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Officer Liability

About Officer Liability

Louisiana law authorizes the Louisiana Department of Revenue (LDR) to pursue certain business owners and responsible individuals personally for unpaid trust taxes.

 

If a corporation, limited liability company (LLC), or limited partnership collects Louisiana sales tax from customers or withholds Louisiana income tax from employee wages but fails to remit those taxes to the State, LDR may hold certain officers, directors, managers, members, or other responsible persons personally liable for the unpaid taxes.

 

These taxes are commonly referred to as trust taxes because they are collected or withheld on behalf of the State of Louisiana and do not belong to the business.

 

Need Immediate Assistance?

If you have received notice that LDR is pursuing you personally for unpaid sales tax or withholding tax, contact the LDR

 

Business Tax Enforcement Division immediately.

Phone

1-855-307-3893

Email

[email protected]

 

Why Did I Receive an Officer Liability Notice?

You may receive an Officer Liability notice if LDR determines that you were a responsible individual for a business that:

  • Collected Louisiana sales tax but did not remit it to LDR.
  • Withheld Louisiana income tax from employee wages but did not remit it to LDR.
  • Failed to satisfy its trust tax obligations after collection efforts against the business were unsuccessful.

 

Officer Liability applies only in situations authorized by Louisiana law.

 

Who Can Be Held Personally Liable?

 

Louisiana law may allow LDR to pursue individuals who were responsible for collecting, accounting for, managing, or remitting the business’s trust taxes.

 

Depending on the business structure and the individual’s duties, this may include:

  • Corporate officers
  • Directors
  • Limited liability company managers
  • Limited liability company members
  • Limited partnership managers or responsible partners
  • Other individuals who had responsibility for the collection or payment of trust taxes

 

A person’s job title alone may not determine liability. LDR may consider the individual’s actual authority, responsibilities, access to financial records, control over business funds, and involvement in tax filing and payment decisions.

 

What Should I Do?

If you receive an Officer Liability notice:

  1. Log in to LaTAP to review the business account, outstanding balances, tax periods, payment history, notices, and correspondence, if you have access.
  2. Review the notice carefully to understand the tax periods and liabilities involved.
  3. Gather records related to your role, responsibilities, and authority within the business.
  4. Contact the LDR Business Tax Enforcement Division as soon as possible.
  5. Provide any documentation requested by LDR.

 

Reviewing the account through LaTAP before contacting LDR can help you understand the outstanding liabilities and expedite the review process.

 

What Information Should I Gather?

Before contacting LDR, gather any records that may help explain your role and the business’s tax obligations, including:

  • Corporate or organizational documents
  • Operating agreements or partnership agreements
  • Employment records or job descriptions
  • Bank signature cards and account-authority records
  • Payroll records
  • Sales tax and withholding tax returns
  • Payment records
  • Business correspondence
  • Records showing who controlled financial and tax decisions

 

Providing complete and accurate information may help LDR evaluate the matter more efficiently.

 

How Can I Resolve the Liability?

The steps required to resolve Officer Liability depend on the circumstances of your case. Resolution may include:

  • Paying the outstanding liability.
  • Providing documentation showing that you are not personally liable.
  • Correcting an error in the assessment or account.
  • Filing delinquent returns, if applicable.
  • Providing missing records or financial information.
  • Working with LDR to resolve the business account.

 

LDR will review the facts and explain any additional actions required.

 

How to Avoid Officer Liability

Business owners and responsible individuals can reduce the risk of personal liability by:

  • Filing all required sales and withholding tax returns on time.
  • Remitting all sales tax collected from customers.
  • Remitting all Louisiana income tax withheld from employee wages.
  • Keeping collected or withheld taxes separate from operating funds when appropriate.
  • Reviewing business tax accounts regularly through LaTAP.
  • Confirming that payments are properly credited.
  • Maintaining clear records of tax responsibilities and financial authority.
  • Responding promptly to LDR notices.
  • Contacting LDR immediately if the business cannot meet its tax obligations.

 

Taking prompt action may help prevent personal assessments and additional collection actions.

Updated July 14, 2026

Frequently-Asked Questions

Why did I receive a Notification of Intent to Pursue Corporation Officers for Delinquent State Tax Liabilities and what should I do to resolve the problem?
Revised Statute 47:1561.1 authorizes the LDR secretary to pursue collection of income taxes withheld from employee wages and sales tax collected from consumers against the officers, directors, or managers or members of corporations, limited liability companies, or limited partnerships that fail to remit the taxes collected.

As an officer of a corporation, limited liability company, or limited partnership, the law makes you personally liable for any sales tax and income tax withholding collected and not remitted to the state. Collection of these delinquent taxes is being pursued against the officers because all other attempts to collect the taxes have been unsuccessful.

To resolve the tax liability, you should contact the tax official assigned to your account and whose name appears at the bottom of the notice. If you are not an officer of the company or did not have direct control or supervision of the taxes, you must provide official documentation and the name and address of the officer that was responsible for filing the returns and paying the taxes.
What are trust taxes?

Trust taxes are taxes collected or withheld on behalf of the State of Louisiana, including:

  • Louisiana sales tax collected from customers.

  • Louisiana income tax withheld from employee wages.

Businesses are required to remit these funds to LDR.

Does Officer Liability apply to all business taxes?

No. Officer Liability generally applies to certain unpaid trust taxes, such as sales tax and employee withholding tax, as authorized by Louisiana law.

Can I be personally liable even if the business has closed?

Possibly. Closing or dissolving a business does not automatically eliminate personal liability for qualifying unpaid trust taxes.

Can more than one person be held liable?

Possibly. More than one responsible individual may be pursued when the facts and applicable law support personal liability.

Am I automatically liable because I was an officer, director, manager, or member?

Not necessarily. LDR may review your actual authority, responsibilities, and involvement in collecting, accounting for, or remitting the taxes.

What if I believe I am not responsible?

Contact LDR immediately and provide documentation supporting your position. Do not ignore the notice or assume the business will resolve the matter on your behalf.

Does payment by the business reduce my personal liability?

Payments applied to the underlying trust tax liability generally reduce the outstanding balance. Contact LDR to verify how payments have been applied and what amount remains due.