Louisiana – Voluntary Disclosure Agreement Formalized by Act 198 of 2014

Salt Report 3608 – The Louisiana Department of Revenue (LDR) has maintained a Voluntary Disclosure Agreement program for the last 20 years.  Last year, Act 198 of 2014 authorized the LDR to promulgate rules for the program.   In order to be eligible for a VDA, a disclosing taxpayer must have a minimum of $500 in undisclosed liability covering the look-back period.  The typical terms for a VDA are a 3 year look-back period (plus current year) and waiver of penalties.   This rule does not apply to local tax programs.

“The proposed rule includes authority of the Secretary of Revenue and any duly authorized representative to waive all penalties and, indirectly, liabilities through adjustment of look-back periods. The program allows voluntary disclosure of taxes that otherwise would not have been discovered through normal departmental activities or for taxpayers deemed eligible by the Secretary prior to July 1, 2014, which is the effective date of Act 198 of 2014. For participation, the minimum undisclosed liability is $500; the proposed rule does not stipulate any maximums or thresholds. Although several local tax authorities have voluntary disclosure programs, this rule would not apply to local governmental units.”

Further Information:

1412NOI110 VDA