Form R-8697 Louisiana Interest Computation Under the Look-Back Method for Completed Long-Term Contracts - Louisiana

Form R-8697 is a Louisiana Department of Revenue form also known as the "Louisiana Interest Computation Under The Look-back Method For Completed Long-term Contracts". The latest edition of the form was released in June 1, 2011 and is available for digital filing.

Download an up-to-date fillable Form R-8697 in PDF-format down below or look it up on the Louisiana Department of Revenue Forms website.

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R-8697 (6/11)
Louisiana Interest Computation
Under the Look-Back Method for
Completed Long-Term Contracts
Mail claims to the following address:
Office Audit Division
P.O. Box 66362
Baton Rouge, La 70896-6362
PLEASE PRINT OR TYPE.
Louisiana Account Number
Filing Period in which contract was completed
Name
Telephone
Address
City
State
ZIP
Date of each year to which interest computation
(d)
relates
Totals
(Add columns (a),
(a)
(b)
(c)
(b), and (c)).
Year ended
Year ended
Year ended
___ / ____
___ / ____
___ / ____
1.
The amount of income required to be allocated for contracts
completed during the tax year based on the actual contract price
and costs.
2. The amount of income reported for such contracts based on
estimated contract price and costs. Attach a schedule listing each
separate contract, unless you were an owner of an interest in a
pass-through entity reporting this amount from Schedule K-1 or a
similar statement.
3. Adjustment to income to reflect the difference between actual
and estimated cost. Subtract Line 2 from Line 1. A net increase to
income is shown as a positive and a net decrease to income as
a negative.
4. Taxable income or loss for the year shown on tax return (or as
previously adjusted) before net operating loss.
5. Adjusted taxable income for look-back purposes. Combine Lines
3 and 4.
6. Income tax liability on the amount on Line 5. See Page 2 for
calculation.
7.
Income tax liability shown on return (or as previously adjusted)
for the year.
8. Increase or decrease in tax for the prior years on which interest is
due (or is to be refunded). Subtract Line 7 from Line 6.
9. Interest due on increase, if any, shown on Line 8.
10. Interest to be refunded on decrease, if any, shown on Line 8.
11. Net amount of interest to be refunded to you. If Line 10, column (d), exceeds Line 9, column (d), enter the excess.
12. Net amount of interest you owe. If Line 9, column (d), exceeds Line 10, column (d), enter the excess.
I declare that I have examined this request, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other
than taxpayer) is based on all information of which he has any knowledge.
Print name of Officer
Signature of Preparer
Signature of Officer
Firm Name
Title of Officer
Telephone
Date
(mm/dd/yyyy)
Telephone
Date
(mm/dd/yyyy)
(
)
(
)
(
)
R-8697 (6/11)
Louisiana Interest Computation
Under the Look-Back Method for
Completed Long-Term Contracts
Mail claims to the following address:
Office Audit Division
P.O. Box 66362
Baton Rouge, La 70896-6362
PLEASE PRINT OR TYPE.
Louisiana Account Number
Filing Period in which contract was completed
Name
Telephone
Address
City
State
ZIP
Date of each year to which interest computation
(d)
relates
Totals
(Add columns (a),
(a)
(b)
(c)
(b), and (c)).
Year ended
Year ended
Year ended
___ / ____
___ / ____
___ / ____
1.
The amount of income required to be allocated for contracts
completed during the tax year based on the actual contract price
and costs.
2. The amount of income reported for such contracts based on
estimated contract price and costs. Attach a schedule listing each
separate contract, unless you were an owner of an interest in a
pass-through entity reporting this amount from Schedule K-1 or a
similar statement.
3. Adjustment to income to reflect the difference between actual
and estimated cost. Subtract Line 2 from Line 1. A net increase to
income is shown as a positive and a net decrease to income as
a negative.
4. Taxable income or loss for the year shown on tax return (or as
previously adjusted) before net operating loss.
5. Adjusted taxable income for look-back purposes. Combine Lines
3 and 4.
6. Income tax liability on the amount on Line 5. See Page 2 for
calculation.
7.
Income tax liability shown on return (or as previously adjusted)
for the year.
8. Increase or decrease in tax for the prior years on which interest is
due (or is to be refunded). Subtract Line 7 from Line 6.
9. Interest due on increase, if any, shown on Line 8.
10. Interest to be refunded on decrease, if any, shown on Line 8.
11. Net amount of interest to be refunded to you. If Line 10, column (d), exceeds Line 9, column (d), enter the excess.
