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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 Section 4.A and to enact Section 3.(M)2
of Act No. 421 of the 2013 Regular Session of the Legislature, relative to the3
Louisiana Tax Delinquency Amnesty Act of 2013; to provide relative to the amount4
of penalties and interest waived during certain amnesty periods; to provide with5
respect to the taxes eligible for amnesty; to provide for the doubling of penalties6
under certain circumstances; to prohibit certain forms of payment of delinquent tax,7
interest, penalty, or fees pursuant to the Amnesty Program; to authorize installment8
agreements for certain taxes; to provide for certain requirements and limitations for9
installment agreements; to authorize the procurement of collection services under10
certain circumstances; to provide with respect to amnesty administration services11
and for the procurement of such services; to authorize the promulgation of rules; and12
to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. Section 3.(C), (G), and (I) and Section 4.A of Act No. 421 of the 201315
Regular Session of the Legislature are hereby amended and reenacted and Section 3.(M) of16
the 2013 Regular Session of the Legislature is hereby enacted to read as follows:17
* * *18
Section 3.19
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(C) Notwithstanding the terms or provisions of any other Act or other1
provisions of law to the contrary, and except as provided in Subsection (B), the2
following taxes are eligible for amnesty:3
(1) Taxes due prior to January 1, 2013, for which the department has issued4
an individual or a business proposed assessment, notice of assessment, bill, notice,5
or demand for payment not later than May 31, 2013; or For the 2013 amnesty6
program: taxes due prior to January 1, 2013, for which the department has issued an7
individual or a business proposed assessment, notice of assessment, bill, notice, or8
demand for payment not later than May 31, 2013;9
(2) Taxes for taxable periods that began before January 1, 2013 2014; or10
(3) Taxes for which the taxpayer and the department have entered into an11
agreement to interrupt the running of prescription pursuant to R.S. 47:1580 and said12
agreement suspends the running of prescription until December 31, 2013 2014.13
(4) For the 2014 amnesty program: taxes due prior to January 1, 2014, for14
which the department has issued an individual or a business proposed assessment,15
notice of assessment, bill, notice, or demand for payment not later than May 31,16
2014;17
(5) For the 2015 amnesty program: taxes due prior to January 1, 2015, for18
which the department has issued an individual or a business proposed assessment,19
notice of assessment, bill, notice, or demand for payment not later than May 31,20
2015.21
* * *22
(G)(1) Amnesty will be granted only for eligible taxes to eligible taxpayers23
who apply for amnesty during an amnesty period on forms prescribed by the24
secretary and who pay all of the tax, all fees and costs, if applicable, and any interest25
due upon filing the amnesty application. Pursuant to the provisions of Subsection26
(M) of this Section, taxpayers who apply for amnesty by opting to pay the tax and27
any applicable fees, costs, and interest in installments shall only remain eligible to28
participate in the amnesty program by making complete and timely payment of the29 HLS 14RS-964 ENGROSSED
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entire amount due under the taxpayer's installment agreement. Taxpayers involved1
in field audits or litigation shall not be eligible for installment agreements under the2
amnesty program. The amnesty application for taxpayers involved in field audits or3
litigation shall include all issues and all eligible periods involved in the audit or4
litigation. The secretary shall reserve the right to require taxpayers to file tax returns5
with the amnesty application. Notwithstanding the terms or provisions of any other6
Act or other provisions of law to the contrary, if the amnesty application is approved7
during the 2013 amnesty period the secretary shall waive one-half of the interest and8
all of the penalties associated with the tax periods for which amnesty is applied. If9
the amnesty application is approved during the 2014 amnesty period, the secretary10
shall waive fifteen sixty-seven percent of all of the penalties associated with the tax11
periods for which amnesty is applied, but no and thirty-three percent of the interest12
shall be waived. If the amnesty application is approved during the 2015 amnesty13
period, the secretary shall waive ten thirty-three percent of all of the penalties14
associated with the tax periods for which amnesty is applied, but no and seventeen15
percent of the interest shall be waived. However, any taxpayer for which a final16
judgment in accordance with R.S. 47:1565 or 1568 has been rendered against him17
by a court or who has exhausted all rights to protest taxes owed to the state, who also18
fails to submit an amnesty application during either the 2014 or 2015 amnesty19
period, whichever occurs first after the final judgment has been rendered against him20
or in which his rights to protest taxes have been exhausted, shall be subject to double21
penalties. An amnesty payment or application submitted in a properly addressed22
envelope with sufficient postage delivered by the United States Postal Service is23
deemed paid or received on the date it is postmarked. An amnesty payment or24
application delivered by courier or taxpayer is deemed paid or received on the date25
