Fiduciary Income Tax
Who Must File
Every resident estate or trust and every nonresident estate or trust deriving income from Louisiana must file a fiduciary income tax return. Grantor trusts as defined in R.S. 47:187 will be required to file only if part of the income is taxable to the trust or if there are nonresident beneficiaries. In a grantor trust, the trust is ignored to the extent that the grantor can be the beneficiary. The grantor is taxed as if he had never put the assets in trust.
A resident estate is the estate of a decedent who at his death was domiciled in this state. A resident trust is a trust or portion of a trust created by last will and testament of a decedent who at his death was domiciled in this state. Any other trust shall be considered a resident trust if the trust instrument provides that the trust shall be governed by the laws of the state of Louisiana. If the trust instrument is silent with regard to the designation of the governing law, then the trust shall be considered a resident trust only if the trust is administered in this state.
A nonresident estate or trust would be any estate or trust that is not considered a resident estate or trust. Estates and trusts located outside the United States that derive income from Louisiana sources shall be taxed in the same manner as other nonresident estates or trusts even if the estate or trust is not required to file a federal fiduciary return. Such estates or trusts may elect to be taxed at the rate of five percent on total gross income from Louisiana sources.
Date Tax due
Returns and payments are due on May 15th of each year on the preceding year's income, or on the 15th day of the fifth month after the close of the taxpayer's fiscal period.
Determination of Tax
For periods beginning prior to January 1, 2022, fiduciaries are taxed on net income computed at the following rates:
- 2 percent on the first $10,000
- 4 percent on the next $40,000
- 6 percent on the excess over $50,000
For periods beginning on or after January 1, 2022, fiduciaries are taxed on net income computed at the following rates:
- 1.85 percent on the first $10,000
- 3.5 percent on the next $40,000
- 4.25 percent on the excess over $50,000
Declaration of Estimated Tax
An estate or trust may make estimated tax payments by filing Form R-541ES, Fiduciary Income Tax Declaration of Estimated Tax, or through LDR’s online service, Louisiana Taxpayer Access Point (LaTAP).
Requesting an Extension of Time for Filing a Return
Revised Statute 47:103 allows a six-month extension of time to file the fiduciary income tax return to be granted on request. The extension request must be made before the state tax filing due date, which is May 15th for calendar year filers or the 15th day of the fifth month after the close of a fiscal year. An extension may be requested in the following manner:
- Filing an extension request electronically via the Louisiana Department of Revenue's Online Extension Filing application or through the taxpayer's account on LaTap.
- Submitting a state paper extension request on Form R-6466, Application for Extension of Time to File Louisiana Fiduciary Income Tax.
Electronic payment can be made through tax preparation software that supports the option, through LaTap, or by credit card at Officialpayments.com. If you need to mail a check or money order, you must use the electronically filed extension payment voucher, Form R-6466V. This voucher can be printed through the Online Payment Voucher application.
An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.
Tax preparers can also utilize the bulk extension filing application to submit multiple extension requests. This application can be used by any firm who has an Electronic Filing Identification Number (EFIN) registered with LDR or any taxpayer who has a current Louisiana Account Number listed with LDR.
Filing an Amended Return
In order to amend the amounts reported for the computation of income tax, you must file an amended (corrected) Form IT-541. Louisiana Revised Statute 47:103(c) requires every taxpayer whose federal return is adjusted to furnish a statement disclosing the nature and amounts of such adjustments within 60 days after the adjustments have been made and accepted. This statement should accompany the amended return.
Electronic Filing Mandate
Revised Statute 47:1520 authorizes the secretary the discretion to require electronic filing of tax returns or reports by administrative rule. Louisiana Administrative Code (LAC) 61:III.1509 requires the electronic filing of the Fiduciary Income Tax return, Form IT-541. Taxpayers are required to file the return electronically for income tax periods beginning:
- January 1, 2019 - if the return is filed with more than 10 Schedules K-1 attached.
- January 1, 2020 - if the return is filed with one or more Schedule K-1 attached.