General FAQ

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General Questions

How do I obtain forms?

Anyone needing forms should call (225) 219-2113. It is helpful if you know the form number that you are requesting. Forms can also be picked up at our main office or any regional office. Many forms may also be downloaded from this Department's web page at our Tax Forms area.

What do I do if I owe taxes, but am unable to pay by the due date?

Submit your return by the due date. By filing timely, you avoid delinquent penalty. Any amount paid with your return will reduce the interest and late payment penalty charges. The Collection Division will bill you for any tax, interest, and penalties that are owed.

What do I do to set up arrangements to pay an outstanding tax liability?

Installment arrangements are handled by the Collection Division at (225) 219-7448.

How do I obtain assistance with my tax problems?

Tax assistance can be obtained from any of the LDR Revenue Offices. You may also email your technical tax questions to LDR via the Tax Question Mailbox.

Collections

What are guidelines that the Department uses to decide whether or not to waive penalties?

Requests for waiver of the penalty must be in writing from the taxpayer and notarized. Account should not have a past record of delinquent filings or payments. Taxpayer should be current in filing all tax returns and remitting applicable taxes. All taxes, interest, and other penalties must be paid in full.

Why do I owe penalty and interest if I filed an extension?

An extension only extends the time to file the return, not the time to pay the tax due.

Why did you change my filing frequency?

The filing frequency was changed based on the amount of tax you reported for the past year. Taxpayers are notified of this change by mail.

How are interest and penalties computed?

Prior to January 01, 2006, interest accrued at the rate of one and one quarter percent a month or 15 percent per annum from the date the return is required by law to be filed until the date the tax is paid. Beginning January 01, 2006 the rate of interest is subject to change annually. The rates can be found on the website by accessing form number R-1111. For failure to file a return on time, a penalty of 5 percent of the tax accrues if the delay in filing is not more than 30 days. An additional 5 percent penalty accrues for each additional 30 days or fraction thereof during which the failure to file continues, not to exceed a total of 25 percent. For failure to pay the tax in full by the date the return is required by law to be filed, determined without regard to any extension of time for filing the return, a penalty of 0.5 percent of the tax not paid accrues for each 30 days during which the failure to pay continues, not to exceed a total of 25 percent.

Why are you taking my federal refund?

The Louisiana Department of Revenue (LDR) participates in a federal offset program once an individual tax liability has reached final status plus 60 days the liability is posted with the federal Financial Management Service (FMS). The federal program will garnish federal refunds for the state tax liability and remit the garnished refund to the Department to apply to the taxpayer’s liability. All taxpayers are notified of LDR’s participation in this program when the taxpayer is issued a Notice of Intent to Offset. This is issued once a liability has reached final status in the billing process. In return for our participation, LDR will offset Louisiana tax refunds by the amount of outstanding Federal Tax Liability. The LDR also offsets Louisiana refunds for other state agencies and governmental entities.

What do I do to set up arrangements to pay an outstanding tax liability?

You may download an installment agreement from the website or contact our office at (225) 219-0102.

What relief is available for financial and personal hardships that prevent taxpayers from paying their full tax liability available?

You may be eligible for an offer in compromise. Revised Statute 47:1578(4) allows the Secretary of Revenue to settle a liability for less than the total amount due in certain cases. To qualify for an offer in compromise, one of the following circumstances must apply:

  • There must be serious doubt as to the collectability of the outstanding judgment
  • There must be serious doubt as to the taxpayer’s liability for the outstanding judgment, or
  • The collection costs would exceed the amount of the outstanding liability.

To apply for an offer in compromise, taxpayers must submit an Offer in CompromiseApplication, Form R-20212A, and a Statement of Financial Condition for Individuals, Form R-20212I, or a Statement of Financial Condition for Businesses, Form R-20212B.

If the taxpayer is applying for the offer in compromised based on inability to pay the liability, the Document Checklist for Offer in Compromise Based on Serious Doubt as to Collectability, Form R-20211, should also be completed and used as a guide for the documents required.

The LDR Offer In Compromise Program booklet, Form R-20212, explains the offer in compromise requirements and contains all of the required application and financial disclosure forms.

Why does the Department of Wildlife and Fisheries require a sales tax clearance before they will complete my boat registration?

Revised Statute 47:303(D) provides that the Secretary of the Louisiana Department of Wildlife and Fisheries may not register or issue a certificate of registration on any new boat or vessel purchased in the state until satisfactory proof has been presented certifying that all state, municipal, school board, and parish sales taxes have been paid. The law also requires certification of sales tax payment for any boat or vessel brought into the state and, if the sales and use tax was not properly paid, the tax must be paid to LDR and the payment noted on the signed certificate.

If the new boat was purchased from a Louisiana dealer or builder, the sales tax should be paid to the dealer or builder and the invoice certifying the sales tax payment issued to the customer to be presented to the Department of Wildlife and Fisheries.

If the boat was purchased from an individual who used the boat personally, the purchase would qualify as a casual sale and would be exempt from the sales tax. The boat purchaser should present the seller’s registration certificate and a notarized bill of sale to the Department of Wildlife and Fisheries for verification. Once it is verified that sale qualifies as an exempt casual sale, the boat registration will be issued.

If the boat was brought into the state and was not an exempt purchase, such as a casual sale from a boat owner, the sales tax must be paid directly to LDR and the local sales tax agencies and a Boat Registration Tax Payment Certification, Form R-1331, completed and signed by the purchaser and the state and local tax collection officials to certify that the sales tax has been paid. Sales tax can be paid and the certification obtained from any LDR office.

I received a notice in the mail from the Department of Public Safety informing me that my driver’s license has been suspended due to nonpayment of taxes. How do I resolve this?

Revised Statute 47:296.2 authorizes suspension of drivers’ license for Louisiana taxpayers who have an outstanding individual income tax balance of $1,000 or more that is final and nonappealable. LAC 61:I.1355 provides for the driver’s license suspension and denial of renewal procedures and notifications.

If you have been notified that your driver’s license has been suspended or the Department of Public Safety refuses to issue or renew your driver’s license because you owe individual income tax, you must pay the tax due or enter into an installment payment agreement before LDR will issue a tax clearance letter to you. If the assessment is based on an estimate, you will be required to file an income tax return for the tax period.

Once your tax clearance letter has been issued, you must bring the clearance to the Department of Public Safety, Office of Motor Vehicles, and pay the $60 reinstatement fee before your driver’s license will be reinstated or issued.

The income tax can be paid and the clearance obtained from any LDR office.

Why are delinquent penalties assessed?

Revised Statute 47:1602 imposes delinquent filing and delinquent payment penalties for failure to file the tax return or failure to pay the tax due by the due date.

  • The delinquent filing penalty is five percent of the tax due for each 30-day period that the failure to file continues, not to exceed 25 percent of the total tax.
  • Except for individual income tax, the delinquent payment penalty is also five percent of the tax due for each 30-day period that the failure to pay continues, not to exceed 25 percent of the total tax. For individual income tax, the delinquent payment penalty is one-half of one percent for each 30-day period that the failure to pay continues, not to exceed 25 percent of the total tax. The delinquent payment penalty will not be imposed if the delinquent filing penalty is due for the same tax period.
I was billed for delinquent penalty. Can this penalty be waived?

Revised Statute 47:1603 provides for waiver of the delinquent filing or delinquent payment penalties. LAC 61:III.2101 provides the conditions under which delinquent penalties will be waived.

If the failure to timely file the tax return or pay the tax due is not due to the taxpayer’s negligence but to other reasonable cause, the secretary may waive the delinquent filing or payment penalties. To apply for delinquent penalty waiver, the taxpayer must submit a Request For Waiver Of Penalties For Delinquency, Form R-20128, and submit the request with payment for the tax, interest, and fees, if applicable, and a copy of the bill to the Collection Division, Post Office Box 201, Baton Rouge, LA 70821-0201.

Why is interest assessed?

Revised Statute 47:1601 provides for interest to be added to unpaid taxes. When a taxpayer fails to pay the tax by the due date, interest will be added to the amount of tax due computed from the tax due date until the tax is paid. The interest rate is set annually at three percent above the legal interest rate provided for by Revised Statute 9:3500(B)(1). The Commissioner of the Office of Financial Institutions sets the legal interest rate at three and one-quarter percent above the discount rate published in the Wall Street Journal on the first business day of October.

LDR announces the interest rate on tax liabilities each year in a Revenue Information Bulletin.

I was billed for interest. Can the interest be waived?

In most cases interest cannot be waived.

However, Revised Statute 47:1601(A)(2) and LAC 61:III.2115 allow for the interest to be compromised or abated as follows:

  • Compromise of Interest—Taxpayers may request an interest compromise under the following circumstance:
    1. The taxpayer has paid all outstanding taxes.
    2. The taxpayer interpreted the law differently and there is no binding judicial decision regarding the issue.
    3. The taxpayer has not had interest compromised within the past five years.
    4. The taxpayer nor any affiliates or related entities have had interest compromised on the same issue.
    5. Interest may be compromised for any portion of the total interest compromise requested.
    6. Interest will not be compromised if the taxpayer is party to a voluntary disclosure agreement for the period in which the interest accrued, interest accrues as a result of participation in an abusive tax avoidance transaction, or interest that accrues on taxes that were collected on behalf of the state but not remitted
  • To request a compromise of interest, the taxpayer must complete the Request for Compromise of Interest, Form R-20130, and submit it to the Louisiana Department of Revenue, P.O. Box 66658, Baton Rouge, LA 70896-6658.
  • Abatement of Interest—Taxpayers may request an interest abatement if the assessment of interest is attributable to an unreasonable error or delay by the secretary in the performance of a ministerial or managerial act as defined by LAC 61:III.2115.A as follows:

  • Managerial Act—an administrative act that occurs during the processing of a taxpayer's case involving the temporary or permanent loss of records or the exercise of judgment or discretion relating to management of personnel. A decision concerning the proper application of the law is not a managerial act. Further, a general administrative decision, such as the department's decision on how to organize the processing of tax returns or its delay in implementing an improved computer system, is not a managerial act for which interest can be abated under this Section.
  • Ministerial Act—a procedural or mechanical act that does not involve the exercise of judgment or discretion, and that occurs during the processing of a taxpayer's case after all prerequisites, such as conferences and review by supervisors, have taken place. A decision concerning the proper application of the law is not a ministerial act.
  • The request for an interest abatement will be considered only if no significant part of the error or delay can be attributed to the taxpayer. Examples of interest attributable to the taxpayer’s actions are:
    1. Failure to pay the tax liability when due.
    2. Failure to pay the entire balance owed.
    3. Delays caused by the taxpayer waiting for a determination of a refund claim to offset prior period underpayments, or
    4. Failure of the taxpayer to cooperate with LDR personnel.
  • To request an abatement of interest, the taxpayer must complete the Request for Abatement of Interest, Form R-20131, and submit it to the Louisiana Department of Revenue, P.O. Box 66658, Baton Rouge, LA 70896-6658.
How do I obtain the tax clearance required to obtain an alcoholic beverage or tobacco permit?

Sales tax clearances are required for alcoholic beverage permits by Revised Statute 26:78(A) and 26:80(E) and Revised Statute 26:278(A) and 26:280(E). In addition, Revised Statute 26:916(H) allows the ATC commissioner to suspend or revoke a dealer’s tobacco permit if the dealer fails to pay taxes due to the state.

New dealers must first register for a LDR revenue account number. Once registered, the dealer may request the tax clearance to be mailed to the dealer’s address. Requests can be made by phone to the Collection Division, Special Collections Unit at (225) 219-7448, Option 4 or by email to the Collection Inquires mailbox. Dealers may also request a tax clearance in person from any LDR office. Dealers should contact the regional offices to make a customer-service appointment. Dealer representatives requesting a tax clearance for the dealer must have a signed written request from the dealer that includes the dealer’s revenue account number to ensure confidentiality of dealer tax records.

Once permitted, clearances for permit renewals are issued automatically 60 days before the permit expiration date for dealers who owe no taxes. Dealers who do not receive the tax clearance within 30 days of the permit’s expiration should contact the Collection Division, Special Collections Unit at (225) 219-7448, Option 4 or by email to the Collection Inquires mailbox. Dealers who owe taxes will be required to pay the outstanding liability or enter into an installment agreement before the tax clearance will be issued. If the dealer becomes delinquent after the permit is issued or misses an installment payment, the permit will be revoked until the dealer has paid their tax liabilities.

Can the state seize my property if I don’t pay my outstanding tax liabilities?

Yes. When a taxpayer fails to pay any tax, penalty, or interest assessed, Revised Statute 47:1569 authorizes the secretary to enforce the tax collection by distraint and sale. Revised Statute 47:1570 defines distraint to mean the secretary’s right to levy upon and seize and sell any of the taxpayer’s property or rights to property including goods, chattels, effects, stocks, securities, bank accounts, evidences of debt, wages, real estate and other forms of property to satisfy any assessment of tax, penalty or interest due.

The properties most commonly seized are the taxpayer’s bank accounts and wages. However, other property can also be seized and sold for the payment of tax debt. Revised Statute 47:1571 prescribes the distraint procedures. Revised Statute 47:1572 provides for the surrender of property subject to distraint and Revised Statute 47:1573 provides for the sale of distrained property.

How are payments applied if I owe liabilities for multiple tax periods?

In most cases, payments are applied against the liability for the oldest period first. After the liability is fully paid for that period, the payment will be applied to the next oldest period and so on until the taxpayer’s liabilities are paid in full. This method of applying payments should minimize the taxpayer’s interest and penalty assessments. For individual income tax payment questions, call LDR at (225) 219-0102. For business tax payment questions, call (225) 219-7462

Why was a levy placed against my bank account and how do I resolve it?

When a taxpayer fails to pay any tax, penalty, or interest assessed by LDR, Revised Statute 47:1569 authorizes the secretary to enforce the tax collection by distraint and sale. Revised Statute 47:1570 defines distraint to mean the secretary’s right to levy upon and seize and sell any of the taxpayer’s property or rights to property including goods, chattels, effects, stocks, securities, bank accounts, evidences of debt, wages, real estate and other forms of property to satisfy any assessment of tax, penalty or interest due.

Revised Statute 47:1577 provides that all tax, penalty, interest, or attorney fees due to LDR shall operate as a lien, privilege, and mortgage on all of the property of the tax debtor. The law also authorizes LDR to record notices of liens in parishes where there is reason to believe that the tax debtor owns property. If a lien is recorded, the tax debtor is responsible for paying the lien recordation costs. See LAC 61:I.5302.G for more information about lien fees.

Once a lien has been recorded, Revised Statute 47:1578 requires the taxpayer to pay the tax, interest, penalties, and lien fees for the tax period against which the lien was recorded before the lien will be released. To determine the lien payoff amount and to request a lien release, the taxpayer must submit the Request for Louisiana Tax Assessment & Lien Payoff, Form R-19023, and attach copies of any outstanding liens. Once the request is received, the taxpayer’s account will be reviewed and the lien payoff including tax, penalties, interest, and lien recordation and cancellation fees will be provided. When the liability is paid, the lien will be cancelled. The response time to obtain the lien payoff information is four to five business days. To expedite a request, the form may be faxed to the Special Collection Unit at (225) 219-2256.

Revised Statute 47:1578 also allows for a partial lien release for certain real property if LDR has liens against the tax debtors other properties sufficient to cover the tax obligation amount taking into consideration for the rankings of any other liens or if the tax debtor pays an amount that is equal to the state’s interest in the property or if it is determined that the state’s interest in the property to be released has no value. All partial lien releases must be approved by the Louisiana Board of Tax Appeals.

For more information concerning tax liens, see LAC 61:I.5302.

How do I stop tax bills from being issued for tax periods after my business was closed?

If your business has been closed or sold, you must file a Request to Close Business Tax Accounts, Form R-3406, to notify LDR to close your tax accounts. If you fail to file this request or to otherwise notify LDR, estimated assessments will continue to be issued.

If you have received estimated assessments for periods after your business closure, you should submit the Request to Close Business Tax Accounts, Form R-3406, and any dissolution documents, if applicable, and your account will be closed and estimated assessments issued after the close date will be cancelled.

How do I resolve a bill for a tax return period that I recently filed?

If the assessment is an estimated tax assessment issued before your tax return was processed, your tax return information will automatically replace the estimated assessment issued. You can check the status of your business tax account online using the Louisiana Taxpayer Access Point (LaTAP) system.

How do I resolve bills for taxes due before I began operating?

When you register a business with LDR, tax returns must be filed beginning with the business registration open date even if you have no activity and owe no tax. Once registered, the LDR system begins issuing estimated assessments for each tax period. To resolve these estimated assessments, you must file tax returns even if the amounts reported are zero. Once you actually begin operating your business, returns should be filed with your correct tax data.

How do I apply for an installment plan for my individual income tax liability?

Individual income taxpayers who are unable to pay all of their taxes by the due date, may request a six-month installment payment plan using the Installment Request for Individual Income, Form R-19026. You will be required to make monthly payments for one-sixth of the total balance due. For example, if you owe $600, you must pay $100 per month. Once you request an installment plan, you should begin making monthly payments even if you have not received approval from LDR.

Please note that interest and delinquent payment penalty will be assessed on the amount not paid by the due date. For that reason, you should contact the Collection Division at (225) 219-7448 to determine the amount of your final payment. You may also obtain this information from the Collection Division by email at collection.inquiries@la.gov.

How can I check to see if my tax payments have been properly credited?

Individual income taxpayers must call the LDR Call Center at (225) 219-0102, option 5. You may also inquire by email to collection.inquiries@la.gov.

Business taxpayers can register for the Louisiana Taxpayer Access Point (LaTAP) system and will be able to view their tax filing and payment history for all taxes.

Why would the liability reflected on my installment payment agreement be less than the liability amount on my bills?

Interest and late payment penalties, if applicable, continue to be added to your account until the tax is paid in full. For that reason, you should contact the Collection Division at (225) 219-7448 to verify the amount of your final payment. You may also request this information by email to collection.inquiries@la.gov.

How can I resolve a bill for individual income tax for a year that I was not a Louisiana resident?

The Internal Revenue Service provides LDR with tax return information for all taxpayers who file federal income tax returns with Louisiana addresses. This information is compared with LDR’s state tax filing information and bills are issued to individual income taxpayers who did not file a Louisiana tax return or underreported their Louisiana income.

Individuals who are domiciled, reside, or have a permanent residence in Louisiana are required to file a Louisiana individual income tax return and report all of their income and pay Louisiana income tax on that income, if applicable. Revised Statute 47:31 provides that individuals who reside in the state for more than six months are considered residents of the state for the entire year.

