Tax Services • Published 4/10/2020 State and Local Tax Filing Updates Amid COVID-19 Concerns

We will update this article as new information becomes available. Last update: 4/10/2020, 4:30pm CT

Louisiana

Income/Franchise Tax

As a result of the ongoing uncertainty around the COVID-19 pandemic, the Louisiana Department of Revenue (LDR) issued a Revenue Information Bulletin announcing an automatic extension of upcoming income and franchise tax filing and payment deadlines. Specifically, the following filing and payment extensions were granted:

Income Tax Type	Tax Return	Due Date	Automatic Extended Due Date
Partnership	IT-565 - 2019 Partnership Return of Income R-6922 - 2019 Composite Partnership Tax Return	April 15, 2020 May 15, 2020	July 15, 2020 July 15, 2020
Individual	IT-540 - 2019 LA Resident Income Tax Return IT-540B - 2019 LA Nonresident and Part-Year Resident Income Tax Return R-1035 - LA Consumer Use Tax Return	May 15, 2020	July 15, 2020
Fiduciary	IT-541 - 2019 Fiduciary Income Tax Return	May 15, 2020	July 15, 2020
Corporation	CIFT-620 - 2019 Corporation Income and 2020 Franchise Tax	May 15, 2020	July 15, 2020

The notice also addressed fiscal year filers, and granted an automatic extension for any fiscal year filers with an income/franchise tax return or payment due date between March 1, 2020 and May 30, 2020. That automatic filing and payment extension is 60 days from the original due date. Finally, the guidance also noted that further extensions may be available on request. That applicable extension period will be July 16, 2020 to November 15, 2020 for any individual, fiduciary, and partnership returns, and December 15, 2020 for corporation returns. Unlike the automatic extension, however, interest and penalties will begin to accrue on July 16, 2020 for any balances due.

Estimated 2020 Income Tax Payments

LDR issued a Revenue Ruling, 20-002 offering updated safe harbors and the opportunity to request a waiver of penalties for the April 15, 2020 and June 15, 2020 estimated income tax payments. The Department will automatically waive penalties if the following safe harbor criteria is met:

1. The taxpayer pays the April 15 and June 15, 2020, declaration payments timely.
2. The amount paid on the April 15, 2020, declaration payment is at least 90% of the amount paid on the April 15, 2019, declaration payment.
3. The amount paid on the June 15, 2020, declaration payment is at least 90% of the amount paid on the June 17, 2019, declaration payment.

If the payments are not made timely or do not meet the criteria, the taxpayer may request a waiver of the penalty by May 17, 2020 if they demonstrate that they acted in good faith. The Secretary may presume the taxpayer acted in good faith if the failure to make the estimated payments was attributable to extraordinary circumstances beyond the individual’s control.

Late Filed Election for Pass-Through Entity Tax

LDR issued a Revenue Ruling, 20-002 indicating that any late filed election for the 2019 tax year filed on or after April 16, 2020 but before July 16, 2020 shall be considered timely filed in light of the COVID-19 public health emergency.

Extension of Time to Transfer Credits (2019 Period Only)

LDR issued a Revenue Ruling, 20-002 stating that based on the existing public health emergency, the Department finds that the deadline to transfer a credit is a non-essential deadline and an extension is necessary to respond to the COVID-19 threat. Therefore, in consideration thereof, the Department extends the deadline for a credit transfer or for the execution of a binding agreement to transfer such credit by 30 days for income and franchise tax returns with an original due date between March 1 and May 30, 2020.

For 2019 calendar year filers of returns for individual income tax, corporation income, composite partnership income tax and fiduciary income tax, the extended deadline is June 15, 2020. For fiscal year filers with an income or franchise tax return filing and payment due date between March 1 and May 30, 2020, the extended deadline is thirty days from the original due date of the return.

Sales & Use Tax/Excise Tax

On March 19, 2020, the Louisiana Department of Revenue released Revenue Information Bulletin (RIB) No. 20-008, which details an automatic extension to May 20, 2020 for the filing and payment of February 2020 sales taxes. Delinquent penalties will be waived and interest will be compromised, however, returns must be filed by the extended due date in order to receive relief. Taxpayers must file using the LaTAP system or by paper in order to qualify for this extension relief. The relief will not be available through Parish E-File or Sales Tax Online.

The same extension also applies for February 2020 Excise Tax returns and payments for 1) Wine Shipped Direct to Consumers; and 2) State and Parish Municipal Beer Tax.

The RIB also addresses assessments, audits, and litigation and states that prescription will be suspended from March 16, 2020 to through April 13, 2020. In addition, collection activity by distraint and sale will also be temporarily suspended.

As of April 6, 2020, there has been no guidance issued related to the March sales tax returns due on April 20, 2020.

Unemployment Tax

On March 19, 2020, the Louisiana Workforce Commission (LWC) announced a deferral for payment of first quarter state unemployment taxes. Employers will still be required to make appropriate filings by April 30, 2020, but any payments associated with unemployment taxes will be deferred until June 30, 2020. In the announcement, LWC also clarified that an employer’s unemployment insurance experience tax rate will not be impacted by claims related to COVID-19.

Louisiana Localities

City of Baton Rouge/Parish of Baton Rouge

On March 17, 2020, Sharon Weston Broom, Mayor-President of the City of Baton Rouge, Parish of East Baton Rouge, issued a proclamation extending the time for filing East Baton Rouge Parish local sales tax returns for 30 days. Therefore, local sales tax returns due for the months of February and March 2020 will be considered on time if filed on or before April 20, 2020 and May 20, 2020 respectively.

City of New Orleans

In addition, New Orleans City Mayor LaToya Cantrell indicated in a recent press conference that the city would waive all penalties and interest for late sales tax payments in order to provide businesses with additional cash with which to pay their employees.

No additional local extensions have been identified at this time. We will continue to update.

Multi-State Updates

Income Tax Deadline Extensions

P&N is also following multi-state developments daily and has developed a matrix detailing the tax filing extensions among the fifty states and Washington, DC. As of April 6, 2020 all states have some pronouncement or ruling regarding personal and business income tax extensions. It is important to note that while many states have issued extensions that match the IRS July 15, 2020 extension of time to file and pay the income tax, there are also many states with extensions that differ. The due date may be earlier such as our neighbor Mississippi, whose extended deadline is currently only until May 15, 2020. Several others have June extension deadlines. Some states extend the deadline for individuals but not for businesses. Some states include estimated payments for the first quarter payments, others for the second quarter also and several do not include estimated payments in the extension. Please see our matrix for the details on states that you deal with.

Sales Tax Deadline Extensions

P&N is also following the sales tax filing and/or payment extensions for state sales tax returns. While not as widespread as the income tax extensions, several states have issued extensions. We are checking for updates daily on this and our matrix will be updated as needed.

Need help?

P&N is vigilantly monitoring the state and local impacts of the novel coronavirus COVID-19. This page will be continually updated when new developments arise. P&N has the capability to continue providing you with quality service throughout this unique tax season. If you have any questions regarding your tax situation, please contact your P&N tax advisor.