News & Tax Alerts: Tax Alerts – State

Business Tax Accounts Must be Closed to Avoid Non-filing Assessents (2/27/2013)

Wednesday, February 27, 2013   (0 Comments)

Annual Louisiana Corporation Income and Franchise Tax (CIFT) returns continue to be due until the Louisiana Department of Revenue (LDR) receives notification that a corporation’s charter is dissolved, liquidated, or withdrawn through the Louisiana Secretary of State. Until LDR is notified of dissolution or withdrawal, and the corporation’s Louisiana Department of Revenue tax account is officially closed, LDR will issue non-filing tax assessments.

CIFT returns continue to be due as well for any entity whose charter is revoked by the Secretary of State. Following revocation, the corporation must still dissolve or withdraw through the Secretary of State’s office, and request the closure of its LDR business tax account.

When an entity is no longer active, and has withdrawn from the Secretary of State, it should request the closure of its tax account by submitting Form R-3406, "Request to Close Business Tax Accounts.” The form is available online at:
A copy of the Secretary of State letter of dissolution or withdrawal must be attached.

Mail the completed form to P.O. Box 201, Baton Rouge, LA 70821.

A corporation’s final tax return should be for a full year and not for a fractional part of a year. The final return is for the period starting the 1st day after the prior accounting period to the end of the final 12 month accounting period. There is no franchise tax due.

Note: Any corporation meeting any of the following provisions, unless specifically exempted under the provisions of La. R.S. 47:608, must file a Louisiana corporation franchise tax return:

1. Organized under the laws of Louisiana.
2. Qualified to do business in this state or doing business in this state.
3. Exercising or continuing the corporate charter within this state.
4. Owning or using any of the corporate capital, plant, or other property in this state in a corporate capacity.

Notice to Employers Filing Louisiana Withholding Tax Returns

Many Louisiana employers missed their quarterly Louisiana Withholding Tax Return (Form L-1) filing deadlines in 2012. The new withholding process, which became effective in January 2012, requires all entities to submit a withholding tax return each quarter, as provided by La. R.S. 47:114. The Louisiana Department of Revenue no longer automatically creates a tax return on the entity’s behalf upon receiving an electronically submitted withholding remittance.

For employers using LDR’s LaTAP website, the withholding process has been changed to require two separate actions for filing returns and remitting payments electronically. The L-1 form must now be filed electronically and separately from the electronic remittance process, using LaTAP’s "FILE A RETURN” function.

LDR will remove penalties for the first and second quarter of 2012 for employers who remitted electronic funds in a timely manner but failed to file the L-1 form. To have the penalties removed taxpayers must file the required tax returns by March 31, 2013, and complete the following process:

• Visit the "Contact Us” page of the LDR website
• Select "Business Taxpayer"
• Select "Billing Notice Received"
• Fill all required fields and submit a message requesting removal of penalties for the first and second quarters of 2012
Message MUST include relevant withholding tax account numbers

Once your account has been cleared of the specified penalties, you will receive a "Liability Cancellation Letter.”

Only penalties from the first and second quarters of 2012 are eligible for removal. Non-filing penalties assessed for the third and fourth quarters of 2012 still apply.

If you have previously submitted a request for waiver of the above-mentioned penalties, please contact LDR through the "Contact Us” application for a review of your request.

For more information on the 2012 Louisiana Individual Income Tax withholding changes and requirements, visit