In addition, a temporary absence from Louisiana does not automatically change the taxpayer’s domicile for income tax purposes. The taxpayer must confirm their intention to change domicile to another state by actions taken to establish a new domicile outside of Louisiana. Examples of establishing a domicile include registering to vote, registering and titling vehicles, obtaining a driver’s license, changing children’s school of attendance, obtaining a homestead exemption, or any other actions that show intent to establish a new domicile outside of Louisiana.

To prove that you were not a Louisiana resident and not required to file a state individual income tax return, you must provide documentation that confirms your domicile in the other state. Proof can be established with a copy of your other state voter registration, automobile registration or license, your driver’s license, etc. If you maintain a residence in Louisiana while working in another state, you would still be considered a Louisiana resident required to pay Louisiana income tax. A temporary absence from Louisiana does not automatically change your domicile for income tax purposes.

Please note that military personnel whose domicile is Louisiana must file a Louisiana resident income tax return and report all of their income to Louisiana regardless of where they were stationed. Credit is allowed for income taxes paid to other states.

How do I resolve my corporation income tax bill for a short period filing that indicates that my corporation owes more income tax than I calculated?

Revised Statute 47:287.444(B) provides the method for computing the corporation’s taxable income if the tax period is less than 12 months. To compute the tax due for the short period, the Louisiana taxable income must be placed on an annual basis by multiplying the taxable income amount by 12 and dividing by the number of months included in the short period. The tax on this annualized income is then computed and multiplied by a fraction of which the numerator is the number of months in the short period and the denominator is 12.

If you filed a corporation income tax return for a short period and did annualize the corporation’s taxable income before computing your tax liability, you will owe additional tax.

I am registered as a hotel/motel. Can I report my sales tax collected on room rentals on the state sales tax return, Form R-1029?

No. The state sales tax collected on hotel/motel room rentals is dedicated to 80 different parish tourism and visitor enterprise funds in 59 parishes. To ensure that LDR is able to identify the sales tax collected on hotel/motel room rentals in the various cities and parishes, businesses that meet the definition of “hotel” as provided by Revised Statute 47:301(6), hotels and motels are required to report the sales tax collections from hotel/motel room rentals on the Statewide Hotel/Motel Sales Tax Return, Form R-1029H/M.

However, hotels/motels located in Orleans and Jefferson Parishes are required to collect the four percent Louisiana Stadium and Exhibition District room tax, the three percent the Ernest N. Morial New Orleans Exhibition Hall Authority room tax, and the state sales tax and report the taxes on a different Hotel/Motel Sales Tax Return, Form R-1029DS instead of the Form R-1029H/M.

Electronic Filing Required Effective July 2009

Because the hotel/motel taxes are dedicated, beginning July 2009, hotel and motels will be required to file these tax returns electronically. See LAC 61:III.1513-1523. Failure to comply with the electronic filing requirement may result in the assessment of a penalty of $100 or five percent of the tax, whichever is greater, as provided by Revised Statute 47:1520(B).

Hotels and motels can register for electronic filing for both tax returns using the Louisiana Taxpayer Access Point (LaTAP) system. Once registered for electronic filing, taxpayers can file and pay their taxes electronically and review their tax filing and payment history for all taxes.

How can I check to see if my individual income tax return has been processed and when my refund will be issued?

If you have submitted a paper income tax return, the processing time may take 6-8 weeks.

If you filed electronically, your income tax return will be processed within 1-3 days and your refund mailed within one week. If you selected direct deposit for your refund, the funds should be deposited within one week of processing.

Once you have filed, you can check the status of your refund using the following methods:

  • The automated individual income refund inquiry telephone system at (225) 922-3270 or toll-free at 1-888-829-3071. You must have your primary Social Security Number to use this system.
  • Register and log in to the Louisiana File Online application.
  • Inquire by email to personal.inquiries@la.gov.
  • Call LDR at (225) 219-0102.
How can I find out information about my pay check garnishment?

When a taxpayer fails to pay any tax, penalty, or interest assessed by LDR, Revised Statute 47:1569 authorizes the secretary to enforce the tax collection by distraint and sale. Revised Statute 47:1570 defines distraint to include the secretary’s right to levy upon and seize and the taxpayer’s wages to satisfy any assessment of tax, penalty, or interest due.

If you owe monies to LDR that are collectible by distraint, the law allows LDR to garnish your wages for up to 25 percent of your pay. A notice was sent to your employer that includes your debt amount and the name of the Tax Officer assigned to your case. If you have questions or want to confirm your liability, you may call the Tax Officer on the notice or the LDR Collection Division at (225) 219-7448, Option 6.

When I called LDR about a bill, I was told that I needed to amend my tax return to resolve the bill. How do I file an amended tax return?

Amended returns can be filed by re-filing a corrected tax period return with an X marked in the Amended Return box and attaching an explanation of the changes. The amended return should be mailed to the address on the tax return.

Amended individual income tax returns can be file electronically using the Louisiana File Online application. If you filed your original tax return electronically, you may log in to your account and amend your original return. If you filed your original tax return on paper or via another electronic filing option, you can still file your amended return electronically using the Louisiana File Online application. You must register and create a User ID and password and then select the amended tax return option.

Amended business tax returns can be filed electronically using the Louisiana Taxpayer Access Point (LaTAP) system. Once registered for the LaTAP system, you can file and pay your taxes electronically and review your tax filing and payment history for all taxes.

How do I find out the pay-off amount of my account and how can I make a payment?

Taxpayers who have tax liabilities are sent a notice of tax due and a payment coupon and reply envelope. Using the payment coupon and reply envelope ensures that your payment will be properly processed and credited.

To verify your tax liability for individual income tax, call LDR at (225) 219-0102.

To verify your tax liability for business taxes, you can review your liabilities online using the Louisiana Taxpayer Access Point (LaTAP) system.

Individual income tax liabilities may be paid electronically by an electronic bank account debit using the Louisiana File Online application or by credit card using Official Payments. Credit card payments may also be initiated by telephone at 1-888-272-9829. Credit card payments incur a 2.49 percent convenience fee.

Business tax liabilities may be paid electronically using the Louisiana Taxpayer Access Point (LaTAP) system or by credit card using Official Payments. Credit card payments may also be initiated by telephone at 1-888-272-9829. Credit card payments incur a 2.49 percent convenience fee.

How can I obtain a corrected refund check because my original check had a misspelling of my name?

Most banks will cash or deposit tax refund checks with minor name misspellings if all other information is correct.

If you are unable to cash or deposit your refund because of the misspelling, can notify LDR of the error in any of the following ways:

  • Contact LDR by email at personal.inquiries@la.gov and notify us of the corrected name spelling including your address and phone number. Do not include your Social Security Number for security reasons.
  • Call LDR at (225) 219-0102 and if it can be verified that the name on the return was entered incorrectly, the correction will be made and your refund reissued.
  • Fax or mail a copy of your spelling correction request, your address and phone number, and attach a copy of your driver’s license to the Taxpayer Services Division, Income Tax Section at (225) 231-6236 or P.O. Box 4998, Baton Rouge, LA 70821-4998. Do not mail a copy of your Social Security card for security reasons.
How can I resolve a bill that I received interest and delinquent filing penalties when I filed my tax return on time and have a certified mail receipt to prove it?

Send a copy of your certified mail receipt and a copy of the assessment notice to the Collection Division, P.O. Box 66658, Baton Rouge, LA 70896-6658. You may also fax the documents to the Collections Division for individual income tax to (225) 219-2256, attention Enforcement Section or to (225) 219-0865, attention Resolution and Recovery Section for business taxes.

How do I stop LDR from issuing bills after I have filed for bankruptcy?

Even though LDR is notified by the courts of a taxpayer’s bankruptcy, Statements of Account will continue to be issued without payment voucher coupons. The statements will contain a bankruptcy statement at the bottom of the notice.

If your statement does not contain the bankruptcy statement, contact the Collection Division, Bankruptcy Section at (225) 219-2255 and provide your bankruptcy case number and the court in which the bankruptcy was filed. You may also fax the information to (225) 219-2250. Be sure to include your revenue account number, address, and contact phone number.

What should I do about a Cease and Desist Order issued to me?

If a taxpayer collects sales tax or income tax withholding and fails to pay the tax to LDR, the secretary may use a summary process in any court of competent jurisdiction to require the taxpayer to show cause why he should not be ordered to cease from further pursuit of his business. The rule to show cause must be heard at least two but not more than ten days after the rule is filed. If the rule is made absolute, the order rendered shall be considered a judgment in favor of the state, prohibiting the dealer from the further pursuit of the business until the delinquent tax, interest, penalties and costs are paid. If the dealer does not obey the cease and desist order, every violation shall be considered as a contempt of court, and punished according to law. See Revised Statute 47:314 and LAC 61:I.4367 for sales tax and Revised Statute 47:1574.1 and Revised Statute 47: 1582 for sales and income tax withholding

If you have been notified that a cease and desist order has been filed against your business for unpaid sales tax or income tax withholding, you should immediately contact the tax official assigned to your account and whose name appears at the bottom of the notice. Failure to immediately respond could result in the closure of your business.

Why did I receive a Notification of Intent to Pursue Corporation Officers for Delinquent State Tax Liabilities and what should I do to resolve the problem?

Revised Statute 47:1561.1 authorizes the LDR secretary to pursue collection of income taxes withheld from employee wages and sales tax collected from consumers against the officers, directors, or managers or members of corporations, limited liability companies, or limited partnerships that fail to remit the taxes collected.

As an officer of a corporation, limited liability company, or limited partnership, the law makes you personally liable for any sales tax and income tax withholding collected and not remitted to the state. Collection of these delinquent taxes is being pursued against the officers because all other attempts to collect the taxes have been unsuccessful.

To resolve the tax liability, you should contact the tax official assigned to your account and whose name appears at the bottom of the notice. If you are not an officer of the company or did not have direct control or supervision of the taxes, you must provide official documentation and the name and address of the officer that was responsible for filing the returns and paying the taxes.

Where do I mail my tax payments in response to a notice of tax, interest, and penalties due?

If you received a notice of tax due, mail your payment and the payment coupon to LDR in the reply envelope. Using the payment coupon and reply envelopes ensures that your payment will be properly processed and credited.

Individual income tax liabilities may be paid electronically by an electronic bank account debit using the Louisiana File Online application or by credit card using Official Payments. Credit card payments may also be initiated by telephone at 1-888-272-9829. Credit card payments incur a 2.49 percent convenience fee.

Business tax liabilities may be paid electronically using the Louisiana Taxpayer Access Point (LaTAP) system or by credit card using Official Payments. Credit card payments may also be initiated by telephone at 1-888-272-9829. Credit card payments incur a 2.49 percent convenience fee.

Corporation Income and Franchise Taxes

How does Louisiana tax a corporation that is classified by the IRS as an "S" (small business) corporation?

Louisiana taxes Subchapter S corporations, known as S corporations or Sub S corporations, in the same manner as regular corporations, with one exception. For federal tax purposes, an S corporation will determine its items of income and expense in the same manner as if it were a regular "C" corporation. Since the classification of a Subchapter S corporation is a determination made under federal law, any question regarding that classification must be referred to the IRS.

A corporation classified by the IRS as an "S" corporation may exclude all or part of its income derived from the activities of the corporation, depending upon the domicile of the shareholders. Shareholders who are Louisiana residents are required to file a Louisiana individual income tax return to report their portion of the income derived from the activities of the corporation. In general terms, the portion of income that can be excluded is determined by the ratio of the number of issued and outstanding shares of the S corporation’s capital stock owned by Louisiana resident individuals to total number of issues and outstanding shares of capital stock.

Shareholders who are nonresidents of Louisiana may elect to file the individual nonresident and part-year resident return to report their portion of the income derived from the activities of the S corporation or to allow the corporation to pay the tax at the corporate income tax rate on their portion of the income. When electing the second method, the Subchapter S exclusion must not offset the net income to be reported on the corporation income and franchise taxes return.

An S corporation is not exempt from franchise tax. The franchise tax is imposed on an S corporation in the same manner as it is for a C corporation.

How are Limited Liability Companies (LLCs) taxed for Louisiana income and franchise tax purposes?

An LLC is treated and taxed in the same manner for Louisiana income tax purposes as it is treated and taxed for federal income tax purposes. If the LLC is taxed as a corporation for federal income tax purposes, the LLC will be taxed as a corporation for Louisiana income tax purposes. If the LLC is considered a partnership for federal income tax purposes, which is the most common situation, the LLC is treated as a partnership for Louisiana income tax purposes.

An LLC is never considered to be a corporation for franchise tax purposes, and therefore is not subject to Louisiana franchise tax.

Who should I contact if I need a letter of good standing?

A corporation that requires a Letter of Good Standing should contact our Special Collection Unit in the Collection Division.

Who should I contact if I do not know the account number for my corporation?

Contact our Customer Service Division for instructions to obtain your account number.

If my corporation is inactive, do I need to file a corporate income/franchise return?

Yes. Returns need to be filed until the corporation’s charter is dissolved, liquidated, or withdrawn through the Louisiana Secretary of State. The franchise tax for the return must be calculated at a rate of $1.50 for each $1,000 or major fraction thereof, on the first $300,000 and at a rate of $3 for each $1,000, or major fraction thereof that exceeds $300,000. The franchise tax calculated as a result of that two-part calculation is the amount of franchise tax that should be remitted.

I did not put my corporation state account number on my tax return, and was assessed a negligence penalty--why was that?

Corporations are required to include their Louisiana corporation income and franchise tax account number on all tax returns. Returns filed without this information must be manually researched and processed, which is administratively costly for LDR.

In 2003, corporations were mailed copies of their state tax account numbers and notified of the requirement to include the state number on the corporation tax returns. The federal employer identification number (FEIN) is not acceptable. Included in the notice was a warning that failure to include the state identification number would result in a negligence penalty, as authorized by Revised Statute 47:1604.1, which provides that a negligence penalty can be imposed "when a taxpayer makes an incorrect return and the circumstances indicate willful negligence or intentional disregard of rules and regulations, but no intent to defraud...". See the December 22, 2003, Press Release entitled Corporate Account Numbers to be Mailed to Businesses. The negligence penalty is five percent of the tax or deficiency, or $10, whichever is greater.

If you believe that the negligence penalty was wrongfully imposed, you may request that the penalty be abated from the Collections Division, at Post Office Box 201, Baton Rouge, LA 70821, or from your local Regional Office. Your abatement request must include the reason why you believe the negligence penalty should not have been imposed.

How does a corporation close its Louisiana Revenue account number?

To close a corporation’s Louisiana Revenue account number, the corporation must either dissolve or withdraw its corporate charter with the Louisiana Secretary of State. If the corporation was chartered as a domestic corporation, one that was formed in the state of Louisiana, the corporation must file dissolution papers with the Louisiana Secretary of State’s office to dissolve the corporation’s charter. If the corporation was chartered as a foreign corporation, one that was formed in another state or out of the country, the corporation must file an application with the Louisiana Secretary of State’s office to withdraw the corporation’s charter. The Louisiana Secretary of State’s office will notify the Louisiana Department of Revenue that the appropriate paperwork has been filed with their office. That notification will allow the Department of Revenue to close the Louisiana Revenue account number.

How do I request an extension to file a Louisiana Corporation Income and Franchise taxes return?

Corporate taxpayers who need additional time to file their Louisiana corporation income and franchise taxes returns must request an extension electronically by:

  1. Requesting the extensions electronically through the bulk extension filing application or the Online Extension Filing application on LDR website;
  2. Requesting the extensions electronically through tax preparation software that supports the electronic filing of the Louisiana Application for Extension to File Corporation Income and Franchise Tax; or
  3. Requesting an extension request via LDR’s IVR phone system by calling 225-922-3270 or 888-829-3071. For an extension request, select option #3, then select option #2. Taxpayers will need the Corporation’s LA tax account number to request the extension.
Is there a deadline to request an extension to file a Louisiana Corporation Income and Franchise taxes return?

Yes, all extension requests must be electronically made on or before the return’s due date. The return’s due date is April 15th for calendar year filers, and the 15th day of the fourth month following the close of the taxable year for fiscal year filers. Extension requests received after the return’s due date or on paper will not be honored.

If an extension to file a corporate income and franchises taxes return is received timely, do I still owe late payment penalty and interest on taxes that are paid when the return is filed?

Yes, the extension only allows for an extension of time to file the tax return. The extension does not allow an extension of time to pay the tax due. To avoid interest and penalty assessments, estimated taxes should be paid on or before the original due date.

Is there an electronic filing mandate for requesting an extension to file a Louisiana Corporation Income and Franchise taxes return, and if so, what are my options?

Yes. The Department has adopted Rule LAC 61:III.2503 to require the electronic filing of a request for an extension to file a corporation income and franchise tax return.

Currently the only electronic method available on LDR’s website to request an extension is through the bulk extension filing application or the Online Extension Filing application. Both applications can be used to request extensions for corporations and can be used by any taxpayer who has a current Louisiana Account Number listed with LDR. The bulk extension filing application can also be used by any firm who has an Electronic Filing Identification Number (EFIN) registered with LDR.

You may also request an extension through tax preparation software that supports the electronic filing of the Louisiana Application for Extension to File Corporation Income and Franchise Tax or by calling LDR’s IVR phone system at 225-922-3270 or 888-829-3071. For an extension request, select option #3, then select option #2. Taxpayers will need the Corporation’s LA tax account number to request the extension.

When I make an estimated payment by the due date of my Louisiana Corporation Income and Franchise taxes return, am I automatically granted an extension to file?

No, a payment does not qualify as a request for an extension to file. Corporate taxpayers who need additional time to file their Louisiana corporation income and franchise tax returns may request an extension electronically by:

  1. Requesting the extensions electronically through the bulk extension filing application or the Online Extension Filing application on LDR web site;
  2. Requesting the extensions electronically through tax preparation software that supports the electronic filing of the Louisiana Application for Extension to File Corporation Income and Franchise Tax; or
  3. Requesting an extension request via LDR’s IVR phone system by calling 225-922-3270 or 888-829-3071. For an extension request, select option #3, then select option #2. Taxpayers will need the Corporation’s LA tax account number to request the extension.
When I make my last estimated payment, does that payment qualify as a request for an extension to file a Louisiana Corporation Income and Franchise taxes return?

No, a payment does not qualify as a request for an extension to file a Louisiana Corporation Income and Franchise tax return. See question above for how to request an extension.

Can I request an extension to file a Louisiana Corporation Income and Franchise taxes return when I make an EFT payment?

No, a payment does not qualify as a request for an extension to file a Louisiana Corporation Income and Franchise tax return. See above for how to request an extension.

