Archive for June 4, 2009

LDR News Release – Alleged identity theft leads to tax fraud arrest

June 4, 2009

BATON ROUGE ‐ A Baton Rouge woman faces a charge related to felony tax fraud after she allegedly committed identity theft in the filing of fraudulent state income tax returns.

Baton Rouge police arrested 25‐year‐old Kathryn Foster, of 1358 North 23rd Street in Baton Rouge, on one count of Filing False Public Records. The arrest was the result of a joint investigation by the Criminal Investigations Division (CID) of the Louisiana Department of Revenue, the East Baton Rouge Parish District Attorneyʹs Office, and Baton Rouge City Police.

Investigators say Foster falsely claimed two individuals as dependents on her Louisiana State Individual Income Tax returns in 2006, 2007, and 2008.

If convicted, Foster faces up to five years in prison, a fine of up to $5,000, or both.
For more information, please contact:

Barry Kelly
Director, Criminal Investigations Division
Louisiana Department of Revenue


Adopted Rule – Income Tax Withholding Tables


Under the authority of R.S. 47:32, R.S. 47:112, R.S. 47:295, and R.S. 47:1511 and in accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et seq., the Department of Revenue, Policy Services Division, amends LAC 61:I.1501 relative to individual income tax withholding tables based on the income tax rates as provided by Act 396 of the 2008 Regular Session of the Louisiana Legislature. Act 396 amended R.S. 47:32 to reduce state income tax rates in the two highest income brackets for tax years beginning on or after January 1, 2009. Act 396 provided that the revised withholding tables will not become effective until after July 1, 2009.

Read LAC 61:I.1501: Income Tax Withholding Tables.


Correction made to minor errors in withholding formula.


Notice of Intent – Electronic Filing of Certain Types of Tax Returns

The Louisiana Department of Revenue proposes a rule requiring electronic filing of certain types of tax returns, beginning with the July, 2009 filing period.

Read Louisiana Administrative Code (LAC) 61:III.1513-1523: Electronic Filing Requirements – Dedicated Funds Distribution


Revenue Information Bulletin 09-011: Natural Gas Severance Tax Rate Effective July 1, 2009

RIB 09-011:

The natural gas severance tax rate effective July 1, 2009, through June 30, 2010, has been set at 33.1 cents per thousand cubic feet (MCF) measured at a base pressure of 15.025 pounds per square inch absolute and at the temperature base of 60 degrees Fahrenheit.

This tax rate is set each year by multiplying the natural gas severance tax base rate of 7 cents per MCF by the “gas base rate adjustment” determined by the Secretary of the Department of Natural Resources in accordance with R.S. 47:633(9)(d)(i). The “gas base rate adjustment” is a fraction, of which the numerator is the average of the New York Mercantile Exchange (NYMEX) Henry Hub settled price on the last trading day for the month, as reported in the Wall Street Journal for the previous 12-month period ending on March 31, and the denominator is the average of the monthly average spot market prices of gas fuels delivered into the pipelines in Louisiana as reported by the Natural Gas Clearing House for the 12-month period ending March 31, 1990 (1.7446 $/MMBTU).

Based on this computation, the Secretary of the Department of Natural Resources has determined the natural gas severance “gas base rate adjustment” for April 1, 2008, through March 31, 2009, to be 472.82 percent. Applying this gas base rate adjustment to the base tax rate of 7 cents per MCF produces a tax rate of 33.1 cents per MCF effective July 1, 2009, through June 30, 2010. The reduced natural gas severance tax rates provided for in R.S. 47:633(9)(b) and (c) remain the same.

Revised reporting forms will be distributed as soon as they are available. Questions concerning the natural gas severance tax rate should be directed to the Taxpayer Services Division, Severance Tax Section at 225-219-7656, Option 3.


Report: 'Tax break delay goes to House'

From The Advocate:

The Senate advanced a controversial measure Wednesday that would generate more money for higher education by delaying a tax break.

The Senate voted 29-9 in favor of sending the legislation to the House, where many lawmakers warn it will be defeated.

Senate Bill 335 by state Sen. Lydia Jackson, D-Shreveport, would freeze the amount of federal excess itemized deductions that state income tax filers can deduct at current levels through 2011. Instead of being able to claim 100 percent, tax filers would only be able to claim 65 percent.

The savings to state government would be $118 million.

Gov. Bobby Jindal is vowing to veto the legislation. Many in the House have said the bill is dead on arrival.