Revised Statute 47:287.444(B) provides the method for computing the corporation’s taxable income if the tax period is less than 12 months. To compute the tax due for the short period, the Louisiana taxable income must be placed on an annual basis by multiplying the taxable income amount by 12 and dividing by the number of months included in the short period. The tax on this annualized income is then computed and multiplied by a fraction of which the numerator is the number of months in the short period and the denominator is 12.

If you filed a corporation income tax return for a short period and did annualize the corporation’s taxable income before computing your tax liability, you will owe additional tax.