We have also received calls and inquiries concerning letters from a collection agency addressed to taxpayers for balances due to LDR for previous years.
We previously had meetings with LDR to discuss the legality of the use of a collection agency to collect amounts due on Louisiana taxes. LDR has furnished us with its legislative authority to do this.
LDR has changed the criteria for accounts turned over to the collection agency and you may be seeing more letters being sent to taxpayers. The threshold amount for referral to the collection agency is any amount over $10.
The collection agency LDR is using is Performant Recovery, Inc. in Pleasanton, California.
It is possible you may be contacted by a taxpayer who received a letter for a previous year’s return which you did not prepare. LDR has suggested you should call the Contact Center or the Collection Division to find out balances for old years. A Power of Attorney will be required if a tax preparer did not file the returns for those periods.
It is suggested you obtain a Statement of Outstanding Liabilities. This will show whether the amounts due are based on an estimate or on tax shown on a return. If the amount due is based on an estimated assessment, the tax liability should be revised upon filing the applicable tax return.
You may have seen that the Legislature has passed another amnesty program. LDR will be formulating rules for participating in amnesty and eligible balances.
We will continue to monitor this initiative.
Attribution and thanks are extended to Gerard H. Schreiber, Jr., CPA, who contributed content for this alert.