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Louisiana’s Transfer Pricing Managed Audit Program Expires April 30, 2022

By Dakessian Law | January 21, 2022

The Louisiana Department of Revenue’s (Department) voluntary initiative (RIB No. 21-029) for corporate income taxpayers will expire before you know it.  The last few years have seen lengthy and complex Department field audits resulting in significant transfer pricing adjustments which make this program attractive to eligible taxpayers with numerous domestic intercompany transactions. There are clear benefits including, but not limited to, expedited resolution of transfer pricing matters, restricted interest, penalty abatement, and prospective relief. However, any consideration of these benefits must be weighed against inherent disadvantages of the program. To name a few, the sheer volume of documentation required, loss of privilege, increased exposure on issues other than transfer pricing, and information sharing with other divisions, states, or even the IRS. If you are considering this program and would like to discuss whether it is right for you, please contact a member of our team.