Tax Alert: Concerns About Returns
Wednesday, May 13, 2015
Posted by: Ann Lupo
Tax Alert: May 13, 2015
RE: Concerns About Returns
The Louisiana legislature is in the process of passing a number of pieces of legislation dealing with income, corporate and other taxes, as well as rebates, credits, and exemptions. We are reaching out to you to make you aware of some potential challenges that you and those you represent may face should these bills become law. There is language on nearly ALL of the bills in their current form that provide for an effective date of July 1, 2015 regardless of the tax year to which the return relates. We interpret this to mean that tax treatment could vary on the same tax year depending on when the return is filed. Specifically, for example, 2014 tax returns filed on or before June 30, 2015 (with an approved extension if filed after May 15, 2015) would have a tax liability calculated using current law. 2014 tax returns (with approved extensions) filed on or after July 1, 2015 would have a liability calculated using PROPOSED law. As most of the PROPOSED legislation involves tax increases, a 2014 return filed after July 1st would result in a HIGHER TAX LIABILITY. The bills span corporate, franchise and individual income tax returns.
We are uncertain which, if any, of these bills will ultimately become law. There are concerns too regarding the legality of the effective date/tax year language – yet the bills continue to advance through the legislative process. Apparently, the bills have to read that way to make the underlying fiscal notes work. There is still a long way to go, but not much time to get there as the session ends June 11 and must end with a balanced budget. The governor has threatened to veto any net tax increases along with the entire budget bill if necessary. There has also been some discussion regarding veto overrides. We are uncertain of the outcome, but wanted to share what we are hearing to allow you as much time as possible to plan accordingly. Our State Government Relations team is following these issues closely and we will continue to update you as things develop.
Ronald A. Gitz, CPA, CGMA
LCPA Executive Director
Other State Tax News
Louisiana Tax Credit Registry (LAC 61:III.2701 and 2705)
The Louisiana Department of Revenue Policy Services Division has issued a Notice of Intent that proposes to make major changes to the effective date of the transfer and to the use of transferable credits such as movie and historic credits.
Public Comments are due May 28, 2015 and a Public Hearing is scheduled for May 29, 2015. The proposed rules, instructions for sending Public Comments and address for the Public Hearing can be accessed by following link: LAC 61:III.2701 & 2705 - Louisiana Tax Credit Registry
Deep Water Horizon Court Supervised Settlement Program
June 8, 2015 has been established as the deadline to submit a claim in the Economic and Property Damages (“E&PD”) Settlement. The claims process can be complex, so if you are eligible to file a claim, you should act now to have time to complete your claim before the June 8, 2015 deadline.
Claim forms, detailed claim protocol and frequently asked questions can be accessed by following link: http://www.deepwaterhorizonsettlements.com
For questions or concerns, contact:
Linda Babin, CPA, CGMA
LCPA Government Relations Director
504.904.1126 or firstname.lastname@example.org