Louisiana Unfiled Payroll Tax Returns Checklist
Unfiled payroll tax returns occur when an employer or business entity does not submit required quarterly or annual payroll tax filings to the Louisiana Department of Revenue.
Payroll tax obligations include withholdings for state income tax, unemployment insurance, and other mandatory employer contributions. These returns must be filed on specific state-mandated dates, regardless of whether tax payments were made.
When returns remain unfiled, the state typically initiates a compliance process that may include notices, penalties, interest, and collection actions. Understanding what unfiled payroll returns mean and how Louisiana handles them can help you take appropriate action. Ignoring unfiled tax returns generally leads to escalating delinquent penalty charges, increased tax debt, and potential enforcement activity that becomes harder to resolve over time.
What This Issue Means
An unfiled payroll tax return means that your business has not submitted the required state payroll tax filing for one or more reporting periods. Louisiana requires employers to file specific payroll tax forms based on the type of tax and reporting period. This is separate from actually paying the taxes owed: a return can be unfiled even if tax payments were made to the state.
The Louisiana Department of Revenue tracks filings through its database. When a return for a required period is missing, your account is flagged as non-compliant.
Louisiana employers must file Form L-1 (Employer's Quarterly Return of Louisiana
Withholding Tax) every quarter, and the due date falls on the last day of the month following the end of each calendar quarter.
Additionally, employers must file Form L-3 (Annual Reconciliation of Income Tax
Withheld) by January 31 each year. This annual reconciliation serves as a cover letter for submitting copies of Federal Form W-2 to the Louisiana Department of Revenue.
Why the State Issued This or Requires This
Louisiana requires payroll tax returns to monitor employer compliance and collect state taxes. Employers are responsible for withholding taxes from employee wages and remitting them to the state. The filing requirement ensures the state can verify that correct amounts were withheld and that no employee or employer taxes were missed.
If you do not file, the state cannot confirm compliance. According to the Louisiana
Department of Revenue guidance, filing requirements exist to maintain accurate tax records and protect both employees and state revenue. When returns are not filed, the state initiates a notice process to encourage compliance and may eventually pursue collection.
What Happens If This Is Ignored
If unfiled payroll tax returns are not addressed, the state typically sends escalating notices requesting compliance. The delinquent penalty generally begins to accrue on unfiled returns. The penalty starts at 5% of the tax owed and increases by 5% every 30 days, up to a maximum of 25% of the total unpaid taxes.
According to Louisiana state tax procedures, the state may estimate taxes owed based on prior reporting if returns remain unfiled for extended periods. Additional enforcement actions, such as wage garnishment, asset seizures, bank account levies, or business license suspensions, may be taken if the issue remains unresolved. The longer returns remain unfiled, the larger your total tax debt typically becomes due to accumulated penalties and interest.
Interest accrues on unpaid taxes from the due date until payment is received. Louisiana adjusts its interest rate annually under Louisiana Revised Statutes 47:1601. For 2026, the rate is 10.5% per year. This rate may change in future years based on statutory formulas set by the Louisiana government.
In severe cases of continued non-compliance, the Louisiana Department of Revenue may pursue a tax lien against your property or business assets. A tax lien is a legal claim against your assets to secure payment of tax debt.
What This Does NOT Mean
An unfiled return does not automatically mean that taxes are owed or that a bank levy has been placed on your bank account. It does not mean you are being criminally prosecuted. An unfiled return notice does not mean your business license has been suspended, though it may be in jeopardy if compliance is not achieved.
The state has not yet assessed final taxes or taken collection actions simply because a return is unfiled. Receiving notice of unfiled returns is part of the state's standard compliance process, not a sign that enforcement proceedings have begun. The
collection process involves multiple stages of notices and opportunities to respond before escalating to enforcement.
Checklist: What to Do After Identifying Unfiled Payroll Tax
Returns
Follow these steps to address unfiled payroll tax returns
Step 1: Gather payroll records for the unfiled periods.
