News & Tax Alerts: Tax Alerts – State

Delinquent Collection and Billing Activities Resume

Tuesday, March 11, 2014   (0 Comments)
The Louisiana Department of Revenue (LDR) discontinued regular collection and billing activities since last August due to the 2013 Amnesty. The LDR informed the LCPA that normal collection and billing activities resumed in February, 2014.

As part of the collection and billing activities that have resumed, approximately 135,000 billing notices have gone out on accounts in final collection status. These accounts may be reassigned to the Office of Debt Recovery as authorized by Act 399 of the 2013 legislative session.

The letters will come from LDR, Performant (the outside collection agency used by LDR) or the Attorney General. Act 399 requires that all state debt that has been delinquent for 60 days shall be assigned to the Office of Debt Recovery. This requirement of reassignment includes tax and non-tax state debt. The Act also allows a fee up to 25% to be added but only for accounts that became delinquent since June 17, 2013. In speaking with LDR officials, most debt included in the resuming of billing and collection activities became due prior to the June 17, 2013 date and therefore, is not eligible for any Office of Debt Recovery fee.