September 9, 2016
Inside this update:
AL: Disaster Relief to Flood Victims
LA: Cr Taxes Paid to Other States; Disaster Unemployment, SBA Loans
IRS: Updated List of Parishes, Bulk Requests, Identity Theft Warnings
Alabama Provides Relief to Louisiana Flood Victims
Alabama DOR will grant filing extensions to Louisiana residents directly affected by the severe flooding that has impacted the state since Aug. 11. Alabama taxpayers residing in Louisiana counties designated as disaster areas by the federal government have until Jan. 17, 2017, to file tax returns due on or after Aug. 11, 2016, and before Jan. 17, 2017.
Read the complete ADOR Press Release (9/2/2016)
LCPA Advocacy Team thanks the Louisiana Department of Revenue for working with us and reaching out to other states to request extensions.
Louisiana Disaster Relief – LDR, LWC, SBA
LDR RIB 16-052 Credit for Income Taxes Paid to Other States
In accordance with the provisions of R.S. 47:33, Louisiana residents may be allowed a credit against individual income taxes paid. The states are listed in this RIB.
LCPA Advocacy Team thanks the Louisiana Department of Revenue for responding to our State and Local Tax Committee Members’ requests and related research for a listing of the applicable states.
LDR RIB 16-041 Economic Hardship License
If a taxpayer has had their driver’s license suspended, there is now the option for a Hardship Driver’s License which is issued by the Department of Public Safety OMV.
LDR has provided some informal* communications to us in response to questions LCPA members submitted regarding the August flooding:
Stop Billing Indicators have been placed on all accounts in a flood impacted zip code. However, if assessments have already progressed to formal status, the taxpayer could receive a notice that a federal refund will be offset. In addition, a driver’s license or hunting license could be suspended if the tax amount is over $1,000 or $500, respectively.
For any taxpayer with a liability with the LDR that was in a formal status before the August flooding, contact LDR at the following emails to establish a course of action:
Individual Taxpayers: TaxPractitionersBilling.Inquiry-Ind@la.gov
Business Taxpayers: TaxPractitionersBilling.Inquiry-Bus@la.gov
Q: If someone in one of the disaster areas handles the tax return preparation but the actual client is NOT in the disaster area, do they still qualify for the extension?
A: If the practitioner is in the disaster area, the clients qualify. LDR Tax Administration is working on a procedure so impacted practitioners can upload their clients into LaTap.
(*This reply to your inquiry constitutes "informal advice" from the Department of Revenue, as contemplated by Louisiana Administrative Code 61:III.101.D.3, which provides that informal advice does not have the force and effect of law and is not binding on the Department, the public, or the individual seeking advice. Informal advice will have no effect on an audit.)
Disaster Unemployment Assistance (DUA)
The Louisiana Workforce Commission is currently accepting applications for DUA from workers and self-employed individuals who lost work or earnings as a result of flooding that began August 11, 2016.
Applications for DUA will be accepted by the Louisiana Workforce Commission from workers and self-employed individuals in the declared parishes until the deadline of October 14, 2016. Applications filed after the deadline will be considered untimely and DUA benefits may be denied unless the individual provides good cause. Read more.
SBA Home and Personal Property Loans
Whether you rent or own your own home, own your own business, or own a small agricultural cooperative located in a declared disaster area, and are the victim of a disaster, you may be eligible for financial assistance from the U. S. Small Business Administration (SBA). Fact Sheet
IRS – Disaster Relief, Warnings of Identity Theft
IRS postponed deadlines for disaster areas and updated list of parishes here.
There are now 22 parishes listed in the August 2016 covered disaster areas.
IRS Bulk Request from Practitioners for Disaster Relief here
Where the IRS has granted a postponement of time to file returns and make payments in response to a federally declared disaster, practitioners located in the covered disaster area who maintain records necessary to meet a filing or payment deadline for taxpayers located outside the disaster area may elect to contact the IRS to identify such clients.
IRS Warns of a New Wave of Attacks Focused on Tax Professionals
The Internal Revenue Service today warned tax professionals of a new wave of attacks that allow identity thieves to file fraudulent tax returns by remotely taking over practitioners’ computers.
As part of the Security Summit effort, the IRS urged tax professionals to review their tax preparation software settings and immediately enact all security measures, especially those settings that require usernames and passwords to access the products. The IRS is aware of approximately two dozen cases where tax professionals have been victimized in recent days.
Thieves are able to access tax professionals’ computers and use remote technology to take control, accessing client data and completing and e-filing tax returns but directing refunds to criminals’ own accounts.
Victims in the tax community learned of these thefts while reconciling e-file acknowledgements.
IRS urges all tax preparers to take security measures listed in IR-2016-119
If you do not receive a timely response from Louisiana Department of Revenue Tax Practitioner Inquiry emails or have any questions regarding this release, please contact Linda Babin.