Louisiana – State Proposes Tax Amnesty in 2013

SALT Report 2340 – The Louisiana State Legislature proposed a bill that would provide a tax amnesty. If passed, the “Louisiana Tax Delinquency Amnesty Act of 2013” would require the Department of Revenue to develop and implement a tax amnesty program from July 1, 2013 through June 30, 2014.

Tax Amnesty 2013 Highlights

  • The tax amnesty program would apply to taxes that were due prior to January 1, 2014
  • Participation in the amnesty program is conditioned upon the taxpayer agreeing to waive its right to protest or to initiate an administrative or judicial proceeding
  • Taxpayers involved in field audits or litigation must agree to abide by the Department’s interpretation of the laws regarding the issues involved in the audit or litigation that are resolved through amnesty
  • Taxpayers participating in the program that have paid an assessment under protest and have filed suit must agree to allow the Department to release their payment from escrow and apply it to their amnesty payment
  • If an amnesty application is approved, the Secretary will waive one half of the interest and all of the penalties associated with the tax periods included in the amnesty
  • Installment agreements will be not be offered
  • Amnesty will not be granted to taxpayers who are a part of a criminal investigation or criminal litigation for nonpayment, delinquency, or fraud in relation to any state tax administered by the Department
  • Taxpayers that participate in the amnesty program and later fail to comply with any payment or filing requirement will be subject to a negligence penalty
  • If, after the amnesty period, the Department issues a deficiency notice or assessment for a period that was included in the amnesty, the Department is authorized to impose penalties and initiate civil or criminal proceedings to collect the difference between the amount shown on the amnesty application and the actual amount of tax due

The Bill is currently pending approval by the House Ways and Means Committee.

For Further Information

Louisiana State Legislature – House Bill 456