12. Net amount of interest you owe. If Line 9, column (d), exceeds Line 10, column (d), enter the excess.
I declare that I have examined this request, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other
than taxpayer) is based on all information of which he has any knowledge.
Print name of Officer
Signature of Preparer
Signature of Officer
Firm Name
Title of Officer
Telephone
Date
(mm/dd/yyyy)
Telephone
Date
(mm/dd/yyyy)
General Information for Louisiana Interest Computation Under the Look-Back Method for
Completed Long-Term Contracts (R-8697)
Revised Statutes 47:287.445 provides that any corporation that uses the percentage of completion method prescribed in 26 U.S.C.A. §460
shall upon completion of the contract, or, with respect to any amount properly taken into account after completion of the contract, when
such amount is properly taken into account, pay or shall be entitled to receive interest computed under the look-back method.
This form should only be used to pay or request refund of interest computed under the look-back method. Do not use this form as a
substitute for the filing of an amended return or to correct an error on a previously filed tax return. You must attach a copy of your Federal
Form 8697 and any required schedules.
Tax Calculation. In the first column for each year, print the net income for each bracket. Print the tax for each bracket in the second column
labeled “tax” .
Date of each year to which interest computation relates
(a)
(b)
(c)
Calculation of Income Tax
Year ended
Year ended
Year ended
___ / ____
___ / ____
___ / ____
Print the amount of Line 5
Tax
Tax
Tax
for each year
4% of the first $25,000
5% of the next $25,000
6% of the next $50,000
7% of the next $100,000
8% of the amount over
$200,000
Add the tax amounts for
columns a, b and c. Round
to the nearest dollar. Print
the result in the appropriate
column on Line 6.
Interest Rate. According to R.S. 47:287.445, the interest rate used for both overpayment or underpayment is established by 47:1624,
which is the rate LDR uses to pay interest on refunds and credits. No interest will be allowed if, the secretary proves by clear and convincing
evidence that a person has deliberately overpaid a tax in order to derive the benefit of the interest allowed by R.S. 47:1624.
Interest is computed from the due date (not including extensions) of the return of the prior year. Interest is computed to the earlier of
the due date of the return for the filing period OR the date the return for the filing period was filed and the income tax was paid in full.
Exceptions to the interest calculation dates:
When a net operating loss (NOL) is being increased or decreased as a result of the adjustment made to net income from long-term
contracts, interest is calculated from the due date (not including extensions) of the return that generated the NOL.
In the case of a decrease in tax on Line 8, if a refund has already been allowed for any income tax liability shown on Line 7 as a result
of a NOL carryback, and the amount of the refund exceeds the amount on Line 6, interest is calculated on the amount of such excess
until the due date (not including extensions) of the return for the year generating the carryback.
The interest rate is variable and is posted at the beginning of each year on LDR’s website in a Revenue Information Bulletin concerning the
judicial interest rate to be paid on refunds. To compute the DAILY INTEREST RATE, divide the interest rate for the year by 365 and carry
out to seven places to the right of the decimal. You will need to do a separate calculation for each year in which interest is owed or is due.
Example: Assume the 2011 interest rate is 4 percent, divide 0.04 by 365 to get the daily interest rate of 0.0001095.
S Corporations. S corporations must apply the principles of I.R.C. Section 460(b)(4)(A) for the calculations. The look-back method must
be applied at the entity level and is calculated before the S-Corp exclusion. Interest owed is paid by the S-Corp and interest due is paid
to the S-Corp. There are no exceptions for S corporations which are closely held pass-through entities and “highest rate” shall mean the
highest rate of tax specified in R.S. 47:32, namely 8%.
Refund Due. Mail Form R-8697 and supporting documentation to the address listed at the top of Page 1.
Balance Due. Make payment to the Louisiana Department of Revenue. Do not send cash. Mail payment, Form R-8697 and supporting
documentation to the address listed at the top of Page 1.

Download Form R-8697 Louisiana Interest Computation Under the Look-Back Method for Completed Long-Term Contracts - Louisiana

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