Archive for February 8, 2011

IRS to hold workshops for gulf-coast small and mid-sized tax-exempt organizations

From the IRS:

LA/MS-2011-05

NEW ORLEANS – The Internal Revenue Service will hold three one-day workshops in New Orleans, Louisiana on March 1, 2, and 3 to help small and mid-sized tax-exempt organizations along the Louisiana and Mississippi Gulf Coast comply with their tax obligations and maintain their tax-exempt status. The workshops are designed for board members, officers, volunteers and staff of these organizations and for the tax preparers and stakeholders who work with them.

IRS revenue agents and tax law specialists, experienced with tax-exempt organizations, will lead the workshops which will cover the “nuts and bolts” of tax compliance for exempt organizations. Workshop topics include an in-depth discussion of activities that can jeopardize 501(c)(3) status, unrelated business income, gaming and employment issues. Particular emphasis will be given to explaining the revised Form 990 and 990-EZ annual information returns that tax-exempt organizations submit to the IRS.

The workshops will be held at the Doubletree Hotel New Orleans Airport, 2150 Veterans Memorial Blvd. in Kenner, LA. The workshop cost is $45 per person and includes a handbook and relevant IRS forms and publications.

Pre-registration is required. For more information or to register, visit IRS.gov. Information and registration is also available by calling Events by Design, Inc, IRS’s registration services provider, at 800-521-3980 or 703-579-1496.

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IRS: Gulf Oil Spill Questions and Answers

The IRS has posted an updated list of FAQs regarding the 2010 Gulf of Mexico oil spill.

It is available at IRS.gov.

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LDR News Release – Louisiana tax deduction offers savings on school expenses

BATON ROUGE – Louisiana families can deduct part of the cost of their children’s education when they file their 2010 state income taxes.  The Louisiana School Tuition & Expense Tax Deduction allows an exemption for 50 percent of the cost of eligible expenses, up to $5,000 per student.

The deduction applies to elementary and secondary school tuition, in addition to expenses for uniforms, textbooks, equipment, and supplies required by the school.  It applies to some home schooling expenses, as well.

To claim the deduction, the taxpayer must claim the student as a dependent on their Louisiana Individual Income Tax Return.

Visit www.revenue.louisiana.gov/schooldeduction for more information.

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Revenue Ruling 11-001: Taxability of Build America Bonds

The Louisiana Department of Revenue has issued Revenue Ruling 11-001, which discusses the treatment of interest income from Build America Bonds for Louisiana individual income tax purposes.

Build America Bonds (BABs) are a financing tool for state and local governments that were created in the American Recovery and Reinvestment Act of 2009. Unlike traditional state and local bonds, interest from these bonds is included in the investor‟s federal gross income.

Conclusion

Income from interest and credits from BABs issued by the state of Louisiana or its local governments is not subject to Louisiana individual income tax. Income from interest and credits from BABs issued by states and local governments other than the state of Louisiana or its local governments is subject to Louisiana individual income tax.

Click here to read the entire ruling.

A Revenue Ruling is issued under the authority of LAC 61:III.101(C). A Revenue Ruling is written to provide guidance to the public and to Department of Revenue employees. It is a written statement issued to apply principles of law to a specific set of facts. A Revenue Ruling does not have the force and effect of law and is not binding on the public. It is a statement of the department’s position and is binding on the department until superseded or modified by a subsequent change in statute, regulation, declaratory ruling, or court decision.

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LDR Emergency Rule: Electronic Filing Requirements for Oil or Gas Severance Tax

The Louisiana Department of Revenue has issued Emergency Rule LAC 61:III.1525 concerning the Electronic Filing Requirements for Oil or Gas Severance Tax.

Under the authority of R.S. 47:1511, which authorizes the secretary of revenue to prescribe rules and regulations to carry out the purposes of Title 47 of the Louisiana Revised Statutes of 1950 and the purposes of any other statutes or provisions included under the secretary’s authority, and in accordance with the provisions of the AdministrativeProcedure Act, R.S. 49:950 et seq., and specifically the emergency provisions of R.S. 49:953(B), the Department of Revenue, Policy Services Division, hereby issues the following Emergency Rule to amend LAC 61:III.1525 to mandate the electronic filing of the applications for reduced oil or gas severance tax rates, Forms 0-2 and G-2.

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