R-6950: Schedule AB—Louisiana Corporation Income Tax Add-Back Form (Revision 2026-01)
Louisiana · Louisiana LDR · Used for tax years 2025
Louisiana Schedule AB (Form R-6950) reports interest expenses, intangible expenses, and management fees from transactions with related members that are subject to corporation income tax add-back requirements. It also reports amounts exempt from add-back and is attached to Form CI
Who files this form
Corporations that incur otherwise deductible interest expenses and costs, intangible expenses and costs, or management fees from direct or indirect transactions with related members must complete Schedule AB.
Use the schedule to report these expenses and any exceptions to the add-back requirement. Report the required totals on Form CIT-620 and attach the completed schedule to that return.
What you'll need
Have the following information available to complete Schedule AB:
- Your LDR account number and filing period.
- Each recipient-related member’s name and Federal Employer Identification Number (FEIN).
- Intangible, interest, and management fee expense amounts for each recipient-related member.
- Amounts qualifying for each exception you claim.
- For the “subject to tax” exception, the relevant taxing jurisdictions and allocation, apportionment, or other sourcing information.
- Form CIT-620, where you must also report the totals.
Use additional Schedule AB pages as needed. Attach a separate sheet if there is not enough space to list the taxing jurisdictions.
How to file
Attach completed Schedule AB to Form CIT-620. The supplied text does not give a mailing address or e-filing instructions.
- Report each recipient-related member separately, using additional pages as needed.
- Add all Line 5 amounts from every page. Enter the total on page 1, Line 10, and on Form CIT-620, Schedule F, Line 2b.
- Add all Line 9 amounts from every page. Enter the total on page 1, Line 11, and on Form CIT-620, Schedule F, Line 3g.
To claim the Line 6 exception, an informed authorized representative must sign the form, certifying under penalty of perjury that avoiding Louisiana tax was not a principal purpose of the relevant transactions.
Common mistakes
- Not rounding amounts: Round all dollar amounts to the nearest dollar.
- Counting the same amount twice: Line 7 must not include amounts already included on Line 6.
- Listing excluded jurisdictions: On Line 8a, do not include consolidated or combined return jurisdictions where intercompany expenses are eliminated or offset.
- Leaving out extra-page totals: Lines 10 and 11 on page 1 must include the applicable amounts from all pages.
- Reporting an excessive exemption: Line 11 cannot be greater than Line 10.
- Missing the Line 6 certification: An informed authorized representative must sign to qualify for that exception.
Questions people ask
What is a recipient-related member?
It is a related member with whom the taxpayer transacted to incur interest, intangible, or management fee expenses, and who has a corresponding item of income from those expenses.
What exceptions to the add-back requirement are available?
The text provides exceptions for qualifying income subject to net income tax, transactions for which avoiding Louisiana tax was not a principal purpose, and amounts the related member paid, accrued, or incurred directly or indirectly to an unrelated person during the same taxable year.
Can income be “subject to tax” even if no tax was actually paid?
Yes. Income attributed to a jurisdiction with a net income tax can qualify even if deductions or other reasons mean no actual tax is paid on it. Income not attributed to a taxing jurisdiction through allocation, apportionment, or another sourcing method is not considered “subject to tax.”
What if I need space for more related members?
Use additional pages. Include the Line 5 and Line 9 amounts from all pages in the totals on page 1, Lines 10 and 11.