I was billed for interest. Can the interest be waived?

In most cases interest cannot be waived.

However, Revised Statute 47:1601(A)(2) and LAC 61:III.2115 allow for the interest to be compromised or abated as follows:

• Compromise of Interest—Taxpayers may request an interest compromise under the following circumstance:
  1. The taxpayer has paid all outstanding taxes.
  2. The taxpayer interpreted the law differently and there is no binding judicial decision regarding the issue.
  3. The taxpayer has not had interest compromised within the past five years.
  4. The taxpayer nor any affiliates or related entities have had interest compromised on the same issue.
  5. Interest may be compromised for any portion of the total interest compromise requested.
  6. Interest will not be compromised if the taxpayer is party to a voluntary disclosure agreement for the period in which the interest accrued, interest accrues as a result of participation in an abusive tax avoidance transaction, or interest that accrues on taxes that were collected on behalf of the state but not remitted
• To request a compromise of interest, the taxpayer must complete the Request for Compromise of Interest,Form R-20130, and submit it to the Louisiana Department of Revenue, P.O. Box 66658, Baton Rouge, LA 70896-6658.
• Abatement of Interest—Taxpayers may request an interest abatement if the assessment of interest is attributable to an unreasonable error or delay by the secretary in the performance of a ministerial or managerial act as defined by LAC 61:III.2115.A as follows:
  • Managerial Act—an administrative act that occurs during the processing of a taxpayer's case involving the temporary or permanent loss of records or the exercise of judgment or discretion relating to management of personnel. A decision concerning the proper application of the law is not a managerial act. Further, a general administrative decision, such as the department's decision on how to organize the processing of tax returns or its delay in implementing an improved computer system, is not a managerial act for which interest can be abated under this Section.
  • Ministerial Act—a procedural or mechanical act that does not involve the exercise of judgment or discretion, and that occurs during the processing of a taxpayer's case after all prerequisites, such as conferences and review by supervisors, have taken place. A decision concerning the proper application of the law is not a ministerial act.
• The request for an interest abatement will be considered only if no significant part of the error or delay can be attributed to the taxpayer. Examples of interest attributable to the taxpayer’s actions are:
  1. Failure to pay the tax liability when due.
  2. Failure to pay the entire balance owed.
  3. Delays caused by the taxpayer waiting for a determination of a refund claim to offset prior period underpayments, or
  4. Failure of the taxpayer to cooperate with LDR personnel.
• To request an abatement of interest, the taxpayer must complete the Request for Abatement of Interest, Form R-20131, and submit it to the Louisiana Department of Revenue, P.O. Box 66658, Baton Rouge, LA 70896-6658.