How does a corporation dissolve its charter?

Domestic corporations, those that were formed in the state of Louisiana, wishing to dissolve their charter must file dissolution papers with the Louisiana Secretary of State’s office. A corporation can choose to dissolve by two different methods: by filing a notarized affidavit of dissolution with the Louisiana Secretary of State, or by filing an application to dissolve, referred to as a long form dissolution. In the case of dissolution by a notarized affidavit, the affidavit must state that the shareholders have agreed to dissolve the corporation, that no outstanding debt is owed by the corporation, and that the corporation does not own any immovable property. A clearance is not issued by the Secretary of State for these types of dissolutions.

When filing the application for the long form dissolution, the application is sent to the Louisiana Secretary of State’s office. The Louisiana Secretary of State’s office sends notification to the Louisiana Department of Revenue, the Louisiana Workforce Commission’s Department of Employment Security, and in certain cases to the Louisiana Department of Environmental Quality, to inform the agencies that the corporation wishes to dissolve its charter. Each agency reviews the corporation’s file to determine if any unresolved issues exist on the account. If no unresolved issues exist, each agency sends to the Louisiana Secretary of State notification that the corporation’s account is clear. The Louisiana Secretary of State issues a formal clearance to the corporation and notifies it that its charter is dissolved.

A foreign corporation wishes to cease operating in Louisiana. How does it close its Louisiana Revenue account number and obtain a clearance?

A foreign corporation, one that was formed in another state or country, must withdraw its charter by filing an application with the Louisiana Secretary of State. When the withdrawal application is filed, the Louisiana Secretary of State’s office will send a notice to the Louisiana Department of Revenue, the Louisiana Workforce Commission’s Department of Employment Security, and in certain cases, the Louisiana Department of Environmental Quality to determine if any unresolved issues exist on the corporation’s account. The Louisiana Department of Revenue will close the Revenue Account number, and upon reviewing the corporation’s account, will notify the Louisiana Secretary of State of any outstanding liabilities. If no outstanding liabilities exist, the Louisiana Department of Revenue will send a clearance to the Louisiana Secretary of State. The Louisiana Secretary of State must receive clearances from each of the other appropriate agencies before an overall clearance is issued to the corporation.

Is there a $10 minimum amount imposed for corporation franchise tax on the Corporation Income and Franchise tax return?

No. Act 476 of the 2009 Regular Legislative Session was amended to repeal the imposition of the $10 minimum franchise tax for corporations. For tax periods after January 1, 2010, corporation franchise tax is calculated at a rate of $1.50 for each $1,000, or the major fraction thereof, on the first $300,000 and at a rate of $3 for each $1,000, or major fraction thereof that exceeds $300,000. The franchise tax calculated as a result of that two-part calculation is the amount of franchise tax that should be remitted.

How do I make a payment with my request for an extension to file a Louisiana Corporation Income and Franchise taxes return?

Electronic payment can be made through tax preparation software that supports the option, through LaTap; or by credit card at Officialpayments.com. If you need to mail in a check or money order, you must use the Electronically Filed Extension Payment Voucher, Form CIFT-620Ext-V. This voucher can be printed through the Online Extension Filing application or the Online Payment Voucher application and mailed to Post Office Box 751, Baton Rouge, LA 70821-0751.

Internal Revenue Code Section 280C requires a taxpayer who elects to claim certain credits that are based on an expense to reduce the federal deduction for the expense by the dollar amount of the credit claimed. How does Louisiana handle the adjustment made under IRC Section 280C?

Under R.S. 47:287.73(C)(4) Louisiana allows the deduction of any expenses disallowed under IRC Section 280C in calculating Louisiana taxable income for corporations. Therefore the amount of the expense disallowed under IRC Section 280C can be deducted in calculating taxable income for Louisiana.

A corporation would show this modification to income on Form CIFT-620, either on Schedule D, line 9 or Schedule G as a subtraction.

How can I file an amended return?

In order to amend the amounts reported for the computation of income or franchise taxes, you must file an amended (corrected) Form CIFT-620. File the amended return as if the original return was not filed and do not make any adjustments for refunds previously received or for payments previously made. This information is already on file and LDR will adjust your account accordingly. Louisiana Revised Statute 47:287.614(C) requires every taxpayer whose federal return is adjusted to furnish a statement disclosing the nature and amounts of such adjustments within 60 days after the adjustments have been made and accepted. This statement should accompany the amended return.

A corrected return for the tax year being amended should be submitted along with an explanation of the change(s) and a copy of the federal amended return, Form 1120X, if one was filed. The return should be clearly marked with an "X" in the "Amended Return" box. Mail an amended return to the following address:

Louisiana Department of Revenue
P.O. Box 91011
Baton Rouge, La 70821-9011

You also have the option of filing the amended return electronically through the LDR Fed/State e-file program for corporation income and franchise tax returns.

Can I amend my Louisiana return electronically even if I filed my original return on paper?

Yes, you can file an amended return electronically through the LDR Fed/State e-file program. The LDR Corporation E-file program for corporation income and franchise tax returns is available starting with the 2008 tax year.

Motor Fuel Taxes

Who is required to be licensed?
  1. A supplier who may also act as a terminal operator, permissive supplier, distributor, importer, exporter, blender, motor fuel transporter, or aviation fuel dealer without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
  2. A permissive supplier who may also act as a distributor, importer, exporter, blender, motor fuel transporter, or aviation fuel dealer without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
  3. A distributor who may also act as an importer, exporter, blender, or motor fuel transporter without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
  4. An importer who may also act as an exporter, blender, or motor fuel transporter without securing a separate license but who is subject to all other conditions, requirements, and liabilities imposed on those license holders.
  5. A terminal operator.
  6. An exporter.
  7. A motor fuel transporter.
  8. A blender.
  9. An interstate motor fuel user.
  10. An aviation fuel dealer.
Why do I need to appoint a Louisiana Registered Agent?

A Registered Agent is necessary to receive service of process on law suits. Many businesses have a Louisiana Registered Agent because the business is a Louisiana company or the business has registered with the Louisiana Secretary of State's Office. If a business does not have a Louisiana Registered Agent, the Secretary of State is designated as the agent for service of process on suits involving all foreign corporations not registered with the Secretary of State. The Secretary of State is designated as the agent for service of process on suits involving domestic corporations after a diligent effort but unsuccessful attempt has been made to serve the corporation.

What are the grounds for denial of a license?
  1. The secretary may refuse to issue a license if the applicant or any principal of the applicant:
    1. Had a license or registration issued under prior law or current law canceled by the secretary for reason as set forth in R.S. 47:818.42.
    2. Had a license or registration issued by another state revoked, denied, or canceled for cause.
    3. Had a federal certificate of registry issued under 26 USC 4101 or a similar federal authorization revoked.
    4. Has been convicted of any offense involving fraud or misrepresentation.
    5. Has been convicted of any other offense that indicates that the applicant may not comply if issued a license.
    6. Is in arrears to the state for any taxes.
    7. Is determined not to be the real party in interest.
    8. The applicant’s agents, officers, or employees have a prior conviction for motor fuel tax evasion in this state or any state, federal, or foreign jurisdiction.
  2. No license shall be granted when the applicant or anyone connected with the applicant’s business has been previously convicted of any violation of R.S. 47:818.1 et seq. or of any felony under the laws of this state or of the United States.
Can my license be revoked?

Yes, the secretary may revoke the license of any person licensed upon written notice sent by certified mail to the licensee’s last know address appearing in the secretary’s files, for any of the following reasons:

  1. Filing by the licensee of a false report of the data or information required.
  2. Failure, refusal, or neglect of the licensee to file a report or information required.
  3. Failure of the licensee to pay the full amount of all taxes due or pay any penalties or interest due as required to be paid by such licensee.
  4. Failure of the license to keep accurate records of the quantities of gasoline or diesel fuel received, produced, refined, manufactured, compounded, sold, or used in Louisiana.
  5. Failure to file a new, larger, or additional surety bond as required by the secretary pursuant to R.S. 47:818.40.
  6. Conviction of the licensee, licensee’s agents, officers or employees, or a principal of the licensee for any act prohibited.
  7. Failure, refusal, or neglect of a licensee to comply with any other provision of R.S. 47:818.1 et seq. or any rule promulgated.
  8. If a license or registration issued by another state was canceled for cause.
  9. The licensee is determined not to be the real party in interest.
  10. Any prior license of the real party in interest has been revoked for cause.
  11. The licensee, or any of the licensee’s agents, officers, or employees, has a prior conviction for motor fuel tax evasion in this state or any state, federal, or foreign jurisdiction and the conviction was not disclosed on the application.
What are the bond requirements for each license?

Bond requirements vary depending on the registration. The amount required is either the amount shown below for the respective license or an amount equal to three months tax liability, whichever is greater. The minimum amounts are:

Terminal Operator$1,000,000
Supplier$50,000
Permissive Supplier$50,000
Distributor$20,000
Importer$20,000
Exporter$20,000
Blender$20,000
Interstate Motor Fuel User$20,000
Motor Fuel TransporterN/A
Aviation Fuel DealerN/A
If my surety bond was waived before July 1, 2006, do I need to post a new bond?

No.

What are the different tax returns and their due dates?
Tax ReturnDue Date
Supplier/Permissive Supplier Monthly Return22nd day of the month following the period covered.
Distributor/Exporter/Blender Monthly Return20th day of the month following the period covered.
Importer Monthly Return15th day of the month following the period covered.
Terminal Operator Annual ReturnLast day of February.
Interstate Motor Fuel User Quarterly Return25th day of the month following the period covered.
Motor Fuel Floor Stock Tax ReturnMust be filed by August 1, 2006, and the tax paid by January 1, 2007. A $100 penalty is assessed if the return is filed after August 31, 2006.
Motor Fuel Back Up Tax Return20th day of the month following the month the transaction occurred.
The following information returns have a $100 penalty if not filed on or before the due date:
Terminal Operator Monthly Return20th day following the period covered.
Motor Fuel Transporter Monthly Return20th day following the period covered.
Aviation Fuel Dealer Quarterly Return25th day following the period covered.
What are my duties as a Trustee?
  1. As trustee of the taxes paid, you have a fiduciary duty to remit to the secretary the amount of tax received. If you fail to remit the tax, you are liable for the taxes paid to you.
  2. You must notify a licensed distributor, licensed exporter, or licensed importer who received gasoline or diesel fuel from you during a reporting period of the number of taxable gallons received.
  3. You must notify the secretary within the time period established by the secretary if a licensed distributor, licensed exporter or licensed importer did not pay the tax, you must notify the Department of Revenue.
  4. You cannot apply the payment of tax to a debt that the person making the payment owes for gasoline or diesel fuel purchased from you.
Who is eligible for the 1.5 percent discount?

Suppliers and Permissive Suppliers are eligible to receive the 1.5% discount if they allow licensed Distributors and Importers a discount of 1%.

If you underpay but file on time do you get the discount?

No. Returns must be fully paid and timely filed to receive the discount.

Who is eligible for the one percent discount from the Supplier or Permissive Supplier?

Licensed Distributors and Importers are eligible for the discount.

If I am a licensed supplier or permissive supplier can I defer the inspection fee to a licensed distributor or importer to the 20th of the month?

Yes, since the inspection fee is due at the same time as the tax.

Who is allowed to take the credit for tax on reported bad debt?

Suppliers and Permissive Suppliers can only take the credit for the tax amount not received from their licensed Distributors or Importers.

Are there a maximum number of credits a Supplier or Permissive Supplier can take?

No.

Does the Supplier or Permissive Supplier have to notify the department before taking the credit for tax on reported bad debt?

Yes, they must notify the Department within 30 days from the date the tax was due from the licensed Distributor or Importer.

Can an exporter apply for a refund on fuel that is exported with Louisiana tax and/or fee paid?

Yes, if a supplier does collect Louisiana tax and/or fees on gasoline or diesel fuel that is exported, the exporter can apply for a refund. However, the exporter must be licensed with this state to apply for a refund.

If clear fuel is dumped in a dyed fuel tank is there an allowance that can be taken to get the tax back?
  1. Possibly. You should file a claim for refund as follows:
    1. Complete a Claim for Refund of Taxes Paid (Form R-20127-L), which can be downloaded from the Department’s website at www.revenue.louisiana.gov;
    2. Attach a notarized statement certifying that the tax was paid on the clear fuel at the time purchased; and
    3. Attach a copy of the invoice showing the number of gallons being claimed and a statement attesting to the facts.
  2. After the facts and documents supporting the claim for refund are filed and reviewed, the taxpayer will be notified of the Department’s decision.
Can you get a refund on clear kerosene and/or diesel used in an off-road manner? If so, what documentation is needed?
  1. A refund is allowed only if dyed kerosene or diesel is unavailable.
  2. Registration Application for Diesel Fuels Refund–Users (Form R-5377) must be completed and a certificate issued from the Department before the clear kerosene or diesel fuel is purchased.
Can I be charged with a misdemeanor? Is there a penalty?

Yes, if you commit any of the following offenses you are guilty of a misdemeanor, and upon conviction, will be fined not less than $1,000 nor more than $5,000 or imprisoned not more than two years, or both:

  1. Fail to maintain any record required by R.S. 47:818.1 et seq.
  2. Make a false statement in a license application, return, invoice, statement, or any other document required by the Department.
  3. Make a false statement in an application for a refund.
  4. Fail to make a required disclosure of the correct amount of gasoline or diesel fuel sold or used in this state.
  5. Fail to file a new, replacement, larger, or additional surety bond as required.
  6. Use, deliver, or sell any aviation fuel for use or intended for use in highway vehicles.
  7. Interfere with or refuses to permit seizures.
  8. Deliver gasoline or diesel fuel from a transport vehicle to the fuel supply tank of a highway vehicle.
  9. Dispense or allow to be dispensed into the supply tank of a vehicle, watercraft, or aircraft any gasoline on which tax levied has not been paid.
  10. Dispense into the supply tank of a highway vehicle required to be licensed any diesel fuel on which tax levied has not been paid.
  11. Purchase gasoline or diesel fuel from an unlicensed supplier, unlicensed permissive supplier, unlicensed importer or unlicensed distributor.
Can I be charged with a felony? Is there a penalty?

Yes, if you commit any of the following offenses with the intent either to evade or circumvent the tax levied by R.S. 47:818.1 et seq. or to assist any other person in an effort to evade or circumvent the tax levied you are guilty of a felony, and upon conviction, will be fined not less than $5,000 nor more than an amount commensurate to the amount of tax combined with interest and penalties lost to the state due to those actions or imprisoned with or without hard labor for not less than two nor more than ten years, or both.

  1. Alter, manipulate, replace, or in any other manner tamper of interfere with, or cause to be altered, manipulated, replace, tampered, or interfered with, a totalizer attached to gasoline or diesel fuel pumps to measure the dispensing of gasoline or diesel fuel.
  2. Fail to pay gasoline or diesel fuel taxes and divert the tax proceeds for other purposes.
  3. As a licensee or the agent or representative of a licensee, convert or attempt to convert gasoline or diesel fuel tax proceeds for the use of the licensee or the licensee’s agent or representative, with the intent to defraud this state.
  4. Collect gasoline or diesel fuel taxes when not authorized or licensed by the secretary to do so.
  5. Import gasoline or diesel fuel into this state in contravention of R.S. 47:818.1et seq.
  6. Conspire with any person or persons to engage in an act, plan, or scheme to defraud this state of gasoline or diesel fuel tax proceeds.
  7. Alter or attempt to alter the strength or composition of any dye or marker in any dyed gasoline or diesel fuel.
  8. Fail to remit to the secretary any tax levied, if the person has added or represented that the tax was added to the sales price of the gasoline or diesel fuel and has collected the amount of the tax.
What is the taxability of biodiesel?

Biodiesel is treated like any other diesel fuel, regardless of formulation. If biodiesel is used in a vehicle licensed for highway use, the biodiesel should be clear and is subject to tax. If biodiesel is used in a vehicle not licensed for highway use, the biodiesel must be dyed and is subject to the inspection fee only.

If I produce biodiesel am I a blender?

No. If you were adding finished biodiesel to petroleum diesel, you would be blending. If you are producing biodiesel, you are considered in the same light as a producer of motor fuel, and would be subject to the same licensing requirements.

Is ethanol taxable?

Yes. Ethanol is taxed in the same manner as gasoline.

What is the tax rate on Gasoline, Diesel and Special Fuels?

Gasoline, diesel and special fuels are taxed at a rate of $.20 per gallon.

How much is the Inspection Fee per gallon?

The Inspection Fee is $.00125 per gallon.

Can a supplier collect destination state taxes and/or fees as well as Louisiana tax and/or fee?

No, a supplier should never collect both state’s taxes and/or fees.

Can tax free transactions occur in the pipeline?

Yes, a tax free transaction can only occur in the pipeline if all parties involved in the transaction have a valid Louisiana Supplier or Permissive Supplier license. Otherwise, the tax is to be collected from the person ordering the sale or transfer in the bulk transfer/terminal system.

What is a diversion and how is a diversion reported?

A diversion is an accidental or deliberate transporting of motor fuel from the source to a destination other than the original destination state printed on the shipping document. Prior to any diversion or change to the shipping document, the shipper, the motor fuel transporter, or an agent of either must notify TRAC III of the diversion in order to receive a diversion number. Once the diversion number is obtained, the shipper, the motor fuel transporter, or agent of either, must manually write the change in the destination state and the diversion number on the shipping document. A copy of the amended shipping document must be given to the person to whom the gasoline or diesel fuel is delivered.

How do I register with TRAC III to notify a state of a diversion?

The National Fuel Diversion Registry telephone-in diversion registration system will be replaced by the TRAC III web-based diversion registration system as of July 1, 2006. In order to register a diversion of fuel, go to http://www.trac3.net/, click on "Registration", enter requested company data (for the initial registration only), and follow the simple steps. There is no cost to register a diversion.

Can a penalty be assessed for a diversion?

Yes, a penalty may be assessed in an amount equal to tax and fee on the product or $1,000 whichever is greater against the person who diverts the shipment or alters the shipping document.

Gift Taxes

Is the gift tax still in effect?

The gift tax was repealed by Acts 2007, No. 371 effective July 1, 2008.

When must gift tax returns be filed?

For gifts made before July 1, 2008, a gift tax return, Form R-3302, is required to be filed by any individual, association, partnership, or corporation that made a gift to a single donee that exceeded the amount of the annual exclusion provided by R.S. 47:1205(A). If a gift exceeds the annual exclusion, a gift tax return must be filed even if no tax is due. A separate return must be filed for each calendar year that property is transferred by gift.

What is the annual gift tax exclusion?

