Archive for October 9, 2009

RIB No. 09-028: Sales Tax Exclusion Applies to Sales and Purchases by Nonprofit Carnival Organizations of Mardi Gras “Specialty Items”

The Department of Revenue has issued a Revenue Information Bulletin (RIB) regarding a sales tax exclusion for certain purchases of Mardi Gras specialty items.

Nonprofit Mardi Gras carnival organizations, and other nonprofit organizations domiciled within Louisiana who plan to participate in parades sponsored by such carnival organizations, can be authorized, under the provisions of Louisiana Revised Statutes 47:301(13)(l) and 47:305.40, for state and local sales tax exclusions on purchases and sales of Mardi Gras specialty items.

When a carnival organization’s application is approved by the Louisiana Department of Revenue (LDR), the organization will be excluded from the collection of the sales tax on sales of “specialty items” to its members, and will be further authorized to make tax-free purchases of “specialty items” for resale. Sales of non-“specialty items” are not covered by the exclusion; a carnival organization is required to collect sales tax on its sales of non-“specialty items”.

Read the full text of RIB 09-028 at www.revenue.louisiana.gov.

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IRS: 'Oct. 17 is Last Day for Businesses to Request Tax Credit Certification for Some New Hires'

WASHINGTON ― Businesses planning to claim the recently-expanded work opportunity tax credit for eligible unemployed veterans and disconnected youth hired before mid-September now have until Oct. 17 to request the certification required for these workers, according to the Internal Revenue Service.

In Notice 2009-69, released in August, the IRS extended the certification deadline from Aug. 17, 2009, to Oct. 17, 2009, and clarified the definition of “disconnected youth.” Revised Form 8850 , available on IRS.gov, is used by employers to request certification from their state workforce agency.

The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and certain younger workers, referred to as disconnected youth, to the list of groups covered by the credit.

Normally, a business must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But under a special rule, businesses have until Oct. 17, 2009, to file this form for unemployed veterans and disconnected youth who begin work on or after Jan. 1, 2009 and before Sept. 17, 2009. The instructions for Form 8850 provide details on requesting the certification.

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Your Window of Opportunity is closing: 2009 Louisiana Tax Amnesty Program

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