual income tax return. The Department of Revenue’s Tax Refund Intercept Program (TRIP) blocked $1,767 in fraudulent refunds that Tyler would have received due to the inflated withholding.

Tyler was arrested on Thursday, September 11 and booked into the East Baton Rouge Parish Prison on 15 counts of computer fraud, 15 counts of filing or maintaining false public records and two counts of criminal penalty for evasion of tax.

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