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Credit & Refunds - Louisiana Revenue

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Processing Matters~Credits & Refunds~
2013 LCPA-LDRLiaison MeetingJanuary17, 2013DawnBankston, LDR Office AuditDivision
Credits&Refunds
Agenda topicsDocumentation for CreditsRefund Turnaround TimeMovieCredits
January 17, 2013
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Documentation for Credits
Instruction booklets provide documentation requirements for credits.No significant changes for 2012 taxperiodRequests listed on agenda:CompositeReturnse.g.,Ad Valorem (Inventory & Vessels)Citizen’s AssessmentAlternativeFuelHistoric Rehabilitation Credits
January 17, 2013
3
This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Documentation for Credits
Composite ReturnsCredits cannot be claimed on a composite return until tax period 2013Ad Valorem Tax Credit – InventoryForm R-10610 “Schedule of Ad Valorem Tax Credit Claimed by Manufacturers, Distributors, and Retailers”Attach tax assessments & cancelled checks for first 3 years claiming the creditAdValorem Tax Credit– VesselsFor Offshore Vessels, submit a schedule similar to R-10610Attach tax assessments & cancelled checks for first3 yearsclaiming thecredit
January 17, 2013
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This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Documentation for Credits
Citizen’sAssessmentDeclaration page(s) showing the Citizen’s assessment.Claim onceper tax period on IT-540 or IT-540-INS, not both.For corporate income, CIFT-620orCIFT-620-INS not both.AlternativeFuelConversion vehicle – registration certificate, receipts for purchase & installationNew vehicle –registrationcertificate, bill of saleFueling station - invoices for equipment
January 17, 2013
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This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Documentation for Credits
Historic Rehabilitation CreditsHistoric Preservation Certification Application “Request for Certification of Completed Work Part 3”Transfer notice with copy of certification (“Part 3” application)RS 47:6019(A)3 defines information and rules for transferring
January 17, 2013
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This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Refund Turnaround Time
Individual Income Tax Refund Turnaround FYE1220 day average turnaround for electronic returns36 day average for all returnsBusiness Tax Refund Turnaround FYE1261% of all business tax refunds issued within 60 daysAverage turnaround time varies greatly by tax type, source of refund and dollar amount
January 17, 2013
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Movie Credits
Agenda Requests:Penaltyand Interest Calculation for Movie Credit Purchases.Assessment of Penalty& Interest: (1)purchasedate or (2) acknowledgementof credits.La. R.S. 47:1675(H) Transferable CreditsCredits acquired through transfer canbe applied toany outstanding income tax liability and any related penalty & interest.Revenue Ruling 06-016FAQsConcerning Motion Picture Investor Tax CreditPage 6 provides guidance on “Application of the Credits”
January 17, 2013
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This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
MovieCredits
RR 06-16 Applicationoftransferrablecreditsin hands ofpurchaser/transferee:Can a return be amended to applynewlyacquiredcreditsto a previous tax year if the income tax from that year is not currently due?No, purchasedcredits cannot be used to eliminate a tax liability from a previous year that has already been satisfied or is not currently due.A taxpayer cannot amend a previous year return, apply newly acquiredcreditsand generate a refund with interest.
January 17, 2013
9
This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Movie Credits
RR 06-16 Application of transferrable credits in hands ofpurchaser/transferee:Can a return be amended toapplynewly acquiredcreditsto a previous tax year if an income tax liability is still outstanding from a previous year?Yes, purchasedcredits can beappliedto any income tax liability that isoutstandingsubject to carry-forwardlimits. Penaltiesand interest continue to accrue until the taxes on which such penalties and interest are accruing are paid.Thepurchased credits will be appliedas a payment, not an offset of tax on thetaxreturn. The effective date of the payment will be the same day that LDRreceives the amended return claiming the credits or other written notification requesting that the credits be applied to the outstanding liability.
January 17, 2013
10
This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Movie Credits
RR 06-16 Application of transferrable credits in hands ofpurchaser/transferee:Can a purchased credit be used to eliminate any penalties and interest on overdue income tax liabilities from previous years?No, purchasedcredits cannot be used toeliminateany penalties and interest on overdue income taxes from prior years.Thepurchased credits can beappliedto penalties andinterest.Penalties and interest will continue to accrue until the taxes on which such penalties and interest are accruing are paid.Thepurchased credits will be applied as a payment, not an offset of tax on the tax return. The effective date of the payment will be the same day that LDR receives the amended return claiming the credits or other written notification requesting that the credits be applied to the outstanding liability.
January 17, 2013
11
This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Movie Credits
Application of transferrable credits in hands ofpurchaser/transfereedawn’s write-in, not in RR 06-016Cana taxpayer claim credits that have not yet been purchased?Creditsmust be purchased prior to the later of (1) due date of the tax or (2) filing the return. Creditspurchased after the later of these dates will be appliedas apayment with an effective date of the credit purchase date.Ex1:File4/15 with credits, purchase credits 5/1, tax due 5/15 =OKEx2:File5/15 with credits, purchasecredits 6/1, tax due 5/15 = credit applied as payment with effective date of6/1. In this case interest and penalty would be assessed from 5/15 – 6/1.
January 17, 2013
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This information constitutes "informal advice"as contemplated byLA Administrative Code61:III.101.D.3.
Submitting Documentationfor E-FiledReturns
Faxreturn attachments to LDR E-Return attachment faxnumber.fax (225)231-6221Includetaxpayer’s name, account number, and tax filing period on the top of the first page of the fax.Sendseparate fax for each taxpayer. An electronic image of the fax will be stored to the taxpayer’s account.
January 17, 2013
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Credit & Refunds - Louisiana Revenue