Deadline for Louisiana Transfer Pricing Managed Audit Program is April 30, 2022

April 21, 2022

BATON ROUGE – The application deadline for the Louisiana Transfer Pricing Managed Audit Program, a voluntary initiative aimed at resolving intercompany transfer pricing issues, is April 30, 2022.

The Louisiana Department of Revenue (LDR) introduced the program to create an efficient and expedited resolution for transfer pricing issues involving corporate tax audits, and to provide certainty and uniformity to taxpayers.

The benefits of this transfer pricing managed audit program include:

• Increased understanding of how Louisiana tax laws apply to their business activity and Intercompany Transactions
• Less disruption to business operations because the taxpayer will manage their own resources in conducting the audit
• Waiver of penalties that would otherwise be due based on the results of the managed audit
• Abatement of interest during the course of the managed audit

To participate in the program, a taxpayer must meet the following eligibility criteria:

• Established history of voluntary tax compliance with LDR, if previously registered with LDR
• Certification that the taxpayer has available time and resources to dedicate as a participant in the Program
• Available and suitable records concerning Intercompany Transactions
• Reasonable expectation of ability to pay an expected liability

LDR strongly encourages corporations with transfer pricing adjustments to participate in this voluntary program to proactively resolve potential disputes in lieu of the standard audit, protest, and litigation process.

Read Revenue Information Bulletin 21-029: Louisiana Transfer Pricing Managed Audit Program for more information.