Why Was I Charged Penalties and Interest?

If you file a tax return after its due date, pay your taxes late, or fail to meet other tax obligations, the Louisiana

Department of Revenue (LDR) may assess penalties, interest, or both.

Although penalties and interest are often charged together, they serve different purposes.

• Penalties encourage taxpayers to file returns and pay taxes on time.
• Interest accrues on unpaid tax from the original due date until the tax liability has been paid in full.

The amount assessed depends on the type of tax, the amount owed, and how long the balance remains unpaid.

What Is a Penalty?

A penalty may be assessed when:

• A required tax return is filed after its due date.
• Tax is paid after its due date.
• Another filing or payment requirement is not met.

Depending on the circumstances, delinquent filing penalties generally begin at 5% of the tax due and may increase to a maximum of 25%, as provided by Louisiana law. Different penalty calculations may apply depending on the tax type and circumstances.

What Is Interest?

Interest is charged on unpaid tax from the original due date until the tax liability has been paid in full.

Unlike penalties, interest continues to accrue until the outstanding tax liability has been paid in full.

Interest rates are established by Louisiana law and may change annually.

Before You Request a Penalty Waiver

Before requesting a penalty waiver:

• Log in to LaTAP and review your account balances, tax periods, notices, payment history, penalties, and interest.
• File all required tax returns.
• Pay all tax and interest due.
• Gather documents supporting your request.
• Complete Form R-20128, Request for Waiver of Penalty for Delinquency, if submitting outside LaTAP.

Did You Know?

You can review your account balances, notices, payment activity, and certain penalty information through LaTAP before submitting a waiver request.

Log in to LaTAP

Important

A request for waiver of delinquent penalties will not be considered until all tax and interest have been paid. Payment of the underlying tax liability and accrued interest is required before LDR can evaluate whether the penalties qualify for waiver.

Can Penalties Be Waived?

Yes. Louisiana law authorizes LDR to waive certain delinquent filing and payment penalties when the taxpayer demonstrates reasonable cause rather than negligence.

Each request is reviewed individually.

Examples of supporting documentation may include:

• Medical records
• Disaster documentation
• Financial institution records
• System outage documentation
• Other records explaining why the return or payment was late.

Submitting documentation does not guarantee approval.

Can Interest Be Waived?

Generally, no.

Interest is established by Louisiana law and continues to accrue until the tax liability has been paid. In most circumstances, LDR does not have the authority to waive statutory interest.

Ready to Request a Penalty Waiver?

Before submitting your request, confirm that you have:

• Filed all required tax returns.
• Paid all tax and interest due.
• Reviewed your account through LaTAP.
• Prepared a written explanation.
• Gathered supporting documentation.
• Completed Form R-20128, Request for Waiver of Penalty for Delinquency, if submitting outside LaTAP.

Submit a Penalty Waiver Request Download Form R-20128  

How to Request a Penalty Waiver

You may submit your request electronically or by completing Form R-20128, Request for Waiver of Penalty for Delinquency.

When submitting your request:

1. Identify the tax type and tax period.
2. Explain why the return or payment was late.
3. Explain why the delay resulted from reasonable cause rather than negligence.
4. Attach all supporting documentation.
5. Submit your completed request.

Incomplete requests or requests submitted without supporting documentation may delay the review process.

What Happens After I Submit My Request?

After receiving your request, LDR will:

• Review your written explanation.
• Evaluate the supporting documentation.
• Review your filing and payment compliance history.
• Determine whether reasonable cause has been established.
• Notify you of its decision.

LDR may request additional information before making a determination.

Submitting a waiver request does not automatically suspend collection activity or stop interest from accruing.

Need Assistance?

For assistance with penalties or interest, contact LDR.

Business Tax Email

[email protected]

Individual Income Tax Email

[email protected]