News & Tax Alerts: Tax Alerts – State

LCPA held its annual liaison meeting with the Louisiana Department of Revenue (LDR)

Friday, February 7, 2014   (0 Comments)

LCPA held its annual liaison meeting with the Louisiana Department of Revenue (LDR) recently and the following are some of the items covered which will affect your practice during this filing season:

Effect of Net Investment Income Tax on Louisiana Returns

LDR has indicated for purposes of determining the "federal income tax liability” for tax years beginning on or after January 1, 2013, any Net Investment Income Tax paid will be included in the taxpayer’s federal income tax deduction. The Additional Medicare Tax will not be included in the taxpayer’s federal income tax liability for the purpose of determining the taxpayer’s federal income tax deduction.

Louisiana Individual and Corporation Extensions
There will also be no paper forms available for filing Louisiana Individual and Corporation income tax return extensions. LDR's authority for mandating the electronic filing of extensions is per Administrative Regulations LAC 61:III.2501 and LAC 61:III.2503.

Three options for requesting an extension are available:

  • Filing an extension request electronically via the LDR website.
  • Filing an extension request electronically via LDR's IVR phone system by calling 225.922.3270 or 888.829.3071. Select option #3, then option #1.
  • Submitting a state extension to LDR using commercial tax preparation software.

Please note the extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.

To avoid interest and penalty assessments, the estimated balance due should be paid before the original due date using the payment vouchers below:

  • Electronic payment voucher for individual extension payments (Form R2868-V)
  • Electronic payment voucher for corporation extension payments (Form CIFT-620EXT-V)

Fiduciary and Partnership Return Extensions

Please use appropriate paper form:

As these returns become electronic, the extensions will also become electronic. Look for fiduciary returns to become electronic for 2014 returns filed in 2015.

Federal Transcripts for Amended Louisiana Returns

LDR may require a federal transcript to be submitted when Louisiana individual returns are amended. A transcript may be requested when a federal audit adjustment originally increased the AGI, and after protest reduced the AGI. This transcript provides the most current federal information.

IRS Revenue Ruling 2013-17 requires same sex couples who were married in a state that recognizes same sex marriage to file married filing joint or married filing separately. LDR’s response is indicated in Revenue Information Bulletin 13-024. In compliance with the Louisiana Constitution, LDR shall not recognize same-sex marriages when determining filing status.

In the case of same-sex individuals who are considered married for federal tax purposes: Each individual must file a separate single, qualified head of household or qualifying widow(er) Louisiana tax return.

Taxpayers must take the income on the federal joint tax return and allocate it between the taxpayers for use on their state tax return. Items of income must be allocated to the taxpayer who actually earned the income. No amended returns for past years will be permitted to change filing status.

Changes to Solar Energy Systems Credit

Act No. 428 of the 2013 Regular Session of the Louisiana Legislature made numerous changes to the tax credit provided in La. R.S. 47:6030 including:

  • Wind systems no longer qualify.
  • Credit no longer available for installations at residential apartment complexes.
  • Significant differences between eligibility for leased versus purchased systems.
  • All system components purchased on or after July 1, 2013 must be compliant with the American Recovery and Reinvestment Act of 2009 – "Buy American” (See RIB 13-013).
  • Credit phases out with a final sunset of January 1, 2018.

See RIB 13-026, Solar Energy Systems Tax Credit for more information about the changes.

Attribution and thanks are extended to Gerard H. Schreiber, Jr., CPA, who contributed content for this alert.