A separate annual exclusion applies to each person to whom you make a gift.

The gift tax annual exclusion is:

  • $10,000 for gifts made prior to December 31, 2001;
  • $11,000 for gifts made between 2002 through 2005; and
  • $12,000 for gifts made after December 31, 2005.

Individual Income Tax

I am locked out of your LA Individual Return application on the LDR website. What do I do now?

Taxpayers have seven (7) attempts to enter their SSN and previous filing information correctly. If you have failed three (3) logon attempts, please call (225) 219-0102 to assure you are entering the address that matches the address on file with LDR.

Once a taxpayer attempts to enter information that does not match the information on file with LDR - 7 times, the LDR Individual Return Web application will lock the taxpayer out.

I did not live in or receive income from Louisiana. Why did I receive an individual income tax bill?

The bill is based on information received from the Internal Revenue Service because your federal return was filed with a Louisiana address.

My husband (or wife) is deceased; the refund check has been issued in both names. How can I get the refund in my name only?

Return the check with Form R-6642 (IT-710), statement of claimant to refund due on behalf of deceased taxpayer, and a copy of the death certificate. Form R-6642 (IT-710) can be found on our web site under Tax Forms in the Individual Income Tax general forms area. This form and the death certificate should be mailed to:

Louisiana Department of Revenue
Special Programs Division
Post Office Box 4998
Baton Rouge, LA 70821

A new check will be issued in the surviving spouse's name.

How can I report someone who used my child/children's Social Security Number and claimed them on their return without my permission?

Submit a written request providing as much information about the individual who claimed your child together with your child's Social Security Number to:

Louisiana Department of Revenue
Office Audit Section
Individual Income Tax Division
Post Office Box 201
Baton Rouge, LA 70821-0201
What is the due date of the individual income tax return?

Returns are due by May 15. If May 15th falls on a Saturday, Sunday, or a legal holiday, the return should be filed no later than the next business day. For example, if May 15 falls on a Saturday, the return is due on Monday, May 17.

How long will it take to get my refund?

If you electronically filed an income tax return, then you can expect that your refund will be issued within 21 business days. If you have submitted a paper income tax return, then the processing time for these returns can take 12-16 weeks.

Some returns, whether electronic or paper, are randomly selected for review. If your return has been selected for review, then the review process can take up to 16 weeks. You can always check the status of your refund at www.revenue.louisiana.gov/refund, which is updated every night with the latest information on processed returns.

How long will it take to get a refund of the LA Citizens Property Insurance?

If you are not required to file an inco me tax return but have submitted a request for refund of the LA Citizens Property Insurance, then the processing time for these requests can take 8-10 weeks.

Do I need to request a state income tax extension if I am unable to file my return before the due date?

Yes. Revised Statute 47:103 allows a taxpayer to make a request for a six-month extension of time to file the individual income tax return. The extension request must be made electronically before the state tax filing due date, which is May 15 for calendar year filers or the 15th day of the 5th month after the close of the fiscal year for fiscal year filers. Extension requests received after the return’s due date will not be honored.

The three options for requesting an extension are as follows:

  1. Filing an extension request electronically via the Louisiana Department of Revenue’s Individual Income Online Tax Filing application or the Online Extension Filing application;
  2. Filing an extension request electronically via LDR’s IVR phone system by calling 225-922-3270 or 888-829-3071. For an extension request, select option #3, then select option #1. Taxpayers will need the social security number of the primary account holder to request the extension; or
  3. Submitting a state extension to LDR by “checking the state extension box” included in the tax preparation software for an electronically-filed return.

Please note that the extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty. To avoid interest and penalty assessments, the estimated taxes due should be paid before the original due date.

How can I file an amended return?

If you file your income tax return and later become aware of any changes you must make to income, deductions, or credits, your must file an amended (corrected) Louisiana return using Form IT-540, Resident Return, or IT-540B, Nonresident and Part-year Resident Return, whichever is applicable. File the amended return as if the original return was not filed and do not make any adjustments for refunds previously received or for payments previously made. This information is already on file and LDR will adjust your account accordingly.

A corrected return for the tax year being amended should be submitted along with an explanation of the change(s) and a copy of the federal amended return, Form 1040X, if one was filed. The return should be clearly marked with an "X" in the "Amended Return" box. Mail an amended return that includes a payment to the following address:

Louisiana Department of Revenue
P.O. Box 3550
Baton Rouge, La 70821-3550

Mail all others to the following address:

Louisiana Department of Revenue
P.O. Box 3440
Baton Rouge, La 70821-3440

You also have the option of filing the amended return electronically via Louisiana File Online, the free web application from the Louisiana Department of Revenue.

My refund was mailed three days ago and I have not received it yet.

If you are expecting a refund check, please wait two weeks before reporting it to the Department. If after two weeks you have not received the refund, you can report that your refund was not received by:

1. Email through our Contact Us webpage, or
2. Mail a completed Form R-6500, Initial taxpayer inquiry regarding refund, to:

Louisiana Department of Revenue
Special Programs Division
Post Office Box 201
Baton Rouge, LA 70821
Do I need to file a Louisiana individual income tax return if I am due a refund?

Yes. Without your return and W-2 form, the Department will not know how much tax credit to give you.

If I move before I receive my Louisiana individual income tax refund check, will it be forwarded to me?

No. Refund checks are not forwarded by the Post Office. They are returned to Baton Rouge. You will need to contact the Department to have your address changed on the computer and your refund check mailed to your new address.You can also change your address through our Contact Us webpage.

Why do I still have to file a return when I am getting a refund too small to worry about?

A tax return is needed to document the withholding and tax liability.

I am a resident of Texas and won money at a Louisiana Casino and they held out Louisiana taxes. Do I get back all that was held out?

Any nonresident with income (winnings) from Louisiana sources who is required to file a federal individual income tax return must file a Louisiana return reporting income earned. If the amount withheld is overpaid, a refund of the difference will be issued or credited.

What is the criteria LDR uses to validate a taxpayer?

To use the Louisiana File Online application, you must have filed an individual income tax return with the state of Louisiana for the 2004 tax year or later.

Are interest and dividends from U.S. government obligations exempt from Louisiana income tax?

Yes. Interest and dividends from obligations issued directly by the U.S. government such as Treasury bills, U.S. savings bonds and U.S. agency obligations are exempt from Louisiana state income tax. Any interest or dividends that are included in the taxpayer’s adjusted gross income may be deducted on the income tax return on Schedule E, line four using the code 01E.

This exemption is provided by R.S. 47:293(9)(a)(iii), which states that “Income exempt from taxation under the laws of Louisiana or which Louisiana is prohibited from taxing by the constitution or laws of the United States.” Interest and dividends from U.S. government obligations is prohibited from state taxation by 31 U.S.C. Section 3124(a) which states in part, “stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation or both, to be considered in computing a tax.”

Is interest from state or local government obligations exempt from Louisiana income tax?

Yes. Revised Statute 47:48 provides that interest received on obligations issued by the State of Louisiana or its political or municipal subdivisions that is subject to federal income tax is excluded from Louisiana gross income. However, interest from obligations from other states or their political or municipal subdivisions is not exempt from Louisiana income tax and must be reported on Schedule E, line two to be added to the taxpayer’s Louisiana adjusted gross income. See Revenue Information Bulletin 08-019 for more information.

Is there a list of retirement system benefits that may be excluded from Louisiana income tax.

  • Annual Retirement Income Exclusion (R.S. 47:44.1(A))—Persons 65 years or older may exclude up to $6,000 of annual retirement income from their taxable income. Taxpayers that are married filing jointly and are both age 65 or older can each exclude up to $6,000 of annual retirement income. If only one spouse has retirement income, the exclusion is limited to $6,000.
  • Federal Retirement Benefits Exclusion (R.S. 47:44.2)—Federal retirement benefits received by federal retirees, both military and nonmilitary, may be excluded from Louisiana taxable income.
  • State Employees, Teachers, and Other Retirement Benefits Exclusion—Individuals receiving benefits from certain retirement systems listed below are allowed to exclude those benefits from their Louisiana tax-table income. In addition, R.S. 33:7203 and R.S. 40:427.2(E) provide that Municipal and State Police Employees Retirement System deferred retirement option plan funds are exempt from state income tax.

    Legal Citations:
    R.S. 11:405 State Employees’ Retirement System
    R.S. 11:570 Funded Judicial Retirement Plan
    R.S. 11:1378 Non-contributory Judicial Retirement Plan beginning after December 30, 1980
    R.S. 11:704 Teachers’ Retirement System
    R.S. 11:704 Teachers’ Retirement System of Orleans Parish
    R.S. 11:1003 Louisiana School Employees’ Retirement System
    R.S. 11:1331 Louisiana State Police Pension and Retirement Fund
    R.S. 11:1391 Pension for Confederate Veterans and Widows of Confederate Veterans
    R.S. 11:1403 Assessors’ Retirement Fund
    R.S. 11:1526 Clerks’ of Court Retirement and Relief Fund
    R.S. 11:1583 District Attorneys’ Retirement System
    R.S. 11:1735 Municipal Employees’ Retirement System of Louisiana
    R.S. 11:1735 City of Baton Rouge Retirement System
    R.S. 11:1735 Employees’ Retirement System of East Baton Rouge Parish
    R.S. 11:1735 Employees’ Retirement System of City of Shreveport
    R.S. 11:1905 Parochial Employees’ Retirement System
    R.S. 11:1905 Employees’ Retirement System of Jefferson Parish
    R.S. 11:3014 City of Alexandria Employees’ Retirement System
    R.S. 11:3051 City of Bogalusa Employees’ Retirement System
    R.S. 11:2033 Registrar of Voters Employees’ Retirement System
    R.S. 11:2182 Sheriffs’ Pension and Relief Fund
    R.S. 11:2228 Municipal Police Employees’ Retirement System
    R.S. 11:2228 Policemen’s Pension and Relief Fund of the City of Shreveport
    R.S. 11:2263 Firefighters’ Retirement System
    R.S. 11:3140 Firefighters’ Pension and Relief Fund for the Consolidated Fire Districts Bastrop
    R.S. 11:3161 Firefighters’ Pension and Relief Fund for Baton Rouge
    R.S. 11:3171 Firefighters’ Pension and Relief Fund for Bogalusa
    R.S. 11:3205 Bossier City Firemen’s Pension and Relief Fund
    R.S. 11:3294 Lafayette (City of) Firemen’s Pension and Relief Fund
    R.S. 11:3345 Monroe Firemen’s Pension and Relief Fund
    R.S. 11:3389 Firefighters’ Pension and Relief Fund of New Orleans
    R.S. 11:3513 City of Monroe Police Pension and Relief Fund
    R.S. 11:3566 Policemen’s Pension and Relief Fund for Alexandria
    R.S. 11:3568 Bossier City Policemen’s Pension and Relief Fund
    R.S. 11:3608 Lafayette (City of) Policemen’s Pension and Relief Fund
    R.S. 11:3658 Policemen’s Pension and Relief Fund for the Department of the City of New Orleans
    R.S. 11:3691 Harbor Police Retirement System (Port of New Orleans)
    R.S. 11:3770 Bus Drivers’ Pension and Relief Fund of the City of Monroe
    R.S. 11:3800 Electrical Workers’ Pension and Relief Fund of the City of Monroe
    R.S. 11:3823 Employees’ Retirement System of the Sewage and Water Board of the City of New Orleans
    R.S. 11:3823 New Orleans (City of) Employees’ Retirement System
    R.S. 17:1613 Louisiana State University Retirement System
    R.S. 47:44.2 Railroad Retirement System Benefits
    R.S. 47:44.2 Social Security Retirement Benefits
    R.S. 47:52 Disability Pay to World War II Veterans
    U.S.C.A. 45:231m Railroad Retirement Supplemental

What interest and dividends are eligible for exclusions from Louisiana income tax?

Louisiana exempts interest and dividends earned on federal obligations and obligations from the State of Louisiana and its political subdivisions and municipalities.

  • Interest and dividends from all state and local government obligations are exempt from federal income tax. Louisiana only exempts interest and dividends from obligations from the State of Louisiana and its political subdivisions and municipalities. Since interest and dividends from obligations of the State of Louisiana and its political subdivisions and municipalities are exempt from both federal and Louisiana income tax, no adjustment is required on Schedule E because the interest and dividends are not included in federal adjusted gross income.
  • Interest and dividends from obligations from other states or their political or municipal subdivisions are exempt from federal income tax but taxed by Louisiana. These amounts must be reported on Schedule E, line two and will be added to the taxpayer’s Louisiana adjusted gross income. See Revenue Information Bulletin 08-019 for more information.
  • Interest and dividends earned on U.S. Government obligations are subject to federal income tax but exempt from Louisiana income tax. These amounts are deducted on Schedule E, line four using the code 01E.

What is the mailing address for individual income tax returns?

Individual Income Tax Returns That Include Payments should be mailed to the following address:

Louisiana Department of Revenue
P.O. Box 3550
Baton Rouge, La 70821-3550

All other Individual Income Tax Returns should be mailed to the following address:

Louisiana Department of Revenue
P.O. Box 3440
Baton Rouge, La 70821-3440
How can I check on the status of my individual income tax refund?

Taxpayers can check the status of their individual income tax refunds using the LDR Louisiana File Online Application, which is available anytime, day or night. To access the system, you will be required to register and create a LDR user account and password. Once registered, you will be able to review the status of your account including return filings, payments, and refunds. The income tax system is updated nightly and reflects the latest information on processed returns. Taxpayers may also check the status of their individual income tax refunds using the LDR automated telephone system at 225-922-3270 or toll-free at 888-829-3071. This system is available 24 hours a day. You must provide the return’s primary social security number and the amount of refund requested.

How long will it take to get my refund?

Refund should be issued in 8-10 business days for income tax returns that were filed electronically. Refunds for paper income tax returns mailed to LDR can take 12-16 weeks to process. However, if the income tax return is randomly selected for review, the refund may be delayed. Taxpayer’s whose refund is being reviewed should be notified of the delay.

Taxpayers can check the status of their individual income tax refunds using the LDR Louisiana File Online Application, which is available anytime, day or night. To access the system, you will be required to register and create a LDR user account and password. Once registered, you will be able to review the status of your account including return filings, payments, and refunds. The income tax system is updated nightly and reflects the latest information on processed returns. Taxpayers may also check the status of their individual income tax refunds using the LDR automated telephone system at 225-922-3270 or toll-free at 888-829-3071. This system is available 24 hours a day. You must provide the return’s primary social security number and the amount of refund requested.

I filed my individual income tax electronically and selected to have my refund deposited directly into my bank account. It has been over two weeks and the money has not been credited. What should I do?

You should review your tax return copy and determine if the bank routing number and account number were entered correctly when you filed your return electronically and based on that information, proceed as follows:

  1. If you entered your bank routing and bank account number incorrectly and the incorrect numbers matched another valid bank and account number, the refund was deposited into that account.
  2. To correct this error, you must work directly with the financial institution to recover your funds. The Federal Reserve Electronic Funds Transfer Act (Regulation E) and the National Automated Clearing House Association guidelines do not allow us to change the bank routing or account numbers that you submitted. To resolve the problem, contact the Customer Service Division at (225) 219-0102 or send an email to PersonalIncomeTaxInquiries@la.gov to obtain documentation of bank name, routing number, account number, refund amount, deposit date, and confirmation number of the electronic deposit. Using this information, your bank will correct the error. If refund was deposited into a bank that is not your personal bank, your bank will assist you and provide contact information for the other financial institution.
  3. If the incorrect numbers did not match another valid bank and account, the refund will be rejected and your refund will be mailed to you at your home address.
  1. If you applied for and received a Refund Anticipation Loan from your tax preparer at the time your tax return was filed, your refund was deposited into the bank account of the financial institution that granted you a refund-anticipation loan according to your loan agreement. If you have questions about the refund deposit, you must contact your tax preparer or the lender.
  2. You entered the correct bank routing and account number, but did not receive a refund deposit.
    1. Your refund may have been garnished for other state tax liabilities, federal income tax liabilities, child support debts, or other debts. If your refund was garnished, you will be notified within two weeks of the tax return’s processing.
    2. Your refund may have been correctly deposited, but you have overlooked it. Electronic deposits are usually posted within a few days of the electronic filing. If you still cannot identify the refund deposit, contact your bank to have the deposit researched. If needed, we can send you a copy of the deposit details and the confirmation number, which confirms that your bank received and accepted the deposit. Contact the Customer Service Division at (225) 219-0102 or by email at PersonalIncomeTaxInquiries@la.gov.

Does the purchase or lease of a band instrument for students who attend a private school, or who attend a public school, or who are home-schooled qualify as an eligible expense for the purposes of the tax deduction?

No. The statutes provide that the tax deduction is limited to expenses for: school uniforms, tuition, fees, textbooks, curricula, instructional materials, and educational supplies. A band instrument does not fall into any of the categories listed above.

I pay child support for my children, and my ex-spouse pays their tuition and fees at a private school. I claim the children as dependents on my return because of the terms of the divorce decree. Am I able to take the tax deduction for elementary and secondary education even though I do not directly pay the tuition and fees?

No. The statute provides that the deduction is allowed for the taxpayer who actually pays the tuition and fees. Since you do not directly pay these expenses, you are not eligible for the deduction.

I receive child support for my children, and some of it is used to pay their tuition and fees at a private school. I am unable to claim the children as dependents on my return because of the terms of the divorce decree. However, since I do pay the tuition, fees, and other expenses, am I able to take the tax deduction for elementary and secondary education?

No. The statute provides that the deduction is allowed for the taxpayer who claims the dependent on their current year’s tax return or claims the dependent on their prior year’s tax return. Since you are unable to claim the children as dependents, you are not eligible for the deduction.

The school that my child attends requires that a certain style and color of shoe must be worn. Would the purchase of these shoes qualify as an eligible expense for the tax deduction?

Some schools require that students must wear a particular type of outfit or uniform. If the school requires that the outfit worn by its students must also include certain types of shoes and socks, the shoes and socks are part of the dress requirements for that school’s uniforms and is an eligible expense for the tax deduction.

Is the tax deduction allowed for children who attend pre-kindergarten?

The Board of Elementary and Secondary Education defines elementary and secondary education as grades kindergarten through 12th grade. Expenses incurred for children who attend pre-kindergarten are not eligible for the tax deduction.

Before my child can begin school, the school requires that I provide her immunization records, including the dates when she received required immunizations and booster shots. Are doctor’s visits and immunization shots eligible expenses to include for the tax deduction?

