Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part III - Administrative and Miscellaneous Provisions › Chapter 21 - Interest and Penalties › Section III-2103 - Voluntary Disclosure Agreements

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions. For purposes of this Section,
				the following terms have the meanings ascribed to them.
Applicant
- any association, corporation,
				  estate, firm, individual, joint venture, limited liability company,
				  partnership, receiver, syndicate, trust, or any other entity, combination or
				  group that submits or arranges through a representative for the submission of
				  an application to request a voluntary disclosure agreement for a tax
				  administered by the department. If the application is submitted through a
				  representative, anonymity of the
applicant
can be maintained
				  until the voluntary disclosure agreement is executed by the taxpayer and the
				  secretary.
Application
- a completed "application to
				  request voluntary disclosure agreement" (Form R-60010) or an "application for
				  multistate voluntary disclosure" filed with the Multistate Tax Commissions
				  National Nexus Program and all supplemental information including, but not
				  limited to, cover letters, schedules, reports, and any other documents that
				  provide evidence of the applicants qualification for a voluntary disclosure
				  agreement. Supplemental information requested by the department and timely
				  provided by the applicant shall be considered part of the
application
.
Application Date
- the date a fully
				  completed application requesting a voluntary disclosure agreement is received
				  by the department. Supplemental information requested by the department and
				  timely provided by the applicant shall not extend or delay the
application date
.
Delinquent Penalty
- any specific penalty
				  imposed pursuant to
				  R.S.
				  47:1603 or 1604.1 as a result of the failure
				  of the taxpayer to timely make any required return or payment.
Department
- the Louisiana Department of
				  Revenue.
Look-Back Period-
a period for which a
				  qualified applicant agrees to disclose and pay the tax and interest due. The
look-back period
shall be as follows.
a. Except as provided in Subparagraphs b
				through e, the
look-back period
shall include the current
				calendar year up to the date of registration with the department and the three
				immediately preceding calendar years.
b. For taxes collected or withheld and not
				remitted, the look-back period shall include all periods in which tax was
				collected or withheld and not remitted. This look-back period shall not affect
				the look-back period described in Subparagraph a. of this Paragraph for
				undisclosed liabilities unrelated to tax collected or withheld and not
				remitted.
c. For discontinued,
				acquired, or merged entities, the look-back period shall include undisclosed
				liabilities in the last calendar year in which the qualified applicant had
				nexus within this state and the three immediately preceding calendar
				years.
d. For withholding taxes
				associated with misclassified employees, the look-back period shall include the
				current calendar year up to the date of the application and the three
				immediately preceding calendar years. This look-back period shall not apply to
				any taxes actually withheld from an employee and not remitted.
e. The secretary and the applicant may agree
				to adjust a look-back period to include other years.
f. The look-back period(s) shall be
				established at the time the secretary or his authorized representative signs
				the voluntary disclosure agreement.
Misclassified Employees-
a class or classes
				  of workers who were consistently treated as independent contractors or other
				  non-employees by the taxpayer for the previous three years and for which the
				  taxpayer filed all required IRS Forms 1099-NEC, 1099-MISC or equivalent form,
				  consistent with the non-employee treatment.
Non-Qualified Applicant
- includes any
				  taxpayer who:
a. is registered with the
				department as of the application date but failed to file returns or
				underreported the amount due for a tax for which a voluntary disclosure
				agreement is requested;
b.
				submitted returns, extensions, payments, or was registered more than 60 days
				prior to the application date for a tax for which a voluntary disclosure
				agreement is requested;
c. has been
				contacted by the department concerning a liability regarding a tax for which a
				voluntary disclosure agreement is requested, including but not limited to a
				potential liability or contact for the purpose of performing an audit of the
				taxpayers records; or
d. is
				affiliated with another entity that has been contacted by the department for
				the purpose of performing an audit of the affiliated entity's records. A
non-qualified applicant
under this subparagraph may become a
				qualified applicant after the audit of the affiliated entity has been
				completed, provided the applicant is not disqualified under the criteria listed
				in Subparagraphs a through c of this Paragraph.
Qualified Applicant-
any taxpayer subject to
				  the reporting and payment of a tax imposed by the state of Louisiana that is
				  not disqualified under Subsection B of this Section.
Secretary
- the
secretary
of the Louisiana Department of Revenue and any duly authorized
				  representative(s).
Signing Date
- the date the voluntary
				  disclosure agreement is signed by the secretary or his authorized
				  representative.
Undisclosed Liability
- a tax liability that
				  became due during the look-back period and which has not been determined,
				  calculated, researched, identified by or known to the department at the time of
				  disclosure and which would likely not be discovered through normal
				  administrative activities. The
undisclosed liability
must
				  exceed $500 during the look-back period to qualify for consideration of a
				  voluntary disclosure agreement. The secretary has the discretion to conduct an
				  audit of the applicants records to confirm the amount of the
undisclosed liability
.
Voluntary Disclosure Agreement
- a
				  contractual agreement between a qualified applicant and the secretary wherein
				  the qualified applicant agrees to pay the tax and interest due on an
				  undisclosed liability, and the secretary agrees to remit or waive payment of
				  the whole or any part of the penalty associated with that liability and to
				  restrict collection of prior liabilities to the look-back period, except for
				  periods in which tax was collected and not remitted.
Withholding Tax-
income tax that is required
				  to be deducted or withheld by an employer from the wages paid to an employee in
				  accordance with
				  R.S.
				  47:112.