§287.442. Exceptions to taxable year of inclusion; taxable year deductions taken
A. Notwithstanding the provisions of R.S. 47:287.441, if any item of income has
been reported in a return and has borne tax in full for a period in which it was not properly
reportable, the taxpayer shall not be required to report the same item of income in a
subsequent period in which it would otherwise be properly reportable, unless the secretary
shall have, prior to the running of prescription with respect to the first period, redetermined
the tax liability for that period so as to eliminate the item of gross income improperly
reported and shall have refunded or credited any resulting overpayment for that period.
B. Period for which deductions and credits shall be taken.
(1) The taxable year in which to claim the federal income tax deduction allowed by
R.S. 47:287.85 shall be determined as follows, regardless of the method of accounting
regularly employed by the taxpayer:
(a) The federal income tax deduction may be claimed for the same taxable year in
which the federal income tax sought to be deducted is incurred, provided the taxpayer files
a federal income tax return for such taxable year or is included with affiliates in a
consolidated federal income tax return for such taxable year.
(b)(i) Taxable year for adjustments to taxpayer's federal income tax return. Except
as otherwise provided in this Subparagraph, adjustments affecting federal taxable income
which are made to the taxpayer's income tax return subsequent to filing, whether made
because of a deficiency proposed by the government, a court order, an amended return, or
other appropriate instrument or act, showing an overpayment or a deficiency shall be taken
into account for purposes of this Part in the period for which the return was filed, unless the
prescriptive period for the collection of tax or the refund or credit of overpayments, as the
case may be, has expired. If the applicable prescriptive period has expired, the additional tax
paid by the taxpayer in the case of an underpayment or the refund or credit received by the
taxpayer in the case of an overpayment shall be for the taxable year such tax was paid, such
refund was received, or such credit was allowed, as the case may be.
(ii) When a federal refund results from transactions or conditions which arise after
the close of the taxable year for which the refund is made, such federal refund shall be taken
into account, for purposes of this Part, for the taxable year in which arose the transactions
or conditions causing the refund.
(c) Taking federal adjustments into account. A payment of additional federal tax
upon income which has borne Louisiana tax shall be taken into account by decreasing taxable
income. That portion, if any, of such additional federal tax payment which would be
disallowed as a deduction under either R.S. 47:287.81 or R.S. 47:287.83 shall be excluded
from such adjustment. Refunds or credits of federal overpayments, including refunds or
credits created by the carryback of a federal net operating loss, shall be taken into account
by increasing Louisiana net income or decreasing the Louisiana net loss, as the case may be.
That portion, if any, of the federal refund or credit of an overpayment which has not
previously been charged against or deducted from Louisiana net income shall be excluded
from such adjustment.
(d) Adjustments made to the Louisiana return. Adjustments to a return filed pursuant
to this Part, whether initiated by the secretary or the taxpayer, shall be taken into account in
the taxable year for which the return was filed in accordance with rules, regulations, or forms
prescribed by the secretary.
(2) If a deduction is claimed and allowed in any period, the same deduction cannot
again be claimed in a subsequent period in which it otherwise would be properly deductible,
unless the taxpayer, prior to the running of prescription with respect to the first period, shall
have amended his return for that period so as to eliminate the deduction and shall have paid
any additional tax which may be due as a result thereof, together with any interest and
penalties that may be applicable thereto.
Acts 1986, 1st Ex. Sess., No. 16, §1, eff. Dec. 24, 1986; Acts 2016, 1st Ex. Sess., No.