Although schools may require a copy of immunization records to comply with state health requirements, the statutes that govern the tax deduction limits eligible expenses to: school uniforms, tuition, fees, textbooks, curricula, instructional materials, and educational supplies. Doctor’s visits, immunization shots, physical examinations required before participation in sports, and the like, do not fall into any of the three categories allowed for eligible expenses.

The school that my child attends recommends that he participate in an afterschool tutoring program to help him advance to the next grade level. Is this expense allowed for the tax deduction?

No. The fees paid for attending a tutoring program is not an eligible expense.

By state law, my child is allowed to attend school until he is age 21 because he is a special needs student. Does the tax deduction phase out at a particular age?

No. The tax deduction is not determined by the age of a student, but rather if a student is enrolled in either a private school, a public school, or home-schooled from kindergarten through the 12th grade. Since your child is still likely to be designated to a particular grade level, regardless of age, the expenses incurred for school uniforms, tuition, fees, textbooks, instructional materials, and educational supplies are still eligible expenses.

Can all school related fees paid for my child be included as part of the tax deduction?

Not all school related fees qualify as an eligible expense as part of the tax deduction. Fees related to extracurricular activities should not be included as part of the tax deduction. This would include, but not limited to, fees for meal plans, field trips, athletics, band uniforms, band recitals, academic clubs, and school trips, such as senior trips or trips to reward students who excel in certain disciplines. Registration fees, book fees, and fees that are incurred as required by certain classes, such as chemistry, home economics, and computer labs are eligible expenses.

Can I file my Louisiana return on the department’s website?

Yes, you can file using Louisiana File Online, LDR’s free web application if you have filed an individual income tax return with LDR for the 2004 tax year or later. To access the system, you will be required to register and create a LDR user account and password. Once registered, you will be able to review the status of your account including return filings, payments, and refunds.

Can I amend my Louisiana return on the department’s website?

Yes, you can file using Louisiana File Online, LDR’s free web application if you have filed an individual income tax return with LDR for the 2004 tax year or later. To access the system, you will be required to register and create a LDR user account and password. Once registered, you will be able to review the status of your account including return filings, payments, and refunds.

Can I amend my Louisiana return on the department’s website if I filed my original return on paper?

Yes, you can file using Louisiana File Online, LDR’s free web application if you have filed an individual income tax return with LDR for the 2004 tax year or later. To access the system, you will be required to register and create a LDR user account and password. Once registered, you will be able to review the status of your account including return filings, payments, and refunds.

Is there a deadline to request an extension to file a Louisiana Individual income Tax return?

Yes, all extension requests must be electronically made on or before the return’s due date. The return’s due date is May 15th for calendar year filers, and the 15th day of the fifth month following the close of the taxable year for fiscal year filers. Extension requests received after the return’s due date or on paper will not be honored.

Is a nonresident professional athlete required to file an extension electronically?

Yes. The Department of Revenue has adopted Rule LAC 61:III.1527 to require the electronic filing of all reports and returns related to the Sports Facility Assistance Fund. This rule requires all professional athletes that participate in athletic events within the state of Louisiana to file all tax returns, including extension requests electronically.

I am a resident professional athlete. Does the electronic filing mandate for professional athletes apply to me?

Yes. The Department of Revenue has adopted Rule LAC 61:III.1527 to require the electronic filing of all reports and returns related to the Sports Facility Assistance Fund. This rule requires all professional athletes that participate in athletic events within the state of Louisiana to file all tax returns, including extension requests electronically.

What is the electronic mandate for professional athletes?

The Department of Revenue has adopted Rule LAC 61:III.1527 to require the electronic filing of all reports and returns related to the Sports Facility Assistance Fund. This rule requires all professional athletes that participate in athletic events within the state of Louisiana to file all tax returns, including extension requests electronically.

A nonresident individual must file Form IT-540B-NRA electronically if he or she is a professional athlete who earned income as a result of services rendered within Louisiana and is required to file a federal individual income tax return. Form IT-540B-NRA can be filed electronically through Louisiana File Online or through tax preparation software.

A resident individual who is a professional athlete is also required to electronically file their Louisiana income tax return, IT-540 reporting all of their income under Rule LAC 61:III.1527.

Where can I get more information concerning income taxes for a nonresident professional athlete?

Additional information is available on our individual income tax page under the heading "Nonresident Athlete Individual Income Tax" or in publication R-20060, "Tax Responsibilities of Athletes and Entertainers".

How can I get a copy of my individual income tax return?

You may contact the department at 225-219-0102 to request a copy of any returns on file. You may also make your request by email through our Contact Us webpage.Fill out the required fields and submit your request. Be sure to include which tax years you need. Finally, you can submit your request in writing. Please provide your complete name, address, social security number, a contact phone number, and the tax years you need. Written request should be mailed to PO Box 201, Baton Rouge, LA 70821.

If you wish to authorize your tax preparer or someone else to receive copies of your tax returns, you must complete a Tax Information Disclosure Authorization, Form R-7004.This form authorizes the one-time release of information to the appointee you list on the form. Instructions for the form can be found here.

Internal Revenue Code Section 280C requires a taxpayer who elects to claim certain credits that are based on an expense to reduce the federal deduction for the expense by the dollar amount of the credit claimed. How does Louisiana handle the adjustment made under IRC Section 280C?

Under R.S. 47:293(9)(ix) Louisiana allows the deduction of any expenses disallowed by IRC Section 280C in calculating Louisiana taxable income for an individual. Therefore the amount of the expense disallowed under IRC Section 280C can be deducted in calculating taxable income for Louisiana.

For a resident taxpayer, this adjustment would be done on Schedule E, line 5B of Form IT-540. For a nonresident or part-year resident taxpayer, this adjustment would be done on the Nonresident and Part-year Resident Worksheet of Form IT-540B.

How can I make a payment with my extension request?

If you need to make a payment, you must submit an extension request electronically and:

  1. Mail in a check or money order with the electronically filed extension payment voucher, Form R-2868V;
  2. Make a payment using either a bank account or a credit card through LDR’s Individual Income Online Tax Filing application;
  3. Print an extension payment voucher through LDR’s Online Extension Filing application; or
  4. Requesting the extension and make the payment electronically through tax preparation software that supports this option.

Please do not use Form R-540V, Individual Income Tax Electronic Filing Payment Voucher, to submit an extension payment. Form R-540V is to be used only by tax filers that have filed their tax returns through electronic filing and need to make a payment.

An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.

Is there a requirement to file an extension electronically?

Yes. The Department of Revenue has adopted Rule LAC 61:III.2501 to require the electronic filing of a request for an extension to file an individual income tax return starting with the 2012 individual income tax return. Beginning with returns due on or after May 15, 2013, individuals needing additional time to file their income tax returns must electronically request an extension of time to file on or before the return due date. An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.

I do not have internet access. How can I file my extension request electronically?

The Department of Revenue has adopted Rule LAC 61:III.2501 to require the electronic filing of a request for an extension to file an individual income tax return starting with the 2012 individual income tax return. A taxpayer without internet access can request an extension electronically via LDR’s IVR phone system by calling 225-922-3270 or 888-829-3071. For an extension request, select option #3, then select option #1. Taxpayers will need the social security number of the primary account holder to request the extension. Taxpayers seeking a waiver of the electronic filing of an extension due to a hardship can request a waiver by calling the Special Programs Division at 225-219-2200.

Does the requirement to file an extension electronically also apply to my payment?

No. The Department of Revenue has adopted Rule LAC 61:III.2501 to require the electronic filing of a request for an extension to file an individual income tax return starting with the 2012 individual income tax return. This electronic mandate does not apply to any payments that need to be made when request an extension. Beginning with returns due on or after May 15, 2013, individuals needing additional time to file their income tax returns must electronically request an extension of time to file on or before the return due date

Inheritance and Estate Transfer Taxes

Does Louisiana impose any death taxes?

Yes, Louisiana imposes an estate transfer tax (R.S. 47:2431–2437) and an inheritance tax for deaths occurring on or before June 30, 2004 (R.S. 47:2401–2426).

The estate transfer tax is only imposed on estates that are subject to federal estate taxation under the Federal Internal Revenue Code. The amount of the state estate tax is equal to the federal estate tax credit allowed for state death taxes. The intent of the estate transfer tax is to obtain a benefit for the state in the form of an estate tax credit allowed under Internal Revenue Code (see R.S. 47:2434). The estate transfer tax, therefore, is not intended to impose any additional tax burden on the decedent's estate, but to shift payment from the federal government to the state.

The inheritance tax is imposed on the heirs or legatees of a decedent for the privilege of receiving property from the deceased. Effective January 1, 2008, inheritance tax shall not apply to deaths occurring after June 30, 2004. See Act 822 of the 2008 Regular Legislative Session.

Who is required to file an estate transfer tax return?

Revised Statute 47:2436 requires that an estate transfer tax return be filed by or on behalf of the heirs or legatees in every case when an estate transfer tax is due or when the value of the deceased's net estate is $60,000.00 or more.

Who is required to file an inheritance tax return?

For deaths that occurred before July 1, R.S. 47:2425, requires that an inheritance tax return be filed by or on behalf of the heirs and legatees of a decedent in any case when inheritance tax is due or when the gross value of the deceased's estate is $15,000 or more.

For deaths that occurred after June 30, 2004, R.S. 47:2426 had provided that if a judgment of possession is rendered or the succession is judicially opened no later than the last day of the ninth month following the death of the decedent, no inheritance tax return was required to be filed. However, Act 822 of the 2008 Regular Legislative Session repealed the inheritance tax law, R.S. 47:2401–2426.

What documents are required to be filed with the return?

Revised Statute 47:2425 provides that a duplicate original of the return be filed accompanied with copies of:

  1. the affidavit of death and heirship;
  2. the inventory or sworn descriptive list;
  3. the federal estate tax return, when required;
  4. the will of the deceased, if any; and
  5. the petition for possession, or court order authorizing the succession representative to file a tax return by providing a preliminary listing of the distribution of possession.

In addition,a Louisiana Code of Civil Procedure Article 2951 provides that:

  1. A tableau of distribution may be filed in lieu of a petition for possession when the inheritance taxes are being paid by the heirs or legatees, or both, of a succession under administration; or
  2. A revocable inter vivos trust may be filed in lieu of a petition for possession when the entire estate is being distributed pursuant to the trust instrument.
When is the inheritance tax return due?

Revised Statute 47:2425(B) requires that the inheritance return is filed within nine months after death of a decedent. However, inheritance taxes owed for deaths occurring before July 1, 2004, and for which an inheritance tax return has not been filed before January 1, 2008, are due on January 1, 2008.

How do I obtain an Inheritance and Estate Transfer Tax Receipt, Form IETT-20?

An Inheritance & Estate Transfer Tax Receipt, Form IETT-20 is prepared after the inheritance tax return is filed with LDR, Special Programs Division, P O Box 4998, Baton Rouge, LA 70821-4998. The receipt, issued from LDR’s main office verifies the receipt of the return, its supporting documentation, and tax due, if any, when the death occurred before July 1, 2004. Inheritance tax returns should not be sent to any of our Regional Offices, and those offices cannot issue the required receipts.

For deaths that occurred after June 30, 2004, an inheritance tax return is not required to be filed and Form IETT-20, Inheritance and Estate Transfer Tax Receipt will not be issued.

Can I get an extension to file a return?

Revised Statute 47:2420(B) allows a six-month extension to be granted for reasonable cause and no interest or penalties assessed as long as the return is filed and the tax paid within 15 months after the date of death of the decedent. Subsection C also authorizes the secretary to accept an extension of time to file a federal Estate Tax Return as an extension of time to file a Louisiana inheritance tax return.

Are interest and penalties assessed on delinquent inheritance and estate transfer taxes?

No interest or penalty is assessed on delinquent estate transfer taxes.

For inheritance tax, Revised Statute 47:2420(A) provides that interest will be assessed at ½ percent per month, beginning nine months after the death of the decedent, and one percent per month, beginning 12 months after the death of the decedent until the inheritance tax is paid. If the settlement of the succession is bona fide contested or it is proved that the beneficiary was ignorant of the inheritance, the interest will not be imposed.

If a succession is opened judicially within nine months following the death of the decedent or the taxes owed by a descendant or ascendant on an inheritance valued at less than $100,000, no interest will be assessed on delinquent inheritance tax.

What is the effective date of the inheritance tax repeal?

Inheritance tax is repealed effective January 1, 2010. However, Act 822 of the Regular Legislative Session provides that, effective January 1, 2008, inheritance taxes shall prescribe within three years from December 31st of the year in which the taxes become due. For deaths before July 1, 2004, the date the taxes become due is determined by whether an inheritance tax return has been filed. If a return has been filed, the taxes become due nine months following death. But, under Act 822, if a return was not filed, taxes became due January 1, 2008, and will prescribe January 1, 2011.

How is inheritance tax calculated?

R.S. 47:2403 provides for the inheritance tax rates, which are based on the heir or legatee’s relationship to the decedent, less the exemptions provided by R.S. 47:2402.

What property is subject to the inheritance tax?

For Louisiana residents, the Louisiana inheritance tax is imposed on all immovable property located in Louisiana and movable tangible and intangible property wherever situated. For nonresidents, the Louisiana inheritance tax is imposed on all immovable property and tangible movable property located in Louisiana. See R.S. 47:2404(A).

What property is excluded from the inheritance tax?

Revised Statute 47:2404(C) excludes proceeds received by any beneficiary, other than the decedent's estate, from a life insurance policy or a retirement or pension plan, trust, system, or policy. Retirement or pension plan, trust, system, or policy means any contract, agreement, or arrangement qualified under Internal Revenue Code Sections 401 and 408 under which an annuity or other payment was payable to the decedent or which the decedent possessed the right to receive, either alone or in conjunction with another, for his life.

How are heirs and legatees classified for inheritance tax purposes?

For inheritance tax purposes, heirs and legatees are classified according to their relationship to the decedent as follows:

  1. Direct descendants or ascendants, by blood, adoption, or affinity, or surviving spouse of a decedent.
  2. Collaterals, including brothers or sisters by affinity and their descendants.
  3. Strangers.
What is ‘forced heirship’?

Forced heirship is a provision of law that guarantees certain heirs a portion of a decedent's estate. The "forced portion" is reserved for those stipulated heirs, whether the decedent leaves a will or not.

Who is a ‘forced heir’?

A ‘forced heir’ is any person who cannot be deprived of the portion of the decedent’s estate that is reserved for them by law, except in cases where the law allows the decedent to disinherit the forced heir. For more information, see LA. CIV. CODE art. 1493.

How does the amendment to the constitution approved by the voters on October 21, 1995, change the forced heirship law?

The constitutional amendment approved by the voters on October 21, 1995, redefined ‘forced heir’ to be "descendants of the first degree twenty-three years of age or younger, or descendants of any age who, because of mental incapacity or physical infirmity, are incapable of taking care of their persons or administering their estates."

To take advantage of these provisions, one must execute a will. Otherwise, in an intestate succession all property will be inherited by the decedent's children, subject to any usufruct in favor of the surviving spouse over any community property being inherited by the children. For more information, see LA. CIV. CODE art. 1493.

If a resident transfers all property to a revocable living trust that is not subject to probate, is the property exempt from inheritance tax?

No. If the resident has the right to revoke the trust prior to death, all property in the trust must be included in the estate and is subject to the inheritance tax. However, for deaths that occurred after June 30, 2004, no inheritance tax is due even if in a trust.

What debts of the decedent are deductible?

Revised Statute 47:2404(B) allows only real estate owned by the decedent that is mortgaged for more than 50 percent of its appraised value to be deducted by reducing the decedent's equity in the real estate by 20 percent of the outstanding mortgage. However, the court ruled in the Succession of Henderson, 211 La 707, 30 So 2d 889 that all other debts of a decedent are deductible and that only the net estate transferred at a decedent's death should be taxed.

What is usufruct?

Louisiana Civil Code Article 535defines usufruct as "...a real right of limited duration on the property of another." Black's Law Dictionary defines usufruct in part as: "...The right of using and enjoying and receiving the profits of property that belongs to another,..."

What is usufruct of the surviving spouse or parent?

Usufruct of a surviving spouse is provided for by Louisiana Civil Code Article 890, which states “If the deceased spouse is survived by descendants, the surviving spouse shall have a usufruct over the decedent's share of the community property to the extent that the decedent has not disposed of it by testament. This usufruct terminates when the surviving spouse dies or remarries, whichever occurs first.

Usufruct of a parent is provided for by Louisiana Civil Code, which states “If the deceased leaves no descendants but is survived by a father, mother, or both, and by a brother or sister, or both, or descendants from them, the brothers and sisters or their descendants succeed to the separate property of the deceased subject to a usufruct in favor of the surviving parent or parents. If both parents survive the deceased, the usufruct shall be joint and successive.”

Usufruct is a right acquired by operation of law and not by inheritance. Succession of Marsal, 118 La 212, 42 So 778. Also, a surviving spouse or parent receives legal usufruct over any community property being inherited by the deceased spouse's descendants, provided testamentary disposition is not adverse to the usufruct. Succession o f Waldron, Sup. 1975, 323 So 2d 434.

The value of a legal usufruct established by operation of law is not subject to inheritance tax. The value of a nonlegal usufruct is subject to tax. The value of either usufruct is deducted from the value of the property on which it rests in arriving at the value of that property for the purpose of determining the inheritance taxes owed by the persons inheriting the property.

For answers to other questions, call the Inheritance Tax Section at: (225) 219-0067, or write to:

Louisiana Department of Revenue
Special Programs Division
P O Box 201
Baton Rouge, LA 70821-0201

How is estate transfer tax calculated?

The estate transfer tax is calculated by determining a ratio of assets included in the federal gross estate attributable to Louisiana to the total federal gross estate. This ratio is applied to the state death tax credit allowable under Internal Revenue Code Section 2011. The portion of the state death tax credit allowable to Louisiana that exceeds the inheritance tax due is the state estate transfer tax.

The Economic Growth and Tax Relief Reconciliation Act of 2001 phased out the state estate tax credit between 2002 and 2005 and replaced the credit with a deduction for state estate taxes for deaths that occur after December 31, 2004. Because R.S. 47:2432 only imposes the estate transfer tax if a state death tax credit is allow against the federal estate tax, no state estate transfer tax is due for deaths after December 31, 2004. However, the Economic Growth and Tax Relief Reconciliation Act of 2001 provisions will sunset on January 1, 2011, and the Internal Revenue Code will revert to the provisions that were in effect before it was passed unless further legislation is enacted to make its changes permanent. If Congress fails to make the Act’s changes permanent and the state estate tax credit is restored, the state estate transfer tax will again be due.

Are there any exemptions from estate transfer tax?

No. The inheritance tax exemptions do not apply to estate transfer tax.

