Louisiana Tax Help Information
Cease and Desist Orders
If you are responsible for collecting sales tax or income tax withholding and fail to pay it to the Department of Revenue, the Secretary of Revenue may require that you demonstrate cause as to why you should not be prevented from continuing business. If you receive a Cease and Desist Order, you need to comply with it as quickly as possible, as failure to do so will result in the violation being treated as a contempt of court, punishable according to the associated laws.
If you have more than $1000 of liability, the State may suspend, revoke, or deny renewal or issuance of various licenses, including your driver’s license. You will need to resolve or otherwise address your liability before the affected license may be reinstated.
If you are unable to pay your liability in full, you may be able to make payment arrangements with the State. You may be required to provide a range of documentation, including financial statements, and will likely need to have all other tax returns and filings in order. Should you arrange a payment plan and fail to adhere to it, you may be subject to enforced collection actions.
One form of enforced collection that the State may use to resolve your liability is a levy. A levy can be attached to any of your property, be it physical, or something like your bank accounts or wages, even third parties associated with your property.
Levies are only issued after you have received and failed to address multiple Notices from the State. It is best to pursue a resolution to your liability before this point.
Priority One: Stopping Aggressive Enforced Collections
Offer in Compromise
The Department of Revenue may, under particular conditions, accept a settlement of your liability for less than the full amount if it is found to be a compromise between your best interests and the State’s. You must be prepared to closely follow all terms and conditions given by the Department. Among these are your having filed all required tax returns, completed the application, and provided supplementary documentation.
Should you fail to fully pay your tax bill or file your returns in time, you will likely be subject to additions to your total amount owed. These penalties vary by tax type and circumstance. It may be possible to have them waived if you can prove reasonable cause for your delinquency with evidence and appropriate documentation.
Personal Assessment for Business Taxes
If you are in fact or are deemed to be a corporate officer, you may be held personally responsible for the corporation’s tax liability.
Power of Attorney
While you may represent yourself before the State, you may also choose to have a qualified representative do so in your stead. This requires that you complete the appropriate documentation prior to any discussion of tax matters.
Any component of your liability may serve the Department of Revenue as a lien. Liens protect the State’s interests, and you will be held responsible for any costs associated with recording them, should they be filed against your property. Liens are a matter of public record, and thus may affect your credit report.
One means of enforced collection is the garnishment of your wages. This manifests itself as a reduction in your gross wages until such time as your liability is paid.