Louisiana Tax Relief Help: Payment Plans, OIC & Liens

Owe Louisiana state taxes or received a notice from the Louisiana Department of Revenue (LDR)? Louisiana has one of the most complex tax systems in the country — 64 parishes self-collect sales tax, LDR can levy without advance notice, and the Offer in Compromise program is limited to one approval per ten years. Don't guess your next move. We review your Louisiana tax balance, notice, deadline, payment options, and collection risk so you know what to do next.

Get Louisiana Tax Relief Review

See Louisiana Tax Relief Options

No guarantee of outcome. We will tell you if settlement is not realistic. A review by phone: (888) 260-9441

Reviewed by William McLee, Enrolled Agent

Last reviewed: June 27, 2026

Reviews content for accuracy against official sources. About our review process

Received a Notice of Assessment, tax lien, bank levy, wage garnishment, refund offset, or parish sales tax notice from Louisiana?

These are not normal bills.

Deadlines and collection risk matter.

Check My Louisiana Collection Risk

Speak with a tax relief specialist: (888) 260-9441

Louisiana Tax Relief Overview

Owing Louisiana state taxes is different from owing the IRS. The Louisiana Department of Revenue has its own rules, deadlines, and collection tools — some of the most aggressive in the country. Federal tax relief strategies don't automatically apply to Louisiana state tax debt.

Louisiana is a Civil Law State, Not a Common Law State

Louisiana is the only U.S. state under a civil law jurisdiction, rooted in French and Spanish civil law rather than English common law. This shapes how tax laws are interpreted and even worded — Louisiana uses civil-law terms like "prescription" (statute of limitations), "distraint" (levy or seizure), and "petition" (complaint). Don't assume concepts from other states carry over directly.

Louisiana does have an Offer in Compromise program, but with a critical limitation: under LAC 61:I.5302.F.1, a taxpayer may have only one OIC approved per ten-year period. That means your one shot needs to be done right the first time.

LDR May Levy Without Advance Notice

Under R.S. 47:1569–1570, LDR has the legal authority to levy bank accounts, wages, and other property through "distraint and sale" without warning to the taxpayer. If your account is frozen or your wages are being garnished, the money is already gone — act immediately.

Depending on your situation, you may need one or more of the following:

An Offer in Compromise — to settle for less than the full balance, limited to one per ten years.
A payment plan — to pay the balance over time.
An appeal to the Board of Tax Appeals — with a strict 60-day deadline.
Penalty or interest relief — if you have reasonable cause.
Lien release or levy resolution — if collection action has already started.
Parish sales tax help — for Louisiana's complex local system.
Filing help — if you have unfiled Louisiana returns.

If you run a business in Louisiana and owe sales tax or withholding tax, the stakes are especially high. Louisiana's 64 parishes each self-collect, and responsible persons face personal liability under R.S. 47:1561.1.

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Louisiana Tax Relief Options at a Glance

Option	What It Does	Best For	Key Deadline / Limit
Offer in Compromise	Settle for less than the full balance	Cannot pay in full; limited assets or income	ONE per 10 years (LAC 61:I.5302.F.1)
Payment Plan	Pay the balance in monthly installments	Can afford monthly payments	Interest continues; 6-month standard for individuals
Penalty Relief	Waiver of penalties for reasonable cause	Illness, disaster, records loss, non-negligent cause	All tax and other penalties must be paid first
Interest Abatement	Abate interest for LDR errors or delays	LDR caused unreasonable delay or error	No significant taxpayer fault
Appeal to BTA	Challenge the assessment at the Board of Tax Appeals	You disagree with the assessment and have proof	60 days from Notice of Assessment
Lien Release	Remove a public tax lien from the record	Lien filed but balance paid or resolved	Pay tax, interest, penalties, and lien fees
Levy/Garnishment Help	Respond to a bank levy or wage garnishment	Bank account frozen or wages being garnished	Act immediately — no notice required

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What Louisiana Tax Notice Did You Receive?

Select your notice type for a quick explanation of what it means and your options.

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Not Sure Where to Start?

We can review your Louisiana tax notice, balance, and deadlines, and explain your options in plain English. Call (888) 260-9441 or request a free review. We will tell you if settlement is not realistic.

Get a Free Louisiana Tax Relief Review

No pressure. No guarantee. Just a clear review of your options.

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What the Louisiana Department of Revenue Can Do to Collect

If you owe Louisiana state taxes and don't address the balance, LDR has a wide range of collection tools. Not every case reaches the most serious actions, but Louisiana's collection powers are among the broadest in the country.

