Louisiana Senate Bill SB405

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/12/10
• Engrossed: 4/14/10
• Refer: 4/15/10
• Report Pass: 5/20/10
• Enrolled: 6/20/10
• Chaptered: 7/6/10
• Passed: 7/6/10

Caption

Authorizes the Secretary of the Department of Revenue to require electronic filing of certain returns when electronic filing of a similar return or report is required by the Internal Revenue Service. (gov sig) (EN SEE FISC NOTE GF EX See Note)

Impact

The enactment of SB 405 could lead to significant changes in the way tax returns are submitted in Louisiana. The requirement for electronic filing aligns state practices with federal expectations, potentially reducing discrepancies between state and federal filings. This uniformity may simplify the tax preparation process for businesses and individuals alike, improving overall compliance rates. Moreover, the provisions for reciprocal agreements could enhance collaboration between state and federal tax administrations, allowing for mutual offsets of debts, which may provide financial relief to both governments in debt recovery processes.

Summary

Senate Bill 405 aims to modernize tax procedures in Louisiana by authorizing the Secretary of the Department of Revenue to require electronic filing of tax returns. This mandate will apply when taxpayers are also required to file similar returns with the Internal Revenue Service (IRS) electronically. By implementing this bill, the state anticipates streamlining the tax filing process, thereby increasing efficiency and compliance amongst taxpayers. Furthermore, the bill introduces provisions for issuing Direct Payment Numbers to taxpayers engaging in cooperative endeavor agreements with the state, thereby facilitating easier tax management.

Sentiment

The reception of SB 405 has been largely positive among legislators focused on modernizing state operations and enhancing efficiency. Proponents argue that electronic filing is a necessary step towards embracing technology and improving taxpayer experiences. However, there exists a concern regarding the compliance burden it may place on certain taxpayers, particularly those who may not have readily available access to electronic filing resources. This sentiment highlights the importance of ensuring equitable access to tax filing methods, promoting inclusivity in the legislative process.

Contention

While the bill is expected to bolster efficiency, concerns have been raised about potential hurdles for smaller businesses or individuals who might struggle with the transition to mandatory electronic filing. Critics fear that without adequate support and resources, some taxpayers could face difficulties in meeting their obligations. Additionally, discussions around the issuance of Direct Payment Numbers have sparked debates about the implications of cooperative agreements in terms of their administrative complexity and the transparency involved in their oversight.