Given the historic floods that have ravished Baton Rouge, Louisiana and surrounding areas in recent weeks, adhering to tax administration deadlines is likely a very low priority of affected businesses and individuals. According to a preliminary analysis of the potential economic impact of the flooding conducted by the Baton Rouge Area Chamber (BRAC), 110,000 homes worth $20.7 billion are located in the flood-impacted areas in the greater Baton Rouge region. While the number of homes that actually flooded is much lower—the state estimates at least 40,000—financial damages in the region will be extraordinary, according to BRAC’s report.
President Obama declared that a major disaster exists in Louisiana as a result of the flooding, and in turn, the Internal Revenue Service has offered tax relief to taxpayers who "reside or have a business" in any of the declared disaster areas. For federal excise tax and quarterly payroll tax returns, corporate, partnership and individual tax returns that have already been extended, and quarterly estimated tax payments, deadlines between Aug. 11, 2016 and Jan. 17, 2017, will be extended to Jan. 17, 2017. The IRS is also effectively extending the deadline for federal excise tax and employment tax deposits due on or after Aug. 11, 2016, as it will waive failure to deposit penalties when such deposits are made by Aug. 26, 2016.
Similarly, the Louisiana Department of Revenue is offering state tax relief to taxpayers that maintain their principal place of business, store critical tax records or reside in an area that was declared a federal disaster area.
Louisiana is extending the filing and payment due date to Jan. 17, 2017 for estimated tax payments, individual income, corporate income and franchise, fiduciary and partnership composite taxes with due dates between Aug. 11, 2016 and Jan. 17, 2017.
The state is also extending the filing and payment due date to Nov. 15, 2016 for various excise, severance and sales taxes with both original and extended filing and payment due dates between Aug. 11, 2016 and Oct. 31, 2016.
Finally, Louisiana is extending the due date to Nov. 30, 2016 for any withholding tax payments due between Aug. 11, 2016 and Nov. 15, 2016, and any withholding returns due on or before Oct. 31, 2016.
As long as affected taxpayers file the required returns and make the required payments by the extended due dates, Louisiana will not assess interest or late filing and late payment penalties that would typically apply. Paper filers should indicate their eligibility for the disaster extensions by writing “South La. Flooding 2016” at the top of their returns in black ink.
Thus far, the following parishes have been declared federal disaster areas: Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington and West Feliciana.
Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: Do federal and state disaster-related tax filing extensions positively impact economic recovery?
With a free trial to Premier State Tax Library, practitioners have a single trusted resource that provides all of the tools and information they need to develop and implement the right tax strategies.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)