News & Tax Alerts: Tax Alerts – State

Louisiana Department of Revenue Waiving Withholding Tax Penalties

Thursday, April 25, 2013  
Some Louisiana employers missed their quarterly Louisiana Withholding Tax Return (Form L-1) filing deadlines in 2012. The new withholding process, which became effective in January, 2012, requires all entities to submit a withholding tax return each quarter, as provided by La. R.S. 47:114. The Louisiana Department of Revenue (LDR) no longer automatically creates a tax return on the entity’s behalf upon receiving an electronically submitted withholding remittance.

Due to the change in the withholding filing procedures, LDR is waiving the delinquent penalties for filing 2012 withholding tax returns late. LDR plans to remove the penalties uniformly for employers who remitted electronic funds in a timely manner but failed to file the L-1 form. However, the taxpayer can complete the following process to have the penalties removed quicker:
  • Visit the "Contact Us” page of the LDR website
  • Select "Business Taxpayer”
  • Select "Billing Notice Received”
  • Fill all required fields and submit a message requesting removal of penalties for 2012
    • Message MUST include relevant withholding tax account numbers

Once your account has been cleared of the specified penalties, you will receive a "Liability Cancellation Letter.”

Our tax alert of February 25, 2013 indicated only penalties from the first and second quarters of 2012 were eligible for removal, according to LDR at that time.