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Louisiana Department of Revenue E- File & E- Pay

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Presentation on theme: "Louisiana Department of Revenue E- File & E- Pay"— Presentation transcript:

1 Louisiana Department of Revenue E- File & E- Pay
Quick, Accurate and Convenient Personal & Business Tax Filings and Payments Made Easy! Good Morning! Introduce all LDR employees. LDR

2 ACT 452-Mandates Electronic Filing
Tax Preparers who prepare more than 100 individual returns January 1, % January 1, % January 1, % E-filing is steadily on the rise. There is a continuous increase in the number of active EROs both in state and out-of-state filing LA returns. Last year at this time, we had over 1,352,444 electronically filed returns. During 2010, we received over half of our returns electronically. This year as of September 1st , LDR has received 65% of our Individual Income returns electronically. We have exceeded our goal of 60% for 2010 and our working our way to reach 90% for 2012. In an effort to encourage Louisiana e-filing, ACT 452 of the 2006 Legislative Session mandates electronic filing for those tax preparers who prepare and file more than 100 individual returns. By 2012, 90% should be e-filed returns. LDR

3 Benefits of E-File Available for most IRS 1040 filers and Louisiana resident IT- 540 & non-resident IT-540B filers Simultaneous filing of federal and state electronic returns Option of filing STATE ONLY electronic A dedicated and knowledgeable preparer Electronically filed returns are more accurate with less chance of errors Benefits and advantages of electronically filing returns LDR

4 Benefits of E-File (cont'd)
Federal and state acknowledgements of receipt Direct Debit of payments - balance due filers can file early and pay later IRS and LA help desks available Faster refunds – About a week Direct Deposit of refunds - available only for electronic returns State acknowledgements will be received from IRS, as well as the Federal acknowledgements. The Global Transaction key (GTX) will be used by the IRS Help Desk Staff to research the status of a transmission. The States will not be able to rehang acknowledgements. You must contact the IRS Help Desk and provide them with your GTX key. taxpayer must have filed with the state of LA the previous year, in order to electronically deposit refund. This year will be back on target ! NO SPLIT REFUNDS ! – Act 702 requires TPs filing for a state individual income tax refund through the Fed/State E-file Program to direct deposit the state tax refund if the federal tax refund is directly deposited. This may not apply to TPs who do not have a personal checking account. Effective for tax years beginning on or after January, 2006. LDR

5 Application Process Electronic Return Originators or ERO’s accepted by the IRS will automatically be accepted into the state e-file program. Annual state compliance checks are performed on all EROs. A list of approved software vendors has been provided on the LDR Website. Only software developers are required to test with LA returns (PATS-Participants Acceptance Testing System) Acceptance into federal program by applying online at LDR

6 Forms and Schedules The Louisiana Individual Income Tax forms and schedules that can be e-filed are: Form IT Louisiana Resident Return (original, amended or for deceased taxpayer) Schedule E - Adjustments to Income Schedule F - Refundable Tax Credits Schedule G - Nonrefundable Tax Credits Schedule H – Modified Federal Income Tax Deduction For amended returns, be sure that “Amended” is indicated on the return. For a deceased taxpayer, the preparer should inform the taxpayer that he should send a copy of the death certificate and Form 6642/IT 710 as an attachment through the web or the taxpayer can mail the information to P O Box 4998 Baton Rouge LA Attn: IIT or fax the information to Schedule E has not changed from last year, but as a refresher, Code 6E Annual Retirement Income Exemption for Taxpayers 65 or Over, should not exceed $6,000 per taxpayer amount of income received. Revenue Information Bulletin allows amended returns for couples filing jointly and who were both 65 years of age or older. The 2005 return can be amended during calendar year 2009; 2006 – calendar year 2010. Schedule F Line 1 (inventory tax credit). Schedule G- Line 2, Credit for Certain Disabilities, only one credit is allowed per person (yourself, spouse, dependent). These disabilities include deafness, loss of limb, mentally incapacitated, and blindness. The instructions define these disabilities. First time claimants must provide letter from the doctor. Schedule G -Line 4, Credit for Certain Federal Credits. Taxpayers are allowed a credit of 10 percent of the credits taken from Form 1040, line 47 (Credit for child care and dependent care expenses) and Line 52 (Retirement savings contributions credit) plus 10 percent of any investment tax credit or jobs credit computed on Federal Form 3800. Schedule H FITCD = Federal Income Tax Deduction Computation Worksheet – Last year Lines 7A & 7B were same amounts. This year, the amounts could differ due to recomputation of casualty loss. LDR

