ENROLLED
2015 Regular Session
HOUSE BILL NO. 721
BY REPRESENTATIVE IVEY
1 AN ACT
2 To amend and reenact R.S. 47:114(F)(3), 295(C), 309(B), 1602(A)(2)(a) and (3)(a),
3 1603(A)(2) and (3), and 1604.1 and to enact R.S. 47:1508(B)(37), (38), and (39),
4 relative to the penalties; to provide for certain civil penalties; to provide for the
5 waiver of penalties; to authorize the disclosure of certain information by the
6 Department of Revenue; to provide for effectiveness; and to provide for related
7 matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:114(F)(3), 295(C), 309(B), 1602(A)(2)(a) and (3)(a), 1603(A)(2)
10 and (3), and 1604.1 are hereby amended and reenacted and R.S. 47:1508(B)(37), (38), and
11 (39) are hereby enacted to read as follows:
12 §114. Returns and payment of tax
13 * * *
14 F. Penalty provision.
15 * * *
16 (3) If the failure to timely submit the annual return is attributable, not to the
17 negligence of the taxpayer, but to other causes set forth in written form and
18 considered reasonable by the secretary, the secretary may remit or waive payments
19 of the whole or any part of the specific penalty provided for such failure. In Until
20 December 31, 2015, in any case where the penalty exceeds twenty-five thousand
21 dollars, it can be waived by the secretary only after approval by the Board of Tax
22 Appeals. Notwithstanding the provisions of R.S. 47:1508, beginning January 1,
23 2016, waivers of all penalties exceeding twenty-five thousand dollars shall be subject
24 to oversight by the House Committee on Ways and Means and the Senate Committee
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1 on Revenue and Fiscal Affairs. This provision shall not apply to any penalty the
2 secretary remits or waives in accordance with rules and regulations promulgated
3 pursuant to the Administrative Procedure Act regarding the remittance or waiver of
4 penalties under the department's voluntary disclosure program.
5 * * *
6 §295. Tax imposed on individuals; administration
7 * * *
8 C. The secretary of the Department of Revenue shall administer and enforce
9 this Part. He may adopt, prescribe, and from time to time alter and enforce
10 reasonable rules, orders, and regulations for the purpose of implementing this Part.
11 He may, upon making a record of his reasons therefor, waive, reduce, or compromise
12 any of the taxes, penalties, or interest or other amounts provided by this Part. In
13 Until December 31, 2015, in any case when the penalty exceeds twenty-five
14 thousand dollars, it can be waived by the secretary only after approval by the Board
15 of Tax Appeals. Notwithstanding the provisions of R.S. 47:1508, beginning January
16 1, 2016, waivers of all penalties exceeding twenty-five thousand dollars shall be
17 subject to oversight by the House Committee on Ways and Means and the Senate
18 Committee on Revenue and Fiscal Affairs. This provision shall not apply to any
19 penalty the secretary remits or waives in accordance with rules and regulations
20 promulgated pursuant to the Administrative Procedure Act regarding the remittance
21 or waiver of penalties under the department's voluntary disclosure program.
22 * * *
23 §309. Dealers required to keep records
24 * * *
25 B. Any dealer subject to the provisions of this Chapter who violates the
26 provisions of this Section shall may be fined not more than five hundred thousand
27 dollars or imprisoned for not more than sixty days, or both, for any such offense.
28 * * *
29 §1508. Confidential character of tax records
30 * * *
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1 B. Nothing herein contained shall be construed to prevent:
2 * * *
3 (37) Beginning January 1, 2016, the sharing or furnishing of a complete
4 record of all waiver of penalties that exceed twenty-five thousand dollars with the
5 House Ways and Means and Senate Revenue and Fiscal Affairs Committees. Any
6 taxpayer who accepts the remittance or waiver of penalties shall be deemed to have
7 consented to the submission of the complete record of the remittance or waiver of
8 penalty to the House Ways and Means and the Senate Revenue and Fiscal Affairs
9 Committees. This provision shall not apply to any penalty the secretary remits or
10 waives in accordance with rules and regulations promulgated pursuant to the
11 Administrative Procedure Act regarding the remittance or waiver of penalties under
12 the department's voluntary disclosure program.
13 (38) The sharing or furnishing, in the discretion of the secretary, of
14 information in response to a court-ordered subpoena requested by the Louisiana
15 Office of the Inspector General, the Louisiana Attorney General's office or a
16 Louisiana District Attorney's Office in connection with or related to an ongoing
17 criminal investigation being conducted and/or a criminal proceeding pending in a
18 court of competent jurisdiction in the State of Louisiana.
19 (39) The sharing or furnishing, in the discretion of the secretary, of
20 information in response to a court-ordered subpoena requested by a United States
21 Attorney's Office in connection with or related to an ongoing criminal proceeding
22 pending in a court of competent jurisdiction in the State of Louisiana. This provision
23 shall also include the sharing or furnishing of information requested by a United
24 States' Attorney's Office in connection with a federal grand jury subpoena.
25 * * *
26 §1602. Penalty for failure to make timely return
27 A.
28 * * *
29 (2)(a) Except as provided in Paragraph (3), in the case of the filing of a
30 return without remittance of the full amount due, the specific penalty shall may be
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1 five percent of the unremitted tax if the failure to remit continues for not more than
2 thirty days, with an additional five percent for each additional thirty days or fraction
3 during which the failure to remit continues. The penalty imposed by this Paragraph
4 for each thirty-day period shall be calculated only on the additional amount due from
5 the taxpayer after the deduction of payments timely submitted, or submitted during
6 any preceding thirty-day period when:
7 (i) At least ninety percent of the total tax due on the return is not previously
8 paid on or before the due date of the return.
