Provides for the extension of state income taxes. (1/1/21)
Impact
By aligning the state income tax filing process with the federal system, SB139 significantly reduces the compliance burden for Louisiana taxpayers who also file federal tax returns. Taxpayers will no longer need to file separate extension requests for both federal and state taxes, simplifying what can often be a confusing and cumbersome process. This could lead to improved compliance rates, as taxpayers may find it easier to file their returns on time, especially in complex financial situations where extensions are necessary.
Summary
Senate Bill 139 (SB139) introduced by Senator Allain aims to simplify the process for Louisiana taxpayers seeking extensions on their income tax filings. The bill mandates that the Louisiana Department of Revenue accept the federal income tax extension requests, provided they are submitted in a timely manner. This change is intended to streamline tax filing procedures, making it easier for taxpayers to meet their obligations without the burden of additional paperwork for state extensions. The legislation is set to take effect on January 1, 2021, contingent on its passage in the legislature.
Sentiment
The overall sentiment surrounding SB139 appears to be positive, particularly among taxpayers and tax professionals who support the reduction in paperwork and the simplification of the tax filing process. Advocates for this legislation argue that it reflects a modern approach to tax administration, acknowledging the realities of taxpayer behavior and the importance of efficient government processes. However, there may be potential concerns regarding how well the Department of Revenue can handle the accepted federal extensions without delays or complications, which could affect taxpayer satisfaction.
Contention
Although the bill appears to have broad support, some skepticism may arise regarding potential impacts on state revenue collection and the administrative capabilities of the Louisiana Department of Revenue. Critics could argue that the reliance on federal extension protocols might lead to issues down the line, especially if there are inconsistencies or challenges in implementation. Additionally, there are concerns about ensuring that taxpayers still understand their responsibilities under state law, even with eased extension policies.
Provides relative to the deadlines for the payment of certain taxes and the time and place for the filing of certain income tax returns (RE1 NO IMPACT GF RV See Note)
Conforms state partnership reporting adjustments to federal taxable income to current federal partnership audit adjustments. (gov sig) (EN NO IMPACT GF RV See Note)