- Are tax returns filing extensions available to victims of Hurricane Isaac?
Yes. For income and
corporation franchise taxes, the state will be granting filing extensions from
the original filing due dates or original filing extension dates that occur on
or after August 26, 2012. To be eligible for the extension, the taxpayer must
be located or their tax preparers’ records located in a parish declared a
natural disaster area. If the original
filing due date was prior to August 26, 2012, an extension request must have
been made prior to the original filing due date to qualify for the hurricane
extension.
For withholding,
excise, sales, and severance taxes, hurricane extensions have been granted from
the original filing due dates.
Hurricane Isaac filing
extensions have been granted as follows:
|
Tax
|
Original/Extended Due Date
|
Hurricane Extension
|
Additional Information
|
|
Individual Income
|
8/26/2012 –
1/11/2013
|
2/11/2013
|
RIB 12-029
|
|
Corporation Income
|
|
Corporation Franchise
|
|
Declarations
|
|
Withholding
|
8/30/2012 –
9/30/2012
|
10/31/2012
|
RIB 12-029
|
|
Excise
|
8/26/2012 –
9/30/2012
|
10/15/2012
|
RIB 12-029
|
|
Sales
|
|
Severance
|
- Which parishes qualify for the Hurricane Isaac extensions?
The Hurricane Isaac filing
extensions only apply to residents or businesses located in parishes that were affected
by Hurricane Isaac.
Taxpayers not in the affected area, but
whose books, records, or tax professionals’ offices are in the covered disaster
area, are also entitled to relief.
Businesses that file
consolidated corporation income and franchise tax returns and composite
partnership returns with one or more locations in a qualifying parish, or individual income tax returns that require
information from flow-through entities located in a qualifying parish do not
qualify for the additional Hurricane extension. If the original return is later
amended based on information obtained from entities located in qualifying
parishes and results in additional tax due, any interest or penalties assessed
as a result of the amendment will be waived upon request and after verification
of the circumstances.
The Louisiana parishes
that were declared Hurricane Isaac disaster areas are as follows:
Ascension, Assumption,
East Baton Rouge, East Feliciana, Iberville, Jefferson, Lafourche, Livingston,
Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St.
James, St. John the Baptist, St. Mary, St. Tammany, Tangipahoa, Terrebonne,
Washington, West Baton Rouge and West Feliciana.
In Mississippi, the
following counties apply: Hancock, Harrison, Jackson, and Pearl counties.
- The due date for my return and payment received a hurricane extension. If I file my return and pay the tax due after the original due date but on or before the hurricane extension date, will I owe delinquent penalty or interest?
No. The Hurricane
extension is an extension of time to file and extension of time to pay. You will not be assessed delinquent filing penalties, delinquent payment penalty and interest. However, any return or amount on which penalty or interest began accruing before August 26, 2012 will still owe that penalty or interest.
- The third quarter withholding tax return due date is October 31, 2012, do I receive an extended period of time in which to file?
No. The Hurricane Isaac extension
is only for withholding payments due August 30, 2012 through September 30,
2012. The due date for these payments has been extended to October 31, 2012. See Revenue Information Bulletin No. 12-029
Returns filed after
the October 31, 2012, will be assessed the five percent per month delinquent
filing penalty from the original due date of the return until the date the
return was filed. In addition to the delinquent filing penalties, interest will
be assessed on any taxes due from the due date of the payment until the date
payment is made. Although delinquent filing and delinquent payment penalties
will not be assessed for the same period of time, once the return is filed,
delinquent payment penalty may be assessed if the amount due is not paid. The
combined delinquent filing and delinquent payment penalties may not exceed 25
percent of the tax due.
- I did not have an extension to file my 2011 state income tax return, which was due on May 15, 2012? Can I qualify for the Hurricane Isaac filing extension until February 11, 2013?
No. To qualify for the
Hurricane Isaac extension, you must have applied for an extension before the
tax return’s original due date, which was May 15, 2012. The additional
extension only applies to return filings due between August 26, 2012 and
January 11, 2013. Your delinquent income tax return will be liable for
delinquent penalties and interest on the amount of tax due.
- Although my business is not located in a qualifying parish, do I qualify to the Hurricane Isaac extension if my tax preparer is located in a qualifying parish?
Yes. Even if the taxpayer
is not located in a qualifying disaster area parish, the taxpayer qualifies for
the extension if the taxpayer’s books, records, or tax professionals’ offices
are in the covered disaster area.
- If I file a consolidated sales tax return for multiple business locations and one or more of my business locations is in a qualifying disaster area parish, am I eligible for the hurricane extension.
No. You do not qualify for
the hurricane extension. You must file the consolidated sales tax return by the
original due date. You may estimate the taxes due for locations in the
hurricane disaster parishes and file amended returns once the final reports are
available. If additional taxes are due as a result of the corrected figures
from businesses located in the qualifying parishes, you may request a waiver of
the penalty and interest.
- Are purchases of clothing and supplies made from funds that were paid by check or deposited directly into a person’s checking or savings account by the Red Cross or FEMA exempt from the sales tax?
No. Only purchases
made directly by federal, state, or local governments are exempt from sales
tax. When the Red Cross or FEMA assistance money is paid by check or deposited
directly into an individual’s checking or savings account, it becomes the
individual’s personal asset and subsequent purchases made with these funds are
not exempt from taxation.
- Will there be a sales tax amnesty for businesses closed due to the disaster?
Tax amnesty programs
must be enacted by the state legislature. If the legislature enacts an amnesty
program related to the hurricane, information will be posted on the
Department’s website.
- Are nonprofit agencies that are purchasing items for assistance or distribution to hurricane victims exempt from sales tax?
No. There is no
special exemption granted by law to either individuals or private nonprofit
organizations on their purchases of items to be donated for use in disaster
assistance. Some organizations are specifically exempt from sales tax on their
purchases, and will be able to provide exemption certificates to their vendors
to confirm their exempt status. If legislation is enacted to provide exemption
on purchases for use in disaster assistance, information will be posted on the
Department’s website.
- I had an extension to file my 2011 state income tax return, which was due on May 15, 2012? Can I qualify for the Hurricane Isaac filing extension until February 11, 2013?
Yes. Since you applied for an extension before the tax return’s original due date, which was May 15, 2012, you qualify for the Hurricane Isaac extension. Please note that the extension does not allow an extension of time to pay the tax due and therefore the hurricane extension does not apply to the payment of 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 taxes due should be paid before the original due date.