Add Penalties and Interest

For most tax types — sales tax and withholding tax among them — Louisiana adds a 5% delinquent penalty per 30-day period, up to 25% maximum. Individual income tax works differently: the delinquent payment penalty is 0.5% per 30-day period, also capped at 25%. Interest is set annually at three points above the judicial interest rate. For 2026, that puts LDR's unpaid-tax interest rate at 10.5% per year.

Send Collection Notices

LDR sends a series of notices before, and alongside, enforced collection. The Notice of Assessment triggers a strict 60-day appeal deadline to the Board of Tax Appeals.

Levy Without Notice (Distraint)

Under R.S. 47:1569–1570, LDR may levy bank accounts, wages, and other property through "distraint and sale" without advance notice. This includes goods, chattels, bank accounts, wages, real estate, and securities.

Offset Refunds

Both Louisiana state tax refunds and federal tax refunds may be captured and applied to your Louisiana tax balance. LDR participates in the federal refund offset program.

File a Tax Lien or Privilege

Under R.S. 47:1577, all taxes due operate as a lien, privilege, and mortgage on all property. LDR may file liens without notice at any time if it's in the state's best interest.

Suspend Licenses

Under R.S. 47:1676 et seq., LDR may suspend driver's licenses, occupational licenses, professional licenses, and hunting and fishing licenses for taxpayers with delinquent liabilities exceeding $1,000.

Cease Business Operations

Under R.S. 47:1574.1, if a dealer fails to pay tax collected from others, the Secretary may issue a rule to cease business. Under R.S. 47:1574.2, the Secretary may sue to enjoin certain tax preparers.

Hold Officers Personally Liable

Under R.S. 47:1561.1, officers, directors, and managers with direct control who willfully fail to remit collected sales or withholding taxes are personally liable for the full amount.

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Louisiana Tax Payment Plans

If you can't pay your Louisiana state tax balance in full, a payment plan may be an option. Interest and penalties continue to accrue on the unpaid balance during the plan (R.S. 47:1576.2).

Key Conditions for Louisiana Payment Plans

Requirement	Details
Individual Plans	Six-month installment plan via LaTAP (Louisiana Taxpayer Access Point) or Form R-19026. Monthly payment equals one-sixth of the total balance.
How to Apply	Via the LaTAP online portal or by submitting Form R-19026. Business tax: business.tax@la.gov. Individual: Income.Tax@la.gov. Collections: 855-307-3893.
Interest	Continues to accrue on the unpaid balance during the plan at the current LDR rate — 10.5% per year for 2026 (R.S. 47:1576.2).
Start Paying Early	Taxpayers should begin making monthly payments even before receiving formal approval from LDR.
ODR Payment Plans	Arrangements can also be set up through the Louisiana Office of Debt Recovery (ODR) at 225-219-2188 or 844-330-6176, or via ODRPaymentPlan@LA.Gov.
Current Filing	All required tax returns must be filed.
Default Risk	Default may trigger immediate collection action, including levy without notice.

Approval is discretionary. No guarantee of approval.

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See If a Louisiana Payment Plan Makes Sense

A payment plan may help if you can't pay in full, but interest and penalties keep growing. The right move depends on your balance, notice status, income, assets, and whether collection has already started. We will tell you if settlement is not realistic.

See If a Louisiana Payment Plan Makes Sense

No guarantee of approval. LDR makes the final decision.

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Which Louisiana Tax Relief Option Fits Your Situation?

Option	Best If...	Deadline / Limit	Cost
Offer in Compromise	You can't pay in full, and the offered amount is the most LDR can reasonably collect	ONE per 10 years (LAC 61:I.5302.F.1)	$186 fee + 20% down payment
Payment Plan	You can't pay in full but can afford monthly payments (one-sixth of balance per month, 6 months)	No strict deadline, but sooner is better	No fee; interest continues at 10.5% (2026)
Penalty Relief	Penalties make the balance unmanageable and you have reasonable cause	Request after all tax and other penalties are paid	No fee; affidavit or Form R-20128 if over $100
Interest Abatement	LDR caused unreasonable errors or delays	No strict deadline	No fee
Appeal to BTA	You disagree with the assessment and have supporting evidence	60 days from Notice of Assessment	BTA filing fee: $0–$450+ depending on amount
Lien / Levy Help	A lien has been filed or your bank account/wages are garnished	Act immediately — levy may occur without notice	May require full payment or negotiation

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Louisiana Offer in Compromise (OIC)

Unlike Alabama and many other states, Louisiana does have an Offer in Compromise program. Under R.S. 47:1578, the Secretary may compromise, waive, or reduce tax liabilities — including penalties and interest — by accepting less than full payment.

