Hurricane Isaac Tax Extensions

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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.