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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