Only One OIC Per Ten-Year Period

Under LAC 61:I.5302.F.1, a taxpayer may have only one offer in compromise approved in a ten-year period. Once an OIC is approved, the Secretary won't consider another application from the same taxpayer until the ten-year period expires — which makes getting your application right the first time essential.

LDR generally approves an OIC when the amount offered represents the most the department can reasonably expect to collect. Key factors include the ability to pay, equity in assets, current and future income and expenses, and whether the offer serves the state's best interest.

OIC Application Requirements

Requirement	Details
Application Fee	$186 nonrefundable fee required.
Down Payment	20% of the assessed amount offered. The offer isn't reviewed until both payments clear the bank.
Filing Compliance	All required tax returns must be filed before the OIC is processed.
Documentation	Completed application with supporting documentation.
10-Year Rule	Only one approved OIC per 10-year period (LAC 61:I.5302.F.1).

OIC contact information — phone 1-855-307-3893 (Special Collections); business tax: SpecialCollections@la.gov; individual tax: Income.Tax@la.gov. Approval is discretionary. No guarantee of acceptance. The ten-year rule is strict.

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Is a Louisiana OIC Right for You?

Because Louisiana limits OICs to one per ten years, your application has to be right the first time. We can review your financial situation and tell you honestly whether an OIC is realistic before you spend the $186 fee and 20% down payment.

Check OIC Eligibility

No guarantee of acceptance. LDR makes the final decision.

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Louisiana Penalty Relief

Penalty relief asks Louisiana to reduce or remove penalties when state rules allow it. Under R.S. 47:1603, the Secretary may waive delinquent filing or delinquent payment penalties if the failure isn't due to the taxpayer's negligence but to another cause set forth in writing and considered reasonable.

Qualifying for a Penalty Waiver

Under LAC 61:III.2101, reasonable cause is presumed when the taxpayer acted in good faith and without intentional disregard for Louisiana law. Before a waiver will be considered, you must be current on all filings and pay all tax, non-waived penalties, fees, and interest due.

If penalties exceed $100, all facts must be disclosed in a notarized affidavit with two witnesses, or on Form R-20128 (Request for Waiver of Penalties for Delinquency).

LDR Considers Your Compliance History

Prior penalty waivers are a significant factor in evaluating new requests, and each request is considered individually (LAC 61:III.2101.C).

Secretary's Waiver Authority

The Secretary may waive penalties up to $25,000 without Board of Tax Appeals review (increased from $5,000 by Act 798 of 2014). Larger amounts may require BTA review.

Voluntary Disclosure Program (R.S. 47:1603(A)(2)(b))

LDR maintains a voluntary disclosure program for taxpayers who haven't filed required returns. Under a valid agreement, penalties may be waived without BTA approval — useful for businesses with a Louisiana nexus that haven't been filing state or parish sales tax returns.

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Louisiana Interest Abatement and Compromise

Louisiana offers two distinct paths for reducing interest:

Interest Abatement (R.S. 47:1601(A)(2)(c))

The Secretary may abate interest attributable to unreasonable errors or delays by LDR in a ministerial or managerial act, provided no significant part of the delay is the taxpayer's fault.

Interest Compromise (R.S. 47:1601(A)(2)(d))

The Secretary may compromise interest to promote effective tax administration. A complete record of interest compromises is kept and open to public inspection.

Managed Audit Interest Waiver (R.S. 47:1601(A)(2)(e))

The Secretary may waive interest on amounts identified in a managed audit performed under R.S. 47:1541(D), which incentivizes cooperation with LDR's managed audit program.

A payment plan doesn't automatically remove penalties or interest — penalty relief and interest abatement are separate requests, each judged on its own criteria. Even if penalties and interest are reduced, the underlying tax still has to be paid.

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Louisiana Tax Appeals and the Board of Tax Appeals (BTA)

The Louisiana Board of Tax Appeals is the state's constitutionally created trial court for tax disputes — an independent quasi-judicial body of three attorney members appointed by the Governor and confirmed by the Senate.

60-Day Appeal Deadline

A taxpayer has 60 calendar days from the date of the Notice of Assessment to either pay the assessment or appeal to the BTA for redetermination (R.S. 47:1565(A)). Miss it, and the assessment becomes final and collectible by distraint and sale.

About the Board

Location: 627 N. Fourth St., Baton Rouge, LA 70802 (first floor of the Iberville State Office Building). Hours: 8:30 a.m. to 4:30 p.m. The State Division hears state tax matters under R.S. 47:1407(1); the Local Tax Division hears local sales/use tax matters under R.S. 47:337.101 et seq. The Board has broad jurisdiction over most tax disputes, but cannot declare a statute unconstitutional.