7 Louisiana Forms & Schedules that can be Electronically Transmitted
Supporting Federal Return and Schedules The State Only Return IT540B, Nonresident and Part-Year Resident return State extension State extensions can now be filed electronically through our LDR website. Extensions can also be submitted on our website through our "bulk upload" program . Software developers will also include the ability to file state extensions within their software programs. There is no Schedule E (Adjustments to Income) on the Nonresident Individual Income Tax return (IT-540B) nor has there ever been. Information similar to Schedule E is picked up on Line 8 of the Nonresident return. LDR

8 Paper Documents to be retained by ERO
The Forms LA 8453 and corresponding W-2 forms, 1099s and all supporting documentation must be retained for at least 3 years. (Taxpayer’s form LA 8453OL) If using PIN (Personal Identification Number) retain Federal E-file signature Authorization Document, IRS Form 8879 The LA 8453 will be used as an information document when IRS Form 8879 is used. The LA 8453 must be signed and retained when a state only return is transmitted. Forms LA 8453 and corresponding W-2 forms, 1099s and all supporting documentation to LDR, these records must be retained for at least 3 years. Random compliance checks for taxpayer and ERO signatures are performed annually at which time we ask for copies of these documents. Do not send these to LDR unless you are requested to do so. PIN (Personal Identification Number)will be accepted by Louisiana this year as your signature in place of Form LA 8453(Individual Income Tax Declaration for Electronic Filing) required in the past. You are to keep the paper documents on file for at least 3 years. If you are using the PIN, retain the Federal E-file Signature Authorization Document, (IRS Form 8879) for your records for the required 3 years. The LA 8453 will be used as an information document when IRS Form 8879 is used. LDR

9 What cannot be e-filed LDR Exclusions in IRS Publications 1345
Prior Year Returns IAT (International ACH Transaction) will not be accepted this year. To determine if a financial transaction potentially qualifies for IAT, the department asks that the following question be presented to the taxpayer at the time of filing; an answer of yes will indicate an IAT transaction: For taxpayers due a refund and requesting a direct deposit: Will the funds be received by a financial institution outside of the territorial jurisdiction of the U.S.? MEF may eliminate exclusions (2006, 2007, 2008 and 2009) can be filed electronically on the LDR website. Only calendar filers are accepted at this time. The department is asking tax preparers to please make every effort to screen direct deposits/debits and redirect taxpayers to alternative payment options prior to submitting the state return to ensure limited interruption of payment/refund processing. This measure is not required, but be aware that if a possible IAT transaction is detected during return processing LDR will take the following actions: To comply with the new NACHA regulations regarding International ACH Transactions (IAT), the Louisiana Department of Revenue will not accept direct deposits or debits via electronic filing in association with a financial institution outside of the territorial jurisdiction of the United States for tax year The territorial jurisdiction of the United States includes all 50 states, U.S. territories, U.S. military bases and U.S. embassies in foreign countries. For taxpayers due a refund, the taxpayer will be issued a paper check in lieu of the direct deposit requested. For taxpayers owing a balance, the direct debit requested will be rejected and the taxpayer will be notified to use an alternative payment option. IAT(International ACH Transaction) direct deposits and debits will delay processing of the taxpayer’s payments and refunds only, turnaround on return processing will NOT be affected. For taxpayers owing a balance and requesting a direct debit: Will the funds originate from a financial institution outside of the territorial jurisdiction of the U.S.? LDR

