Louisiana Notice of Wage Garnishment Checklist
Louisiana tax wage garnishment is a legal process where the Louisiana Department of Revenue requires your employer to withhold money directly from your paycheck to satisfy unpaid state tax debts. This enforcement action occurs when you have not paid state income tax, sales tax if self-employed, or other state tax obligations after previous collection attempts.
What This Action Means
Louisiana enforces tax collection through distraint under Louisiana Revised Statutes 47:1569, which authorizes the collector to proceed with collection by distraint and sale when any taxpayer fails to pay assessed tax, penalty, and interest. Wage garnishment is one enforcement mechanism within this distraint framework.
Your employer receives an order requiring them to deduct a specified amount from your disposable earnings and send that money to the state. The Louisiana Department of Revenue may garnish your wages, salaries, bonuses, commissions, and other compensation from your employer.
Why the State Takes This Action
The Louisiana Department of Revenue sends a Notice of Tax Due before enforcement actions begin, giving you an opportunity to resolve the balance. Failure to respond to or pay this notice triggers additional collection steps.
What Happens If You Do Not Respond
Your employer will begin withholding the amount specified and will send that money to the state. This withholding continues until the tax debt is paid in full, a payment plan is established and honored, or a legal action changes the order.
Penalties and interest will continue to accrue on any unpaid balance under Louisiana Revised Statute 47:1603, which provides that penalties begin at five percent of the tax owed and increase by five percent every thirty days, up to a maximum of twenty-five percent. Louisiana law allows garnishment of up to twenty-five percent of your disposable earnings for any week under Louisiana Revised Statutes 13:3881.
What This Action Does Not Mean
Federal law under Title III of the Consumer Credit Protection Act prohibits employers from discharging an employee solely because of one wage garnishment. Louisiana state law does not provide additional employment protections beyond federal law.
Checklist: What to Do After Receiving Notice
Step 1: Read All Documents Carefully and Locate Key Information
Look for the total amount owed, the tax year or period the debt covers, a case or reference number, and contact information for the Louisiana Department of Revenue Collection Division. Keep the entire document in a safe place with your other tax records.
Step 2: Gather Your Tax Records
Collect your original state tax return for the year mentioned, any payment receipts or cancelled checks showing tax payments you made, bank statements showing deposits or transfers related to tax payments, and any previous notices from Louisiana about this tax debt. You may need these documents to verify what you owe or to negotiate with the state.
Step 3: Verify the Amount and Tax Year
Compare the amount on the notice to what you reported on your state tax return, any payments you made to Louisiana, and previous collection notices you received. Document the reason you think there is an error if the amount seems wrong or if you believe you already paid this debt.
Step 4: Check Your Current Employment Status
Confirm you are currently employed with the employer listed in the garnishment order and that your employer is the correct one if you have changed jobs since the debt occurred. Your employer should receive the garnishment order directly from the state.
Step 5: Contact the Louisiana Department of Revenue
Call the Collection Division at 1-855-307-3983 and provide your case or reference number. Ask the state to confirm the exact amount you owe, confirm whether this debt is for income tax, sales tax, or another tax type, and ask whether you can set up a payment plan instead of wage garnishment.
Step 6: Explore Payment Plan Options
Individual income taxpayers may submit Form R-19026, Installment Request for Individual Income, and businesses may submit Form R-20001 to enter into a payment plan. Ask whether agreeing to a plan will stop the wage garnishment, what the monthly payment amount would be, whether penalties and interest will continue to accrue during the plan, and how long the payment plan would last.
A down payment of twenty percent of the total amount due is required for approval of an installment agreement. Get any payment plan agreement in writing and keep it with your records.
Step 7: Exercise Your Legal Rights
Louisiana law provides taxpayers with sixty calendar days from the date of the notice to either pay the amount of the assessment or file a written protest under Louisiana Revised Statutes 47:1561. You may also petition the Board of Tax Appeals within thirty days of receipt of a notice related to a seizure, levy, garnishment, offset, or other collection action under Louisiana Revised Statutes 47:1561.
Step 8: Confirm Details With Your Employer
Ask your employer’s payroll or human resources department to confirm they received the order, when the withholding will begin, and how much will be withheld from each paycheck. Request a copy of any documentation your employer received from Louisiana.
Step 9: Keep All Communications With the State
Save the original notice, any written responses you send to the state, copies of payment plan agreements, confirmation numbers or case numbers from phone calls, and dates and names of state employees you speak with. This creates a record in case there are disputes later.
Step 10: Continue Making Required Payments
Make payments on time if you and the state agree on a payment plan, keep proof of each payment, and follow the plan exactly as written. The garnishment will continue if no payment plan is in place.
Common Mistakes to Avoid
● Not responding to the Notice of Tax Due or contacting the state before garnishment begins can result in automatic enforcement without your input.
● Assuming the amount is correct without verifying it against your records may cause you to pay more than you actually owe.
● Changing jobs and not informing the state about your new employer leaves the debt unresolved and may lead to garnishment at your new workplace.
● Ignoring a payment plan agreement or missing payments can trigger additional enforcement actions or end the plan.
● Throwing away notices or follow-up letters from the state eliminates your ability to prove what was communicated or when deadlines occurred.
Frequently Asked Questions
Can my employer fire me because of this garnishment?
Federal law under the Consumer Credit Protection Act prohibits employers from discharging an employee solely because of one wage garnishment. Louisiana state law does not provide additional employment protections beyond federal law.
Does this garnishment appear on my credit report?
While the wage garnishment order itself may not be directly reported to credit agencies, unpaid state tax debts can result in tax liens, which are public records and may appear on credit reports.
Can I dispute the amount?
You have sixty calendar days from the date of the notice to file a written protest under Louisiana Revised Statutes 47:1561. You may also petition the Board of Tax Appeals within thirty days of receipt of a notice related to garnishment.
What if I already paid this tax debt?
Tell the state immediately and provide copies of your payment receipts, cancelled checks, or bank statements showing the payment.
How long will the garnishment last?
The garnishment continues until the tax debt is paid in full, a payment plan is established and honored, or a legal decision changes or removes the order.
Louisiana tax wage garnishment is a serious enforcement action that requires immediate attention. Understanding the distraint process and what steps are available puts you in a better position to resolve the debt.
Received a State Tax Notice?
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