BTA Filing Requirements

Requirement	Details
State Tax Appeals	Original signed petition plus 6 conformed copies (BTA Rule 3)
Local Tax Appeals	Original signed petition plus 3 conformed copies (BTA Rule 24)
Filing Fee — Under $10,000 (assessment)	No filing fee
Filing Fee — Under $10,000 (other)	$40
Filing Fee — $10,000 to $50,000	$300
Filing Fee — Over $50,000 / all local tax cases	$450 plus $40 per additional service (BTA Rule 16)

Collection Stay During Appeal

If an appeal is filed within the 60-day period, collection is stayed until the BTA or a court renders a final decision (R.S. 47:1565(B)) — a powerful protection, but only if you act within the deadline.

Collection Action Appeals

A person may petition the BTA within 30 days of receiving a notice related to a seizure, levy, garnishment, offset, or other qualifying collection action (R.S. 47:1565(C)(2)(b)).

Local Sales/Use Tax Appeals

For local assessments, a taxpayer has 60 calendar days from the notice date to appeal to the BTA Local Tax Division or pay under protest and file suit (R.S. 47:337.51). If a local collector fails to act on a refund claim within one year, the claim is "deemed denied," and the taxpayer must appeal within 180 days of the end of that year.

Judicial Review

BTA decisions are reviewed by the Louisiana Court of Appeals (not the district court, since 2014), typically within 30 days of the BTA judgment (Act 640 of 2014).

Innocent Spouse Relief (R.S. 47:1584)

Louisiana provides relief from joint and several liability for Louisiana income tax under certain circumstances, paralleling federal innocent spouse relief with Louisiana-specific requirements.

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Review My Louisiana Notice

If you received a Notice of Assessment, review the 60-day deadline before doing anything else. Missing an appeal deadline can severely limit your options.

Review My Louisiana Notice

This is not legal advice. Consult a qualified representative for your specific situation.

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Louisiana Tax Liens and Privileges

Under R.S. 47:1577, all tax, penalty, interest, and attorney fees due to LDR operate as a lien, privilege, and mortgage on all of the tax debtor's property — a powerful statutory lien with broad reach.

How Louisiana Tax Liens Work

Filing without notice — LDR may record lien notices in parishes where it believes the debtor owns property, without notice, at any time it's in the state's best interest.
Lien recordation costs — the tax debtor is responsible for recordation costs, which vary by parish (LAC 61:I.5302.G).
Lien and cancellation fees — LDR assesses fees for both filing and canceling a lien, matching what the parish charges (LAC 61:I.5302).
Release requirements — the taxpayer must pay tax, interest, penalties, and lien fees for the period before the lien is released (R.S. 47:1578).
Partial release — R.S. 47:1578 allows partial release for certain real property under specific conditions, but every partial release must be approved by the BTA.

Requesting a Lien Payoff

Submit Form R-19023 (Request for Louisiana Tax Assessment & Lien Payoff) with copies of any outstanding liens attached. Response time is 4–5 business days.

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Louisiana Bank Levy / Distraint

Under R.S. 47:1569, the Secretary enforces collection by "distraint and sale." Distraint, as defined in R.S. 47:1570, is the Secretary's right to levy on, seize, and sell a taxpayer's property or rights to property, without advance notice.

What distraint covers: goods, chattels, effects, stocks, securities, bank accounts, evidences of debt, wages, real estate, and other property, authorizing both bank levies and wage garnishments.

Key Facts About Louisiana Bank Levies

No advance notice: By the time you discover a levy, your funds may already be frozen.
Full legal authority: The financial institution must, by law, remit available funds to LDR.
Business accounts aren't exempt: They can be levied just like personal accounts.
Multiple levies are possible: LDR may issue additional levies if the full liability isn't satisfied.

If your account has been levied, contact Special Collections at 855-307-3893 or seek professional help immediately.

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Louisiana Wage Garnishment for Tax Debt

Under R.S. 47:1569–1570, LDR may garnish wages, salaries, bonuses, commissions, and other compensation, requiring the employer to deduct a specified amount from each pay period until the debt is satisfied.

Wage Garnishment vs. Bank Levy (Distraint)

Feature	Wage Garnishment	Bank Levy (Distraint)
Target	Your paycheck	Your bank account
Amount	Specified amount per pay period	Full account balance, up to liability
Duration	Continues each pay period until paid	One-time per service; may be repeated
Notice Required	LDR may act without advance notice	LDR may act without advance notice
Employer/Bank Obligation	Must comply by law	Must remit funds by law

If you've received a notice about garnishment, don't ignore it — once it starts, the money is taken before you see your paycheck. For assistance, contact the Collection Division at 855-307-3893, business.tax@la.gov, or Income.Tax@la.gov.

