Louisiana Preparers

[jasdlm]

I only have 1 LA return . . . parents of my best friend, so I have to do it.

On the Insurance Assessment refund, the LA R-540 INS asks for assessments paid in 2008. Do I have to file and amended LA State return to get the 2007 and 2006 amounts refunded, or is it sufficient just to file a 2007 & 2006 540INS?

Thanks.

[Lynn EA USTCP in Louisiana]

I only have 1 LA return . . . parents of my best friend, so I have to do it.

On the Insurance Assessment refund, the LA R-540 INS asks for assessments paid in 2008. Do I have to file and amended LA State return to get the 2007 and 2006 amounts refunded, or is it sufficient just to file a 2007 & 2006 540INS?

Thanks.

There is a separate form to be used to recoup the LA Citizens surcharges in prior years. Go to the LA Revenue Dept website and it's a fillable form. LA R540INS, a separate form for each year.

Also for 2008, did you see the Homeowners Insurance Credit? It's 7% of the homeowners insurance, not including the LA Citizens surcharges.

If you have any trouble with this, don't hesitate to call me - 504-469-1025

Lynn Jacobs, EA

Kenner, LA

[jasdlm]

Lynn,

Thanks so much. My clients live in Kenner! I did not know about the 7% Homeowners Insurance Credit. I really don't want to do this return, but they had problems with their prior LA preparer, and now they are very skittish. (They had to pay over $1500 in interest/penalties because he could not produce a copy of the extension he filed for them for 2006 . . . they lost their house and were in a FEMA trailer then.) He also did not deduct their military and State Employee pensions from Lousiana income. Last year on 10 April he still hadn't started their return, so their daughter had them pick up their things and overnight it all to me. Yikes. They would probably be better served by a LA preparer, but they now don't want anyone they don't know. Looks like I'm going to have to amend 2007 (which I did) for the 7% HO Ins. Credit that I missed. (Cranked it out and had it back to them by the 15th . . . they were completely freaked out after the 2006 penalties and didn't want another extension.)

[Cathy]

Lynn,

Thanks so much. My clients live in Kenner! I did not know about the 7% Homeowners Insurance Credit. I really don't want to do this return, but they had problems with their prior LA preparer, and now they are very skittish. (They had to pay over $1500 in interest/penalties because he could not produce a copy of the extension he filed for them for 2006 . . . they lost their house and were in a FEMA trailer then.) He also did not deduct their military and State Employee pensions from Lousiana income. Last year on 10 April he still hadn't started their return, so their daughter had them pick up their things and overnight it all to me. Yikes. They would probably be better served by a LA preparer, but they now don't want anyone they don't know. Looks like I'm going to have to amend 2007 (which I did) for the 7% HO Ins. Credit that I missed. (Cranked it out and had it back to them by the 15th . . . they were completely freaked out after the 2006 penalties and didn't want another extension.)

Yikessssss! I almost forgot the new LA extension requirement. Just thought I'd pass this along to our LA preparers.

From the Louisiana Department of Revenue website:

Revised Statute 47:103 allows a six-month extension of time to file the individual income tax return to be granted on request. The extension request must be made before the state tax filing due date, which is May 15 for calendar year filers or the 15th day of the fifth month after the close of a fiscal year.

In the past, taxpayers who were granted automatic federal extensions were allowed the same state income tax filing extension if a copy of the federal extension IRS Form 4868 was attached to the front of their state tax return. Beginning with the 2008 income tax year, taxpayers will be required to either request a specific state individual income tax filing extension or submit a copy of their Federal Application for Automatic Extension of Time To File U.S. Individual Income Tax Return on or before the May 15 due date. Copies of federal extensions attached to the tax return and received after the May 15 due date will not be accepted.

Cathy

[Lynn EA USTCP in Louisiana]

Beware - the 7% homeowners insurance credit is ONLY ON THE 2008 return.

For the prior years (2006 and 2007) the only insurance related credits pertain to the Louisiana Citizens surcharges, of which there could be 1, 2, or 3 items, depending on what time of year the policy renewed.

And yes, I do know about the requirement to file a Louisiana extension for 2008 tax returns. But thanks for the reminder.

Lynn Jacobs, EA

Kenner,

[Lynn EA USTCP in Louisiana]

Another item - for prior years, the state would accept the federal extension. Did the preparer file a federal extension for that couple? If so, then you could send a copy of the federal extension to the state, along with their dunning notice, and ask that the penalties be abated and refunded.

And, yes, there's a special form for penalty abatement requests, too, if the penalty amounts are over $100. I don't remember the number off-hand (R-10618 ? ) but it's on the LA Dept of Revenue's website too. The clients will have to sign this form.

Lynn Jacobs, EA

Kenner, LA