What Is a Merchant Service Provider Levy?

A Merchant Service Provider Levy is a legal collection action that allows the Louisiana Department of Revenue (LDR) to collect unpaid taxes from funds owed to your business by a merchant service provider or payment processor.

Merchant service providers process electronic payments for businesses, including credit card, debit card, and other electronic transactions. When a levy is issued, the merchant service provider may be required to send funds otherwise payable to your business directly to LDR and apply those funds toward your outstanding tax liability.

Need Immediate Assistance?

If you have received notice that a Merchant Service Provider Levy has been issued against your business, contact the LDR Business Tax Enforcement Division immediately.

Phone

1-855-307-3893

Email

[email protected]

Why Was a Merchant Service Provider Levy Issued?

A Merchant Service Provider Levy may be issued when a business:

• Has an unpaid Louisiana tax liability.
• Has unfiled tax returns associated with an outstanding balance.
• Does not respond to LDR notices requesting payment or other action.
• Does not resolve its account before enforced collection becomes necessary.

What Should I Do?

If you receive notice of a Merchant Service Provider Levy:

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

What Happens After the Levy Is Issued?

After receiving the levy, your merchant service provider or payment processor may be required to redirect funds otherwise payable to your business to LDR.

Those funds will be applied toward your outstanding tax liability. The levy may remain in effect until LDR determines that the applicable release requirements have been satisfied.

How Can I Resolve the Levy?

The steps required to resolve a Merchant Service Provider Levy will depend on your account. They may include:

• Paying the outstanding balance in full.
• Filing delinquent tax returns.
• Providing requested records or documentation.
• Correcting a payment or return that was applied incorrectly.
• Resolving an error identified during LDR’s review.
• Completing another resolution approved by LDR, when applicable.

A levy is not automatically released simply because you contact LDR or make a partial payment. Contact Business Tax Enforcement to confirm all required actions have been completed.

How to Avoid Future Merchant Service Provider Levies

To help prevent future levies and other collection actions:

• File all required tax returns by their due dates.
• Pay tax liabilities when due.
• Review your business tax accounts regularly through LaTAP.
• Respond promptly to all LDR notices and correspondence.
• Keep your mailing address, email address, and responsible-party information current.
• Contact LDR as soon as you identify an unpaid balance or unfiled return.
• Do not wait until enforced collection begins to request assistance.

Taking action early may help prevent additional penalties, interest, levies, and other enforcement actions.