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Get Help With a Louisiana Collection Notice

If Louisiana has filed a lien, frozen a bank account, started wage garnishment, or sent a serious collection notice, waiting usually makes things worse.

Get Help With a Louisiana Collection Notice

No guarantee of outcome. We review your facts and explain your options. Call (888) 260-9441

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Louisiana's Complex Parish Sales Tax System

Louisiana has one of the most complex sales tax systems in the country. It's one of only a handful of states without a single centralized sales tax-collecting agency — LDR only collects state-level sales tax, while each of Louisiana's 64 parishes independently administers and collects its own local sales and use tax.

Businesses Must Deal With Multiple Collectors

Local collection may be handled by parish sheriffs, police juries, school boards, or dedicated sales tax departments. A business selling in multiple parishes may need to register, file, and resolve disputes separately in each one — there's no single "Louisiana sales tax return" for local tax.

Louisiana State and Local Sales Tax Rates

Component	Rate	Details
State Rate (effective 1/1/2025)	5%	Effective through 12/31/2029; drops to 4.75% on 1/1/2030
Highest Combined Rate	Up to 10.11%	Among the highest average combined state-and-local sales tax rates in the country
Local Rates	Varies by parish	Each of the 64 parishes sets its own rate and rules

Key Louisiana Sales Tax Rules

Destination-based: Tax is based on the customer's delivery address.
Remote sellers: Nexus hits at $100,000; register with the Commission, not LDR.
Due date: Returns are due by the 20th of the following month.
Digital products taxable: SaaS and digital products are taxed since Jan. 2025.
Uniform exemptions: Exemptions must apply at both levels starting Jan. 2026.

Successor Liability for Sales Tax (R.S. 47:308)

A business purchaser must withhold enough of the purchase price to cover taxes, interest, and penalties due until the seller produces a receipt showing payment or a certificate stating none is owed. Failing to do so makes the purchaser personally liable.

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Louisiana Business, Sales Tax, and Payroll Tax Debt

Business tax debt carries more risk than individual income tax debt in Louisiana. Sales tax and withholding tax are trust fund taxes — money collected or withheld on the state's behalf — and LDR treats them accordingly.

Personal Liability Under R.S. 47:1561.1

If a corporation, LLC, or limited partnership fails to remit collected sales or withholding taxes, the Secretary may hold officers, directors, managers, or members with direct control personally liable for the full amount, plus interest, penalties, and fees. Three criteria must all be met: the entity failed to remit collected taxes; the officer had direct control or supervision of those taxes or was responsible for filing; and the officer willfully failed to remit or account for them.

One important limit: the corporation must have actually collected the tax from customers. Officers aren't liable for amounts an audit determines were due but never actually collected (LAC 61:I.4901.B.1). On the willfulness standard, Louisiana courts have generally treated "willfulness" as consistent with knowledge under IRC Section 6672 jurisprudence — if an officer knew of the obligation and knew entity funds were being used elsewhere, that supports a finding of willfulness.

Louisiana Withholding Tax

Governed by R.S. 47:111 et seq., employers must withhold Louisiana income tax from wages. Effective January 1, 2025, Louisiana has a flat 3% individual income tax rate. Withholding returns and payments are due quarterly, monthly, or semi-monthly, depending on the amounts withheld, and must be made electronically.

Corporate Income Tax

Effective January 1, 2025, Louisiana imposes a flat 5.5% corporate income tax rate. The corporate franchise tax is being phased out, with full repeal effective January 1, 2026.

License Suspension

Under R.S. 47:1676 et seq., LDR may suspend occupational, professional, driver's, and hunting/fishing licenses for delinquent liabilities over $1,000.

Cease Business Order

Under R.S. 47:1574.1, if a dealer fails to pay collected tax, the Secretary may order a business to cease operations entirely.

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Review My Louisiana Business Tax Debt

Sales tax and payroll withholding problems carry more risk for business owners. If LDR believes tax was collected or withheld but not paid, don't treat it like ordinary income tax debt — responsible person liability, cease business orders, and license suspension are real risks.

Review My Louisiana Business Tax Debt

No guarantee of outcome. We review your facts and explain your options.

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Louisiana Unfiled Tax Returns

If you haven't filed Louisiana returns for one or more years, that can block most resolution options. LDR may estimate your tax and assess based on those estimates — sometimes higher than what you actually owe. Filing accurate returns can sometimes reduce an incorrect balance, but rushing or filing bad returns isn't the answer.

