§1602. Penalty for failure to make timely return; penalties related to nonpayment or underpayment

            A. When any taxpayer fails to make and file any return required to be made under the provisions of this Subtitle before the time that the return becomes delinquent or when any taxpayer fails to timely remit to the secretary of the Department of Revenue the total amount of tax that is due on a return which he has filed, there shall be imposed, in addition to any other penalties provided, a specific penalty to be added to the tax.

            (1) In the case of a failure to file a tax return or of the filing of a return after the return becomes delinquent, the specific penalty shall be five percent of the total tax due on the return if the failure or delinquency is for not more than thirty days, with an additional five percent for each additional thirty days or fraction thereof during which the failure or delinquency continues, not to exceed twenty-five percent of the tax in the aggregate.

            (2)(a) Except as provided in Paragraph (3), in the case of the filing of a return without remittance of the full amount due, the specific penalty may be five percent of the unremitted tax if the failure to remit continues for not more than thirty days, with an additional five percent for each additional thirty days or fraction during which the failure to remit continues. The penalty imposed by this Paragraph for each thirty-day period shall be calculated only on the additional amount due from the taxpayer after the deduction of payments timely submitted, or submitted during any preceding thirty-day period when the return and payments are not received within the time prescribed determined with regard to any extension of time.

            (b) The penalty provided by this Paragraph shall not be imposed for any thirty-day period for which the penalty provided by Paragraph (1) is due.

            (c) The penalties provided for by Paragraph (1) of this Subsection and this Paragraph shall not be imposed for more than five thirty-day periods in total for each tax return required to be filed.

            (3)(a) In the case of individual income tax, if the full amount of tax due on the return is not paid on or before the due date prescribed for payment of such tax, the specific penalty may be one-half of one percent of the unremitted tax if the failure to remit continues for not more than thirty days, with an additional one-half of one percent for each additional thirty days or fraction during which the failure to remit continues. The penalty imposed by this Paragraph for each thirty-day period shall be calculated only on the additional amount due from the taxpayer, when the return and payments are not received within the time prescribed determined with regard to any extension of time.

            (b) The penalty provided by this Paragraph shall not be imposed for any thirty-day period for which the penalty provided by Paragraph (1) is due.

            (4)(a) When any taxpayer files a return required to be made under the provisions of this Subtitle and pays the amount shown on the face of the return, but fails to pay the full amount of tax actually due for the period within thirty calendar days from the date of notice and demand therefor pursuant to R.S. 47:1562(B), the specific penalty may be one-half of one percent of the additional tax due. If the failure to pay the additional tax due continues for more than thirty days, an additional one-half of one percent shall be imposed for each additional thirty days or fraction during which the failure to pay continues.

            (b) The penalty imposed by this Paragraph for each thirty-day period shall be calculated only on the additional amount due from the taxpayer, and shall not be imposed for any thirty-day period for which the penalty provided by Paragraph (1), (2), or (3) of this Subsection is due.

            (5) The penalties provided for by this Subsection shall not exceed twenty-five percent of the tax in the aggregate.

            B. The penalties provided for by this Section shall be an obligation to be collected and accounted for in the same manner as if it were part of the tax due, and can be enforced either in a separate action or in the same action for the collection of the tax.

            C. The penalty for failure to make application and pay any registration fee levied under Chapter 4, Subtitle II of this Title, shall be three dollars or an amount as computed as otherwise provided in this Section, whichever is greater.

            D.(1) Notwithstanding any other provision of the law to the contrary, any exemption granted to a taxpayer under a tax incentive contract except a contract granted pursuant to Article VII, Section 21(F) of the Constitution of Louisiana shall be suspended if at any time during the contract there is a final, non-appealable judgment against the taxpayer for nonpayment of taxes.

            (2) The secretary shall send a notice by certified mail to the taxpayer at the address given in the last report filed by the taxpayer, or to any address obtainable from any private entity which will provide such address free of charge or from any federal, state, or local government entity, including but not limited to the United States Postal Service or from United States Postal Service certified software informing him of the following:

            (a) That there is a final, non-appealable judgment against him for nonpayment of taxes.

            (b) That he has thirty days from the date of the notice to pay the tax, penalty, and interest due or the exemptions granted under the tax incentive contract will be suspended.

            (c) That the suspension will continue until the tax, penalty, and interest due under the final, non-appealable judgment are paid in full.

            (3) The provisions of this Section shall not apply if the taxpayer has paid the amount due under protest in accordance with R.S. 47:1576 or has entered into an installment agreement with the department for the payment of the amount due and is in compliance with the terms of the agreement.

            (4) For the purposes of this Subsection, during the period of suspension, the exemptions granted under the tax incentive contract are inoperable and of no effect.

            Amended by Acts 1970, No. 662, §1; Acts 1986, No. 43, §1, eff. Oct. 1, 1986; Acts 1995, No. 515, §1; Acts 1997, No. 658, §2; Acts 2002, No. 47, §1; Acts 2006, No. 77, §1; Acts 2015, No. 128, §1, eff. July 1, 2015; Acts 2020, No. 348, §1, eff. Jan. 1, 2021.

NOTE: Paragraph (A)(4) - see Acts 2020, No. 348, §§2, 3, and 4, relative to applicability of the Act.