PECANMAN

I was instructed by the client to wait on filing the amended return. If the law is changed, I feel like it would be for 2012 or later, not 2011 which is the subject year for the amended return. I believe Jindal will lose up until the law is changed or clarified.

Has anyone received a refund on the flex fuel credit that had filed by June 14th but had not received the refund by that date?

frb1951, Any regrets about not taking the credit for any clients previously? Or do you feel that the state will eventually allow all flex fuel credits through a mandate by the judicial system?

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I spoke with someone with the Louisiana Car Dealer's Association and he stated that the next session that this could be resolved in is not until June 2013. It is his understading that they will have a special session to ax the credit on the 2012 returns before then, and then in the regular session approve to pay out the refunds on qualifing vehicles from 2009-2011 that are filed after June 14th.

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LSUMon, don't get confused over the legislative branch of government and the judicial branch. I believe that there could be legal action involved for those who bought vehicles under the assumption of the credit for 2012 and now will not receive it. This is where the court system will settle the matter, not legislative system. Fast tracking will help the pain and bleeding by those who bought 2012 vehicles.

Anyone who didn't file by this date June 14 to get the E85 Flex Fuel credit will lose out. Those already in the system will get the refund and keep it. Anyone waiting on a clearer determination of the law will be up the creek if those returns had not been sent in. "Early bird gets the worm".

frb1951,

Thanks for your detailed response. All my clients knew of the controversy but the Emergency ruling by the state solidified the legitamacy. If those that have filed in the last few weeks don't get their refund when those before did get a refund based upon the DOR's ruling, there will be legal consequences. And then you have the problem with many of those who have gotten the refund will not be able to afford to pay it back! Just a mess all around.

The news was unclear whether this was a temporary suspension of the credit by Jindal or a permanent one regarding E85's.

So, you never did file one amended return for not one client?

frb1951, What is your opinion concerning tax preparers relying on the DOR's emergency ruling to prepare amended or orginal returns for the client in good faith to receive the credit and charging for this service? Everyone likes to cast blame to others and this may have a negative consequence for the preparer in the eyes of the client.

I stated early on that "it was too good to be true". This is a mess for all those that received the credit already and those that prepared the returns for the credit. I still believe that if those that got the credit and paid for it according to the ruling made by the Department of Revenue are not allowed to keep the refund there will be a class action suit against the state and Jindal. This has been the biggest screw up in tax preparation that I have seen in 20 years.

What does the Duckslayer22 say about this? Is he ready to re-submit the refund?

frb1951, I have stressed to my clients that there might be a possibility that the refund will be demanded to be returned. But at this point, I feel that it would be highly unlikely. So many people have now received the refund that mandating this refund would cause havoc on the tax preparers and taxpayers that it would invite legal concerns for the state. I agree with you on your interpretation of the law as this is what I have believed since I began writing these posts two months ago. Now that the Dept. of Rev. has issued a ruling on the matter, I will continue to prepare amended returns for several additional clients.

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It's finally a break for those who support the economy...rather than Louisiana Purchase, WIC, Medicaid, etc. It may be stupid, but it's no more stupid than the aforementioned entitlements being abused.

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I guess it's alright to keep adding to the stupidity.

Roof,
There were no other changes to your tax return except that involving the flex fuel credit?
Have you called and spoken with someone at the Dept. of Rev. since receiving this letter?