Archive for December 28, 2009

Department of Revenue issues new RIBs related to corporation income and franchise taxes

The Louisiana Department of Revenue (LDR) has issued Revenue Information Bulletin (RIB) 09-055 explaing changes for obtaining a corporate income and franchise tax filing extension beginning with 2009 tax returns due in 2010.


Beginning with corporation income and franchise tax returns due on or after January 1, 2010, corporate taxpayers who need additional time to file their Louisiana corporation income and franchise tax returns will need to request a specific state filing extension, submit a paper copy of the taxpayer’s Federal Application for Automatic Extension of Time To File, or request an extension via an electronic application. Regardless of which option is used, all extension requests must be made on or before the return’s due date. The return’s due date is April 15th for calendar year filers, and the 15th day of the fourth month following the close of the taxable year for fiscal year filers.

Background

The secretary of revenue is authorized, but not required, to accept an extension of time to file a federal income tax return as an extension of time to file a Louisiana corporation income and franchise tax return. It has been the Louisiana Department of Revenue (LDR) practice in past years to use this authorization to accept federal extensions, with copies of the federal extensions submitted with the Louisiana return. The evolution of technology has allowed the IRS to grant federal extensions electronically, with a notation made to the taxpayer’s IRS account and no paper extension issued to the taxpayer. The increased use of “paperless” federal extensions has made it impossible for taxpayers to attach a copy of the federal extension to their state returns. At the same time, increased use of technology by the LDR has made obtaining a state extension via the Internet possible.

Extension Requests

To obtain a state corporation income and franchise tax filing extension, taxpayers must make the request on or before the tax return’s due date. Extensions may be requested by:

    a. Requesting the extension electronically through the LDR web site;
    b. Submitting an Application for Extension to File Corporation Income and Franchise Tax, Form CIFT-620Ext, available on the Department of Revenue’s web site at: www.revenue.louisiana.gov;
    c. Submitting a paper copy of the IRS Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, Form 7004.

Copies of the state and federal extensions should be mailed to Post Office Box 751, Baton Rouge, LA 70821-0751.

A corporation income and franchise tax filing extension granted by the secretary only allows for an extension of time to file the tax return. The extension does not allow an extension of time to pay the tax due. To avoid interest and penalty assessments, estimated taxes should be paid on or before the original due date.

Questions should be addressed to the Department of Revenue at (225) 219-0067, or (225) 219-7462.

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LDR has also recently issued several other RIBs that may be of interest to corporate income and franchise tax filers and preparers:

RIB 09-054 Minimum Franchise Tax Repealed; $10 Initial Franchise Tax Imposed on New Corporations

RIB 09-046 Changes to the General Credits Provision

RIB 09-044 New Markets Tax Credit Available December 2009

RIB 09-042 Live Performance Income Tax Credit Changes

RIB 09-041 Motion Picture Investor Tax Credit Changes

RIB 09-039 Act 454 Changes to the Digital Interactive Media Tax Credit

RIB 09-038 Historic Rehabilitation Tax Credit Changes

RIB 09-029 Tax Credit for Conversion of Vehicles to Alternative Fuel Usage

RIB 09-027 Act 467 Expands the Wind or Solar Energy Systems Tax Credit

RIB 09-026 Sugarcane Trailer Tax Credit in Effect for 2009 Tax Year

RIB 09-023 Sound Recording Tax Credit Changes

RIB 09-020 Research and Development Tax Credit Changes


A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or on the Departmentof Revenue.

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LDR schedules hearing on proposed changes to taxation of the administration of prescription drugs

The Louisiana Department of Revenue (LDR) has published a notice of its intent to amend LAC 61:I.4401 to provide with respect R.S. 47:305(D)(4)(b).