it is delivered to the department's headquarters or a regional office. No installment26
agreements will be entered into for tax periods that are approved for amnesty. The27
department shall not accept tax credits as payment of any tax, interest, penalty, or fee28
paid as a result of participation in the amnesty program.29 HLS 14RS-964 ENGROSSED
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(2) A taxpayer who disputes a portion of the amount of a delinquent tax1
assessed by the department may be eligible to apply for amnesty if the taxpayer2
remits the complete one-time payment of that portion of the tax that is not in dispute,3
plus applicable interest and penalties, hereinafter referred to as the "compromise4
amount", to the department prior to the end of the amnesty period for which the5
taxpayer applies. The secretary shall have thirty days beginning on the first business6
day after the last day of the amnesty period to determine if the taxpayer shall be7
granted amnesty based on the compromise amount paid. If the secretary approves8
the compromise amount paid by the taxpayer, the taxpayer shall be granted amnesty.9
If the secretary rejects the compromise amount paid by the taxpayer, amnesty shall10
not be granted and the taxpayer shall be responsible for the full amount of the11
delinquent tax, penalties, interest, and fees prior to his application for amnesty. Any12
monies paid to the department as compromised amounts during the amnesty period13
shall be allocated toward payment of the taxpayer's delinquent tax debt in accordance14
with rules and regulations which govern such payments in the absence of an amnesty15
program.16
* * *17
(I) Amnesty applications shall include a written waiver of all rights,18
restrictions, and delays for assessing, collecting, or protesting taxes and interest due19
as set forth in R.S. 47:1562 through 1565 and 1576. The filing of such applications20
shall make the tax, interest, and penalty immediately due and payable; except when21
the taxpayer has been authorized by the secretary of the department, after making22
application on the supplemental form provided by the secretary, to make installment23
payments of such tax, interest, penalty, and fees. Pursuant to the provisions of24
Subsection (M) of this Section, a taxpayer's supplemental application seeking25
authority to make installment payments of a delinquent tax, interest, penalties, and26
fees shall, upon approval of the secretary, be deemed to enter the taxpayer into an27
installment agreement with the department. Payments of tax, interest, penalties, and28
fees shall be subject to the distraint procedure provided for in Title 47 of the29 HLS 14RS-964 ENGROSSED
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Louisiana Revised Statutes of 1950; ineligible for refund, credit, or claim against the1
state; and ineligible for redetermination under the provisions of R.S. 47:1565(C);2
however, a taxpayer shall be eligible for a refund or credit if the overpayment arises3
after the amnesty application is submitted and is attributable to a properly claimed4
Louisiana net operating loss or attributable to an adjustment made by the Internal5
Revenue Service to the taxpayer's federal income tax, and the taxpayer provides6
notice of the adjustment to the secretary within sixty days of receipt of the7
adjustment from the Internal Revenue Service. A taxpayer who files an application8
for amnesty retains all administrative and judicial rights of appeal with respect to any9
additional tax assessed by the department.10
* * *11
(M)(1) Installment agreements. A taxpayer's application to make installment12
payments of a delinquent tax and its interest, penalties, and fees shall, upon approval13
by the secretary, enter the taxpayer into an installment agreement with the secretary14
of the department, whereby continuation in the amnesty program is dependent upon15
complete and timely payments of all installment payments. All installment16
agreements approved by the secretary shall require the taxpayer to provide a down17
payment of no less than twenty percent of the total amount of delinquent tax, penalty,18
interest, and fees owed to the department at the time the installment agreement is19
approved by the secretary. Additionally, every installment agreement shall include20
fixed, equal, monthly payments that shall not extend for more than six months.21
(a) For the 2014 amnesty program, "timely payment" shall mean all22
installment payments shall be received no later than May 1, 2015.23
(b) For the 2015 amnesty program, "timely payment" shall mean all24
installment payments shall be received no later than May 1, 2016.25
(2) Automated electronic drafts. Applicants seeking to enter into an26
installment agreement with the department shall provide necessary information for27
installment payments to be drafted from an account from which the taxpayer is28
authorized to remit payment. All payments shall be drafted through electronic29 HLS 14RS-964 ENGROSSED
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automated transactions initiated by the department. Taxpayers who cannot enter into1
an agreement to make payment by way of automated electronic transactions shall not2
be eligible for an installment agreement with the department.3
(3)(a) Forfeiture. If for any reason a taxpayer subject to an installment4
agreement fails to fulfill his obligation under the agreement by remitting the last5
installment by the first day of May of the amnesty program year to which the6
agreement applies, no amnesty shall be granted and the installation agreement shall7
