Industry Insights

Louisiana Tax Amnesty Delayed Until December 1

November 2015
Author:  Jana Gradeva

Jana Gradeva

Director

SALT Services

14241 Dallas Parkway, Suite 1100
Dallas, Texas 75254-2961

Dallas
972.702.8262

The Louisiana Department of Revenue (LDR) has announced Louisiana Tax Amnesty 2015 is suspended and will be delayed until December 1, 2015. The program now will run December 1 through December 31 with the previously announced terms.

LDR said the delay is caused by a clerical error in letters mailed to eligible taxpayers. The department will reissue these letters to affected taxpayers by December 1 and apply any payments already received to taxpayer accounts when the amnesty resumes.

As a reminder, taxpayers looking to participate in the 2015 amnesty program need to file the required application form and all applicable tax returns and pay in full or enter into an installment agreement for 100 percent of taxes due, 67 percent of accrued penalties and 83 percent of accrued interest during the amnesty period.

Here are the taxes and periods eligible for amnesty:

  • Taxes due prior to January 1, 2015, for which LDR has issued an individual or a business proposed assessment, notice of assessment, bill, notice or demand for payment not later than May 31, 2015
  • Taxes for taxable periods beginning before January 1, 2015
  • Taxes for which the taxpayer and LDR have entered into an agreement to interrupt the running of prescription pursuant to state statutes and said agreement suspends the running of prescription until December 31, 2015

Taxpayers may be eligible for amnesty in the following circumstances:

  • The taxpayer has received a notice for failure to timely file a return or failure to remit the amount owed.
  • The taxpayer has an outstanding tax liability but has never filed a Louisiana return.
  • The taxpayer has an outstanding tax liability but hasn’t been billed by LDR.
  • A lien has been issued against the taxpayer’s property pursuant to state statutes.
  • LDR has initiated proceedings under the assessment and distraint procedures pursuant to state statutes.
  • LDR has entered into an installment agreement with the taxpayer.
  • The taxpayer has filed for bankruptcy protection.
  • The taxpayer is involved in a field audit or litigation.
  • The taxpayer’s liability consists of interest and/or penalties.

Taxpayers involved in a criminal investigation or criminal litigation for LDR-administered taxes don’t qualify for the amnesty program.

While amnesty could be a very effective way to settle past-due taxes and liabilities, applying for the amnesty means the taxpayer agrees with the LDR position for three years, waives the right for refund for the periods covered under amnesty and may still be audited by the state.

To learn more about this amnesty program, contact your BKD advisor.

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