ENROLLED
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ACT No. 171
Regular Session, 2011
HOUSE BILL NO. 209
BY REPRESENTATIVE ROBIDEAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 47:1541(B) and to enact R.S. 47:1541(D) and 1601(A)(2)(e),2
relative to the Department of Revenue; to provide relative to the audit of taxpayer3
records by the department; to provide the purposes for which sampling audits may4
be utilized; to authorize the use of managed audits at the secretary's discretion under5
certain circumstances; to authorize agreements regarding managed audits; to provide6
for definitions; to provide for limitations; to authorize the discretionary waiver of7
interest; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 47:1541(B) is hereby amended and reenacted and R.S. 47:1541(D)10
and 1601(A)(2)(e) are hereby enacted to read as follows: 11
§1541. Secretary's duty to determine correct tax12
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B. The taxpayer and the secretary or his designee may enter into a binding14
agreement to use a sampling procedure as a basis for projecting audit findings, which15
may result in either an underpayment or overpayment of tax. Sampling audit16
methods are appropriate if:17
(1) The taxpayer's records are so detailed, complex, or voluminous that an18
audit of all detailed records would be unreasonable or impractical.19
(2) The taxpayer's records are inadequate or insufficient to the extent that20
a competent audit of the period in question is not otherwise possible.21 ENROLLEDHB NO. 209
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(3) The cost to the taxpayer or the state for an audit of all detailed records1
will be unreasonable in relation to the benefits derived, and sampling procedures are2
expected to produce a reasonable result.3
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D.(1) The secretary may, in a written agreement, authorize a taxpayer to5
conduct a managed audit pursuant to this Subsection. The agreement shall specify6
the period to be audited and the procedure to be followed, and shall be signed by an7
authorized representative of the secretary and the taxpayer.8
(2) For purposes of this Subsection, the term "managed audit" shall mean a9
review and analysis of invoices, checks, accounting records, or other documents or10
information to determine the correct amount of tax. A managed audit may be limited11
to certain categories of liability under this Chapter, including tax on:12
(a) Sales of one or more types of taxable items.13
(b) Purchases of assets.14
(c) Purchases of expense items.15
(d) Purchases under a direct payment permit.16
(e) Any other category specified in an agreement authorized by this17
Subsection.18
(3) The decision to authorize a managed audit rests solely with the secretary.19
In determining whether to authorize a managed audit, the secretary may consider, in20
addition to other facts the secretary may consider relevant, any of the following:21
(a) The taxpayer's history of tax compliance.22
(b) The amount of time and resources the taxpayer has available to dedicate23
to the audit.24
(c) The extent and availability of the taxpayer's records.25
(d) The taxpayer's ability to pay any expected liability.26
(4) The secretary may examine records and perform reviews that he27
determines are necessary before the audit is finalized to verify the results of the28
audit. Unless the audit or information reviewed by the secretary discloses fraud or29
willful evasion of the tax, the secretary may not assess a penalty and may waive all30 ENROLLEDHB NO. 209
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or a part of the interest that would otherwise accrue on any amount identified to be1
due in a managed audit. This Paragraph does not apply to any amount collected by2
the taxpayer that was a tax or represented to be a tax, but that was not remitted to the3
state.4
(5) The taxpayer is entitled to a refund of any tax overpayment disclosed by5
a managed audit under this Subsection and in accordance with R.S. 47:1621.6
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§1601. Interest on unpaid taxes8
A.9
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(2)11
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(e) Waiver of interest when a managed audit is performed as agreed to by the13
secretary and the taxpayer. The secretary may waive all or a part of the interest that14
would otherwise accrue on any amount identified to be due in a managed audit15
performed under the provisions of R.S. 47:1541(D).16
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Section 2. This Act shall become effective upon signature by the governor or, if not18
signed by the governor, upon expiration of the time for bills to become law without signature19
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If20
vetoed by the governor and subsequently approved by the legislature, this Act shall become21
effective on the day following such approval.22
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: