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Regular Session, 2014
HOUSE BILL NO. 663
BY REPRESENTATIVE ROBIDEAUX
REVENUE DEPARTMENT: Provides relative to the Louisiana Tax Delinquency Amnesty
Act of 2013
AN ACT1
To amend and reenact Section (3)(C), (G), and (I) and to enact Section 3(M) of Act No. 4212
of the 2013 Regular Session of the Legislature, relative to the Louisiana Tax3
Delinquency Amnesty Act of 2013; to provide relative to the amount of penalties and4
interest waived during certain amnesty periods; to prohibit certain forms of payment5
of delinquent tax, interest, penalty, or fees pursuant to the Amnesty Program; to6
authorize installment agreements for certain taxes; to provide for certain7
requirements and limitations for installment agreements; to authorize the8
procurement of collection services under certain circumstances; to authorize the9
promulgation of rules; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1: Section 3 (C), (G), and (I) of Act No. 421 of the 2013 Regular Session12
of the Legislature are hereby amended and reenacted and Section 3(M) of the 2013 Regular13
Session of the Legislature is hereby enacted to read as follows:14
* * *15
Section 3.16
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(C) Notwithstanding the terms or provisions of any other Act or other18
provisions of law to the contrary, and except as provided in Subsection (B), the19
following taxes are eligible for amnesty:20 HLS 14RS-964 ORIGINAL
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(1) Taxes due prior to January 1, 2013, for which the department has issued1
an individual or a business proposed assessment, notice of assessment, bill, notice,2
or demand for payment not later than May 31, 2013; or For the 2013 amnesty3
program: taxes due prior to January 1, 2013, for which the department has issued an4
individual or a business proposed assessment, notice of assessment, bill, notice, or5
demand for payment not later than May 31, 2013;6
(2) Taxes for taxable periods that began before January 1, 2013; or7
(3) Taxes for which the taxpayer and the department have entered into an8
agreement to interrupt the running of prescription pursuant to R.S. 47:1580 and said9
agreement suspends the running of prescription until December 31, 2013.10
(4) For the 2014 amnesty program: taxes due prior to January 1, 2014, for11
which the department has issued an individual or a business proposed assessment,12
notice of assessment, bill, notice, or demand for payment not later than May 31,13
2014;14
(5) For the 2015 amnesty program: taxes due prior to January 1, 2015 for15
which the department has issued an individual or a business proposed assessment,16
notice of assessment, bill, notice, or demand for payment not later than May 31,17
2015.18
* * *19
(G)(1) Amnesty will be granted only for eligible taxes to eligible taxpayers20
who apply for amnesty during an amnesty period on forms prescribed by the21
secretary and who pay all of the tax, all fees and costs, if applicable, and any interest22
due upon filing the amnesty application. Pursuant to the provisions of Subsection23
M of this Section, taxpayers who apply for amnesty by opting to pay the tax and any24
applicable fees, costs, and interest in installments shall only remain eligible to25
participate in the amnesty program by making complete and timely payment of the26
entire amount due under the taxpayer's installment agreement. Taxpayers involved27
in field audits or litigation shall not be eligible for installment agreements under the28
amnesty program. The amnesty application for taxpayers involved in field audits or29 HLS 14RS-964 ORIGINAL
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litigation shall include all issues and all eligible periods involved in the audit or1
litigation. The secretary shall reserve the right to require taxpayers to file tax returns2
with the amnesty application. Notwithstanding the terms or provisions of any other3
Act or other provisions of law to the contrary, if the amnesty application is approved4
during the 2013 amnesty period the secretary shall waive one-half of the interest and5
all of the penalties associated with the tax periods for which amnesty is applied. If6
the amnesty application is approved during the 2014 amnesty period, the secretary7
shall waive fifteen sixty-seven percent of all of the penalties associated with the tax8
periods for which amnesty is applied, but no and thirty-three percent of the interest9
shall be waived. If the amnesty application is approved during the 2015 amnesty10
period, the secretary shall waive ten thirty-three percent of all of the penalties11
associated with the tax periods for which amnesty is applied, but no and seventeen12
percent of the interest shall be waived. An amnesty payment or application13
submitted in a properly addressed envelope with sufficient postage delivered by the14
United States Postal Service is deemed paid or received on the date it is postmarked.15
An amnesty payment or application delivered by courier or taxpayer is deemed paid16
or received on the date it is delivered to the department's headquarters or a regional17
office. No installment agreements will be entered into for tax periods that are18
approved for amnesty. The department shall not accept tax credits as payment of any19
tax, interest, penalty, or fee paid as a result of participation in the amnesty program.20
(2) A taxpayer who disputes a portion of the amount of a delinquent tax21
assessed by the department may be eligible to apply for amnesty if the taxpayer22
remits the complete one-time payment of that portion of the tax that is not in dispute,23
plus applicable interest and penalties, hereinafter referred to as the “compromise24
amount”, to the department prior to the end of the amnesty period for which the25
taxpayer applies. The secretary shall have thirty days beginning on the first business26
day after the last day of the amnesty period to determine if the taxpayer shall be27
granted amnesty based on the compromise amount paid. If the secretary approves28
the compromise amount paid by the taxpayer, the taxpayer shall be granted amnesty.29 HLS 14RS-964 ORIGINAL
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If the secretary rejects the compromise amount paid by the taxpayer, amnesty shall1
not be granted and the taxpayer shall be responsible for the full amount of the2
delinquent tax, penalties, interest, and fees prior to his application for amnesty. Any3
monies paid to the department as compromised amounts during the amnesty period4
shall be allocated toward payment of the taxpayer’s delinquent tax debt in5
accordance with rules and regulations which govern such payments in the absence6
of an amnesty program.7
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(I) Amnesty applications shall include a written waiver of all rights,9
restrictions, and delays for assessing, collecting, or protesting taxes and interest due10
as set forth in R.S. 47:1562 through 1565 and 1576. The filing of such applications11
shall make the tax, interest, and penalty immediately due and payable; except when12
the taxpayer has been authorized by the secretary of the department, after making13
application on the supplemental form provided by the secretary, to make installment14
payments of such tax, interest, penalty, and fees. Pursuant to the provisions of15
Subsection M of this Section, a taxpayer's supplemental application seeking authority16
to make installment payments of a delinquent tax, interest, penalties, and fees shall,17
upon approval of the secretary, be deemed to enter the taxpayer into an installment18
agreement with the department. Payments of tax, interest, penalties, and fees shall19
be subject to the distraint procedure provided for in Title 47 of the Louisiana Revised20
Statutes of 1950; ineligible for refund, credit, or claim against the state; and21
ineligible for redetermination under the provisions of R.S. 47:1565(C); however, a22
taxpayer shall be eligible for a refund or credit if the overpayment arises after the23
amnesty application is submitted and is attributable to a properly claimed Louisiana24
net operating loss or attributable to an adjustment made by the Internal Revenue25
Service to the taxpayer's federal income tax, and the taxpayer provides notice of the26
adjustment to the secretary within sixty days of receipt of the adjustment from the27
Internal Revenue Service. A taxpayer who files an application for amnesty retains28 HLS 14RS-964 ORIGINAL
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all administrative and judicial rights of appeal with respect to any additional tax1
assessed by the department.2
* * *3
M.(1) Installment agreements. A taxpayer's application to make installment4
payments of a delinquent tax and its interest, penalties, and fees shall, upon approval5
by the secretary, enter the taxpayer into an installment agreement with the secretary6
of the department, whereby continuation in the amnesty program is dependent upon7
complete and timely payments of all installment payments. All installment8
agreements approved by the secretary shall require the taxpayer to provide a down9
payment of no less than twenty percent of the total amount of delinquent tax, penalty,10
interest, and fees owed to the department at the time the installment agreement is11
approved by the secretary. Additionally, every installment agreement shall include12
fixed, equal, monthly payments that shall not extend for more than six months.13
(a) For the 2014 amnesty program, "timely payment" shall mean all14
installment payments shall be received no later than May 1, 2015.15
(b) For the 2015 amnesty program, "timely payment" shall mean all16
installment payments shall be received no later than May 1, 2016.17
(2) Automated electronic drafts. Applicants seeking to enter into an18
installment agreement with the department shall provide necessary information for19
installment payments to be drafted from an account from which the taxpayer is20
authorized to remit payment. All payments shall be drafted through electronic21
automated transactions initiated by the department. Taxpayers who cannot enter into22
an agreement to make payment by way of automated electronic transactions shall not23
be eligible for an installment agreement with the department.24
(3)(a) Forfeiture. If for any reason a taxpayer subject to an installment25
agreement fails to fulfill his obligation under the agreement by remitting the last26
installment by the first day of May of the amnesty program year to which the27
agreement applies, no amnesty shall be granted and the installation agreement shall28
be null and void. All payments remitted to the department during the duration of29 HLS 14RS-964 ORIGINAL
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such void installment agreement shall be allocated in accordance with department1
rules and regulations as applied in the absence of an amnesty program. The taxpayer2
shall be obligated to pay the entirety of the delinquent tax, along with all applicable3
interest, penalties, and fees.4
(b) A taxpayer who is approved to participate in the amnesty program who5
is also a party to an existing installment agreement with the department may be6
eligible to participate in an installment agreement under the amnesty program. Upon7
approval by the secretary of an installment agreement under the amnesty program,8
the original installment agreement with the department shall be cancelled in favor9
of the installment agreement under amnesty which shall be subject to the provisions10
of this Subsection.11
(4) Collection of installment agreements. The secretary may procure12
amnesty program collection services for the administration and collection of13
installment agreements. The fee for such services shall be in accordance with the14
fees authorized in R.S. 47:1516.1.15
(5) Emergency Rules. The secretary of the department may promulgate rules16
and regulations in accordance with the emergency rulemaking authority of the17
Administrative Procedure Act as provided for in R.S. 49:953(B) as are necessary to18
implement the provisions of this Act relative to installment agreements. For19
purposes of qualifying as an emergency under the provisions of the Administrative20
Procedure Act, necessity of promulgating these rules by emergency rulemaking shall21
be deemed to meet the definition of imminent peril to the public health, safety, or22
welfare of the citizens of the state.23
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Robideaux HB No. 663
Abstract: Authorizes installment agreements for the payment of delinquent taxes, interest,
penalties, and fees for which a taxpayer applies for amnesty and increases the
amount of penalties and interest waived for the 2014 and 2015 amnesty periods.
Present law authorizes the Dept. of Revenue (DOR) to develop and implement a tax amnesty
program to be effective for the following periods of time, the specific dates of which shall
be determined by the secretary of DOR (secretary):
(1)A period of at least one month occurring between July 1, 2014 and Dec. 31, 2014.
(2)A period of at least one month occurring between July 1, 2015 and Dec. 31, 2015.
The amnesty program applies to all taxes administered by DOR, except for motor fuel taxes,
and penalties for failure to submit information reports that are not based on an underpayment
of tax.
Proposed law provides that the amnesty program shall apply to taxes for all of the following:
(1)For the 2014 amnesty program: taxes due prior to Jan. 1, 2014, for which 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, 2014.
(2)For the 2015 amnesty program: taxes due prior to Jan. 1, 2015 for which 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, 2015.
Present law authorizes the secretary to waive 15% of penalties owed if the amnesty
application is approved during the 2014 amnesty period and 10% of penalties owed if the
amnesty application is approved during the 2015 amnesty period. No interest is waived
during these periods.
Proposed law changes the waiver of the penalties and interest for the 2014 and 2015 amnesty
programs to the following:
(1)Waiver of 67% of penalties and 33% of the interest owed if amnesty is approved
during the 2014 amnesty period.
(2)Waiver of 33% of penalties and 17% of interest owed if amnesty is approved during
the 2015 amnesty period.
Proposed law prohibits the department from accepting tax credits as payment of any tax,
interest, penalty, or fee as a result of participation in the amnesty program.
Proposed law authorizes taxpayers who dispute a portion of the amount of a delinquent tax
assessed by the department to participate in amnesty if the taxpayer remits the payment of
that portion of the tax that is not in dispute, plus applicable interest and penalties, and
otherwise complies with the requirements of proposed law. Further provides for the
requirements of the department with respect to these taxpayers. HLS 14RS-964 ORIGINAL
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Present law prohibits the secretary from allowing taxpayers to enter into installment
agreements for amnesty periods.
Proposed law changes present law to authorize installment agreements for the payment of
delinquent taxes, interest, penalties, and fees. Further requires the taxpayer to submit an
application to make installment payments and once approved by the secretary, requires the
taxpayer to provide a down payment of no less than 20% of the total amount of delinquent
tax, penalty, interest, and fees owed by the taxpayer at the time that the installment
agreement is approved.
Proposed law requires all installment payments to be made through automated electronic
transactions and for all payments to be received by the department no later than May 1st of
the program year for which the taxpayer applies for amnesty.
Proposed law provides requirements relative to the forfeiture of monies paid if the taxpayer
who is a party to an installment agreement fails to fulfill his obligation under the agreement.
Proposed law authorizes the secretary to procure amnesty program collection services for
the administration and collection of installment agreements. The fee for such services shall
be in accordance with the fees provided for in present law.
Proposed law authorizes the department to promulgate rules and regulations in accordance
with the emergency rulemaking authority of the Administrative Procedure Act as are
necessary to implement the provisions of proposed law relative to installment agreements.
(Amends §3(C), (G), and (I) of Act No. 421 of the 2013 R.S.; Adds §3(M) to Act No. 421
of the 2013 R.S.)