Louisiana Sales Tax License Revocation / Business
Shutdown Checklist
If your Louisiana sales tax license has been revoked or suspended, or if you are closing a business that holds one, understanding what this means and the steps that follow are essential. A sales tax license revocation or suspension is a serious administrative action taken by the Louisiana Department of Revenue when specific conditions occur. This typically happens due to unpaid sales taxes, failure to file required returns, or violation of sales and use tax regulations.
Understanding this process matters because ignoring it can lead to additional penalties, collection actions, and legal consequences. Knowing what happens next and what your tax obligations are helps you address the situation clearly and avoid making it worse.
This checklist explains the administrative process without offering advice or strategy so that you can take appropriate action.
What This Issue Means
A sales tax license revocation or suspension is an official action that cancels or temporarily removes your legal permission to collect and report sales tax in Louisiana.
When your license is revoked or suspended, you are no longer authorized to operate as a sales tax collector for the state. This action represents a compliance failure, typically due to unpaid tax debt, missing tax returns, or failure to comply with Louisiana sales and use tax laws.
In some cases, a business shutdown occurs when the license expires naturally or when a business owner chooses to close operations. In other instances, revocation or suspension is involuntary and issued by the state as an enforcement action. Both situations require specific steps to resolve the matter with the Louisiana Department of
Revenue.
Why the State Issued This or Requires This
The Louisiana Department of Revenue revokes or suspends sales tax licenses based
on specific administrative triggers. Common reasons include the following
- Unpaid sales tax debt: The business owes sales taxes that remain unpaid for an
extended period.
- Failure to file tax returns: Required sales tax returns were not filed by their
deadlines.
- Non-payment of penalties or interest: Accumulated payment penalties and
interest remain unpaid.
- Violation of tax regulations: The business failed to comply with the Louisiana
sales tax law.
- Failure to respond to notices: The business did not respond to previous state
notices or demands.
The state uses license suspensions and revocations as tax-collection tools to encourage compliance and protect future tax revenue. When a business voluntarily closes, the owner is responsible for notifying the state and filing final tax returns. The specific process the state uses to decide when to suspend or revoke a license is not
fully detailed in publicly available guidance, so if you need details about why your particular license was affected, you will need to contact the Department of Revenue directly.
What Happens If This Is Ignored
If a revoked or suspended license is ignored, the Louisiana Department of Revenue typically continues collection efforts through its Collection Division. This may include the
following
- Increased debt accumulation: Additional penalties and interest continue to accrue
on unpaid taxes according to Louisiana law.
- Collection actions: The state may place the account with a collection agency or
pursue other collection methods.
- Legal action: In some cases, the state may pursue legal remedies, including liens
or wage garnishment.
- Criminal referral: Severe or repeated violations may result in referral for criminal
prosecution under Louisiana Revised Statute 47:1642, which provides for fines up to $2,000 and imprisonment up to two years when the total actual tax exceeds
$1,000.
The state typically does not automatically reinstate a revoked or suspended license.
Reinstating the license generally requires the taxpayer to address the underlying issue, usually by paying the outstanding tax debt, penalties, and interest, or by entering into a payment agreement.
What This Does NOT Mean
A revoked or suspended sales tax license does not mean the following
- You are immediately arrested or criminally charged: License revocation or
suspension is an administrative action, not an automatic criminal process.
- Your personal assets are automatically seized: The state must follow specific
legal procedures before taking collection action against personal or business property.
- Your business is permanently closed: You may be able to apply for reinstatement
or closure if you resolve the underlying tax issue.
- All your tax obligations disappear: You remain responsible for all owed sales
taxes, penalties, and interest, even after the license is revoked or suspended.
A revoked or suspended license means you are no longer authorized to collect sales tax. It does not automatically trigger criminal prosecution or the seizure of personal assets, though further collection action may be taken if the debt remains unpaid.
Checklist: What to Do After Receiving a License
Revocation or Suspension Notice
Step 1: Locate Your Revocation or Suspension Notice or Documentation
Check all mail received from the Louisiana Department of Revenue. Look for notices labeled "License Revocation," "License Suspension," "Notice of Revocation," or similar.
Note the date on the notice and any deadline mentioned.
Save the original notice in a safe place with your financial records. If you cannot find the notice, contact the Department of Revenue to request a copy.
Step 2: Identify Your Current Account Status
Contact the Louisiana Department of Revenue. Ask specifically if your sales tax license has been revoked or suspended. Request a copy of your current account status and balance owed.
Ask what specific reason led to the revocation or suspension. Request written confirmation of the current debt amount, including taxes, penalties, and interest.
Contact Information: Louisiana Department of Revenue: 855-307-3893 (Monday through Thursday 8:00 AM to 4:20 PM; Friday 9:00 AM to 4:20 PM). Online: revenue.louisiana.gov. You may also access the Louisiana Taxpayer Access Point for account information.
Step 3: Review All Outstanding Tax Debt
Request a detailed account history from the state showing all owed amounts. Identify the tax periods involved (which months or quarters the debt covers). Note the breakdown of taxes, payment penalties, and interest owed.
Check for any notices you may have missed previously. Confirm whether the debt is current or if additional amounts have been added, including any delinquent penalty assessments.
