GREEN SHEET REDIGEST
HB 721 2015 Regular Session Ivey
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
REVENUE SECRETARY. Provides relative to penalties collected by the Department
of Revenue.
DIGEST
Abstract: Provides for penalties and fees assessed by the Dept. of Revenue and adds
requirements for the publication of the waiver of penalties in excess of $50,000.
Present law provides for waiver by the secretary of penalties exceeding $25,000 only after
approval by the Board of Tax Appeals.
Proposed law maintains the requirement for the Board of Tax Appeals to approve the waiver
of penalties which exceed $25,000 until Dec. 31, 2015. Beginning Jan. 1, 2016. Further
provides that approval of a waiver of penalties exceeding $25,000 shall be subject to
oversight by the House Ways and Means Committee and the Senate Revenue and Fiscal
Affairs Committee.
Proposed law exempts penalties remitted or waived by the secretary from the provisions of
proposed law if the penalties are waived pursuant to the department's voluntary disclosure
program.
Present law provides that the records and files of the Dept. of Revenue or records and files
maintained pursuant to tax ordinances shall be confidential and privileged and shall not be
disclosed except in the administration and enforcement of tax laws or in other limited,
specific circumstances.
Proposed law retains present law but adds authorization, beginning Jan. 1, 2016, for the
department to share or furnish a complete record of all waivers of penalties in excess of
$25,000 with the House Ways and Means Committee and the Senate Revenue and Fiscal
Affairs Committee. Further provides that any taxpayer who accepts the remittance or waiver
of penalties shall be deemed to have consented to the publication of the information in the
department's annual report. Proposed law exempts waivers approved pursuant to the
department's voluntary disclosure program from the publication requirements.
Proposed law further authorizes the sharing or furnishing, in the discretion of the secretary,
of information in response to a court-ordered subpoena requested by the Louisiana Office of
the Inspector General, the Louisiana Attorney General's office, a Louisiana District
Attorney's Office, or a United States Attorney's Office in connection with or related to an
ongoing criminal investigation being conducted and/or a criminal proceeding.
Present law provides for a penalty of $500 for dealers which fail to keep adequate records.
Proposed law increases the penalty for failure to keep adequate records from $500 to $5,000.
Present law provides for a penalty for failure to fully remit the tax due when filing a tax
return and calculates the penalty on the additional amount due when at least 90% of the total
tax due is not paid on or before the date due and the return and payment are not received
within the prescribed time, including any extensions.
Proposed law retains present law as it relates to the amount of the penalty but extends the
penalty provision in cases where the return and full payment are not received within the
prescribed time, including any extensions.
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Prepared by Margaret M. Corley. Present law provides for the waiver of penalty for delinquent filing or delinquent payment.
Proposed law applies these waiver provisions to cases where the secretary and the taxpayer
have entered into a valid and enforceable voluntary disclosure agreement.
Present law establishes a negligence penalty of 5% of the tax due or $10, whichever is
greater.
Proposed law changes the negligence penalty from 5% of the tax due or $10, whichever is
greater, to separate penalties for negligence and large tax deficiencies as follows:
(1)Negligence - If the secretary finds the taxpayer did not have willful intent to defraud
the state, the secretary may assess a penalty equal to 10% of the tax deficiency
resulting from the taxpayer's negligence.
(2)Large individual tax deficiency - If a taxpayer understates tax table income by an
amount equal to 25% or more of adjusted gross income or has demonstrated a willful
disregard for the tax laws of this state, the secretary may assess a penalty equal to
20% of the deficiency. However, if the secretary finds that the taxpayer did not have
willful intent to disregard the laws of this state, the secretary may assess a penalty of
15% of the tax deficiency.
(3)Large tax deficiency for taxes other than individual income tax - If a taxpayer
understates tax liability by 25% or more or has otherwise demonstrated a willful
disregard for the tax laws of this state, the secretary may assess a penalty equal to
20% of the deficiency. However, if the secretary finds that the taxpayer did not have
willful intent to disregard the laws of this state, the secretary may assess a penalty of
15% of the tax deficiency.
Effective July 1, 2015.
(Amends R.S. 47:114(F)(3), 295(C), 309(B), 1602(A)(2)(a) and (3)(a), 1603(A)(2) and (3),
and 1604.1; Adds R.S. 47:1508(B)(37), (38), and (39))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Make technical amendments to the bill.
2. Add a requirement that approval of a waiver of penalties in excess of $50,000
shall be conditioned on the taxpayer's consent to publication of information in the
department's annual report.
3. Add authorization, beginning Jan. 1, 2016, for the department to publish a
complete record of all waivers of penalties in excess of $50,000 granted by the
secretary in the department's annual report.
4. Add provision that any taxpayer who accepts the remittance or waiver of
penalties shall be deemed to have consented to the publication of the information
in the department's annual report.
5. Exempt waivers approved pursuant to the department's voluntary disclosure
program from the publication requirements.
The House Floor Amendments to the engrossed bill:
1. Delete provisions relative to penalties for payment of amounts owed to the Dept.
of Revenue with a check, money order, credit card, and other forms of payment
that is declined for insufficient funds.
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Prepared by Margaret M. Corley. 2. Change the authorization, beginning Jan. 1, 2016, that the Dept. of Revenue
publish a complete record of waiver of penalties in excess of $50,000 in the
department's annual report to a requirement that waiver of penalties in excess of
$25,000 be subject to oversight by the House Ways and Means and Senate
Revenue and Fiscal Affairs Committees.
3. Delete requirement that the waiver of penalties be conditioned on the taxpayer's
consent to publication of information the secretary deems necessary regarding the
waiver in the department's annual report.
4. Add authorization that if the secretary of the department finds that a taxpayer had
willful intent to defraud the state, the secretary may assess a penalty of 10% of
the tax deficiency.
6. Change the requirement with respect to the assessment of a penalty on a taxpayer
understating tax liability from reckless intent to disregard the laws of this state
to willful intent to disregard the laws of this state.
7. Make technical changes to the bill.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Provide that nothing shall be construed to prevent the sharing or furnishing of
information with regards to specified investigatory and prosecutory officers in
response to a court-ordered subpoena.
2. Change mandatory language to permissive.
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Prepared by Margaret M. Corley.