Louisiana's New Amnesty Tax Program - 2013

As a result of Act No. 421 being enrolled in the last legislative session, Governor Jindal has approved the Tax Delinquency Amnesty Act of 2013. The purpose of the Act is to require the Louisiana Department or Revenue (LDR) to establish a tax amnesty program applicable to all taxes administered by the LDR except for motor fuel taxes and penalties for failure to submit information reports that are not based on the underpayment of tax. This new program would be effective for the following three periods of time:

(1) Taxes due prior to January 1, 2013, for which the LDR 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

(2) Taxes for taxable periods that began before January 1, 2013; or

(3) Taxes for which the taxpayer and the LDR 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.

Amnesty will be granted only for eligible taxes to eligible taxpayers who apply for amnesty during an amnesty period on forms prescribed by the LDR and who pay all of the taxes, all fees and costs, if applicable, and any interest due upon filing the amnesty application. The specific dates of the amnesty periods are to be determined by the LDR but would involve the following three periods of time:

(1) A period of at least two months’ duration occurring prior to December 31, 2013;

(2) A period of at least one month occurring between July 1, 2014, and December 31, 2014; and

(3) A period of at least one month occurring between July 1, 2015, and December 31, 2015.

If an amnesty application is approved during the 2013 amnesty period the LDR will waive one-half of the interest and all of the penalties associated with the tax periods for which amnesty is applied. If an amnesty application is approved during the 2014 amnesty period, the LDR shall waive fifteen percent of all of the penalties associated with the tax periods for which amnesty is applied, but no interest will be waived. If an amnesty application is approved during the 2015 amnesty period, the LDR will waive ten percent of all the penalties associated with the tax periods for which amnesty is applied, but no interest will be waived.

As you can see, this new tax amnesty program is a potentially beneficial tool that can be used in resolving your state tax issues. If you would like more information on this matter or would like to discuss any tax issues that you may have, please feel free to contact George A. Mueller III (gam@chehardy.com) or Ryan P. Monsour (rpm@chehardy.com) at your convenience.

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