Step 4: Determine If Your Business Is Still Operating
Clarify whether you are permanently closing the business or continuing operations. If closing, note the intended final date of business operations. If continuing, understand that you cannot legally collect sales tax without an active license.
Document any sales made after the revocation or suspension (the state may need this information). Review your business registration status with the Louisiana Secretary of
State if you are closing permanently.
Step 5: Gather Required Documentation
Collect all sales tax returns filed for the past three years. Gather bank statements and financial records showing business revenue and expenses. Locate records of any tax payments made to the state after the revocation or suspension.
Compile proof of business closure (if applicable), such as lease termination notices or business license cancellation documents. Keep copies of all correspondence with the
Louisiana Department of Revenue.
Step 6: Contact the Department of Revenue to Discuss Resolution Options
Call the Department of Revenue or visit a local office in person (offices are located in
Baton Rouge, New Orleans, Lafayette, Shreveport, Monroe, and Alexandria). Explain your situation clearly and factually. Ask what options are available to resolve the revocation or suspension.
Inquire about payment plans or installment agreements if you cannot pay in full. Ask about hardship provisions or penalty abatement if applicable (noting that under Revised
Statute 47:1603, delinquent filing or payment penalties may be waived, and LAC
61:III.2101 describes the conditions for a waiver)—request written confirmation of any agreement or plan discussed.
Step 7: If You Cannot Pay the Full Amount Owed
Ask the state about establishing a payment plan or installment agreement. Provide detailed financial records if requested by the state. Note that a down payment may be required (though not mandatory for all tax types).
The Department of Revenue may require monthly tax payments by automatic bank draft. Request written confirmation of any payment agreement in writing.
Step 8: If Your Business Is Closing
Request guidance on filing a final sales tax return using the appropriate tax filing software or the Louisiana File Online system. According to Louisiana Administrative
Code 61:I-4357, if a dealer discontinues business, the dealer is required to file a final return and make payment within 15 days after the date of selling or quitting business.
Ask when the final return must be filed and how to submit it.
You may need to complete a Request to Close Business Tax Accounts or similar forms.
Clarify any tax obligations after the business closes. Confirm whether the Department of
Revenue will automatically cancel the license.
Step 9: File Any Missing or Outstanding Returns
Determine which sales tax returns have not been filed. Locate sales records for those periods. Calculate the sales tax owed for each unfiled period.
File the missing tax returns with the Department of Revenue through the Louisiana
Taxpayer Access Point or other approved filing methods. Include any payment if possible, or note that payment will follow if using a plan.
Step 10: Document All Communication with the State
Keep copies of every phone call, email, or in-person visit with the state. Record the date, time, person's name, and topic discussed. Save all emails or written correspondence from the Louisiana Department of Revenue.
Note any promises, agreements, or next steps discussed verbally. Follow up with written confirmation of verbal agreements to ensure legal protection.
- Do not ignore any notices or deadlines given by the Louisiana Department of
- Do not discard business records, bank statements, or correspondence with the
- Do not send random payments without confirming with the state that a payment
- Do not collect or attempt to report sales tax after your license has been revoked
- Do not assume the revocation or suspension will be lifted without action. The
- Do not avoid contact with the Department of Revenue; communicating directly
- Do not rely solely on verbal agreements with state staff; always request written
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 11: Follow Up on License Reinstatement or Closure
Ask the Department of Revenue about the tax return timeline ( if applicable). Once a taxpayer complies with all tax obligations, the Department of Revenue will notify the appropriate license-issuing agency, and a clearance letter will be issued. The license-issuing agency may charge a fee for license reinstatement.
If closing your business in Louisiana, you may also need to file an Affidavit to Dissolve or similar documents with the Louisiana Secretary of State, depending on your business structure (such as an Operating Agreement for LLCs or articles of organization).
Request written confirmation when the issue is fully resolved. Keep all final documentation for your records.
What Happens After This Is Completed
After you complete these steps and address the underlying issue, the Louisiana
Department of Revenue typically follows standard administrative processes. If you have paid the owed taxes, penalties, and interest in full, the state usually processes the payment and updates your account status. Payment processing times vary: tax payments must be verified by the bank before posting to your account, which may take a few days.
Some payments require manual review and take longer to process. If you have established a payment plan, the state monitors your account to ensure payments are made on schedule. Missing a payment may result in collection action or the revocation or suspension remaining in place.
If your business is closing, the Department of Revenue typically issues a final notice confirming that the license has been canceled and that all tax obligations have been resolved (once the debt is satisfied). In some cases, the state may issue a follow-up notice requesting additional information or clarification. Responding promptly to any follow-up communication is essential to avoid further enforcement action.
Common Mistakes to Avoid
Revenue. Failing to respond to state notices typically results in further collection action. If the state requests additional information or documentation, provide it by the stated deadline. state. plan has been approved. or suspended; operating without an active business license violates state law and can trigger additional penalties. state typically requires specific steps (such as payment, filing tax returns, or establishing an agreement) before reinstatement. about your situation is typically the most effective way to resolve your problem. confirmation of any payment plans, agreements, or promises. If you need assistance understanding your tax obligations or navigating the process, consider consulting a tax professional familiar with Louisiana government procedures.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement and are unsure how to respond, our team can help you understand your options and next steps.
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