10 Transmitting Louisiana Electronic Returns
Follow procedures set by IRS Publication 1345 (Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns) Confirm your ability to electronically file state and federal data. The Louisiana return is transmitted with the federal return, unless the State Only option is utilized. When transmitting both returns together, it is important to note that if either return rejects, both returns will reject. LDR

11 Acknowledgement After Louisiana retrieves the returns from the IRS, electronic acknowledgement is generated for each return and sent to IRS to provide to transmitters. Transmitters should verify that the software includes the state acknowledgement retrieval from IRS. Contact our office, Electronic Filing Help Desk at (225) /2492 if acknowledgement is not received within 3 business days. LDR

12 Error Codes D = Duplicate Return-Error Code 900
Duplicate SSN Return will not be processed Direct Debit Problem Direct Debit problems can be caused by incorrect information on the return, account and/or date. Please review the direct deposit information thoroughly before submitting by verifying taxpayer and account information. Transmittals with these problems will be processed with no Direct Debit. The filer must make other payment arrangements for this return. Date, RTN, account information money amount. Transmittals with these problems will be processed with no Direct Debit. The filer must make other payment arrangements for this return. LDR

13 Imperfect Returns LDR Imperfect Returns will be accepted by Louisiana.
An acceptance code of “E” will be given for these returns. It has been determined that approximately 75% of Imperfect Returns are usually correct. There is no way of knowing which SSN rejected nor for what specific reason. Taxpayer may be requested to submit documentation to verify the information submitted. LDR

14 ITIN/SSN MISMATCH The Louisiana Department of Revenue will accept the following this year: ITIN/SSN MISMATCH (Individual Taxpayer Identification Number/Social Security Number Mismatch) Tax returns filed with an Individual Taxpayer Identification Number reporting wages paid are required to show the Social Security Number under which the wages were earned. This creates an identification number (ITIN/SSN) mismatch. In the past, returns with this mismatch could only be filed on paper. Due to programming changes the IRS' e-file system can now accept these returns. The taxpayer's correct ITIN should be used as the identifying number at the top of Form When inputting W-2 information, the SSN should be entered exactly as shown on the Form W-2 issued by the employer. It is now possible to e-file a return with an ITIN/SSN mismatch. LDR

15 Responsibilities Must comply with the requirements and
specifications of IRS Publication 1345 and the Louisiana Handbook for Electronic Filers of Individual Income Tax Returns. Must furnish taxpayer with a copy of all completed Louisiana forms and schedules filed for the taxpayer. If used, signed Form LA 8453, state copies of W-2's and 1099's must be retained by ERO for 3 years. Do not mail LA 8453s and W-2s to LDR. LDR

16 Responsibilities (Cont'd)
Must ensure electronic returns filed timely. Date returns transmitted to IRS will be considered filing date for LA returns. Must verify taxpayer banking information for direct deposit/direct debit Must check state acknowledgments to verify state portion received LDR

17 Incorrect taxpayer address
Common Errors Incorrect taxpayer address Not using most current version of software Not checking acknowledgements to determine whether return received Not including Prepayments, Declaration amounts Transmitting Duplicate Returns In the past, we have experienced problems with some of the tax preparers telling taxpayers to use their street address rather than their PO Box for any refunds due. This is not the case. They should use the address they would normally get their mail. It is very important to use the most current version of the software, especially because during the onset of tax season software vendors are continuously updating their packages to eliminate return errors. It is very important that you receive acknowledgement of filing your return. Do not assume the return has been received unless you have confirmation. Please explain to your taxpayers that they should not send in a paper return after e-filing. This will cause a duplicate return to be filed which could create delays in processing. LDR

