UPDATE: Credit for Taxes Paid to Other States; FREE Webcast with Bob Angelico
Tuesday, March 12, 2019
Posted by: Ann Lupo
If you filed an amended Louisiana individual income tax return or a refund claim seeking a refund of Louisiana individual income taxes relating to the issue of the credit for taxes paid to other states, and, specifically, a credit for Texas franchise taxes paid, in light of the recent Louisiana Supreme Court decision in Smith v. Robinson, 2018-CA-728 (Dec. 5, 2018), you need to be alert for any express written denial of that refund claim by the Louisiana Department of Revenue (LDR).
There have been indications that LDR could deny such refund claims if the overpaid Louisiana individual income taxes were NOT paid under protest. If your client receives such an express written denial, it will state that there is a 60-calendar-day period in which to appeal the denial to the Louisiana Board of Tax Appeals. That 60-calendar-day period CANNOT be extended (if the 60th day falls on a weekend or a holiday, you must have filed the appeal on the previous business day). In order to preserve your client’s rights to challenge the LDR position that there will be no refund if there was no payment of the taxes at issue under protest, the BTA appeal must be filed.
Please check with the BTA regarding its rules on filing an appeal of a refund denial.
You may recall there was an LCPA Tax Alert notice prior to December 31, 2018, indicating that any refund claims for the 2014 individual income tax year would prescribe on December 31, 2018. Several 2014 refund claims and amended 2014 returns were filed on this issue. LDR may have already begun denying some of these claims.
The Supreme Court has recently refused to consider the question of whether the LDR should have to give taxpayers their money back when they do not file under protest.
To help you better understand the details surrounding this issue, the Louisiana Association of Business and Industry (LABI) is hosting a free webcast featuring Bob Angelico.
Unconstitutional Tax Webcast
Tue, Mar 19, 2019 • 10–11a
Learn more about the nuances of tax law and when to properly determine whether taxes should be filed under protest (which is a costly administrative minefield, to begin with). Liskow & Lewis tax attorney Bob Angelico will fill you in on the litigation dynamics and the effects of two court cases, along with the prospects for any reform legislation in this webcast hosted by LABI.
(Please note: No CPE will be given for this program. Confirmation and details on joining the webcast will come from Jim Patterson/GoToWebinar.)