La. Extends Entity Tax, Credit Transfer Deadlines Due To Virus

Louisiana extended its deadlines for the state's pass-through entity tax and tax credit transfers and will grant tax relief to estimated income tax declarations in response to the novel coronavirus pandemic, the state Department of Revenue has announced.

The April 15 voluntary filing election deadline for pass-through entities to pay tax at the entity level has been extended to July 15, the department said Monday in Revenue Ruling 20-002. Fiscal year filers with an election due between March 1 and May 30 will also get a deadline extension, the department said.

Also, the deadlines to transfer tax credits that offset income and corporation franchise taxes, and the deadlines to execute a binding agreement to transfer the credits, are extended by 30 days, the department said.

The department will also waive underpayment of estimated tax penalties if certain criteria are met, including timely paying the April 15 and June 15 declaration payments if those payments are at least 90% of the amount paid on the April 15, 2019, and June 17, 2019, declarations, the department said.

Louisiana previously extended deadlines for its income, franchise, sales and certain excise taxes after the onset of COVID-19, the respiratory ailment caused by the coronavirus.

--Editing by Neil Cohen.

For a reprint of this article, please contact reprints@law360.com.