Settle Your Tax Liability for Less Than the Full Amount Owed

An Offer in Compromise (OIC) allows eligible taxpayers to settle a Louisiana tax liability for less than the total amount owed when paying the full balance would create a financial hardship or when the Louisiana Department of Revenue (LDR) determines that the amount offered represents the most it can reasonably expect to collect.

Each offer is reviewed individually based on the taxpayer's financial circumstances. Approval is not guaranteed, and submitting an application does not automatically stop collection activity.

Before You Apply

Before submitting an Offer in Compromise:

• File all required Louisiana tax returns.
• Review your balances, tax periods, notices, and payment history through LaTAP.
• Carefully evaluate your financial situation.
• Gather all required financial records and supporting documentation.
• Determine the maximum amount you can reasonably offer to settle the liability.

Did You Know?

Before submitting an Offer in Compromise, you should log in to LaTAP to review your account balances, filing history, tax periods, notices, and payment activity. Understanding the full extent of your tax liability can help you determine whether an Offer in Compromise is the most appropriate resolution.

If you are able to pay your liability in full or qualify for a payment plan, those options may resolve your account more quickly than an Offer in Compromise.

Log in to LaTAP

Recommendation

An Offer in Compromise is intended for taxpayers who cannot reasonably pay their tax liability in full. Carefully review your financial situation before applying and determine the maximum amount you can reasonably offer. Submitting a complete and well-supported application may help reduce processing delays.

Should I Apply?

An Offer in Compromise may be appropriate if:

• You cannot reasonably pay your tax liability in full.
• Your financial condition makes it unlikely that LDR could collect the full amount within a reasonable period of time.
• You have filed all required Louisiana tax returns.
• You can provide complete financial information supporting your offer.

If you qualify for a payment plan or can fully pay your liability, consider those options before submitting an Offer in Compromise.

How Does LDR Evaluate an Offer?

Each application is evaluated based on its own facts and circumstances. LDR gives significant consideration to:

• Your ability to pay.
• The equity in your assets.
• Your current income.
• Your future earning potential.
• Your necessary living and business expenses.
• Whether accepting the offer is in the best interest of the State of Louisiana.

Application Checklist

Before submitting your application, make sure you have:

• Completed all required forms contained in the Offer in Compromise Program Booklet.
• Filed all required Louisiana tax returns.
• Gathered all required financial statements and supporting documentation.
• Included the required 20% nonrefundable initial payment based on your offer amount.
• Included the required $186 nonrefundable application fee.
• Signed all required forms.

Submitting a complete application can help reduce processing delays.

Important: Louisiana law requires every Offer in Compromise application to include a 20% nonrefundable initial payment and a $186 nonrefundable application fee. LDR cannot begin reviewing an Offer in Compromise until these statutory requirements have been met.

Ready to Apply?

If you've:

• Reviewed your account through LaTAP.
• Determined that an Offer in Compromise is the best option for your financial situation.
• Gathered the required financial information and supporting documentation.
• Confirmed that all required tax returns have been filed.

You're ready to begin the application process.

Download OIC Application

How to Apply

1. Download and review the Offer in Compromise Program Booklet.
2. Complete all required forms.
3. Gather all required financial documentation.
4. Include the 20% nonrefundable initial payment required by Louisiana law.
5. Include the $186 nonrefundable application fee required by Louisiana law.
6. Mail the completed application package to the address listed in the booklet.

LDR cannot begin reviewing an Offer in Compromise until:

• All required tax returns have been filed.
• A completed application has been received.
• The required $186 nonrefundable application fee has been received.
• The required 20% nonrefundable initial payment has been received and cleared.

What Happens After I Apply?

After your application is received:

• LDR reviews your financial information and supporting documentation.
• Additional information or documentation may be requested.
• Collection activity may continue unless otherwise provided by law.
• You will receive written notification after the review has been completed.

Need Assistance?

If you have questions about the Offer in Compromise Program or need assistance completing your application, contact the Special Collections Unit.

Business Tax Email

[email protected]

Individual Income Tax Email

[email protected]