be null and void. All payments remitted to the department during the duration of8
such void installment agreement shall be allocated in accordance with department9
rules and regulations as applied in the absence of an amnesty program. The taxpayer10
shall be obligated to pay the entirety of the delinquent tax, along with all applicable11
interest, penalties, and fees.12
(b) A taxpayer who is approved to participate in the amnesty program who13
is also a party to an existing installment agreement with the department may be14
eligible to participate in an installment agreement under the amnesty program. Upon15
approval by the secretary of an installment agreement under the amnesty program,16
the original installment agreement with the department shall be cancelled in favor17
of the installment agreement under amnesty which shall be subject to the provisions18
of this Subsection.19
(4) Collection of installment agreements. The secretary may procure20
amnesty program collection services for the administration and collection of21
installment agreements. The fee for such services shall be in accordance with the22
fees authorized in R.S. 47:1516.1.23
(5) Emergency rules. The secretary of the department may promulgate rules24
and regulations in accordance with the emergency rulemaking authority of the25
Administrative Procedure Act as provided for in R.S. 49:953(B) as are necessary to26
implement the provisions of this Act relative to installment agreements. For27
purposes of qualifying as an emergency under the provisions of the Administrative28
Procedure Act, necessity of promulgating these rules by emergency rulemaking shall29 HLS 14RS-964 ENGROSSED
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be deemed to meet the definition of imminent peril to the public health, safety, or1
welfare of the citizens of the state.2
* * *3
Section 4.A. 4.(A) The secretary shall retain from monies collected under4
this Act an amount equal to all penalties waived under this Act, an amount equal to5
the costs for contractual information technology and amnesty program administration6
services, including, without limitation, marketing, advertising, and public7
information services, and an amount equal to any collection fees, legal fees, or any8
other fees the department incurs that are associated with granting amnesty. Such9
monies shall be designated as self-generated revenues. Notwithstanding any10
provision of law to the contrary, amnesty program administration services and11
information technology services , including, without limitation, marketing,12
advertising, and public information services, to implement amnesty may be acquired13
using the emergency procurement process. The secretary shall also retain an amount14
not to exceed two hundred fifty thousand dollars for advertising expenses from15
monies collected from taxes paid pursuant to this Act.16
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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. HLS 14RS-964 ENGROSSED
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Proposed law provides that the amnesty program shall apply to taxes for all of the following:
(1)Taxes for taxable periods that began before Jan. 1, 2014.
(2)Taxes for which the department and the taxpayer have entered into an agreement to
suspend the running of prescription until Dec. 31, 2014.
(3)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.
(4)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 requires the doubling of penalties for any taxpayer for which a final judgment
has been rendered against him or who has exhausted all rights to protest taxes owed to the
state, who also fails to submit an amnesty application during either the 2014 or 2015
amnesty period, whichever occurs first after the final judgment has been rendered against
him or in which his rights to protest taxes have been exhausted.
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.
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. HLS 14RS-964 ENGROSSED
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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 of DOR 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.
Present law requires the secretary to retain from monies collected pursuant to the amnesty
program, an amount equal to the costs for contractual information technology and amnesty
program administration services. Further authorizes the secretary to use the emergency
procurement process to acquire amnesty program administration services and information
technology services.
Proposed law retains present law but includes, without limitation, marketing, advertising,
and public information services within the amnesty program administration service costs for
which the secretary shall retain from monies collected from the amnesty program and for
which the department may acquire using the emergency procurement process.
(Amends §§3.(C), (G), and (I) and 4.(A) of Act No. 421 of the 2013 R.S.; Adds §3.(M) to
Act No. 421 of the 2013 R.S.)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Adds a provision requiring the payment of double penalties for taxpayers who
have a final judgement rendered in accordance with present law or who have
exhausted all rights to protest taxes who fail to apply for amnesty under proposed
law.
2. Adds the costs for marketing, advertising, and public information services within
the amnesty program administration service costs for which the secretary of
DOR shall retain from monies collected from the amnesty program and for which
the department may acquire using the emergency procurement process.