News & Tax Alerts: Tax Alerts – State

LDR Withholding Tax Assessments

Friday, October 20, 2017   (0 Comments)
Posted by: Ann Lupo

Many of you have contacted us about Louisiana Department of Revenue tax assessment notices for 2012 and 2013 Withholding Tax that your clients are receiving.

We have been communicating with our LDR Practitioner Liaison, Barbara Reeves, who has researched several of the notices sent to her by practitioners. Some of the notices researched have been for tax periods that should have been closed because a company is not in business or no longer has employees.

LDR implemented a new withholding tax model that was effective for taxable periods beginning on or after January 1, 2012. See Withholding  and Withholding FAQs if you need information on payment and filing requirements for L-1.

If you have researched the tax period and determined that your client does not owe the assessment, send an email to Barbara ReevesUse a separate email for each client. Please familiarize yourself with the Withholding requirements and review circumstances of each client situation before communicating with Barbara so she can efficiently assist our members.

Include in subject line of the email: WH Tax Notice – name of taxpayer

Include in body of email: name of taxpayer, account number and tax periods assessed

Provide an explanation why you think the taxpayer does not owe the tax assessed and include any documentation that you have. It is not necessary to attach the assessment notice received.

Be aware that when a business stops filing withholding, sales, severance or other tax returns with the Louisiana Department of Revenue, Form R-3406 (1/11) Request to Close Business Accounts should be completed and mailed or faxed as instructed to close the account.

Questions about the content of this Alert should be directed to LCPA State Government Relations Director Linda Babin.