Louisiana Tax Delinquency Amnesty Program Designed to Help Delinquent Taxpayers Catch Up

In this summer’s legislative session, Louisiana enacted Act No. 421, the Louisiana Tax Delinquency Amnesty Act.  Pursuant to the Act, an amnesty program is being conducted by the Louisiana Department of Revenue between September 23, 2013 and November 22, 2013.  During this time, individuals and businesses can apply for amnesty.  If granted in 2013, all of the penalties and one-half (1/2) of the interest owed on delinquent taxes will be waived.

The Louisiana Tax Delinquency Amnesty program provisions apply to all taxes administered by the Department of Revenue except for motor fuel taxes.  Certain taxpayers involved in criminal cases due to non-payment or fraud are ineligible. The goal behind the legislation is to give Louisiana businesses and individuals who have fallen behind on taxes a chance to catch up without the additional burden of penalties and interest.

Fewer Benefits Planned for Later Programs

Although this is a three-year program, the 2014 and 2015 amnesty programs will offer fewer benefits.  If amnesty is granted during the 2014 program, fifteen percent (15%) of penalties will be reduced, and in the 2015 program, this drops to ten percent (10%) of penalties.  No interest will be waived or reduced during the 2014 and 2015 programs.

Individuals and businesses who are behind on their taxes and are considering applying for the amnesty program should consult with their attorney.  You may waive certain legal rights by participating in the program, and there are limitations on eligibility and penalties for failure to comply if amnesty is granted.  For more information on the 2013 Louisiana Tax Delinquency Amnesty Program, see http://ldrtaxamnesty.com/.

Allen & Gooch is providing this legal update for informational purposes only. This article should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. You should consult your own attorney concerning your particular situation and any specific legal questions you may have.