This statute provides that the administration of prescription drugs used exclusively by the patient in the medical treatment of various diseases or injuries when administered exclusively to the patient by a physician, nurse, or other health care professional in a physician’s office where patients are not regularly kept as bed patients for twenty-four hours or more, shall be a professional service. Although R.S. 47:305(D)(4)(b) applies to both state sales and use taxes and to the sales and use taxes of political subdivisions of the state, this statute providing with respect to the taxation of chemotherapy drugs and the proposed amended rule will primarily affect local sales and use taxation.

The proposed amendments to LAC 61:I.4401 are available on the LDR website using the link provided.

Interested persons may submit data, views, or arguments, in writing to Raymond E. Tangney, Senior Policy Consultant, Policy Services Division, P.O. Box 44098, Baton Rouge, LA 70804-4098 or by fax to (225) 219-2759. All comments must be submitted by 4:30 p.m., Tuesday, January 26, 2010.

A public hearing will be conducted on Wednesday, January 27, 2010, at 2 p.m. at the Department of Revenue Headquarters Building, 617 North Third Street, Baton Rouge, LA.

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Department of Revenue announces 2010 interest rates on tax refunds and assessments

The Louisiana Department of Revenue announces the 2010 interest rates for tax assessments and refunds.

Revenue Information Bulletin (RIB) 10-001 explains the 2010 interest rate on unpaid taxes.

Revenue Information Bulletin (RIB) 10-002 explains the 2010 interest rate on refunds of tax overpayments.


A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or on the Department of Revenue.

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Emergency Rule Concering Prepaid Wireless Service Charge

The Louisiana Department of Revenue (LDR) has adopted an Emergency Rule related to the service charge on sales of prepaid wireless telecommunications authorized by Act 531 of the 2009 Regular Session of the Legislature. The Emergency Rule, LAC 61:I.5401, is available on the LDR website using the link provided.

Retailers must collect the two percent service charge on sales of prepaid wireless service beginning January 1, 2010.  This Emergency Rule shall be effective January 1, 2010, and shall remain in effect until the expiration of the maximum period allowed under the Administrative Procedure Act or the adoption of the final Rule, whichever comes first.

This emergency rule was originally published on October 20, 2009, and was re-published on December 20, 2009, in essentially the same language. The emergency rule was re-published on December 20 in order that the Louisiana Department of Revenue will be in compliance with the requirements of R.S. 49:953(B)(2) that emergency rules be published in the Louisiana Register within 60 days of their proposed effective dates.

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Revenue Information Bulletin 09-056 – Crude Oil and Natural Gas Severance Tax Filing Changes

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 09-056 explaining changes for the filing of oil and natural gas severance taxes.


Beginning with the January 2010 Severance Tax reports, due March 25, 2010, prior period amended credit returns will no longer be allowed to be offset against amounts owed. Instead, credit amounts will be refunded.

Reporting and Adjustments to Prior Periods

Severance taxpayers who file paper returns must file separate detail returns and summaries for each tax period. In addition, changes to prior periods must be reported on separate amended returns for each tax period. Taxpayers who file electronically will report the current month’s detail information separately from amended returns and pay the correct amount of tax due as shown on the current month’s return.

Because prior period credits can no longer be used to offset amounts owed, payment of amounts owed on returns must be made with each return. Credits resulting from changes reported on amended returns will be refunded.

Electronic Filing and Payment

The following forms may be filed electronically:

  • Oil or Gas Severance Tax Return-Lease Detail (Ol-d & G-ld);
  • Incapable/Stripper Well Reports (O-3 & G-3); and,
  • Well Reports for Exempt Wells (O-5 & G-5).

The Severance Parish Summaries (O1-S & G1-S) will be automatically created from the lease detail filings.

Taxpayers who file a return electronically will no longer automatically be mailed paper returns. However, a paper return will be mailed upon request.

Electronic tax payments may be made using existing electronic funds transfer payment methods, or by E-check, which is a new service available through the Department of Revenue’s web site.
Additional information about severance tax forms and instructions can be obtained from the Department’s web site at: www.revenue.louisiana.gov.


A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or on the Department of Revenue.

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