New Orleans Exhibition Hall Authority Taxes

What taxes are levied by the New Orleans Exhibition Hall Authority?

The New Orleans Exhibition Hall Authority (NOEHA) levies the following taxes:

  1. Room Occupancy Tax—Acts 1978, No. 305; Acts 1980, No.99, Acts 1987, No. 390, Acts 2002 1st Ex. Sess., No. 72 authorize the N.O. Exhibition Hall Authority to collect an additional hotel room occupancy tax on hotel room rentals in Orleans Parish based on the hotel’s rental room capacity. The tax rate is as follows:

    Hotel Room CapacityNightly Tax
    10-299 rooms$.50
    300-999 rooms$1
    1,000 or more rooms$2

    This local tax is reported on Form R-1325 and collected by LDR for distribution to the Authority.

  2. Hotel Room Tax—Acts 1978, No. 305; Acts 1980, No.99, Acts 1987, No. 390, Acts 2002 1st Ex. Sess., No. 72 authorize the N.O. Exhibition Hall Authority to collect a three percent hotel room tax on hotel room rentals in Orleans Parish. The tax is reported on Form R-1029DS, Column C, and collected by LDR to be distributed to the Authority.
  3. Tour and Service Contractor Taxes—Acts 1994, No. 42 authorized the New Orleans Exhibition Hall Authority to collect a tour tax of $1 per ticket on sight-seeing tours in Orleans Parish or tours that include sight-seeing in Orleans Parish and a 2 percent service contractor tax on goods and services performed in conjunction with public and private trade shows, conventions, and exhibitions held within Orleans Parish. These local taxes are reported on Form R-1030 and are collected by LDR for distribution to the Authority.
  4. Food and Beverage Tax—Acts 1987, No. 390 authorized the N.O. Exhibition Hall Authority to collect an additional food and beverage tax on sales of food and beverage sold or served in Orleans Parish or at any airport or air transportation facility owned by the City of New Orleans. The tax rate, which is based on the establishment’s food and beverage sales during the last calendar year, is as follows:

    Annual SalesTax Rate
    Less than $200,000No Tax
    $200,000-$499,9990.5%
    $500,000 or more0.75%

    This local tax is reported on Form R-1325 and collected by LDR for distribution to the Authority.

For the NOEHA food and beverage tax, how is a "food service establishment" defined?

A food service establishment means any fixed or mobile business in which food or beverages are prepared for sale or service either on or off the premises. Examples of food service are restaurants, coffee shops, cafes, cafeterias, luncheonettes, grills, tearooms, soda fountains, ice cream shops, taverns, bars, cocktail lounges, roadside stands, hot dog wagons, mobile canteens, grocery or convenience stores featuring prepared deli items, theater and bowling alley snack bars, or any other place in which and or beverages are prepared and sold for consumption either on or off the premises.

Food service establishment also means any establishments or operators who sell or serve manufactured foods or beverages that they did not prepare, but only if the operator provides facilities for consumption on the premises. Examples are theatre and bowling alley snack bars that only sell manufactured snacks, such as candy bars, potato chips and soft drinks.

Why would a food service establishment located in Jefferson Parish be required to collect the NOEHA food and beverage tax?

All food service establishments that sell or serve food and beverages in Orleans Parish or the New Orleans airport must collect the tax, even if the food preparation is done in another Parish. For example, a caterer located in Jefferson Parish who delivers food to a customer in Orleans Parish must collect the tax on that sale. Conversely, businesses located in Orleans Parish that sell or serve food or beverage outside Orleans Parish and the New Orleans airport are not required to collect the tax.

Are food service establishments with annual sales of less than $200,000 exempt from the tax?

Food service establishments that sell or serve food and beverages in Orleans Parish or the New Orleans airport with taxable food and beverage sales of less than $200,000 from all of the establishment’s locations in Orleans Parish and the airport during the previous year are not considered a food service establishment for the purpose of the NOEHA food and beverage tax and are not required to collect this tax.

How do new food service establishments that will be selling or serving food and beverages in Orleans Parish or the New Orleans airport register for the NOEHA food and beverage tax?

New food service establishments that will serve or sell food and beverage in Orleans Parish or the New Orleans airport must register for the NOEHA food and beverage tax when they apply for a Louisiana sales tax number. Although the food service establishment will not be required to collect the NOEHA food and beverage tax until it has been operating for 12 months, the establishment must report their food and beverage sales on the monthly NOEHA food and beverage tax return, Form R-1325. The sales are reported on Line 4 of the return and a zero percent tax rate is applied.

Each year, LDR reviews the food and beverage sales reported by food service establishments and sends notifications to establishments if their food and beverage tax rate will change for the next year. Food service establishments that have filed less than 12 months tax returns should continue to apply the zero tax rate until the next year’s review.

How is the NOEHA food and beverage tax reported?

The NOEHA food and beverage tax is reported on the New Orleans Exhibition Hall Authority Additional Hotel Room Occupancy Tax and Food and Beverage Tax Return, Form R-1325. The taxable sales are reported on Line 4 and the tax due is calculated on Line 5 using the applicable tax rate. Any excess tax collected is reported on Line 6 and then Lines 5 and 6 are added to compute the total food and beverage tax due. The tax is collected by the Department of Revenue for distribution to the New Orleans Exhibition Hall Authority.

When is the New Orleans Exhibition Hall Authority Additional Hotel Room Occupancy Tax and Food and Beverage Tax Return due?

The New Orleans Exhibition Hall Authority Additional Hotel Room Occupancy Tax and Food and Beverage Tax Return, Form R-1325 must be filed monthly and is due on or before the 20th day of the month following the month in which the tax was collected. For example, taxes collected in January are due before February 20. The return is filed and the tax paid to the LDR for distribution to the New Orleans Exhibition Hall Authority.

The New Orleans Exhibition Hall Authority Additional Hotel Room Occupancy Tax and Food and Beverage Tax Return, Form R-1325, includes lines for the room occupancy tax and the food and beverage tax. How should it be completed?

The New Orleans Exhibition Hall Authority Additional Hotel Room Occupancy Tax and Food and Beverage Tax Return, Form R-1325, includes lines to report the room occupancy tax and the food and beverage tax.

  • Hotels and motels complete Lines 1 through 3 to report the room occupancy tax and Lines 8 through 13 to compute the total tax due.
  • Hotel and motels that have restaurants or bars, complete Lines 1 through 3 to report the room occupancy tax, Lines 4 through 7 to report the food and beverage tax, and Lines 8 through 13 to compute the total tax due.
  • Food Service Establishments complete Lines 4 through 7 to report the food and beverage tax, and Lines 8 through 13 to compute the total tax due.
What are the penalties for filing the return after the 20th of the month due date?

Failure to timely file the return and pay the taxes due will result in the assessment of interest and delinquent penalties. Continued failure to file will result in estimated assessments that include interest and delinquent penalties.

If a food service establishment is notified by LDR that their NOEHA food and beverage tax rate for the upcoming year is zero, what does it mean?

Establishments that have been notified that their NOEHA food and beverage tax rate is zero are not required to collect the food and beverage tax for the upcoming year but the establishments must continue to report the food and beverage sales on the New Orleans Exhibition Hall Authority Additional Hotel Room Occupancy Tax and Food and Beverage Tax Return, Form R-1325 applying a zero tax rate and zero tax due. The food and beverage amounts reported on the return will be used to determine the NOEHA food and beverage tax collection rate for the next year. Establishments with food and beverage sales of less than $200,000 during the previous calendar year are not required to collect the food and beverage tax for the next year.

What is the consequence if a food service establishment is notified that their tax rate is zero or reduced for the coming year and the establishment fails to reprogram its cash registers and continues to collect the tax at the higher rate?

All food and beverage taxes collected must be reported on the tax return and remitted to LDR for distribution to the New Orleans Exhibition Hall Authority.

How does a food establishment know which tax rate to collect each year?

LDR reviews the sales reported by food service establishment each year and notifies the establishments each December of the food and beverage tax rate to collect for the coming year.

Are there any food and beverage sales that are exempt from the NOEHA food and beverage tax?

The NOEHA food and beverage tax is due on sales of food and beverage sold or served in Orleans Parish or at any airport or air transportation facility owned by the City of New Orleans. The only exceptions are the following:

  • Food or beverage sales paid for with USDA food stamps or WIC vouchers.
  • Meals furnished to the staff, inmates, patients, or students of education, medical, religious, or mental institutions only if the institution is closed to the public. If the institution serves food and beverages to the general public, the NOEHA food and beverage tax must be collected.

Louisiana Resale Certificate

When does a business need to renew the Louisiana Resale Certificate(s)?

Businesses should renew their Louisiana Resale Certificate (R-1064) within 60 days of the expiration date on the certificate. Businesses must renew their certificates online through the LDR Louisiana Taxpayer Access Point (LaTAP) system. If the request is submitted prior to the 60-day renewal period, it will not be processed. Resale dealers not registered for LaTAP must register for LaTAP in order to complete the renewal process.

I have an R-1055 Louisiana Limited Resale Certificate. Will it be automatically renewed?

LDR will no longer issue the Limited Resale Dealer Certificate (Form R-1055). Instead, all dealers who renew Resale Certificates will receive the Louisiana Resale Certificate (R-1064). R-1055 certificates will be valid through their expiration date.

What is a NAICS code and where can I locate it? What is the industry title? What is the title of the NAICS code?

The North American Industry Classification System (NAICS) is a standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS codes can be found online at the U.S. Census Bureau website (www.census.gov/eos/www/naics). NAICS codes can be found on federal corporation tax returns and Louisiana Workforce Commission account numbers.

The Louisiana Department of Revenue uses the NAICS code to determine if a business is eligible for the Louisiana Resale Certificate. New businesses are automatically issued a Louisiana Resale Certificate if the NAICS code indicates sales are part of the business activity. However, if the dealer’s NAICS code does not indicate sales as a primary business activity but the dealer does occasionally purchase items for resale, the business may be eligible for the Louisiana Resale Certificate. Businesses should apply online for the Resale Certificate using LDR’s LaTAP system.

The Resale application asks for 2-year prior resale inventory purchase amounts. What figures are needed? Where can I obtain this?

Resale inventory purchase amounts are the total amount of goods purchased for resale by a business. This figure is sometimes called the “cost of goods sold.” If your business is a sole proprietorship and files a Schedule C (Profit or Loss from Business) on your federal income tax return, use the amount shown on Line 4 “Cost of Goods Sold.” If your business is a corporation and files Form 1120 (U.S. Corporation Income Tax Return), use the “Cost of Goods Sold” amount shown on Line 2. Or, you may use the cost of goods sold amounts shown in your general ledger.

Why was my Resale Certificate application for renewal denied?

Resale certificate renewal applications may be denied for a number of reasons. A dealer seeking renewal of its Louisiana Resale Certificate must have a consistent state sales tax return filing history within the current twelve-month period. Sales activity must be reported on Lines 1 or 3 of sales tax returns within the last 12 months.

I am logged into LaTAP, but don’t see a link to Request/Renewal of Resale Certificates.

In LaTAP, you must first select an account on the My Summary page. Be sure to select the ID for the sales tax account needing the certificate renewal. Once an account is selected, a link to “Request/Renewal of Resale Certificates” will appear in the upper right corner of the screen. Follow the indicated steps to submit a renewal application. If there are multiple exemption certificates to be renewed, select the “Multi Business Locations Consolidated Account” option from the menu. If you don’t see your sales tax ID number, select “Add Access to Another Account,” then select “Sales Account” in order to display the link to “Request/Renewal of Resale Certificates.”

The Resale Certificate application status indicates “Not yet submitted.”

Applications cannot be processed until the renewal application is submitted. In the online application, please select “Step 3: Submit Requests” to submit a renewal application. Normally, applications take 2-3 days for processing. Applications reported as “Success” have been approved and can be printed from LaTAP. LDR will also mail Resale Certificate renewals 7 – 10 business days after the application is approved.

How can I print my Louisiana Resale Certificate(s)?

Businesses may print their existing Louisiana Resale Certificate through LaTAP or through the LDR website at the Online Resale Certificates web page. To print the Louisiana Resale Certificate through LaTAP, click on the “View Mail” option of the My Summary page in LaTAP. Double click on the “Letter ID” link. The Sales Resale Certificate will display a cover letter and an attached certificate. The R-1064 can be printed from this page.

My Louisiana Resale Certificate approval letter states, “Purchases for use or consumption are still taxable and you must pay tax at the time of purchase.” What does this mean?

Only purchases for resale can be purchased without payment of the state sales tax. Purchases for the use of the business are still subject to state tax, including items withdrawn from resale inventory for business use. If no state sales tax was paid at the time of purchase, sales/use tax is due on the value of the item withdrawn from resale inventory. For example: an office supply store withdraws paper from the resale inventory for use in the store manager’s office. It would owe the state sales/use tax of 4% because the paper was “used” by the business and not resold to a customer.

As a sales tax account registrant, is it required to apply for a Louisiana Resale Certificate?

If you are a new sales tax account registrant, your Louisiana Resale Certificate will be issued automatically to you if your NAICS code indicates your business makes sales of tangible personal property. If your NAICS code does not indicate your business makes sales of tangible personal property, you must apply online for a Resale Certificate through LDR’s LaTAP system.

I operate a used motor vehicle dealership. Can I get a Louisiana Resale Certificate?

Used motor vehicle dealers cannot use the Louisiana Resale Certificate to purchase parts or repair services that will become a component and integral part of vehicles held for resale. Used motor vehicle dealers must use the Vehicle Dealer Purchases of Parts and Services for Vehicles for Resale (R-1311) exemption certificate to document their exempt status. Holders of the R-1311 can use the certificate to purchase tangible personal property or repair services that will become components of vehicles for resale exempt from state sales tax.

In order to receive a R-1311, used motor vehicle dealers must submit a completed Resale Certificate Application for Used Vehicle Dealer Purchases of Parts and Services (R-1393), along with a copy of the applicant’s current Louisiana Recreational and Used Motor Vehicle and Parts Commission license, to the Special Programs Division, Louisiana Department of Revenue, P.O. Box 66362, Baton Rouge, LA 70821-6362.

Sales Tax

To what transactions is sales tax applied?

The state general sales and use tax is levied on the following transactions:

  1. The sale of tangible personal property in this state.
  2. The use, consumption, distribution, or storage for use or consumption in this state of any tangible personal property.
  3. The lease or rental within this state of any item or article of tangible personal property.
  4. The sales of certain services as defined in Revised Statute 47:301(14). Those services are the furnishing of sleeping rooms by hotels; the sale of admissions to places of amusement and to athletic and recreational events, and the furnishing of privileges of access to amusement, entertainment, athletic, or recreational facilities; the furnishing of storage or parking privileges by auto hotels and parking lots; the furnishing of printing and over printing; the furnishing of laundry, cleaning, pressing, and dyeing services; the furnishing of cold storage space and the preparation of property for such storage; the furnishing of repairs to tangible personal property; and the furnishing of telecommunications services.

All sales, use, consumption, distribution, storage for use or consumption, leases, and rentals of tangible personal property are taxable, unless an exemption or exclusion is provided by law for a particular transaction. In the case of service transactions, only the particular transactions enumerated in the law are taxable.

What is the sales tax rate in Louisiana?

The aggregate rate of state sales tax is four percent, which consists of three point ninety seven percent (3.97%) Louisiana sales tax and point zero three percent (.03%) Louisiana Tourism Promotion District sales tax. Intrastate telecommunications and sales of prepaid telephone cards and prepaid telephone authorization numbers are taxed at three percent. Interstate telecommunication services are taxable at 2%. (Other reduced rates apply. See "exemptions", below.)

Sales and use taxes levied by political subdivisions of the state are in addition to the sales and use taxes levied by the state. Local sales tax rate information can be obtained from the web site of the Louisiana Association of Tax Administrators at http://www.laota.com.

There are many similarities between the state sales and use tax and the sales taxes levied and collected by political subdivisions of the state. However, there are also significant differences, especially in regard to exemptions and suspensions of exemptions. Businesses should fully acquaint themselves with state sales tax statutes and local ordinances that are applicable to their specific businesses. The Department of Revenue and local sales tax administrators are happy to assist with this.

Are there any exemptions from the sales tax?

Yes. There are a number of exclusions and exemptions from the sales tax. Certain types of transactions have been excluded from the definitions in Revised Statute 47:301 making the tax inapplicable to them. Other transactions which normally would be subject to the tax under Revised Statute 47:301 have been exempted or excluded from the tax under Revised Statute 47:305. Various statutory exemptions have been partially and temporarily suspended since July 1, 1986. For more information the taxable rate of transactions for Exemptions and Exclusions, see the Table of Sales Tax Rate Exemptions (R-1002) posted on the LDR website.

Common consumer-related exemptions include:

  • food for home consumption,
  • utilities such as electricity, natural gas and water,
  • purchases of tangible personal property to be used exclusively for lease or rental as tangible personal property,
  • drugs prescribed by a physician or dentists,
  • orthotic and prosthetic devices and wheelchairs and wheelchair lifts prescribed by physicians or licensed chiropractors for personal consumption or use,
  • the sale or purchase of any ostomy, ileostomy, or colostomy device or any other appliance including catheters or any related item which is required as the result of any surgical procedure by which an artificial opening is created in the human body for the elimination of natural waste,
  • manufacturing machinary and equipment,
  • and articles traded-in on new articles.

For additional information, you may call our Contact Center at (225) 219-7462 or send an email to sales.inquiries@la.gov.

I am a wholesaler, selling only to other dealers for resale. Do I have to collect and remit state sales tax?

No, you do not have to collect state sales tax when a dealer purchases items for resale and provides you with a valid Louisiana resale exemption certificate. These resale exemption certificates can be verified atwww.revenue.louisiana.gov. Click the “Resale Certificate” link to reach the Resale Certificate Validation page. Instructions are included on this page on how to determine the validity of the resale certificate.

How can a dealer get a credit or refund of sales tax paid on purchases of items that were resold?

Dealers that purchase items for resale should provide the seller with a valid Louisiana resale exemption certificate, and not pay sales tax on these purchases. If the state sales tax has already been paid to the seller, then the dealer will be required to obtain a refund of the sales tax paid on resale purchases from the seller. If you paid state sales tax on a purchase for resale, you will need to provide a valid Louisiana resale exemption certificate to the dealer who made the sale to receive a refund or credit. By providing the dealer a valid Louisiana resale exemption certificate at the time of purchase, you should not be charged state sales tax.

Do I have to collect sales tax on charges for labor?

Under certain circumstances, labor charges are taxable. Labor to fabricate or repair movable property is taxable. Labor charges to construct or repair immovable, or real, property are not subject to sales tax.

