Recent Announcements from LED, LDR, and LLA
Friday, October 16, 2015
Posted by: Ann Lupo
October 8, 2015
Changes Enacted During the 2015 Legislative Session NEWS FROM LED, LDR, & LLA
Louisiana Economic Development (LED)
Request for Qualifications (RFQ) to Participate in Verification Report Engagement
LED is seeking professional accounting services needed in connection with the following incentive programs: Motion Picture Investor, Digital Media, Live Performance, Sound Recording, Research and Development.
To be considered, responses to RFQ must be submitted by 4:00 pm CST, Monday, Nov 2, 2015. For additional information and to download the RFQ, visit www.OpportunityLouisiana.com/RFQ.
Louisiana Department of Revenue (LDR)
Refunds for Louisiana Citizen Insurance Claims
Due to a processing error of the Citizens Insurance claim, some taxpayers were issued a refund in error. any estimated payments made during certain tax years and any amounts that were carried forward from the prior tax year were caused to be refunded.
Taxpayers must return the entire amount to LDR within 30 days. Failure to do so may result in the taxpayer having to pay interest or penalties as provided by Louisiana Revised Statute (R.S.) 47:1601 and 1602 respectively, including underpayment of estimated tax penalty as provided by R.S. 47:118. Once LDR has received the taxpayer’s payment or refund check, the department will reissue a refund for the correct amount according to their Citizens Insurance Refund Form.
Taxpayers should follow the instructions below based on how they received the refund.
- If they received a paper check and have not cashed the refund check, please return the uncashed check and a copy of the letter sent to the taxpayer.
- If they received a MyRefund Prepaid card and have not activated it, contact LDR at 1-855-307-3893 or LDR-Refund-Help@LA.GOV to inform the department that the card has not been activated and LDR will then recall the funds.
- If they have already cashed the refund check, received their refund by direct deposit, or received a MyRefund Prepaid card and activated it, the taxpayer should please forward a check payable to the Louisiana Department of Revenue in the full amount along with a copy of the letter sent to the taxpayer.
If they have already returned the refund issued in error, please disregard this notice.
All correspondence should be mailed to:
Louisiana Department of Revenue
Attn: Estimated Payments
P.O. Box 3193
Baton Rouge, LA 70821
For questions regarding this matter, contact LDR at 1-855-307-3893 or by email at
Information was provided by LDR. Content of this section was updated from it's original news alert release date of October 8.
LDR Issued RIBs and New Worksheets for New Tax Legislation
LDR issued guidance for taxpayers, in the form of Revenue information Bulletins (RIB) and new worksheets, for tax legislation passed during the 2015 Regular Legislative Session. RIBs posted since last LCPA Tax Alert include:
- Motion Picture Investor Tax Credits
- Tax on Vapor Products Effective August 1, 2015
- Tax Relief to Individuals and Businesses Affected by North Louisiana Severe Storms and Flooding Return Filing and Tax Payment Deadlines Extended
- Electronic Submission of Enterprise Zone and Quality Jobs Sales Tax Rebate Claims
- Prices Applicable to Oil and Gas for Horizontal Wells
- Individual Income Tax
- Applicability of the Federal Income Tax Deduction to the Federal Additional Medicare and Net Investment Income Taxes
- Act 131 of the 2015 Regular Session of the Louisiana Legislature – Solar Energy Systems Tax Credit
- Worksheets are available for Individuals and Businesses.
LDR has indicated the figures from the worksheets reflecting the reduced amount of allowed credits should be placed in the appropriate line of the return, and the worksheet(s) with any documentation should be included as a PDF attachment in the e-filing process. If worksheets are not attached to the tax returns, LDR will assume that the adjustments under the Acts passed have not been made and will reduce the credits as required by the new legislation.
Note: LDR is now discouraging faxing attachments to e-filed returns. Faxed documentation requires a manual upload by LDR personnel and takes too long for the information to get uploaded to the account. The fax number (225.231.6221) is still available but not recommended.
MyRefund Debit Card
Effective Friday, October 2, the MyRefund Debit Card is no longer an option for receiving a tax refund from LDR. Read more
LDR will be posting information soon for the upcoming Tax Amnesty period, which starts Monday, November 16, 2015, and ends Friday, December 15, 2015.
LDR Issues Request for Proposal for Debt Collection Services
This Request for Proposals (RFP) is for the purpose of soliciting proposals from qualified entities to provide debt collection services for the collection of delinquent tax accounts as provided by Louisiana Revised Statutes 47:1516 and 47:1516.1. The deadline for submitting RFPs is October 14, 2015, at 3:30 pm. Read more
LDR has issued the following Emergency Rules:
Business Utilities Sales Tax
LCPA has received calls with varying opinions from member tax attorneys and practitioners regarding the ramifications of Louisiana Chemical Association v. State of Louisiana, et al (19th Judicial District Court Docket No. 640501, Section 24). Some think the only safe option to recover is to follow statutory payment under protest procedures that were outlined in the July/August issue of Lagniappe.
Each tax practitioner needs to evaluate his or her client’s situation and make their own decision regarding the course of action to follow.
Read the full Statement of Acquiescence No. 15-001 issued by LDR Policy Services Division.