18 Common Errors (Cont'd) LDR
Incorrectly requesting/not requesting direct deposit for refund or direct debit of payment Incorrect bank account information for direct deposit/direct debit Incorrect date and/or amount for direct debit Mailing paper return or LA8453s to LDR Using another taxpayer’s payment voucher (do not make copies) Any incorrect banking information, whether it be for direct deposit of refunds of direct debit of payments, will cause a paper check to be issued for refund and a balance due for any payments, which means that other payment options will have to be used. Do not use another taxpayer's voucher. This will cause serious issues with account information and cause delays in processing the return or payment. Do not mail LA 8453s unless requested by our office. Do not use another taxpayer's voucher. LDR

19 LDR Web Filing and Payments Options
File returns via web Submit direct debit payments online and specify effective date of payment Submit credit card payments online Individual Income Tax Options Individual Income Tax Return (IT-540), Payment & Extension Check status of Income Tax Refund Refund status telephone number Go to Current year individual income tax returns may be filed and paid online, extensions can be requested during valid period, payments for past periods and declaration payments may be submitted. Here is where prior year returns can be filed. Several business tax returns may also be filed online and most business taxes may be paid online for current and past periods. Payment request may be submitted with future payment effective dates. The option of using a credit card to make payments is available. Go to the department’s website to access the e-file/e-pay options. LDR

20 LDR Web Filing and Payments (Cont’d)
Taxpayers who register for web filing online through LATAP – must currently be a registered taxpayer on our records If new user, self-select their login ID and password – will receive authorization code If previous online user, same user ID and PIN will be accepted

21 LDR Web Filing and Payments (Cont’d)
Taxpayers enter tax information and program will calculate return based upon the entries. Upon calculation of the return, the taxpayer has the chance to modify the information or submit it using their Password as their signature. If a balance is due, the taxpayer has the option of submitting the payment and choosing the effective date of the payment.

22 LDR Web Filing and Payments Cont’d)
The program gives the taxpayer a confirmation number for the filing of the return. If a payment request was submitted with the return a trace number is also given to the taxpayer. Once the return is uploaded into our system, the tax preparer can view or amend the return if necessary.

23 Overview of Business Tax Online Filing Programs
The Department of Revenue is currently offering the option of free internet filing for many taxpayers. Access to this program is through a secured environment so that the information that is sent and received is protected from unauthorized access. Safe and secure website. Returns can be filed and paid immediately after registering online They include LaTAP, Parish eFile, Business Tax Online, LaWage, Severance and the LDR Business ID applications LDR offers Corp MeF filing through the IRS, as well. Only approved software vendors offer Corp MEF. You should check with your software provider to determine if they support Corp MEF. LDR

24 LaTAP - Business Tax Options
Sales Tax – General (R-1029) New Orleans Exhibition Hall Authority Sales Tax (R-1325) Excise Gasoline and Special Fuels Hotel/Motel Sales Tax (R-1029HM) Automobile Rental Excise Tax (R-1329) Withholding L-1 Tax Returns Orleans and Jefferson Hotel/Motel Sales Tax (R-1029DS) Beer Tax Parish E-File New: Severance G2 and O2 Applications Business tax online filing via the Department of Revenue’s website is free and secure. Also, the EDI (Electronic Data Interchange) for Sales Tax returns is still available through a third party vendor that has been approved by the State. Some of the vendors provide local and state simultaneous filing with one click of the button. problems or questions on Parish E-file. Phone  (225) Fax  (225)   support LDR

25 LDR Web Filing and Payments (Cont'd)
Business tax online filing via the Department of Revenue’s website is free and secure Parish E-file E-Service help desk should be contacted for problems or questions on Parish E-file. Phone  (225) Fax  (225)   Also, the EDI (Electronic Data Interchange) for Sales Tax returns is still available through a third party vendor that has been approved by the State. Some of the vendors provide local and state simultaneous filing with one click of the button. LDR

