Louisiana Form Help
The following information has been provided to assist in the preparation of Louisiana returns.
Louisiana requires all payments greater than $5,000 be paid electronically. The balance due can be paid electronically with the return for CIFT-620 or on the state website. Composite payments should be paid on the state website.
All corporations organized under the laws of Louisiana must file Form CIFT-620, Louisiana Income Tax and Louisiana Corporation Franchise Tax return each year unless exempt from both taxes. Corporation franchise tax for domestic corporations continues to accrue, regardless of whether any assets are owned or any business operations are conducted, until a “Certificate of Dissolution” is issued by the Louisiana Secretary of State. Returns are due 4 months and 15 days after tax year end.
Louisiana income tax is calculated based on Louisiana income calculated on Schedule P or Schedule D. S corporation exclusion is calculated on the attached worksheet. The Federal income tax deduction is pulled from the primary federal form. Nonrefundable credits are calculated by completing Schedule NRC. Tax payments pull from Schedule I.
Louisiana franchise tax is calculated based on the information provided on the Balance Sheet in the Financial Statements.
Louisiana Citizens Insurance Credit is direct entry. A copy of the declaration page from your premium notice must be attached to the return. Refundable credits calculate from a completed Schedule RC.
Balance sheet entries are made on the Financials – Balance Sheet worksheet.
Enter the amount due to subsidiaries to calculate the top section. If no amount due then only the bottom section calculates. Amounts are entered on the Balance Sheet worksheet owners’ equity section.
Amounts are entered on Financials – Balance Sheet worksheet. Other increases and decreases are calculated by filling out the worksheets.
Fill out only if not completing Schedule P.
This section must be completed for the return to be considered complete.
If using the Multistate Allocation and Apportionment Information worksheet in the General section of the return, the Louisiana property ratio will calculate based on the property entries listed for Louisiana and the total. Cash is entered on the Balance Sheet and assumed to be 100% allocated to Louisiana. Louisiana does not differentiate between business and nonbusiness income. Use the business income column. Override for any adjustments necessary.
Use the Multistate Allocation and Apportionment information worksheet in the General section. Apportionment percentage is calculated in the Sales section when sales are apportioned to “LA”. Louisiana sales are divided by total sales to determine the apportionment percentage. Louisiana does not differentiate between business and nonbusiness income. Use the business income column. If the corporation is primarily a manufacturing business, put an “X” in the manufacturer box. Override values if needed.
All corporations should complete column three. If permission has been granted to use the separate accounting method column should be completed.
Use the Multistate Allocation and Apportionment information worksheet in the General section. Apportionment percentage is calculated in the Sales section when sales are apportioned to “LA”. Louisiana sales are divided by total sales to determine the apportionment percentage. Louisiana does not differentiate between business and nonbusiness income. Use the business income column. If the corporation is primarily a manufacturing business, put an “X” in the manufacturer box. Override values if needed.
Estimated tax worksheet will take the current year’s taxable income and determine the amount of estimated tax for each estimated. An override box is provided when taxable income is expected to change. The vouchers and due dates will be produced and available for print.
Use Form CIFT-620EXT to request an extension of time to file a Louisiana tax return. Louisiana does not recognize the federal automatic extension of time to file.
Corporations will be granted an extension of time to file of up to seven months. The extension can be electronically filed or filed on the Louisiana website www.la.gov. Payments can be made using direct debit or by payment voucher. When using the payment voucher attach the 8453-C.
Form 8453-C is the electronic signature form summarizing the agreement between the taxpayer and the Electronic Return Originator or Paid Preparer. A signed copy of this form must be retained for 3 years after the end of the year for which the return is filed. The submission ID for the Louisiana return is available on the Information and Status screen for your records. This form also allows the entry of the required information to schedule electronic payment of tax due. The withdrawal date is required to initiate the payment.
A partnership return is not required if all partners are natural persons who are residents of Louisiana. Any partnership doing business in Louisiana or deriving any income from sources therein, regardless of the amount and regardless of the residence of the partners, must file a return of income on Form IT-565 if any partner is a nonresident of Louisiana or if any partner is not a natural person. If the partnership has income that is derived from sources partly within and partly outside of Louisiana, Form IT-565B must be filed with Form IT-565. Included are syndicates, groups, pools, joint ventures, or other unincorporated organizations, though or by means of which any business, financial operation, or venture is carried on. This return is due on or before the fifteenth day of the fourth month following the close of the tax year.
Information is calculated on the K-1 equivalent. Shareholders filing an individual return should use the federal K-1.
Information for cost of goods sold will flow from federal form 1125A.
Rental income is pulled from federal form 8825. Royalty income is pulled from the 1065. Override additional information if needed.
Total amounts are pulled from federal Schedule D. Details for the amounts are pulled from federal forms 8849, 6252, 8824, and allocated amounts from pass through entities.
Enter the information on the form. Totals will be calculated.
If using the Multistate Allocation and Apportionment Information worksheet in the General section of the return, the Louisiana property ratio will calculate based on the property entries listed for Louisiana and the total. Cash is entered on the Balance Sheet and assumed to be 100 percent allocated to Louisiana. Louisiana does not differentiate between business and nonbusiness income. Use the business income column. Override for any adjustments necessary.
Schedule K-1 Worksheet is provided to show each partner’s share of Louisiana net income and subtractions. If the box to include partner in composite is checked, tax will be calculated. All individual shareholders will be included on the composite return. Shareholders capital accounts will be calculated and transferred to Louisiana Form IT-565. Shareholders should use the federal K-1 when calculating individual income tax.
Form R 6922 is the composite filing for Louisiana. Partners that are not corporations or tax exempt trusts will be included. Calculation of tax is determined by the K-1 Worksheet by putting an X in the box to calculate tax. Payment can be made by attaching a check to the return or online at www.La.gov.
Use Form R 6463 to request an extension of time to file a Louisiana tax return if an extension of the federal return has not been requested. Louisiana does recognize the federal automatic extension of time to file provided the Louisiana tax return is filed by the Internal Revenue Service extended due date and a copy of the federal extension form is attached to the Louisiana return when filed.
Partnerships will be granted an extension of up to six months. Do not enter an extension date that exceeds the time period allowable. Complete this form in triplicate; mail one copy to the Louisiana Department of Revenue at the address provided on the form by the original due date of the Louisiana tax return, retain one copy, and attach one copy to the tax return when it is filed.
Use Form R7006 to appoint an individual to represent the taxpayer before the Louisiana Department of Revenue and to receive confidential information related to the tax matters to which the power of attorney applies. This form must be printed, signed, and mailed to the Louisiana Department of Revenue. This form cannot be executed by the same individual being granted Power of Attorney.