Provides for an automatic filing extension for individual income tax returns. (8/1/22) (EN -$1,900,000 GF RV See Note)
Impact
With the implementation of SB54, the filing landscape for Louisiana taxpayers will significantly change. By aligning state tax filing extensions with those of the federal government, the bill is expected to alleviate the pressure on taxpayers during tax season. This synchronization minimizes the chances of penalties for late filing as long as the required returns are submitted within the defined extension period. The automatic nature of the extension is poised to improve taxpayer compliance and overall satisfaction with the state's tax system.
Summary
Senate Bill 54 (SB54) amends state laws regarding the filing of income tax returns, specifically introducing provisions for an automatic six-month extension for individual and corporate income tax returns in Louisiana. The legislation aims to streamline the filing process by allowing taxpayers to use their federal tax extension request as an automatic extension for state returns, thus reducing paperwork and complexity for taxpayers. Set to take effect for returns beginning January 1, 2022, the bill anticipates significant administrative ease in tax processes for individuals, partnerships, and corporations alike.
Sentiment
The sentiment surrounding SB54 appears largely positive among legislators, as evidenced by the unanimous support it received during voting, with a recorded 30 votes in favor and none against. Proponents have highlighted the bill's efficiency and its potential to modernize the tax filing experience in Louisiana. The automatic extension feature is seen as a sensible approach to taxation, easing the burden on individuals and businesses alike, thereby fostering a more taxpayer-friendly environment.
Contention
Although SB54 is generally welcomed, there are underlying concerns regarding the potential for misuse of the extended filing periods. Some lawmakers and stakeholders have expressed apprehension about the implications of allowing automatic extensions without a thorough review process, fearing that it may encourage procrastination among some taxpayers. However, these concerns did not manifest in significant opposition during the bill's progress, indicating a consensus on the benefits of simplifying tax filing procedures.
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)
Urges and requests the secretary of the Department of Revenue to accept an individual taxpayer's federal income tax return extension as a taxpayer's extension of time to file his state income tax return
Individual income tax: returns; extension of filing deadline for income taxes under certain circumstances; authorize. Amends sec. 301a of 1967 PA 281 (MCL 206.301a).