One of the most confounding situations faced by corporate taxpayers engaged in a Louisiana income tax audit is the receipt of preliminary workpapers that disallow interest expense deductions with no opportunity to prove that the interest expense is properly deductible because it is directly attributable to the production of apportionable income. The Louisiana Department of
Louisiana Court Limits the Reach of Economic Nexus in Jeopardy Productions
In a case examining the extent to which the 14th Amendment Due Process Clause limits a state assertion’s of jurisdiction over an out-of-state taxpayer, the Louisiana Court of Appeal for the First Circuit held that the Court lacked personal jurisdiction over an out-of-state corporation for income and franchise tax purposes because the corporation’s contacts with
Louisiana Department of Revenue Comments on Local Collectors’ Centralized Sales and Use Tax Proposal
As predicted in Kean Miller’s earlier blog post on an interesting developing movement toward centralized sales and use tax collection in Louisiana, the Louisiana Department of Revenue (the “Department”) has expressed its reservations regarding certain aspects of the proposal submitted by the Louisiana Association of Tax Administrators (the “LATA”). The LATA had worked collaboratively with
Centralized Sales and Use Tax Collection Proposal Submitted by Local Associations
On October 16, 2020, the attorney representing the Louisiana Association of Tax Administrators presented a proposal for centralized local sales and use tax collection in Louisiana (the “Localities’ Proposal”) to the Centralized Sales and Use Tax Administration Study Group (the “Study Group”). The Study Group was created by the Legislature earlier this year (HR
It’s Waiver Season in Louisiana! Factors to Consider
It has become a somewhat unpleasant autumn ritual for many taxpayers: should we agree to a request from the Louisiana Department of Revenue (the “Department”) for more time to audit. Once the decision to agree to an extension has been made, thanks to the COVID-19 pandemic, signing that waiver has become more complicated. Traditionally, the
Louisiana Legislature Calls Itself Into Second Extraordinary Session and Includes Certain Tax Issues
The Louisiana Legislature called itself into a second extraordinary session to address several issues confronting the state. The Second Extraordinary Session, which began on September 28th, was called by the legislature, and not the governor, and will focus primarily on addressing the continuing negative economic effects of the coronavirus on Louisiana and the
UPDATE: Certain Uncertainties Resolved by SBA Regarding Payroll Costs of Partnerships and Sole Proprietors Applying for CARES Act Payroll Protection Program Loans
On March 27, 2020, President Trump signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (Public Law No: 116-136, the “CARES Act” or the “Act”). Title I of the CARES Act creates the Paycheck Protection Program (discussed in more detail here). Generally speaking, the Paycheck Protection Program permits certain small businesses to
Traps for the Unwary: Not All State Tax Deadlines Have Been Extended
While the Louisiana Department of Revenue (the “Department”) has extended some filing and payment deadlines, it has not extended the April 15 and June 15 deadline for making 2020 first and second quarter individual and corporate estimated state income tax payments. Nor has the Department extended the April deadline for reporting and remitting March state
Uncertainties Created by Tax and Accounting Issues Raised by the Paycheck Protection Program in the Coronavirus Aid, Relief, and Economic Security Act
On March 27, 2020, President Trump signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (Public Law No: 116-136, the “CARES Act” or the “Act”). Title I of the CARES Act creates the Paycheck Protection Program (discussed in more detail here). Generally speaking, the Paycheck Protection Program permits certain small businesses to
Tax Related Employment and Employee Benefits Changes in the Coronavirus Aid, Relief, and Economic Security Act
On March 27, 2020, President Trump signed H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act” or the “Act”). The CARES Act makes significant changes tax related employment and employee benefits changes in the form of a number of relief provisions designed to mitigate the negative economic consequences of the novel