This alert includes updates on the following tax filing issues – see below for more information
Meetings with LDR/Louisiana Tax Issues
Refund Status Checks
Identity Theft Verification
Mailing Address Formatting
Joint Returns with Refund Due to Deceased Taxpayer
Louisiana Tax Issues We have started our regular filing season conference calls with the Louisiana Department of Revenue (LDR) to bring to their attention our concerns and to find out the important things happening which affect the returns you are filing on behalf of your clients.
E-File Authorizations We have received calls from members indicating confusion on when the federal Form 8879 is accepted for both federal and Louisiana returns and when a Louisiana Form 8453 is required.
The tax preparer should retain the IRS e-file Signature Authorization, Form 8879, which will be accepted as the taxpayer’s state signature document as well. The forms must be retained for three years from the return due date or the IRS received date, whichever is later. The forms may be retained electronically in accordance with the recordkeeping guidelines in Rev. Proc. 97-22.
If the tax preparer is filing a Louisiana state only return or a Louisiana state amended return for a taxpayer, the tax preparer must maintain the LA Tax Declaration for Electronic Filing Form R-8453, for three years from the return due date or the Department of Revenue received date, whichever is later.
This is the same policy that was in effect last year and should be familiar. Mailing Addresses LDR has indicated they verify the addresses indicated on returns with the US Postal Service. It is important to match the address format with the USPS format. Any discrepancy will cause a return to suspend and delay the processing of the return. Examples are leaving off the word "Apt.” or "Lot” number, misspelling of a street name, and City and State on the same line as the street address.
Refund Status LDR has requested practitioners and taxpayers wait 21 days after filing to check on the status of refunds due on returns.
Identity Theft Verification LDR has indicated it will use the same method as last year of verifying returns that are suspected of identity theft. This involved an identity theft quiz or other procedure to verify the taxpayer’s identity.
Inventory Credits Inventory credits earned by a partnership will flow through to the resident partners and should be reported on the resident partner’s individual income tax return. The credits that flow through to non-resident partners should be claimed on the Partnership Composite return.