Why Filing Matters

Unfiled returns block eligibility: They disqualify you from OICs and payment plans.
Substitute returns: LDR may file one for you at a higher tax than you actually owe.
Penalty relief: Generally, all returns must be filed first.
Prescription: It won't start until you file, and R.S. 47:1579 waives it entirely for non-filers.

Louisiana Statute of Limitations (Prescription)

Louisiana's approach is unique due to its civil law heritage. Under R.S. 47:1579, there is no prescription running against any state tax, license, excise, interest, penalty, or other charge, except as ordained in the Louisiana Constitution.

Prescription is suspended by:

The Secretary's assessment action
Filing a summary proceeding in court
Filing any pleading with the BTA or any court; filing a false or fraudulent return
A written agreement between the taxpayer and the Secretary
Bankruptcy, from filing until six months after the case closes (R.S. 47:1580(B)(4)).

Refund prescription (R.S. 47:1623). A refund claim must be filed within 3 years from December 31 of the year the tax was paid, or 1 year from the date of payment, whichever is later. A written extension agreement extends this period accordingly.

Louisiana Assessment Statute of Limitations Detail

Situation	Prescription Period
General rule	3 years from December 31 of the year the tax became due
Omission of more than 25% of tax due	6 years
Fraud or failure to file a return	No prescription (unlimited)

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Louisiana Tax Relief Tools & Resources

Use these official Louisiana resources to view balances, make payments, and understand your obligations, then request a review if the numbers show a growing balance or active collection.

LaTAP (Louisiana Taxpayer Access Point)

LDR's primary online portal for viewing balances, making payments, and requesting payment plans.

Access LaTAP →

Louisiana Tax Penalty & Interest

For 2026: sales/withholding penalties of 5% per 30 days (max 25%); individual income tax penalties of 0.5% per 30 days (max 25%); interest of 10.5% per year (7.5% judicial rate + 3%).

LDR Penalties →

Louisiana Board of Tax Appeals

File appeals, download forms, and review the 60-day deadline. Two divisions: State and Local Tax.

BTA Website →

LDR Collections

Payment plans, OIC, liens, levies, and garnishments. Phone: 855-307-3893.

LDR Collections →

Remote Sellers Commission

For businesses with economic nexus at the $100,000 threshold.

Remote Sellers →

Louisiana Tax Forms

Including Form R-19026 (installment request) and Form R-20128 (penalty waiver).

LDR Forms →

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Louisiana Government Resources

These are the official Louisiana sources for tax information, payment plans, appeals, and rules. Always check the official source for the most current information.

Louisiana Department of Revenue (LDR) — Official tax agency portal
LDR Collections — Collections, payment plans, OIC
LDR Payment Plans — Installment agreement guidance
LDR Offer in Compromise — OIC requirements and one-per-10-year rule
LDR Tax Liens — Lien rules and release procedures
LDR Bank Levy — Levy/distraint information
LDR Wage Garnishment — Wage garnishment rules
LDR Penalties — Penalty waiver rules
LDR Officer Liability — Responsible person rules
LDR General Sales & Use Tax — State sales tax collection
LDR License Suspension — License suspension for unpaid taxes
LDR Successor Liability — Business purchase liability rules
Louisiana Board of Tax Appeals — Independent tax appeals body
BTA FAQ — Filing requirements and procedures
LA Remote Sellers Commission — Remote seller registration
Louisiana Revised Statutes Title 47 — Complete tax laws

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Not Sure What to Do With Your Louisiana Tax Situation?

Received a Notice of Assessment

Review the 60-day appeal deadline to the Board of Tax Appeals. Missing it makes the assessment final and collectible by distraint.

Jump to Appeals Section →

Considering an Offer in Compromise

Louisiana allows OICs, but only one per 10 years. The $186 fee and 20% down payment mean the application must be right the first time.

Jump to OIC Section →

Cannot Pay in Full

Review payment plan options and whether an OIC is realistic.

Jump to Payment Plan Section →

Penalties or Interest Are the Main Issue

Penalty waiver is available for reasonable cause, and interest abatement for LDR errors, but tax and other penalties must be paid first.

Jump to Penalty Relief Section →

Lien, Levy, or Garnishment Started

Act immediately. Louisiana may levy without advance notice.

Jump to Lien Section → | Jump to Levy Section → | Jump to Garnishment Section →

Parish Sales Tax Issues

64 parishes each self-collect, each with its own rules and deadlines.

Jump to Parish Sales Tax Section →

Business Sales or Payroll Tax Debt

Responsible persons face personal liability, cease business orders, and risk license suspension.

Jump to Business Tax Section →

Unfiled Tax Returns

File accurate returns before applying for an OIC, payment plan, or penalty relief.

Jump to Unfiled Returns Section →

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Frequently Asked Questions About Louisiana Tax Relief

Does Louisiana have an offer-in-compromise program?

