Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part III - Administrative and Miscellaneous Provisions › Chapter 29 - Louisiana Sales and Use Tax Commission for Remote Sellers › Section III-2905 - Voluntary Disclosure Agreements

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions. For the purposes of this
				Section, the following terms are defined. Any terms not specifically defined
				shall be defined as provided in
				R.S.
				47:339.
Applicant-
any association, corporation,
				  estate, firm, individual, joint venture, limited liability company,
				  partnership, receiver, syndicate, trust, or any other entity, combination or
				  group that has a state or local sales or use tax liability to the commission
				  and submits or arranges through a representative for the submission of an
				  application to request a voluntary disclosure agreement for said undisclosed
				  sales or use tax. Applicants may be registered or unregistered with the
				  commission. If the application is submitted through a representative, anonymity
				  of the applicant can be maintained until the commission accepts the application
				  to request a voluntary disclosure agreement.
Application-
a completed application to
				  request voluntary disclosure agreement or an application for multistate
				  voluntary disclosure filed with the Multistate Tax Commission's 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 applicant's qualification for a voluntary disclosure agreement.
				  Supplemental information requested by the commission 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
				  commission. Supplemental information requested by the commission timely
				  provided by the applicant shall not extend or delay the application
				  date.
Commission
-the Louisiana Sales and Use Tax
				  Commission for Remote Sellers.
Delinquent Penalty-
any specific penalty
				  imposed pursuant to
				  R.S.
				  47:1602, 1604.1, 337.70 or 337.73 as a result
				  of the failure of the taxpayer to timely make any required return or
				  payment.
Look-Back Period-
a period for which an
				  applicant agrees to disclose and pay the tax and interest due.
Signing Date-
the date the voluntary
				  disclosure agreement is signed by the chairman 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 commission 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 commission has the discretion to conduct an audit of the
				  applicant's records to confirm the amount of the undisclosed liability.
Voluntary Disclosure Agreement-
a contractual
				  agreement between an applicant and the commission wherein the applicant agrees
				  to pay the tax and interest due on an undisclosed liability, and the commission
				  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.
B. Program
				Requirements
1. An undisclosed liability will
				qualify for a voluntary disclosure agreement if it results from the
				underpayment or non-payment of sales tax due to an error in the mathematical
				computation of the tax due on the return, interpretation of the law, or process
				of reporting the tax due on the return. An undisclosed liability also qualifies
				if it resulted from the merger or acquisition of a company that previously
				failed to properly report sales and use taxes to the commission.
a. An error in the mathematical computation
				of the tax due on the return is an error on the part of the taxpayer in
				mathematical computation on the face of the return or on any of the supporting
				documents or the unintentional failure to include all amounts necessary for
				calculating the correct amount of taxes due on the return.
b. An error in the interpretation of the law
				is a construction of the law on the part of the taxpayer contrary to the
				commission's construction of the law that caused the applicant to incorrectly
				determine that no tax or a smaller amount of tax was due.
c. An error in the process of reporting the
				tax due on the return is an error, omission, or a mistake of fact of
				consequence to the determination of the tax liability on the part of the
				taxpayer.