by Lisa Tauriac, CPA, Senior Tax Manager, Doeren Mayhew

The Louisiana Department of Revenue (LADOR) will implement three tax amnesty periods, applying to all taxes except motor fuel, before the end of 2015 as a result of legislation signed by Gov. Bobby Jindal (R) on June 21.

The legislation directs the department to establish an amnesty period for at least two months during the remainder of 2013, and for at least one month between July 1 and Dec. 31 of both 2014 and 2015. In order to participate in the amnesty program, taxpayers must agree not to protest or initiate any administrative or judicial proceedings.

Covered Periods

The tax amnesty program covers:

  • Taxes due prior to Jan. 1, 2013, for which the LADOR issued a proposed assessment, notice of assessment, bill, notice or demand for payment by May 31, 2013
  • Taxes due for taxable periods that began before Jan. 1, 2013
  • Taxes for which the taxpayer and the LADOR have entered into an agreement to interrupt the running of prescription pursuant to La R.S. 47:1580 and said agreement suspends the running of prescription until Dec. 31, 2013

Participation

Participation in the program is also open to taxpayers under audit or involved in tax litigation if they agree to abide by the department’s interpretation of law with respect to issues that are resolved through amnesty for three taxable years following the amnesty period. To encourage participation, the department may waive interest and penalties associated with the tax periods for which amnesty is granted, and earlier participation yields a greater benefit.

  • Taxpayers who are approved for amnesty during the 2013 amnesty period will receive full penalty abatement and reduced interest (one-half of the interest associated with the tax will be waived).
  • Taxpayers who are approved for amnesty during the 2014 amnesty period will receive a waiver of 15 percent of all penalties associated with the tax, but no interest abatement.
  • Taxpayers who are approved for amnesty during the 2015 amnesty period will receive a waiver of 10 percent of all penalties associated with the tax, but no interest abatement.

Full text of H.B. 456 is available at http://www.legis.la.gov/legis/home.aspx.

For more information about the program and how it applies to your specific situation, contact Doeren Mayhew’sstate and local tax specialists in HoustonMichigan or Ft. Lauderdale.