Yes. Louisiana's OIC program operates under R.S. 47:1578, but a taxpayer may have only one OIC approved in a ten-year period per LAC 61:I.5302.F.1. The application requires a nonrefundable $186 fee and a 20% down payment on the amount offered. LDR approves an OIC when the offer represents the most the department can reasonably expect to collect. All required returns must be filed first, and because of the ten-year limit, the application needs to be right the first time.

What is Louisiana's sales tax rate?

The state rate is 5%, effective January 1, 2025, through December 31, 2029 (dropping to 4.75% on January 1, 2030). Louisiana's combined state-and-local rate — up to 10.11% — is among the highest in the country, since each of the 64 parishes independently sets and collects its own local sales and use tax. LDR handles only the state portion.

Can Louisiana levy without notice?

Yes. Under R.S. 47:1569–1570, LDR may levy bank accounts, wages, and other property through "distraint and sale" without advance notice. Financial institutions must remit available funds to LDR by law. Distraint covers goods, chattels, effects, stocks, securities, bank accounts, wages, real estate, and other property. If your account has been levied, act immediately.

How does Louisiana's parish sales tax system work?

Louisiana's system is one of the most complex in the country. LDR collects only the state-level sales tax; each of the 64 parishes independently administers and collects its own local sales and use tax, sometimes through parish sheriffs, police juries, school boards, or dedicated tax departments. Businesses selling in multiple parishes may need to file separately with each one. Remote sellers register with the Louisiana Sales and Use Tax Commission for both state and local collection.

How long do I have to appeal a Louisiana tax assessment?

60 calendar days from the date of the Notice of Assessment to pay or appeal to the Board of Tax Appeals under R.S. 47:1565. Miss it, and the assessment becomes final and collectible by distraint and sale. Filing within the deadline stays collection until the BTA renders a final decision. Local sales/use tax assessments carry the same 60-day window to the BTA Local Tax Division.

Can I get a payment plan for Louisiana state taxes?

Yes. Individual taxpayers can use a six-month installment plan via Form R-19026 or LaTAP, with monthly payments equal to one-sixth of the total balance. Interest and delinquent penalty continue to accrue during the plan — for 2026, interest runs at 10.5% per year. Payments can start even before formal approval. Arrangements are also available through the Office of Debt Recovery. All required returns must be filed first.

Can Louisiana waive penalties?

Yes, under R.S. 47:1603, for failures not due to negligence but to reasonable cause set out in writing. The taxpayer must be current on filings and pay all tax, non-waived penalties, fees, and interest first. Combined penalties of $100 or more require a notarized affidavit with two witnesses or Form R-20128. The Secretary can waive up to $25,000 without BTA review, and prior waivers are a significant factor in new requests.

Can Louisiana suspend my driver's license for unpaid taxes?

Yes. Under R.S. 47:1676 et seq., LDR may suspend occupational, professional, driver's, and hunting/fishing licenses for delinquent liabilities exceeding $1,000, in addition to liens, levies, and garnishments.

What is the statute of limitations on Louisiana tax debt?

Under R.S. 47:1579, there's no prescription against state tax except as set by the Louisiana Constitution. Assessments generally prescribe three years from December 31 of the year the tax became due, or six years if more than 25% of the tax was omitted. There's no prescription for fraud or failure to file, and the prescription is suspended during bankruptcy. This "no prescription" rule means Louisiana tax debt can persist far longer than in many other states.

What is the interest rate on unpaid Louisiana taxes?

Under R.S. 47:1601, interest runs three points above the judicial interest rate set under R.S. 9:3500(B)(1). For 2026, the judicial rate is 7.5%, putting LDR's unpaid-tax interest rate at 10.5% per year — down from 11.25% in 2025. This remains one of the highest state interest rates in the country and can cause balances to grow quickly.

Can Louisiana hold business officers personally liable for unpaid taxes?

Yes, under R.S. 47:1561.1, if a corporation, LLC, or limited partnership fails to remit collected sales or withholding taxes. Officers, directors, managers, or members with direct control who willfully fail to remit are personally liable for the full amount. Three criteria must be met: the entity failed to remit collected taxes; the officer had direct control or filing responsibility; and the failure was willful. The corporation must have actually collected the tax — officers aren't liable for audit-determined amounts never actually collected. Louisiana courts have generally treated "willfulness" as consistent with knowledge under IRC Section 6672 jurisprudence.

Can Louisiana file a tax lien?

Yes, under R.S. 47:1577, covering tax, penalties, interest, and fees, filed as a lien, privilege, and mortgage on all the taxpayer's property. LDR may file without notice at any time in the state's best interest. Release requires paying tax, interest, penalties, and lien fees; partial releases are possible but require BTA approval. Request a payoff using Form R-19023.