Locate payroll documentation, wage records, and tax withholding information for each quarter or year the return was not filed. These supporting documents will be essential to completing your tax return accurately.
Step 2: Identify which payroll tax returns are unfiled.
Determine whether the unfiled returns are for quarterly filings (Form L-1), annual reconciliations (Form L-3), or both. Note the specific periods and tax types involved, including any unemployment insurance filings.
Step 3: Contact the Louisiana Department of Revenue.
Reach out to the department to confirm which returns are unfiled and obtain current filing instructions. The department can be reached at 855-307-3893 or through the official Louisiana Department of Revenue website for tax information.
Step 4: Prepare all required payroll tax returns.
Complete the appropriate Louisiana payroll tax forms based on the unfiled periods.
Forms are available on the Louisiana Department of Revenue website and should be completed with accurate taxable income and withholding amounts.
Step 5: Calculate any penalties and interest.
Determine the applicable penalty amounts for the unfiled returns. Louisiana imposes a delinquent penalty of 5% of the tax owed for every 30 days, up to a maximum of 25%.
Interest for 2026 is charged at an annual rate of 10.5% under Louisiana Revised Statute
47:1601.
Step 6: File the overdue returns electronically or by mail.
Submit the completed returns through the Louisiana Department of Revenue's filing system (LaTAP for electronic filing) or by mailing them to the address specified in official state guidance. Electronic filing typically results in faster processing.
Step 7: Keep copies of all filed returns for your records.
Retain proof of filing, including confirmation numbers or receipts, for documentation.
These records will be vital if any disputes arise regarding your tax problems.
Step 8: Monitor your account for acknowledgment.
Check your Louisiana Department of Revenue account or wait for written confirmation that the returns have been received and processed. LaTAP returns are typically processed nightly on business days and completed by the next business day.
Step 9: Address any taxes owed or payment obligations.
If taxes are due and you cannot pay the full amount immediately, contact the state to discuss tax relief options. The Louisiana Department of Revenue may offer a payment plan or installment plan to help you satisfy your tax debt over time.
Step 10: Consider requesting a penalty waiver if applicable.
If the delay was due to reasonable cause rather than negligence, you may request a penalty waiver under Louisiana Revised Statute 47:1603 and LAC 61:III.2101. Submit
Form R-20128 (Request for Waiver of Penalties for Delinquency) electronically with supporting documents explaining the circumstances.
- Not responding to state notices: Ignoring letters or notices from the Louisiana
- Filing incomplete or incorrect returns: Submitting returns with missing information
- Confusing filing with paying: Some taxpayers believe that making tax payments
- Missing the due date specified in state notices: State notices typically include a
- Filing returns without complete payroll records: If records are incomplete or
- Assuming the problem will resolve without action: Unfiled tax returns do not
- Not keeping documentation of what was filed: Maintain records of all returns filed,
- Requesting an extension for already overdue returns: Extensions apply only to
- 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: Establish a system to prevent future unfiled returns.
Set calendar reminders for all future payroll tax filing deadlines to maintain compliance.
Consider working with a tax accountant to ensure proper filing procedures are in place.
What Happens After This Is Completed
After unfiled returns are filed, the Louisiana Department of Revenue will process them.
Processing times vary by filing method: LaTAP returns are typically processed nightly on business days and completed by the next business day, while paper returns take longer.
The state will review the returns for accuracy and completeness.
If the returns are accepted, your account will be updated to reflect compliance for those periods. The state may calculate any taxes, penalties, and interest owed based on the
filed returns. You will generally receive a notice or Louisiana tax bill confirming receipt and any amounts due.
If additional payment is required and you cannot pay the full amount, contact the
Louisiana Department of Revenue to discuss establishing a payment installment plan.
The state offers options to help taxpayers resolve tax debt through structured payment arrangements, though approval depends on your specific circumstances and payment history.
