Louisiana tax payment plan requests through LaTAP
Through LaTAP, the Louisiana Department of Revenue (LDR) accepts requests for a payment plan. Unpaid individual income tax can lead to the suspension of a driver’s, hunting or fishing license.
- Where to submit your request
- LaTAP portal
- Late filing penalty
- Ranges from 5% to 25%
- Interest waivers
- Usually, no
- Penalty waiver form
- Form R-20128
What makes Louisiana’s payment plans different
In Louisiana, payment plans are handled through LaTAP, the LDR online tax portal. Its payment plans page does not show a dollar cap or any set number of months. The page explains that your options change with your debt type, debt amount and account status. LDR may also request more information before it approves a plan.
The state connects taxes owed with the licenses people hold. According to the license suspension details page, individual income tax left unpaid can suspend or block a driver’s, hunting or fishing license. An approved payment agreement can clear this problem.
Before making a plan request
LDR lists a few steps for you to start with:
- Submit every required tax return
- In LaTAP, check your account balance, tax periods, notices and payment history
- Choose a monthly payment amount you can keep paying
- Pay as much as you can at the start so later interest and penalties stay lower
- Check that the mailing address plus the contact details on file are up to date.
What do I do to request a payment plan in Louisiana?
After you sign in at LaTAP, select the account with the balance. Check the tax periods and amount due, then select the payment plan option provided. Fill in your payment amount and bank details, submit the request and keep the confirmation.
Even after you request a plan, a collection action that started earlier may still continue. If you already received a notice of levy, garnishment or seizure, LDR wants you to contact them right away.
Interest and penalties do not end
A plan does not lower the amount you owe. Interest and late payment penalties keep increasing until you pay off the debt in full. The LDR penalties and interest page says late filing penalties usually start at 5% of the tax owed and may reach 25%. Louisiana law sets interest rates and the rates may change each year. LDR generally cannot waive interest.
Different rules apply to penalties. LDR can waive some of these penalties when you have reasonable cause. Use Form R-20128 or LaTAP to make your request. First, you must pay the full tax and interest. LDR looks at a waiver only after that.
Default, referral and collection actions
A missed payment or falling behind on new returns and taxes, can put the plan into default. New tax bills are not added to your plan on their own. LDR can start collection again if your plan goes into default. The collection actions page lists what can come next.
- Your employer garnishes your wages
- A levy on one of your bank accounts
- A tax lien, which can stop a property sale or a refinance
- A state or federal refund applied to what you owe
- Referral to a private collection agency or to the Office of Debt Recovery
- Orders to cease and desist, along with actions on liquor permits aimed at businesses
Your LDR plan and an IRS plan
The IRS and LDR keep separate accounts. A Louisiana plan covers only state tax, while a federal installment agreement covers only IRS tax, so each requires its own separate monthly payment. When you cannot afford either plan and it is not reasonable to pay the full amount, LDR also reviews an Offer in Compromise.
Nearby states
Do you owe both LDR and the IRS?
Have you fallen behind on what you pay LDR and the IRS? A licensed tax pro can help you set up both plans on a free call, with amounts you can keep paying.
· numbers synced