SALT Report 2608 – On Jun 21, 2013 Louisiana Governor Bobby Jindal signed the Tax Delinquency Amnesty Act of 2013, which requires the Department of Revenue to develop and implement a tax amnesty program. The amnesty program would apply to all taxes administered by the Department, with the exception of motor fuel taxes and penalties that are imposed for failure to submit information reports.
The amnesty program is nontraditional, in that it creates three amnesty periods over three fiscal years as follows:
- A period of at least two months prior to December 31, 2013,
- A period of at least one month between July 1, 2014, and December 31, 2014, and
- A period of at least one month between July 1, 2015, and December 31, 2015
The specific amnesty dates will be determined at a later time by the Department.
- Taxes due prior to January 1, 2013, for which the Department has issued a proposed assessment, notice of assessment, bill, notice, or demand for payment by May 31, 2013,
- Taxes for taxable periods that began before January 1, 2013, or
- Taxes for which the taxpayer and the Department have previously entered into an agreement and agree to interrupt and suspend the agreement until December 31, 2013
Penalties and Interest
- The Department is authorized to waive penalties and interest for tax periods included in the amnesty as follows:
- All penalties and 50% of the interest owed if the amnesty application is approved during the 2013 amnesty period,
- 15% of penalties owed if the amnesty application is approved during the 2014 amnesty period, and
- 10% of penalties owed if the amnesty application is approved during the 2015 amnesty period
Amnesty will only be granted to eligible taxpayers who apply for amnesty during an approved amnesty period and who pay all of the tax, fees, costs, and any interest due when they file their amnesty application.
Filing a False Application
Anyone who files a false or fraudulent application, document, return, or statement with the Department will be ineligible for amnesty and will be subject to a fraud penalty, or a penalty of $10,000, whichever is greater. Anyone who participates in the amnesty program and fails to comply with any payment or filing provision will be subject to a negligence penalty, or a $100 penalty, whichever is greater.
The amnesty provisions as passed by the Louisiana Legislature were previously discussed in SALT Report 2595.
For Further Information