Archive for September, 2010

LDR News Release: Thousands of Louisiana nonprofits at risk of losing tax-exempt status

BATON ROUGE – Thousands of small Louisiana nonprofit organizations face automatic revocation of their tax-exempt status if they fail to file overdue federal income tax returns before October 15, 2010.

The Internal Revenue Service (IRS) has initiated a one-time relief program under which more than 5,000 Louisiana nonprofits can preserve their tax-exempt status by filing late federal returns that were due in 2007, 2008, and 2009.

“We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” said IRS Commissioner Doug Shulman.  “So if you do not have your filings up to date, now’s the time to take action and get back on track.”

Louisiana-based nonprofits that lose their federal tax-exempt status will also lose their tax-exempt status under Louisiana’s tax code.  They will have to reapply with the IRS to regain their tax-exempt status, and any income received between the revocation date and the renewed exemption may be taxable.

The IRS has set up a special webpage to guide organizations through the process of preserving their status as tax-exempt nonprofits.

The full IRS list of Louisiana organizations at risk of losing their tax-exempt status is available at IRS.gov.

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LDR News Release – Filing Requirements for Partnerships and Sole Proprietorships

BATON ROUGE – Registered limited liability corporations (LLCs) that have elected to file federally as partnerships or sole proprietorships are not required to file Louisiana corporation income tax returns. Partnerships with non-Louisiana resident partners are required to file a partnership income tax return with the Louisiana Department of Revenue. If the LLC has opted to file as a partnership, please disclose the names of the partners.

Only LLCs who have elected to file federally as C-Corps or S-Corps are required to file a Louisiana corporation income tax return.

In no case is an LLC required to file and pay franchise tax.

If an LLC has received a non-filing assessment for a corporation income tax return and no such return is due, the LLC can return the assessment to the Louisiana Department of Revenue with a letter clarifying their federal filing status.

For more information, visit www.revenue.louisiana.gov/generaltax to submit an inquiry.

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‘IRS to Hold Special Open House for Veterans and Persons with Disabilities’

IR-2010-97, Sept. 14, 2010

WASHINGTON — The Internal Revenue Service will host a special nationwide open house on Saturday, Sept. 25 to help taxpayers –– especially veterans and people with disabilities –– solve tax problems and respond to IRS notices.

One hundred offices, at least one in every state, will be open from 9 a.m. to 2 p.m. local time. IRS staff will be available on site or by telephone to help taxpayers work through issues and leave with solutions.

The Shreveport IRS office located at 3007 Knight Street will be open on September 25th from 9 am to 2 pm.

The Baton Rouge IRS office located at 2600 Citiplace Centre will be open on September 25th from 9 am to 2 pm.

The New Orleans IRS office located at 1555 Poydras Street will be open on September 25th from 9 am to 2 pm.

In many locations, the IRS will partner with organizations that serve veterans and the disabled to offer additional help and information to people in these communities. Partner organizations include the National Disability Institute (NDI), Vets First, Department of Veterans Affairs, National Council on Independent Living and the American Legion.

“Taxpayers have tremendous success solving their tax issues at our open houses,” IRS Commissioner Doug Shulman said. “I want to encourage veterans and people with disabilities to come in on Sept. 25. Just like we reached out earlier this year to small businesses and victims of the Gulf Oil Spill, we want to help other taxpayers put their toughest problems behind them.”

IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS open house on June 5, over 6,700 taxpayers sought and received assistance and 96 percent had their issues resolved the same day.

At the Sept. 25 open house, anyone who has a tax question or has received a notice can speak with an IRS employee to get an answer to their question or a clear explanation of what is necessary to satisfy the request. A taxpayer who cannot pay a balance due can find out whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise — an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed — will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.

Taxpayers requiring special services, such as interpretation for the deaf or hard of hearing, should check local listings and call the local IRS Office/Taxpayer Assistance Center ahead of time to schedule an appointment.

The open house on Sept. 25 is the third of three events scheduled after this year’s tax season. Plans are underway for similar events next year. Details will be available at a later date.

Reminder for Small Tax-Exempt Organizations

The IRS also encourages representatives of small tax-exempt charitable community organizations, many of which serve people with disabilities and veterans, to file Form 990-N before the Oct. 15 deadline. Community organizations that fail to file a Form 990-N by this date risk losing their tax exempt status. As of June 30, more than 320,000 organizations were at risk of losing their exempt status.

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