Technology has made performing operations in the oil and gas industries much more seamless during the past few decades. This has motivated many across Louisiana and other states to tap into these reserves for potential financial benefit. Lawmakers have responded in kind by imposing fees and taxes on the extraction, refining and sale of these industries' byproducts.
We live in an era in which most brick-and-mortar retail stores also sell online in an effort to get their products in customers' hands worldwide. This increase in e-commerce during the past two decades had led lawmakers to update sales tax laws to recover revenue that they would have otherwise lost because of how business is now done.
Louisiana is one of many states in the country that requires state residents to pay sales tax on purchases made online from out-of-state companies. This is authorized under Louisiana Revised Statute 47:302(K). State residents are expected to remit any monies due to the Louisiana Department of Revenue (DOR).
Most people's reaction to getting a letter from the Internal Revenue Service (IRS) letting them know that their return is being audited would be met by fear. After all, tax officials only reevaluate the submissions of less than 1 percent of all filers each year. While this may be the case, when the spotlight is on you, that's enough to instill some fear in you. You may be wondering what the next steps that the IRS is going to take in your case.
Ask any executive of an oil or gas company and they'll likely tell you that there are two factors that are constantly weighing on their minds. One is keeping their workers safe. Another is keeping the costs associated with remaining in compliance with regulators in check.