26 LDR Web Filing and Payments (Cont’d)
The program gives the taxpayer a confirmation number for the filing of the return. If a payment request was submitted with the return, a trace number is also given to the taxpayer. Once a return is submitted via LDR system, then the taxpayer can view that return, and they can also call it back up and amend it. Upon successful submission of the return, a confirmation number is given indicating that the return has been filed. Upon acceptance of the payment request, a trace number is given to identify the payment. Once submitted, a return can subsequently be retrieved to view, print or amend as needed. Payment requests may also be viewed after submitted – however, payments requests cannot be changed online.(How can they be changed?) LDR

27 LDR Web Filing and Payment Business Returns not on LATAP
L-2/L-3 Tax R Withholding Online direct debit payments available for most Business and Individual Income Taxes Online Business Registration Online credit card payments available Severance Oil & Gas O1D, O3, O5, G1D, G3, & G5 Returns Registration is quick and simple Returns can be filed and paid immediately after registering online. You must register for each tax separately – sometimes taxpayers have different people handling different taxes – this allows different contact/PINs for each tax. There is also the payment only options, where you can have a different contact/PIN registered to submit payment of the taxes. The PIN is to be kept confidential and as a security measure, if several unsuccessful attempts of entering the correct PIN are made, the PIN is then invalidated and the department must be contacted to reset. Online credit card payments can be made for Individual Income tax and Business Tax credit card payment. Withholding L-2/L-3 Tax Returns (Internet - Online Entry) – Enhancements have been included for LaWage09. Lots of helpful information. Severance Oil & Gas O1d, O3, O5, G1d, G3, & G5 Returns (Internet - Online Entry) – Enhancements have been included for the Severance. The program now validates against DNR information (SONRIS) Each of these applications have changed to "thin client technology". They are not downloadable, as they were. The tax preparers and/or business logs on, works on the return online. The return can be saved for later to submit, if more entry time is required. For instance, if you want to add data weekly, or daily until finished. LDR

28 On the horizon for electronic filing…
Single Sign-On for business Payroll Information Employer’s Withholding Tax Act 452 required electronically filing January, or more returns January or more January or more January or more January or more Legislative Act 452 passed this regular session to require e-filing of withholding tax beginning January, 2010 if 200 or more returns are filed. This is where LAWAGE Program will be extremely beneficial. LDR

29 Contact Names and Phone Numbers
State Electronic Filing Help Desk For Tax Practitioners and Transmitters Only Telephone: (225) Shanna Kelly/Kathleen Parker Telephone: (225) /2492 addresses: Fax Number: (225) State Electronic Filing Help desk is available for Tax Practitioners and Transmitters Only for Electronic Filing issues and for participation in the Federal/State individual income electronic filing program. LDR

30 Contact Names and Phone Numbers
LaTap/EFT Rodanda Washington Telephone: (225) addresses: Fax Number: (225) Parish E-File Debra Guillory Telephone: (225) addresses: Fax Number: (225) LDR

31 Louisiana Department of Revenue Contacts
Fed/State E-Filing Program (225) Stacy Garrett (E-Services Manager) Travis Fossett (Electronic Filing Coordinator) Substitute Tax Form Acceptance (225) Fay Guidry Personal Income Tax (225) Forms Request (225) Telecommunications for the Deaf and Disabled (225) (TDD) LDR

32 About Us-Publications-Laws and Policies-FAQ-Tax Fraud-Related Sites
Homepage offers links for complete information for Individuals

33 Updated information will be posted as available.
News and Press Releases-Important Announcements-Hot Topics Updated information will be posted as available.

34 Website provides a Policy Statement Subscription Service registration for Businesses and Practitioners- Stress importance

35 Let them know of available help online.

36 District Offices Effective August 15, 2010 the regional offices will be collapsed into three districts, North, south, and New Orleans. Southern District (Baton Rouge, Lafayette & Lake Charles) One Lakeshore Dr,1550 Lake Charles 70629 New Orleans District 1555 Poydras St, 2100 New Orleans 70112 Northern District (Alexandria, Monroe & Shreveport) 900 Murray Street Room B-100 Alexandria, LA LDR

37 Questions LDR


39 Exit

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