News & Tax Alerts: Tax Alerts – State

Update on LDR Withholding Tax Assessments

Tuesday, October 31, 2017   (0 Comments)
Posted by: Natasha Joseph

Note: Please begin using rather than emailing Barbara Reeves about the notices.

We met with the Louisiana Department of Revenue (LDR) on Friday regarding the proposed Withholding Tax assessment notices. A summary of the results is below.

If a business account is opened with LDR, there is an expectancy for all returns to be filed. This includes withholding. A quarterly L-1 return must be filed even if there is no withholding for the quarter.

If the L-1 returns are not filed, LDR will issue a non-filing assessment. Once the assessment is issued, the taxpayer must address it. The non-filing assessment can be corrected in two ways:

  1. If the issue is a missing L-1 for an account that should not be closed, the L-1 return must be filed even if there was no withholding for the quarter. The L-1 must be filed electronically in LaTAP or paper filed. 

    LDR’s processing center will prioritize the paper filed L-1s. You can email business inquiries to let them know missing L-1s have been filed. Don’t email the L-1s unless requested.

  2. If the issue is a withholding account that should have been closed for the tax periods assessed, complete the R-3406 Request to Close Business Tax Accounts and email it to A Liability Cancellation Letter can be requested for the tax periods assessed after the close date of the withholding tax account. In some instances, a duplicate account may have been opened. Email business inquiries to determine the course of action.

LDR has assigned extra staff to the business inquiries email address to help with the withholding assessments. To submit your inquiries:

  • Use a separate email for each taxpayer.
  • Include in the subject line of email: "WH Tax Notice – [name of taxpayer]".
  • Include in the body of the email: name of taxpayer, account number, and tax periods assessed.
  • Provide an explanation as to why you think the taxpayer does not owe the tax assessed.

Taxpayers may have missing L-1s for tax periods that have not been assessed yet. To avoid future assessment issues for withholding accounts that are not closed, taxpayers should review their records and verify that L-1s were filed for recent tax periods.

See Withholding and Withholding FAQs for mandated payment frequency and L-1 filing deadlines.

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