The LDR offered the following statement on taxpayer options:
During the 2015 Regular Session, the Louisiana Legislature adopted House Concurrent Resolution No. 8 ("HCR No. 8”) which suspended the exemptions from the tax levied pursuant to R.S. 47:331 for sales of steam, water, electric power or energy, and natural gas, including but not limited to the exemptions found in R.S. 47:305(D)(1)(b), (c), (d), and (g), and any other exemptions provided in those portions of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, which provide for exemptions for business utilities from state sales tax (hereafter "the business utilities sales tax”).
On or about July 1, 2015, the Louisiana Chemical Association filed a declaratory judgment suit entitled: Louisiana Chemical Association v. State of Louisiana, et al., 19th JDC Docket No. 640501, Sec. 24 (hereinafter "Lawsuit”) challenging the constitutionality of HCR No. 8 alleging that HCR No. 8 was not passed in conformity with constitutional procedural requirements.
On August 13, 2015, the Department of Revenue issued Statement of Acquiescence No. 15-001 outlining the Department’s position that pending the outcome of the Lawsuit, taxpayers may pay their business utilities sales taxes as they become due without protest and in the event of a final, non-appealable judgment issued by a court of competent jurisdiction declaring HCR No. 8 to be unconstitutional, the Department consents that the sales tax payments made pursuant to HCR No. 8 are overpayments within the meaning of La. R.S. 47:1621 for which the taxpayer can obtain a refund provided it timely files/filed an administrative claim for refund under La. R.S. 47:1621 et seq utilizing the Louisiana Department of Revenue Claim for Refund of Overpayment Form (R-20127) regardless of whether the taxpayer initiated its own lawsuit or paid under protest.
After the issuance of the Statement of Acquiescence, some tax professionals and taxpayers had some remaining questions and/or concerns regarding the use of the 47:1621 administrative claim for refund procedure. To address those questions and/or concerns, the Department has been working on a contractual option to provide more certainty on the procedure for voluntarily making the subsequent payments and preserving the right to claim a 47:1621 administrative claim for refund in the event there is a final non-appealable decision by the courts holding HCR No. 8 unconstitutional. If one of your clients is interested in this additional option, contact Antonio Ferachi, Director of LDR's Litigation Division, at 225.219.2080 for more information.
Sales and Use Tax: Tax Exemption Table Updated
The Louisiana Department of Revenue has updated its sales tax exemption table showing the exemption/exclusion or tax rate for various transactions from 2003 to the present. The table includes Legislative changes enacted through the 2015 Regular Session ending June 11, 2015.
View the Table of Sales Tax Rates for Exemptions
Louisiana Legislative Auditor (LLA)
The Louisiana Legislative Auditor provided the following information regarding changes enacted during the 2015 legislative session:
1. Act No. 375 – Change of reporting threshold amount for sworn financial statements and compilation reports
Previous to the 2015 legislative session, local auditees were allowed to provide for self-prepared sworn financial statements if they received $50,000 or less in revenues and other sources. Act 375 changes the upper threshold for sworn financial statements to $75,000. This means if a local auditee receives $75,000 or less in revenues and other sources, they may provide for sworn financial statements. If they receive between $75,001 to $200,000, they must still procure the services of a CPA firm approved by the Legislative Auditor to perform a compilation engagement.
We ask that you advise your local auditee clients that receive between $50,001 and $75,000 in revenues and other sources that they may provide self-prepared sworn financial statements if they choose.
This change in the law is effective for fiscal years ended August 31, 2015, and after.
2. Act 462 – "Three strikes” law for repeated findings
Act 462 amends Louisiana Revised Statute (R.S.) 24:554 (B), and allows the Legislative Audit Advisory Council (LAAC) to direct the state treasurer to withhold funds from any local auditee that has failed for three consecutive years, and without appropriate cause, to resolve the findings contained in the local auditee’s annual financial report.
LLA staff is currently developing a system for tracking report findings that have remained unresolved for three years or more. They will send additional notification to the ICPAs when the system is completed.
We ask that you advise your local auditee clients who have had repeated findings in their reports that they may be affected by this law, and that they should be working now to resolve any findings that can be resolved.
3. Act 462 – Change in Schedule of Compensation, Benefits, and Other Payments to Agency Head or Chief Executive Officer (Act 706 schedule) for quasi-public agencies
Act 706 of the 2014 Legislative Session amended R.S. 24:513 (A) (3) to require that virtually every local auditee report that is submitted to LLA include a schedule of compensation, benefits, and other payments to the agency head or chief executive officer.
Act 462 of the 2015 Legislative Session amends this law to allow nongovernmental entities or not-for-profit entities that receive public funds to report on the Act 706 schedule only those payments to the agency head that are derived from the public funds (state and/or local governmental funds and/or federal funds passed through a state or local government agency) the agency receives.
This change in the law is effective for fiscal years ended August 31, 2015, and after.
The change in the law only applies to nongovernmental or not-for-profit agencies. It will not affect local government agencies, because all of the funds a local government receives are considered to be public funds.
The LLA has updated the Louisiana Governmental Audit Guide for these legislative changes. If you have any questions, please call Suzanne Elliott at 225.339.3802.
Special thanks to Jerry Schreiber for providing some of the content for this Alert. Questions about the content of this Alert or about our legislative outreach initiatives can be directed to Linda Babin.