The Louisiana Department of Revenue (LDR) is offering taxpayers an opportunity to request participation in a voluntary initiative designed to efficiently resolve intercompany transfer pricing issues through the Louisiana Transfer Pricing Managed Audit Program (the “Program”). [Revenue Information Bulletin No. 21-029]
Corporate income taxpayers in Louisiana that may be involved in related party transactions between members of an affiliated group may be interested in this Program. If the transactions lack economic substance or are not provided at arm’s length prices, income being reported to the state may be inaccurate. LDR conducts audits to review transfer-pricing-related issues and company-provided studies. The purpose of the Program is to provide expedited resolution for corporate audits where transfer pricing issues exist.
The benefits of participating in the Program include a waiver of penalties and interest assessments as a result of an audit, as well as resolution of the transfer pricing issues for the current year, all open tax periods, and up to four future tax periods.
To request participation in the Program, a taxpayer must meet the following requirements:
- An established history of voluntary compliance with LDR, if previously registered;
- Certification that the taxpayer has available time and resources to dedicate as a participant in the Program;
- Available and suitable records concerning intercompany transactions; and
- Have a reasonable expectation of ability to pay an expected tax liability.
The Program is also open to taxpayers currently under audit, but only transfer pricing issues may be resolved under this Program. Applications for participation are being accepted between November 1, 2021 and April 30, 2022, with all audits concluded by June 30, 2022.
Ryan’s professional teams are available to review your current transfer pricing studies to assess your eligibility to participate in the expedited audit program and determine if these benefits are available to you.
TECHNICAL INFORMATION CONTACTS:
Mark L. Nachbar
Principal
Ryan
630.515.0477
mark.nachbar@ryan.com
Timothy Reichert
Principal
Ryan
303.297.1260
timothy.reichert@ryan.com
Mary Bernard
Manager
Ryan
401.272.3363
mary.bernard@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
- Topics
- Mark L. Nachbar
- Property Tax
- Louisiana