Louisiana Tax Amnesty, Fall 2013

States deal with delinquent taxpayers differently. In New York, for instance, Governor Andrew Cuomo recently dubbed delinquent taxpayers "scofflaws" and threatened to take away their driving privileges. Louisiana, on the other hand, is preparing for a Tax Amnesty designed to reward delinquents for paying their taxes.

The Louisiana Tax Delinquency Amnesty Act of 2013 is set to begin September 23, 2013 and conclude November 22, 2013. During that time, amnesty will be granted to "eligible taxpayers who apply during the amnesty period and on forms prescribed by the secretary and who pay all of the tax and costs… and half of the outstanding interest balance due for periods designated on the application."

There is no guarantee applications for amnesty will be approved, but if they are, "the secretary shall waive the remaining half of the interest and all of the penalties associated with the tax periods for which amnesty is applied." Interest and penalties can really add up, so it's a good deal.

The tax amnesty applies to both businesses and individuals. It covers the following tax periods:

• Taxes due prior to January 1, 2013, so long as the department has issued an individual or a business proposed assessment, notice of assessment, bill, notice, or demand for payment not later than May 31, 2013; or
• Taxes for taxable periods beginning before January 1, 2013; or
• Taxes for which the taxpayer and the department have entered into an agreement to interrupt the running of prescription pursuant to R.S. 47:1580 and said agreement suspends the running of prescription until December 31, 2013.

Taxpayers are eligible for amnesty if they are in one of several situations, including but not limited to:

•  "The taxpayer has an outstanding tax liability but has never filed a Louisiana return;
• A lien has been issued against the taxpayer’s property pursuant to R.S. 47:1577;
•  The Department has entered into an installment agreement with the taxpayer;
• The taxpayer has filed for bankruptcy protection;
•  The taxpayer is involved in a field audit; or
• The taxpayer’s liability consists of interest and penalty, or one or the other.

Not all delinquent tax situations qualify for amnesty. Motor fuel taxes are not eligible, for example, nor are taxpayers who are a party to any criminal investigation or litigation.

Additional information regarding the Louisiana Tax Amnesty program is available at the Louisiana Department of Revenue.

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