Payment Options for Tax Debt
If you owe taxes after filing your unfiled returns, several payment options may be available. You can pay by check, credit card, or electronic funds transfer through the
Louisiana Department of Revenue payment portal. For smaller amounts, paying in full is typically the best option to stop additional interest from accruing.
For larger tax debts, you may request an installment plan to pay the amount owed over time. Contact the Louisiana Department of Revenue at 855-307-3893 to discuss payment plan options. The state will review your financial situation and may approve a monthly payment arrangement.
If you have both state taxes and federal taxes owed, address each separately. Federal tax issues involving payroll taxes (such as Form 941 obligations) must be resolved with the Internal Revenue Service. In contrast, state payroll tax matters are handled by the
Louisiana Department of Revenue.
Common Mistakes to Avoid
Department of Revenue can cause the issue to escalate and may lead to bank levies or other collection activity. Always acknowledge and respond to official state correspondence within the timeframe provided. or calculation errors may result in rejection. Ensure all required fields are completed accurately before filing, and verify that taxable income and withholding amounts match your payroll records. eliminates the need to file a return. Louisiana requires both filing and payment.
Returns must be submitted even if you think no taxes are owed for the period. deadline for response or filing. Missing this deadline can trigger additional enforcement action and lengthen the collection process. Mark deadlines clearly and respond before they pass. unavailable, contact the state before filing. Filing estimates or incomplete information may result in further correspondence or adjustments, delaying resolution. automatically disappear over time. They require active filing and compliance to resolve, and delaying action only increases penalties and interest. including confirmation of receipt from the state. This protects you if disputes arise later and provides evidence of compliance. returns not yet due. Once a return is overdue, no extension is available under tax rules; you must file immediately and address any penalties separately.
Frequently Asked Questions
How much time do I have to file an overdue payroll tax return once the state notifies me?
The specific timeframe depends on the notice issued by the Louisiana Department of
Revenue. Notices typically specify a deadline. Contact the department at 855-307-3893 to confirm the deadline for your situation and discuss any tax relief options.
If I file the overdue returns, will all penalties be removed?
Filing the returns will stop future penalty accrual for those periods. However, penalties that have already accrued typically remain. The state may consider a penalty waiver through a formal request process using Form R-20128, but this is not automatic and requires showing reasonable cause under LAC 61:III.2101.
Can I file the unfiled returns myself, or do I need a tax accountant?
You may file returns yourself or work with a tax accountant. The Louisiana Department of Revenue website provides forms and instructions for self-filing. There is no requirement to hire a professional, though some taxpayers choose to do so for complex tax problems.
What if I cannot locate my payroll records for the unfiled periods?
Contact the Louisiana Department of Revenue directly. The department may allow you to reconstruct returns based on available records or other documentation. Explain the situation when you contact them to receive appropriate guidance.
Do I need to file unfiled returns if my business has closed?
Yes. Louisiana typically requires unfiled returns to be completed even if the business is no longer operating. The returns cover periods when the company was active. Contact the department for guidance specific to your business closure date.
What is the penalty for an unfiled payroll tax return in Louisiana?
Louisiana imposes a delinquent penalty of 5% of the tax owed for every 30 days the return is late, up to a maximum of 25%. Interest accrues on unpaid taxes at an annual rate that changes yearly (10.5% for 2026 under Louisiana Revised Statute 47:1601).
If I have multiple unfiled returns spanning several years, do I file them all at once?
Yes, you may file multiple unfiled returns in a single submission. Include all overdue returns together. However, contact the Louisiana Department of Revenue beforehand to confirm the proper procedure and any limitations on the number of periods that can be addressed in one filing.
Will filing unfiled returns trigger a tax audit?
Filing unfiled returns does not automatically trigger a tax audit. However, the state may review the returns for accuracy and consistency with other filed returns. If discrepancies are found, additional correspondence may follow requesting clarification or supporting documents.
Facing State Tax Enforcement Action?
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