Louisiana Revises Corporate Income Tax, Tax Treatment of S Corporations, Shareholders

The Louisiana Governor signed a law that amends several sections related to corporate income taxation and the tax treatment of S corporations and their shareholders. The law includes: 1) amending the mobile workforce employer exemption from withholding and reporting requirement; 2) clarifying that S corporations are not subject to income tax, but must file informational returns reporting shareholders’ pro rata shares of income, which shareholders must include on their own tax returns; 3) establishing rules for tax treatment of S corporation items such as credits, carryforwards, distributions, and basis adjustments; 4) allowing S corporations to make composite tax payments on ...