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Business Cease and Desist Order

About Cease and Desist Orders

A Business Cease and Desist Order is an enforcement action that may be taken by the Louisiana Department of Revenue (LDR) when a business collects Louisiana sales tax or withholds Louisiana income tax from employee wages but fails to remit those funds to the State.

Under Louisiana law, the Secretary of Revenue may use a summary court process to require a business to show cause why it should not be ordered to cease operations because of unpaid trust taxes.

Need Immediate Assistance?

If you have received notice that a Business Cease and Desist Order has been filed against your business, contact the LDR Business Tax Enforcement Division immediately.

Phone

1-855-307-3893

Email

[email protected]

 

Why Did I Receive a Business Cease and Desist Order?

A Business Cease and Desist Order may be filed when a business:

  • Collects Louisiana sales tax from customers but does not remit it to LDR.
  • Withholds Louisiana income tax from employee wages but does not remit it to LDR.
  • Fails to respond to notices or collection efforts involving unpaid trust taxes.
  • Has unfiled returns associated with outstanding sales or withholding tax liabilities.

 

Trust taxes are taxes collected or withheld on behalf of the State of Louisiana. These funds do not belong to the business and must be remitted to LDR as required by law.

 

What Should I Do?

If you receive notice of a Business Cease and Desist Order:

  1. Log in to LaTAP to review your account balances, tax periods, payment history, unfiled returns, notices, and correspondence.
  2. Review the tax periods and liabilities identified in the notice.
  3. File any required delinquent returns.
  4. If possible, pay the outstanding balance through LaTAP.
  5. Contact the LDR Business Tax Enforcement Division immediately to discuss the action and the steps required to resolve your account.
  6. Provide any documentation requested by LDR.

Reviewing your account in LaTAP before contacting LDR can help you understand the outstanding liabilities and expedite the resolution process.

 

How Can I Resolve the Issue?

The steps required to resolve a Business Cease and Desist Order will depend on your account. They may include:

  • Paying the outstanding balance in full.
  • Filing all delinquent tax returns.
  • Providing requested records or documentation.
  • Correcting payments or returns that were applied incorrectly.
  • Discussing available resolution options with Business Tax Enforcement, when applicable.

LDR will review your account and explain the actions required to address the outstanding trust tax liability.

How to Avoid Future Enforcement Actions

To help prevent future Cease and Desist Orders and other collection actions:

  • File all required sales and withholding tax returns on time, even when you cannot pay the full amount due.
  • Remit sales tax collected from customers and income tax withheld from employees by the applicable due dates.
  • Review your account regularly through LaTAP.
  • Monitor notices and correspondence issued by LDR.
  • Keep your mailing address, email address, and responsible-party information current.
  • Contact LDR promptly when you identify an unpaid liability or unfiled return.
  • Do not ignore notices regarding trust tax delinquencies.

Taking action early may help prevent additional penalties, interest, court proceedings, and interruption of your business operations.

Updated July 13, 2026

Frequently-Asked Questions

Can I continue operating my business?

If a court issues a Business Cease and Desist Order, your business may be prohibited from continuing operations until the matter is resolved.

What taxes can result in a Business Cease and Desist Order?

These actions generally involve unpaid trust taxes, including:

  • Louisiana sales tax collected from customers.

  • Louisiana income tax withheld from employee wages.

Will paying the balance automatically resolve the order?

Not necessarily. You may also need to file delinquent returns, provide documentation, or complete other requirements identified by LDR. Contact Business Tax Enforcement to confirm that all required actions have been completed.

Can I make a payment through LaTAP?

Yes. You may use LaTAP to review your balance and make an electronic payment. However, making a payment does not replace the need to contact Business Tax Enforcement when a Cease and Desist Order has been filed.

Can I prevent a Business Cease and Desist Order?

You can reduce the risk of enforcement action by:

  • Filing all required returns by their due dates.

  • Remitting collected or withheld taxes when due.

  • Responding promptly to LDR notices.

  • Keeping your business address and contact information current.

  • Contacting LDR before the account progresses to enforced collection.