I made a purchase of property for my own use from a vendor who did not collect the sales or use tax from me. Is the purchase taxable? If so, which of us will the department expect to remit the tax? Can I as the purchaser ever be held liable for any tax on my purchase?

If the property you purchased is tangible personal property and is subject to sales tax as described above, then the purchase is subject to sales tax even though your vendor did not collect it. The vendor acts as an agent on behalf of the state in collecting the sales tax due. In the event the vendor does not collect the sales tax, the department may seek to collect the sales tax from the seller or the purchaser. This issue is addressed in the court case Collector of Revenue v. J. L. Richardson Company, (App. 4 Cir. 1971, 247 So.2d 151) and by the definition of dealer under LAC 61:I.4301.

How do I remit the sales tax on a taxable purchase that I made on which the vendor did not collect the tax?

If you are registered to collect and remit sales tax, the tax should be remitted directly to the state by reporting the purchase amount on line 2 of your Louisiana sales tax return. Louisiana also has provisions in the individual income tax return by which citizens may report and remit the tax due on personal purchases on which sales tax was not collected by the vendor. In addition, individuals may complete a "Consumer Use Return" which can be found on the Department’s website.

Are sales to churches and nonprofit organizations subject to sales tax?

Yes, sales to churches and nonprofit organizations are subject to sales tax unless they are specifically exempted by statute. The designation of tax-exempt status by the IRS provides for an exemption only from income tax and in no way applies to sales tax.

When is the sales tax return due? What happens if I am late?

The tax return is due on or before the 20th day of the month following the close of the calendar month or quarter reporting period. Interest and penalty will be assessed on delinquent returns and/or payments.

When must I report a transaction on my sales tax return? Can I delay reporting a sale made on credit until the sales proceeds are collected?

Transactions for the sale or purchase of tangible personal property or taxable services must be reported on the dealer's sales tax return for the month or quarter in which the sale was made, the service rendered, or the purchased property was imported into the state for use, regardless of when the proceeds of sales are collected, or when payment to the seller is required. Revised Statute 47:306(A)(2)(a) provides, however, that the reporting on sales tax returns of the gross proceeds from rentals and leases can be deferred until the dealer's sales tax return for the month or quarter in which payment is received. Revised Statute 47:303(F) provides a special rule for the remittance of the sales tax payments for memberships in health and physical fitness clubs. This statute says that the tax shall be assessed and shall be due and payable on a monthly basis computed on the amount paid each month less any actual or imputed interest or collection fees or unpaid reserve amounts not received by the health and physical fitness club.

Can I receive an extension of the filing deadline?

Yes. If a request is made in writing on or before the due date of the return, an extension may be granted for up to 30 days from the due date of the return as provided by Revised Statute 47:306(A)(4). Interest is payable on any return filed and paid after the normal filing deadline.

Does the state of Louisiana require electronic payment of the tax?

Yes, under certain circumstances. Currently, If payments made in connection with the filing of any return, report, or declaration during the prior 12-month period average $5,000.00 or more, the taxpayer is required to remit the subsequent respective tax or taxes electronically or by other immediately investable funds.

Is there an exemption for the purchase of motor vehicles for lease or rental? If so, how do I obtain the exemption? What if my business is located out of state?

Yes, if certain criteria are met, an "L" number exemption may be issued upon approval from the Department. In order to qualify the following conditions must be met.

  1. The taxpayer must be registered to collect state sales tax.
  2. Each separate location must have its own account number.
  3. Each separate location must have its own license from the Motor Vehicle Commission or the Used Motor Vehicle and Parts Commission.
  4. The taxpayer must have a license issued by the Motor Vehicle Commission before the application for an "L" number can be approved.

The "L" number exemption is only valid for the sales tax account number to which it is issued. The exemption certificate for purchases for one business location may not be used by another location of the same business. Each location must apply for and receive its own exemption. The application is form number R-1370 and maybe obtained on our website.

If I do not have any sales or purchases for a certain month, do I still need to file a sales tax return?

Yes. If a return is not filed, an assessment will be billed for that period.

How do I get a sales tax-exempt number for a non-profit organization?

Non-profit organizations are not generally exempt from sales tax on purchases in Louisiana. The tax exemption applies to income tax for the corporation.

Do businesses with Internet sales have to collect Louisiana sales tax on their sales?

Internet sales are treated the same as catalog sales for sales tax purposes. If the business has a presence in Louisiana or delivers into Louisiana in its own trucks, it should register for and charge Louisiana sales tax on the sales it makes to Louisiana customers.

What can I do with bad debts?

Before the Department can issue a sales tax refund on a bad debt, the debt must actually be deducted on a federal income tax return. The Department will process one refund claim per year for each dealer. If all or some portion of the debt is collected, the gross amount collected shall be reported as a new sale for the period when the recovery is made.

What are the criteria for determining if an item is a component of an immovable?

To determine if an item is a component of an immovable, the taxpayer should ask whether or not the item being removed will cause substantial damage to the property.

How is a taxpayer selected for audit?

A taxpayer is selected randomly or by some unusual item reported.

Why should I have to pay taxes on items that the vendor did not charge me tax on?

If you purchase an item for use within the state of Louisiana, use tax is owned on that item. Companies that do not have nexus (i.e., no salesperson within the state, no office within the state, no property within the state, etc.) with Louisiana are not required to collect Louisiana sales tax.

Are rentals with an operator taxable?

Rentals with an operator are not taxable because this is a service being provided. The Louisiana sales tax law does not list this as one of the taxable services.

How can a taxpayer get sales tax information for the Department?

Call the Contact Center at (225)219-7462 or submit an inquiry through our sales tax inquiry mailbox on this webpage at sales.inquiries@la.gov.

Are newspapers taxable?

Act 480 of the 2007 Regular Legislative Session enacted R.S. 47:301(16)(p) concerning the definition of the term "tangible personal property" to provide a sales tax exclusion for newspaper sales Effective July 1, 2008. Before the sales tax exclusion was enacted, R.S. 47:305(D)(1)(e) already exempted newspapers from the sales tax, but because the sales tax exemptions were suspended, tax was collected on newspapers. When the sales tax exclusion was enacted, the sales tax exemption under R.S. 47:305(D)(1)(e) was repealed.

If a vendor does not charge us sales tax, isn't that their fault? Why don't you go to the vendor to collect the tax?

If the vendor would have charged the tax, you would have paid it to the vendor when paying the invoice. The final consumer owes the tax even if the vendor fails to collect it.

Revised Statute 303. Collection
A. Collection from dealer.

  1. "The tax imposed under Revised Statute 47:302 shall be collectible from persons, as hereinafer defined, engaged as dealers, as hereinafter defined."
  2. "On all tangible personal property imported, or caused to be imported, from other states or foreign countries, and used by him, the "dealer", as hereinafter defined, shall pay the tax imposed by this Chapter on all articles of tangible personal property so imported and used, the same as if the said articles had been sold at retail for use or consumption in the state..."
Can a taxpayer file a consolidated sales tax return if they have more than one business located in Louisiana?

The taxpayer needs to request an Application for Consolidation from Central Registration and they will make the determination if you qualify for the consolidation.

Stores located in tax increment financing districts and all hotels and motels in Louisiana are prohibited from filing on a consolidated basis. These taxes are dedicated in whole or in part to special parish funds in the state Treasury, and therefore, each location must report individually.

Do I have to get an exemption certificate on all my customers?

Yes, you must have a valid certificate for all of your customers.

How can I become a quarterly filer, as I seldom have taxable transactions.

Dealers whose sales tax liabilities averages less than $500 per month after filing six returns may apply to file on a quarterly basis.

I am in the air conditioning and heating business. We sell, service and install heating and cooling systems. We pay the sales tax on our purchases of these systems. We have a contract to install a cooling system to a state agency. Do we owe the use tax on the purchases that go into this job?

Yes. The fact that these purchases are for a state agency does not exempt you, as a contractor, from the use tax due on these purchases.

Severance

What is the severance tax rate for natural gas?

Louisiana Revised Statute 47:633(9) provides that the tax rate for natural gas and equivalent gas volumes of natural gasoline, casinghead gasoline, and other natural gas liquids including ethane, methane, butane or propane is per 1,000 cubic feet at a base pressure of 15.025 pounds per square inch absolute and at 60 degrees Fahrenheit is adjusted annually on July 1 and may never be less than 7 cents.

The tax rates for the current years are as follows:

Full-Rate Per MCF
7/07 through 6/08 $.269
7/08 through 6/09 $.288
7/09 through 6/10 $.331
7/10 through 6/11 $.164
7/11 through 6/12 $.164
7/12 through 6/13 $.148
7/13 through 6/14 $.118
7/14 through 6/15$.163


Incapable oil well gas $.03


Incapable gas well gas $.013

When the natural gas severance tax rate is adjusted annually on July 1st, which month is the first month affected by the change?

The new natural gas severance tax rate applies to July gas production, which is reported and the tax paid on or before September 25th.

What are the Parish Codes that need to be provided on the various Severance Tax reporting forms?

The codes assigned to the various parishes are:

CODE PARISH CODE PARISHCODEPARISH
01ACADIA23IBERIA45ST CHARLES
02ALLEN24IBERVILLE46ST HELENA
03ASCENSION25JACKSON47ST JAMES
04ASSUMPTION26JEFFERSON48ST JOHN
05AVOYELLES27JEFFERSON DAVIS49ST LANDRY
06BEAUREGARD28LAFAYETTE50ST MARTIN
07BIENVILLE29LAFOURCHE51ST MARY
08BOSSIER30LASALLE52ST TAMMANY
09CADDO31LINCOLN53TANGIPAHOA
10CALCASIEU32LIVINGSTON54TENSAS
11CALDWELL33MADISON55TERREBONNE
12CAMERON34MOREHOUSE56UNION
13CATAHOULA35NATCHITOCHES57VERMILION
14CLAIBORNE36ORLEANS58VERNON
15CONCORDIA37OUACHITA59WASHINGTON
16DESOTO38PLAQUEMINES60WEBSTER
17EAST BATON ROUGE39POINTE COUPEE61WEST BATON ROUGE
18EAST CARROLL40RAPIDES62WEST CARROLL
19EAST FELICIANA41RED RIVER63WEST FELICIANA
20EVANGELINE42RICHLAND64WINN
21FRANKLIN43SABINE65UNKNOWN
22GRANT44ST BERNARD
Who is responsible for paying the oilfield site restoration fee?

Louisiana Revised Statute 30:87 imposes the oilfield site restoration fee. The fee for full rate oil and gas production is one and one-half cents per barrel on crude oil and condensate or three-tenths of one cent per 1,000 cubic feet on natural gas and casing head gas. The fee for reduced rate oil and gas production such as stripper wells and incapable wells is in the same proportion to the oil or gas full rate production fees as the reduced rate severance tax is to the full rate severance tax.

The oilfield site restoration fee must be paid by the operator of record. Louisiana Administrative Code 61:I.5301.E.3 provides that “Every operator of record of producing oil and/or gas wells must submit a return and make payments of the fees imposed by R.S. 30:87. Purchasers of oil and/or gas may make payment for the operator of record and their respective working-interest owners."

Special Investigations

Do you have a number for the IRS?

You may contact the IRS at the following numbers:

For general tax assistance: 1-800-829-1040
Concerning a bill or assessment: 1-800-829-8815
To check the status of a refund: 1-800-829-4477
To call the IRS Fraud Hotline: 1-800-829-0433

If you would like to personally meet with an IRS representative, call the general information line, 1-225-343-8625 or 1- 800-829-1040, and inquire as to whether there is a local IRS office in your community. In the Baton Rouge area, the local IRS office is located at:

2600 Citiplace Centre
Baton Rouge, La. 70808
Do you offer rewards for information given?

No, we do not offer any reward for information provided to us, however in certain instances the Internal Revenue Service does offer a reward for information that leads to a criminal conviction. Contact the IRS Fraud program.

Are you the IRS?

No. The IRS is the Federal Agency responsible for the enforcement of the Federal tax laws as prescribed by Congress. We are the Louisiana Department of Revenue, the State agency responsible for the enforcement of the Louisiana State tax laws as prescribed by the Louisiana State Legislature.

Do you make arrests?

Our Special Agents are not commissioned peace officers, therefore we do not have the authority to make arrests. In situations where an arrest may be warranted we will normally request the assistance of commissioned peace officers in the ATC Division of the Department of Revenue or officers in the local Sheriff's department or Louisiana State Police.

Do you investigate businesses for not withholding taxes from employees' salaries?

We perform a cursory review of all information that is submitted to us to determine if a criminal, rather than a civil, investigation is warranted. In many cases in which employers are not properly withholding taxes from their employees' salaries, we refer the matter to our civil audit staff and to the Internal Revenue Service for their consideration. Often at times it is a matter of making the employer aware of what his withholding responsibilities are, rather than an intentional violation of our tax law. However, in cases where an employer is withholding from his employees' salaries, but not remitting those withholdings to the Department of Revenue, we will strongly consider conducting a criminal investigation of the employer. Violations of this type can be considered a theft of State monies, which is a felony under Louisiana law.

How will I know if you have investigated my complaint?

Because of the provisions contained in our disclosure laws, we are not allowed to divulge any information regarding our investigations to our informants or anyone else not authorized to receive the information. We can assure you, however, that we will review the information you provide and proceed with whatever action is warranted, either by pursuing a criminal investigation into the matter or by referring it to one of our civil divisions for consideration and possible audit.

When can I call you back to see how the investigation is going?

We appreciate the information that is provided to us by our outside informants. However, due to the restrictions contained in our disclosure laws, we will not be able to divulge any information to you regarding the status of our investigation.

Can you find out who used my child's Social Security Number?

At this time, the Louisiana Department of Revenue does not request or catalog the Social Security Number of a dependent, so we do not have that information at our disposal. In addition, we would not be able to divulge that information to you due to the restrictions contained in our disclosure laws. The IRS, however, does catalog and crosscheck the social security numbers of dependents claimed on Federal tax returns, so we recommend that you contact them if you suspect that someone is illegally claiming your child as their dependent. The IRS number to call is 1-800-829-1040. If you suspect that someone claimed your child illegally in order to obtain money provided through the Earned Income Credit provision on his or her Federal return, you should contact the IRS Fraud Hotline at 1-800-829-0433.

What do you do about someone who has claimed someone who is not their dependent on their income tax return?

Since the Louisiana State Income Tax Return is based on ("piggybacks") the Federal tax return, we usually forward any reports concerning questionable claiming of dependents to the Internal Revenue Service for their consideration. Based on a formal exchange agreement between the IRS and the Louisiana Department of Revenue, the IRS, after conducting any return examinations necessary, will provide us with a copy of their audit report(s). This will then enable us to make the corresponding adjustments to the State income tax returns that are affected.

Who do I talk to about someone who hasn't filed taxes in several years?

You can contact us, the Special Investigations Division of the Louisiana Department of Revenue, at 225-219-2280. We also recommend that you contact the IRS Fraud Hotline at 1-800-829-1040.

Do you read people their constitutional rights?

Reading someone their constitutional rights, normally referred to as providing the Miranda warning, is generally not required unless the subject of a criminal investigation is being arrested or taken into custody by a law enforcement officer. Since most of our interviews of the Subject of a criminal investigation are done in a non-custodial setting, we are not required to read the Subject his or her constitutional rights. However, in an effort to protect the individual's Fifth Amendment rights, as well as to safeguard the admissibility of any information we obtain during the interview for use in a later court proceeding, we will generally make the Subject aware that he is free to leave the interview at any time, is not required to provide us with any information if he feels that it might incriminate him, and that he has the right to consult with his attorney before proceeding, if he chooses.

How long will it take to do an investigation?

In general, the statute of limitations for a criminal violation is four years from the date the act was committed, so we are usually bound to conduct and conclude our investigations within that overall time frame. Our investigations consume varying amounts of time, depending on such factors as availability of resources within the Department, as well as the availability of information being gathered from sources outside of the Department of Revenue. Within the constraints of these many varying factors, we always strive to conclude our investigations as efficiently and expeditiously as possible.

If I give you my name, will you keep it confidential?

We depend on information provided by outside informants to help us uncover violations of our State Revenue laws that might otherwise go undetected. As such, we will make every attempt possible to safeguard your identity and will not volunteer that information. However, we cannot guarantee that we will not be required to reveal your identity by some type of judgment or ruling in a later court proceeding.

Withholding Tax

What period do the withholding FAQs pertain to?

The withholding FAQs are effective for taxable periods beginning January 1, 2012.

How do I register for withholding tax?

To register for withholding tax, you must apply for a revenue account number. The fastest way to obtain a revenue account number is to apply online using the LDR Online Business Registration application. You may also complete the Application for Louisiana Revenue Account Number, Form R-16019 and mail the application to the Louisiana Department of Revenue, PO Box 201, Baton Rouge, LA 70821-0201

Are corporation subsidiaries required to file separate withholding tax returns?

No. If the subsidiary and parent corporation have the same Federal Employer Identification Number, the parent corporation may file and pay all withholding tax under the parent’s account number.

Are employers required to file Form L-3 and the employees’ W-2 forms electronically?

Yes. R.S. 47:114(F)(2) requires certain employers to file Form L-3 and the employees’ W-2 forms electronically based on the number of employees as follows:

Effective Employers who file returns with 250 or more W-2s.
January 1, 2008 Employers who file returns with 250 or more W-2s
January 1, 2010 Employers who file returns with 200 or more W-2s.
January 1, 2012 Employers who file returns with 150 or more W-2s.
January 1, 2014 Employers who file returns with 100 or more W-2s.
January 1, 2016 Employers who file returns with 50 or more W-2s.
If I am required to withhold federal income tax on the wages of my household employee, am I required to withhold state income tax on those same wages?

Yes. Unless the wages are specifically exempt from federal income tax, as provided under R.S.47:111(A)(10), wages paid to a household employee will be subject to Louisiana withholding tax.

Does Louisiana require withholding on pensions, retirement income, and annuities?

Withholding income tax on pensions, retirement income, and annuities is not required as provided under R.S 47:111(A)(9) . However, a recipient may request that withholding tax be deducted from those sources of income.

Are supplemental wage and vacation payments subject to withholding?

Yes. R.S. 47:111(A) defines wages as all compensation paid for services performed by an employee for an employer, including the cash value of all compensation paid in any medium other than cash. Based on this definition, supplemental wage and vacation pay would be subject to income tax withholding the same as the employee’s regular payroll even if the supplemental wage or vacation pay was paid separately.

Are employee’s pre tax contributions to a qualified cafeteria plan subject to withholding income tax?

