Today the Louisiana Department of Revenue issued Revenue Information Bulletin No. 23-009, concerning partnership filing requirements for the 2022 tax year. The purpose of the RIB is to specifically provide administrative filing relief for certain eligible partnerships with regard to the 2022 tax year. However, the RIB does indicate that at the appropriate time these exceptions will be codified into the Louisiana Administrative Code and will apply for future tax years.
Beginning in 2021, Act 287 amended the law to provide that all partnerships are required to file a Louisiana informational return with the Department of Revenue if the partnership is doing business in Louisiana or deriving any income from Louisiana sources. This represented a change in the law in that previously partnerships that had only Louisiana resident individuals as partners were not required to file partnership informational returns with the Louisiana Department of Revenue.
The administrative filing relief provided indicates that an eligible partnership is exempt from filing a Louisiana state partnership return if one or more of the following provisions apply:
- The partnership’s gross receipts were less than $250,000 and the partnership’s total assets at the end of the tax year were less than $1 million. The RIB provides guidance concerning how to determine gross receipts and how to determine total assets.
- The partnership is not required to file IRS Form 1065 with the Internal Revenue Service.
- The partnership elected to be taxed as a corporation with the Internal Revenue Service and files Form CIFT-620 with LDR.
The RIB indicates that regardless of the foregoing exceptions, the following two types of partnerships are required to file Louisiana partnership informational returns:
- Partnerships which are required to attach Schedule 6922, Louisiana Composite Partnership to the Louisiana partnership information return.
- Partnerships which have any partners or related parties with an approved pass-through entity election on file with the Department.
Finally, the RIB refers taxpayers to Revenue Information Bulletin 22-007 for information on registering a partnership account with the Department. First time partnership filers will be automatically assigned a partnership account number following filing of the first state partnership return, and correspondence containing the account number will be issued to the partnership’s address.
Should you have any questions, please contact Robert Angelico, Leon Rittenberg III, or Kendra Haley Merchant.
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