9 (ii) The the return and payments are not received within the time prescribed
10 determined with regard to any extension of time.
11 * * *
12 (3)(a) In the case of individual income tax, if the full amount of tax due on
13 the return is not paid on or before the due date prescribed for payment of such tax,
14 the specific penalty shall may be one-half of one percent of the unremitted tax if the
15 failure to remit continues for not more than thirty days, with an additional one-half
16 of one percent for each additional thirty days or fraction during which the failure to
17 remit continues. The penalty imposed by this Paragraph for each thirty-day period
18 shall be calculated only on the additional amount due from the taxpayer, when:
19 (i) At least ninety percent of the total tax due on the return is not previously
20 paid through employer withholdings, estimated tax payments, or any other payments
21 made on or before the due date of the return, or
22 (ii) The the return and payments are not received within the time prescribed
23 determined with regard to any extension of time.
24 * * *
25 §1603. Waiver of penalty for delinquent filing or delinquent payment
26 A.
27 * * *
28 (2)(a) In order to promote the effective administration of the tax laws of this
29 state, the secretary may also promulgate rules and regulations pursuant to the
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1 Administrative Procedure Act concerning the waiver of penalties, including but not
2 limited to the establishment of a voluntary disclosure program.
3 (b) Notwithstanding any provison of law to the contrary, in any case where
4 the secretary and the taxpayer have entered into a valid and enforceable voluntary
5 disclosure agreement, the The secretary may, pursuant to the rules and regulations
6 referenced in Subparagraph (a) of this Paragraph , remit or waive the payment of the
7 whole or any part of the penalties provided for in this Subtitle.
8 * * *
9 (3) In Until December 31, 2015, in any case when the penalty exceeds
10 twenty-five thousand dollars, it can be waived by the secretary only after approval
11 by the Board of Tax Appeals. Notwithstanding the provisions of R.S. 47:1508,
12 beginning January 1, 2016, waivers of all penalties exceeding twenty-five thousand
13 dollars shall be subject to oversight by the House Committee on Ways and Means
14 and the Senate Committee on Revenue and Fiscal Affairs. This provision shall not
15 apply to any penalty the secretary remits or waives in accordance with rules and
16 regulations promulgated pursuant to the Administrative Procedure Act regarding the
17 remittance or waiver of penalties under the department's voluntary disclosure
18 program.
19 * * *
20 §1604.1. Negligence penalty
21 If any taxpayer fails to make any return required by this Sub-title or makes
22 an incorrect return, and the circumstances indicate wilful negligence or intentional
23 disregard of rules and regulations, but no intent to defraud, there shall be imposed,
24 in addition to any other penalties provided, a specific penalty of 5% of the tax or
25 deficiency found to be due, or ten dollars, whichever is the greater. This specific
26 penalty shall be an obligation to be collected and accounted for in the same manner
27 as if it were a part of the tax due, and can be enforced either in a separate action or
28 in the same action for the collection of the tax.
29 A. Finding of negligence. For negligent failure to comply with any
30 provisions of this Part or any rules and regulations of the department, when the
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1 secretary finds that a taxpayer did not have willful intent to defraud the state, the
2 secretary may assess a penalty equal to ten percent of the tax deficiency found to be
3 due as a result of the taxpayer's negligence.
4 B. Large individual income tax deficiency. In the case of individual income
5 tax, if a taxpayer understates tax table income, by any means, by an amount equal to
6 twenty-five percent or more of adjusted gross income or has otherwise demonstrated
7 a willful intent to disregard the tax laws of this state, the secretary may assess a
8 penalty equal to twenty percent of the deficiency. However, in the case of individual
9 income tax, if a taxpayer understates tax table income by an amount equal to twenty-
10 five percent or more of adjusted gross income but the secretary finds that the
11 taxpayer did not have willful intent to disregard the tax laws of this state, the
12 secretary may assess a penalty of fifteen percent of the deficiency.
13 C. Other large tax deficiency. In the case of a tax other than individual
14 income tax, if a taxpayer understates tax liability by twenty-five percent or more, or
15 has otherwise demonstrated a willful intent to disregard the tax laws of this state, the
16 secretary may assess a penalty equal to twenty percent of the deficiency. However,
17 in the case of a tax other than individual income tax, if a taxpayer understates tax
18 liability by twenty-five percent or more, but the secretary finds that the taxpayer did
19 not have willful intent to disregard the tax laws of this state, the secretary may assess
20 a penalty of fifteen percent of the deficiency.
21 D. For purposes of this Section, the following terms shall have the following
22 meanings unless the context clearly indicates otherwise:
23 (1) "Adjusted gross income" means gross income as defined in Section 62
24 of the Internal Revenue Code.
25 (2) "Willful" means voluntarily and intentionally acting in violation of the
26 tax laws of this state. The secretary shall use this definition of "willful" when
27 determining whether a penalty shall be imposed for the willful intent to defraud this
28 state or willful intent to disregard the tax laws of this state.
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1 Section 3. This Act shall become effective on July 1, 2015; if vetoed by the governor
2 and subsequently approved by the legislature, this Act shall become effective on July 1,
3 2015, or on the day following such approval by the legislature, whichever is later.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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