RIB 14-017: Louisiana Tax Delinquency Amnesty Act of 2014

Act 822 of the 2014 Regular Session of the Louisiana Legislature authorizes the Louisiana Department of Revenue to institute an amnesty program to collect outstanding tax liabilities except for motor fuel taxes, Prepaid 411 Sales Tax, Oil Field Restoration-Oil, Oil Field Restoration-Gas, Inspection and Supervision Fee and penalties for failure to submit information reports that are not based on an underpayment of tax.

The Department has established a Tax Amnesty Program beginning October 15, 2014 and ending November 14, 2014. Amnesty will be granted only for eligible taxes to eligible taxpayers who apply during the amnesty period and who pay the entire amount of the eligible tax due in lump sum or enter into an installment agreement. The taxpayer shall pay all of the tax due, half of the interest due and all fees and costs, if applicable, for periods designated on the amnesty application.

Taxpayers will not be allowed to use a tax credit from an eligible return as an amnesty credit nor a Financial Management Service (FMS) offset to make the down payment or an installment payment.

Taxpayers who choose an installment agreement instead of a lump sum payment must remit twenty percent of the total amount owed at the time the installment agreement is entered into.  Taxpayers who cannot enter into an agreement to make payment by way of automated electronic transactions shall not be eligible for an installment agreement with the Department. If the final installment payment is not submitted by May 1, 2015, amnesty will not be granted. Any payments made will be treated as if amnesty had not been applied for and the Taxpayer is obligated to pay the entirety of the delinquent tax, interest, penalties and fees. Any payments made will be applied to the oldest outstanding tax period as a regular payment.  The payment will be applied in the following order: tax, penalty and interest. Field Audit and Litigation are not eligible to enter into an installment agreement.

All business taxpayers are required to file returns with the application.

The Secretary reserves the right to require individual taxpayers to file tax returns with the application. If the application is approved, the Secretary shall waive the remaining half of the interest and penalties associated with the tax periods for which amnesty is applied.

Click here to read the full text of RIB 14-017.

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