No. Since pre-tax contributions to a qualified cafeteria plan are not taxable by the Internal Revenue Service, R.S. 47:111(A)(10) provides that contributions to these plans are not subject to state withholding tax.

If the incorrect amount of withholding is paid for a period, how should it be corrected?

Form L-1 is used to reconcile the payments made within each quarter to the actual amount of taxes withheld. Adjustments for prior quarters cannot be made in the current quarter. It will be necessary to file an amended Form L-1 for all quarters in which corrections were made. When filing an amended return, mark the appropriate box.

Who must file withholding tax

Every employer who withholds or who is required to withhold Louisiana income tax from wages of employees must file a withholding return. Any employer who fails to withhold and pay amounts required to be withheld is personally liable for such amounts.

After I’m registered, what returns will I be required to file?

You will be mailed four quarterly Form L-1 Employer’s Return of Louisiana Withholding Tax. These returns will be used to report and reconcile state income tax withheld for each quarter. Each return is designed to report and reconcile a specific quarter’s withholdings. You will receive a First Quarter, Second Quarter, Third Quarter, and Fourth Quarter return.

When must I file?

Each Form L-1 covers one quarterly period and must be filed by the last day of the month following the close of the calendar quarter except for semi-monthly payers. Semi-monthly payers must file Form L-1 by the fifteen of the month following the close of the quarter. A quarterly return must be filed even if no taxes are withheld during the quarter. If wages paid to employees were not sufficient to require withholding, an L-1 return should be submitted with zero dollar amounts.

The due dates for taxpayers with a Quarterly or Monthly Payment Frequency are:

  • 1st Quarter Due: April 30th
  • 2nd Quarter Due: July 31st
  • 3rd Quarter Due: October 31st
  • 4th Quarter Due: January 31st

The due dates for taxpayers with a Semi- Monthly Payment Frequency are:

  • 1st Quarter Due: April 15th
  • 2nd Quarter Due: July 15th
  • 3rd Quarter Due: October 15th
  • 4th Quarter Due: January 15th
How often must I submit my withholding tax?

Withholding taxes are required to be remitted according to the amount of total state income tax withheld from employees as follows:

  • Less than $500 monthly must be remitted quarterly
  • Equal to or greater than $500 but less than $5,000 monthly must be remitted monthly.
  • Equal to or greater than $5,000 monthly must be remitted semimonthly via electronic funds transfer.

What return form should accompany my payments?

  • Quarterly filers should attach payments to Form L-1 Employer’s Return of Louisiana Withholding Tax.
  • Monthly filers should attach payments to Form L-1V Withholding Payment Voucher. However, income taxes withheld in the last month of a quarter (March, June, September, December) should be submitted with the L-1 return for the respective quarter.
  • Semimonthly filers must submit payments electronically using LDR’s online service Louisiana Taxpayer Access Point (LaTAP) .

When are my payments due?

  • Quarterly payments are due on the last day of the month following the close of the reporting period.
  • Monthly payments are due on the last day of the month following the close of the monthly period.
  • Semi-monthly payments must be submitted electronically, and are due as follows:
    • Taxes withheld for the first through the fifteenth day of the month are due by the end of the same month.
    • Taxes withheld for the sixteenth through the end of the month are due by the fifteenth day of the following month.

What if the due date falls on a weekend or holiday?

If the due date falls on a weekend or holiday, the return is due the next business day and becomes delinquent on the following day.

How often can I submit withholding tax payments?

You may submit withholding tax payments as often as you wish during a quarter. However, payments submitted more frequently than monthly must be submitted electronically.

On what income are employers required to withhold income tax?

Employers are required to withhold income tax on all wages that are subject to Louisiana income tax as follows:

  • Employers located in Louisiana—income tax must be withheld on all employee wages earned in Louisiana regardless of whether the employee is a resident or not.
  • Employers located in other states that impose state income tax—the employer must withhold the other state’s tax on wages earned within the other state even if the employee is a Louisiana resident. The Louisiana resident must file a tax return and pay income tax to the other state on the income earned in that state. In addition, the resident must also file an income tax return with Louisiana and report all income earned inside and outside of Louisiana, but the resident is allowed to take credit for taxes paid to other states.
  • Employers located in other states that do not impose state income tax—the employer must withhold Louisiana income tax on Louisiana resident employee’s wages earned in the other state because Louisiana residents are required to pay Louisiana income tax on all income earned even if the income was earned in a state that does not impose an income tax.
The amount of Louisiana income tax to be withheld is based on the income tax withholding tables or formulas prescribed by Louisiana Administrative Code 61:I.1501 and the withholding exemptions and dependent credits provided by the employee in the Employee's Withholding Exemption Certificate, Form R-1300 (L-4). If the employee fails to provide a certificate, income tax should be withheld on all wages paid. For more information see the Louisiana Withholding Tables and Instructions For Employers Booklet, Form R-1306.

What is Form L-3 and when is it due?

Employers are required to file Form L-3, at the end of the year or if a business terminates during the year. Form L-3 is a cover letter used to submit copies of Federal Form W-2 to LDR. Form L-3 is due on or before the first business day following February 27 or on or before the 30th day after the date on which the final payment of wages was made. If an employer fails to submit copies of the employees W-2s with Form L-3, a penalty of $5 per W-2 statement, not to exceed $7,500, may be imposed.

When will I receive a Form L-1?

Shortly after March 20th, LDR will mail out the four Form L-1’s that will be used to report and reconcile state income tax withheld for each quarter. Each Form L-1 is specifically designed for a quarter. You must use the correct form for the quarter for which you are filing.

I registered for withholding tax after the mail out of Form L-1. When will I receive my Form L-1?

Form L-1’s are mailed out to new accounts the last week of the quarter in which they registered. The mailing will contain all Form L-l‘s that you will need for the rest of the year. For example, if you registered in May, which is in the second quarter of the year, you will receive three Form L-1’s during the last week of June.

Can I use a Form L-1 from 2011 with a note attached to file for 2012?

No, LDR’s new withholding tax model is effective for taxable periods beginning on or after January 1, 2012. Starting in 2012, you will be required to file quarterly Form L-1, Employer’s Return of Louisiana Withholding Tax. These returns will be used to report and reconcile state income tax withheld for each quarter. LDR will not be able to process a 2011 Form L-1 for a 2012 tax period and such form and payment will be returned to the taxpayer.

When will I receive the Form L-1V?

Only taxpayers remitting monthly will receive a Form L-1V. This form will be mailed out around the 25th of each month. However, a Form L-1V will not be mailed out in March, June, September and December since taxpayers will utilize Form L-1 to submit their payments in these months. For example, the Form L-1V for January will be mailed out around January 25th.

Taxpayers who are remitting quarterly will use their Form L-1 to remit their payment. Semimonthly taxpayer must submit payments electronically and therefore will not receive a Form L-1V.

Is there a Form L-1V available online?

Yes, you can create an online payment voucher on our website. You will need the business name and Louisiana Account Number to create a printable voucher that can be used to mail in a payment.

Semi-monthly filers must submit payments electronically and can do so using LDR’s online service Louisiana Taxpayer Access Point (LaTAP).

I have not received my forms for this year and need to make a payment. Can I use blank forms from the website for 2011 or wait until the forms are received by mail?

You should wait until you receive a Form L-1V in order to make a payment. If you have not received a Form L-1V or your client has not given you the form, you can create an online payment voucher on our website. You will need the business name and Louisiana Account Number to create a printable voucher that can be used to mail in a payment. The Form L-1V is not tax period specific, only year specific; therefore you may make copies of it for future payment intervals for that year.

Monthly payers will utilize Form L-1 to submit their third monthly payment in a quarter. Taxpayers who are remitting quarterly will use their Form L-1 to remit their payment. Semimonthly taxpayers must submit payments electronically and therefore will not receive a Form L-1V.

Will LDR mail out a Form L-1V every month for monthly remitters and every quarter for quarterly filers; or do we have to photocopy the form for future payment intervals?

For taxpayers who are remitting monthly, a Form L-1V will be mailed out around the 25th of each month for that month. For example, the Form L-1V for January will be mailed out by January 25th. Since the Form L-1V is not month specific, but it is year specific, you may make copies of it for future payment intervals for that year. Monthly payers will also utilize the L-1 form to submit their third monthly payment in a quarter.

Taxpayers who are remitting quarterly will use their Form L-1 to remit their payment. Semimonthly taxpayer must submit payments electronically and therefore will not receive a form.

If a company pays its employees monthly, but due to the amount withheld, is required to pay LDR semi-monthly, how would the first payment of the month be handled?

If you did not withhold income taxes during a remittance period, then you do not have to make a payment. However, if you do not withhold income taxes during the last remittance period of a quarter, you still need to file a Form L-1 and pay any taxes due after reconciling the quarter.

For example, if you withhold no income taxes during the first 15 days of the month, then you do not have to make a payment for the first half of the month.

When will I receive the Form L-3?

A Form L-3 will be mailed out during either November or December of this year.

FAQs for Filing Form 1099 MISC

Does Louisiana require the filing of an information return (Federal Form 1099 MISC) to report a payment of miscellaneous income made to an individual?

Yes. However, Form 1099 MISC is required to be filed only in cases where the payment made meet all of the following conditions:

a. the payment amounts to $1,000 or more;
b. the payment is made to a non-resident of Louisiana; and,
c. the payment is for rents or royalties from properties located in Louisiana.

Is the payment of miscellaneous income to a Louisiana resident required to be reported on Form 1099 MISC?

No. Only payments of $1,000 or more to non-residents of Louisiana for rents or royalties from properties located in Louisiana are required to be reported. However, a record of payments to residents should be maintained in the event the Department has a need to review them.

Are Louisiana income taxes required to be withheld from payments reported on Form 1099 MISC?

No. However, the recipient is required to file a declaration of estimated tax if his Louisiana income tax liability can reasonably be expected to exceed $1,000 after deducting all allowable credits (R.S. 47:116).

Does Louisiana participate in the combined Federal/State Program for reporting?

No. The reporting of payments on Form 1099 MISC must be filed directly with the Louisiana Department of Revenue. Paper copies of Form 1099 MISC should be mailed to:

Louisiana Department of Revenue
P. O. Box 201
Baton Rouge, LA 70821-0201

Can Form 1099 MISC be submitted to Louisiana electronically?

Yes. Form 1099 MISC can be uploaded to the Louisiana Department of Revenue’s web site through our LaWage application at the following link: http://www.revenue.louisiana.gov/sections/eservices/LAWageNotice.aspx

How many Forms 1099 MISC can I submit through LaWage, and what format should I use?

Any number of Forms 1099 MISC can be submitted. You will be given the option to manually input information or upload a file. The format is the same as that required by the Social Security Administration. Once you click on the LaWage link there is help in the menu which provides all electronic filing requirements. In addition, a template is provided to show how the file should look if you are uploading a file.

Federal-State Match Program

The Louisiana Department of Revenue has sent a notice and letter of inquiry to me saying that, because I filed a federal income tax return using a Louisiana address, I might also be liable for the filing of a state income tax return for the same year. How did the Department of Revenue receive this information?

The Louisiana Department of Revenue received this information under an exchange of information agreement that the department has entered into with the United States Internal Revenue Service. This agreement and the exchange of information are authorized by both federal and Louisiana law.

What information must I provide to the Louisiana Department of Revenue to show that I was not liable for Louisiana income tax or for the filing of a return for the year shown on the notice?

It is certainly possible — because of facts unknown to the department at the time that the department sent the notice and letter of inquiry — that a recipient of the letter is not liable for the filing of a Louisiana return for the year indicated on the notice. Among the potential reasons for non-liability:

  • A person who moves into Louisiana after the start of the succeeding year, and who files his federal income tax return for the prior taxable year using a Louisiana address, will receive the letter of inquiry from the department concerning Louisiana income tax liability, even though the person was not a resident of Louisiana for any part of the prior taxable year, earned no income in Louisiana during that year, and owes no Louisiana income tax for that year. Any further inquiries or assessments of income tax liability for the prior year will be precluded, provided that the person furnishes information to the department concerning the state from which they moved to Louisiana and the date on which the move was made into Louisiana. A form is provided on the reverse side of the notice and letter of inquiry for furnishing this information to the department.
  • A member of the United States military, who is stationed in Louisiana and who files his or her federal income tax return using a Louisiana address, will not be liable for Louisiana income tax if his or her home of record is a state other than Louisiana and neither the military person nor his or her spouse derived income from Louisiana other than the military income. The form on the reverse side of the letter of inquiry can be used to provide this information to the department.
  • A person whose gross income, as reported on the federal return, is less than $12,000 is not required to file a Louisiana income tax return. The form on the reverse side of the letter of inquiry can be used to provide this information to the department. A copy of the federal income tax return must also be furnished.
  • If a person wishes to cite reasons, other than those explained above, why Louisiana income taxes would not be due, the person must explain those reasons in a letter to the department. The letter should be sent to the same address shown on the notice and letter of inquiry:
    Louisiana Department of Revenue
    Collection Division
    P.O. Box 201
    Baton Rouge, LA 70821-0201
I received a proposed assessment for Louisiana income taxes for a prior year based upon the income that I reported on my federal return for that year without first having received the notice and letter of inquiry from the Louisiana Department of Revenue giving me the opportunity to provide information showing that taxes are not due. What steps can I now take to show that taxes are not due for that year so that the assessment can be set aside?

The department’s policy is to send the notice and letter of inquiry prior to sending any notice of proposed assessment. The notice and letter of inquiry is sent to the address shown on the taxpayer’s federal return, as provided to the department by the United States Internal Revenue Service. If the taxpayer has moved to another address since his or her filing of the federal return, and the U.S. Postal Service had no forwarding address for the taxpayer, the notice and letter of inquiry might not have been received.

The department sends the notice of proposed assessment that typically follows after no response is received to the letter of inquiry, however, to the most current address for the taxpayer that is available to the department, without regard to the address shown on the prior- year federal return. Very often, because of subsequent filings with the department, the Louisiana Department of Revenue has an address on file for a taxpayer that is more current than the address used on the prior-year federal return.

Any taxpayer, who believes that the taxes shown on the proposed assessment are not due, has the opportunity to provide information to the department supporting that position of non-liability, which might include including the potential reasons for non-liability shown above. The information must be provided to the department before the deadline shown on the proposed assessment.

I have already filed my Louisiana income tax return for the year covered by the notice or by the proposed assessment. What must I now do to show the department that the return has been filed?

Please provide the department with information as to the names and social security numbers shown on the return that was submitted. If the return was accompanied by a personal check, please furnish a copy of the front and back of the cancelled check. If the payment was by money order or cashier’s check, please furnish a copy of the cancelled original receipt. If the taxes were paid in cash to the department, please furnish a copy of the official department receipt.

If the return that was submitted showed no tax due or a refund due, please provide a complete copy of the return to the department. If the department’s records indicate that the refund was not issued, the department will issue a refund for the correct amount due.

Suspension of Licenses

The Department of Revenue has sent me a notice saying that my driver’s license or hunting license might be suspended or revoked because of non-payment of taxes. What grants the Louisiana Department of Revenue the right to take this action?

The suspension and denial of renewal or issuance of drivers’ licenses is authorized by Louisiana Revised Statute 47:296.2 in the case of income tax tax liabilities of more than $1,000. The suspension, revocation, and denial of issuance of hunting and fishing licenses are authorized by Louisiana Revised Statute 47:296.3 in the case of tax liabilities of more than $500. These statutes provide as follows:

    §296.2. Suspension and denial of renewal of drivers' licenses
  1. A suspension and renewal of a driver's license shall be denied if the Department of Revenue has an assessment or judgment against an individual that has become final and nonappealable if the amount of the final assessment or final judgment is in excess of one thousand dollars of individual income tax, exclusive of penalty, interest, costs, and other charges.
  2. The suspension and denial shall be effective until such time as the individual has paid or made arrangements to pay the delinquent tax, interest, penalty, and all costs and the Department of Revenue notifies the Department of Public Safety and Corrections, office of motor vehicles, of the payment or arrangement to pay.
  3. In the case of a spouse who qualifies for liability relief under the innocent spouse provisions in R.S. 47:101(B)(7) and 1584, the provisions of this Section shall not apply.
  4. The secretary of the Department of Revenue, in cooperation with the secretary of the Department of Public Safety and Corrections, shall adopt and promulgate rules and regulations in accordance with the provisions of the Administrative Procedure Act to effectuate the orderly and expeditious suspension and denial of renewal and reissuance of drivers' licenses in accordance with the provisions of this Section.
    §296.3. Suspension, revocation, or denial of hunting and fishing licenses
  1. Hunting or fishing licenses shall be suspended, revoked, or denied at such time as the Department of Revenue has an assessment or judgment against an individual that has become final and nonappealable, if the amount of the final assessment or final judgment is in excess of five hundred dollars of individual income tax, exclusive of penalty, interest, costs, and other charges.
  2. The suspension, revocation, or denial shall be effective until such time as the individual has paid or made arrangements to pay the delinquent tax, interest, penalty, and all costs and the Department of Revenue notifies the Department of Wildlife and Fisheries of the payment.
  3. In the case of a spouse who qualifies for liability relief under the innocent spouse provisions in R.S. 47:101(B)(7) and 1584, the provisions of this Section shall not apply.
  4. The secretary of the Department of Revenue, in cooperation with the secretary of the Department of Wildlife and Fisheries, shall adopt and promulgate rules and regulations in accordance with the provisions of the Administrative Procedure Act to effectuate the orderly and expeditious suspension, revocation, or denial, and reissuance of hunting and fishing licenses in accordance with the provisions of this Section.
If my tax liability is $1,000 or less, can my drivers’ license be suspended for non-payment of taxes?

R.S. 47:296.2 provides for the suspension of drivers’ licenses only in cases of tax liability of more than $1,000.

What can I do to prevent the suspension or revocation of my licenses?

The suspension or revocation of licenses can be prevented by the payment of the delinquent taxes within 60 days of the taxpayer’s receiving notice of the proposed suspension or revocation.

Can I pay my tax liabilities in installments?

In some cases, taxpayers can apply to pay their tax liabilities in installments. If the terms of installment agreements are complied with, licenses will not be suspended during the installment payment periods. In order for a taxpayer to be approved to pay taxes in installments, returns for all taxes for which the taxpayer is liable must be filed up-to-date. In addition, a 20 percent down payment is required at the time the agreement is entered into, and the taxpayer must agree to allow the department to collect the installment payments by automatic bank draft.

After my licenses are suspended, what must be done to reinstate them?

When the delinquent taxes are paid, the Department of Revenue will notify the appropriate license issuing agency that the taxes are no longer delinquent. The license issuing agency might charge a fee for license reinstatement.