Can Louisiana levy a bank account?

Yes, under R.S. 47:1569–1570, without advance notice. The financial institution must remit available funds by law, multiple levies are possible if the liability isn't satisfied, and business accounts aren't exempt. If levied, contact Special Collections at 855-307-3893 immediately.

Can Louisiana garnish wages for state taxes?

Yes, under R.S. 47:1569–1570, covering wages, salaries, bonuses, and commissions. The employer deducts a specified amount each pay period until the debt is satisfied, and must comply by law.

What if I have unfiled Louisiana tax returns?

Unfiled returns can block OICs and payment plans. LDR may estimate and assess based on those estimates, sometimes resulting in amounts higher than what's actually owed. Under R.S. 47:1579, there's no prescription for failure to file, so the debt can persist indefinitely. Get accurate returns prepared rather than rushing or filing incomplete ones.

How does Louisiana's civil law system affect tax collection?

Louisiana is the only U.S. state under a civil law jurisdiction, based on French and Spanish civil law rather than English common law. This shapes both interpretation and terminology — "prescription" for statute of limitations, "distraint" for levy or seizure, "petition" for complaint. The "no prescription" rule in R.S. 47:1579 is itself a civil-law concept that makes Louisiana tax debt unusually long-lived.

What is Louisiana's individual income tax rate?

Effective January 1, 2025, Louisiana has a flat 3% individual income tax rate, down from the prior 1.85%, 3.5%, and 4.25% brackets. Corporate income tax is a flat 5.5%, also effective January 1, 2025, and the corporate franchise tax is being phased out with full repeal on January 1, 2026.

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Sources Used

These are the official government sources used for this page. Always check the current official source for the most up-to-date information.

Louisiana Department of Revenue — Official Portal: revenue.louisiana.gov ↗
LDR — Collections — Payment Plans, OIC, Liens, Levies: revenue.louisiana.gov/collections ↗
LDR — Offer in Compromise: revenue.louisiana.gov/collections/general-sources/offer-in-compromise ↗
LDR — Installment Agreements: revenue.louisiana.gov/collections/general-sources/installment-agreements-payment-plans ↗
LDR — Tax Liens: revenue.louisiana.gov/collections/general-sources/liens ↗
LDR — Bank Levy: revenue.louisiana.gov/collections/general-sources/bank-levy ↗
LDR — Wage Garnishment: revenue.louisiana.gov/collections/general-sources/wage-garnishment ↗
LDR — Penalties: revenue.louisiana.gov/collections/general-sources/penalties ↗
LDR — Officer Liability: revenue.louisiana.gov/collections/business-tax-enforcement/officer-liability ↗
LDR — License Suspension: revenue.louisiana.gov/collections/individual-collections/suspension-of-license ↗
LDR — Successor Liability: revenue.louisiana.gov/collections/business-tax-enforcement/successor-liability ↗
Louisiana Board of Tax Appeals — Main Site: labta.louisiana.gov ↗
LAC 61:I.5302 — OIC and Lien Rules: www.law.cornell.edu/regulations/louisiana/La-Admin-Code-tit-61-SS-I-5302 ↗
LAC 61:III.2101 — Penalty Waiver: www.law.cornell.edu/regulations/louisiana/La-Admin-Code-tit-61-SS-I-2101 ↗
LAC 61:I.4901 — Officer Liability: www.law.cornell.edu/regulations/louisiana/La-Admin-Code-tit-61-SS-I-4901 ↗
R.S. 47:1565 — Appeals: law.justia.com/codes/louisiana/revised-statutes/title-47/rs-47-1565 ↗
R.S. 47:1601 — Interest: www.legis.la.gov/legis/Law.aspx?d=101290 ↗
R.S. 47:1602 — Penalties: legis.la.gov/Legis/Law.aspx?d=101291 ↗
LDR — General Sales & Use Tax: revenue.louisiana.gov/businesses/sales-taxes/general-sales-use-tax ↗
LA Remote Sellers Commission — Registration: remotesellers.louisiana.gov ↗
Louisiana Revised Statutes Title 47 — Complete Tax Laws: www.legis.la.gov/legis/Laws_Toc.aspx?folder=121&title=47 ↗

Disclaimer: This page provides general information about Louisiana state tax collection procedures and is not legal advice. Tax laws and agency procedures change. Louisiana is a civil law jurisdiction — do not assume common-law concepts apply. Always consult the official Louisiana Department of Revenue website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for payment plans, OICs, penalty relief, and other resolutions is discretionary.