Talkin’ Tax, Episode 21: Louisiana Voluntary Disclosure Agreements (VDAs)
Owe Louisiana taxes you never filed or paid? Maybe your business sold into Louisiana without collecting sales tax. Maybe an out-of-state company had employees here but never filed corporate returns. Or maybe you earned Louisiana income and never filed a state return. In this episode, Caroline Muldowney of Bryson Law Firm explains the Louisiana Department of Revenue’s (LDR) Voluntary Disclosure Agreement program. She covers what it is, who qualifies, what it can do for you, and why timing matters so much.
In this episode:
- What a VDA is: you come forward, register, and pay the tax and interest for a limited period. In exchange, LDR may waive delinquent penalties.
- Taxes covered: individual income, sales and use, corporation income and franchise, severance (including oil and gas), and excise taxes. Motor fuels tax is excluded.
- The four eligibility requirements, plus how acquired or merged businesses may qualify.
- When you’re not eligible: you’re already registered, you’ve already filed or paid, or LDR has already contacted you (including about an audit).
- Options if you don’t qualify, such as a reasonable-cause penalty waiver.
- The two main benefits: penalty relief, and a look-back limited to the current year plus the three prior calendar years.
- Special rules for tax you collected from customers but never paid to the state.
- How you can apply anonymously through an attorney or CPA.
- Why local sales taxes go through the Louisiana Uniform Local Sales Tax Board instead of LDR.
Chapters:
00:00 – Unfiled Louisiana taxes: what happens when the state finds out?
01:34 – What is a Voluntary Disclosure Agreement?
02:39 – Who can use a VDA
03:36 – Who isn’t eligible
04:24 – Options if you don’t qualify
04:42 – Benefit #1: Penalty relief
05:25 – Benefit #2: A limited look-back period
06:09 – How the application process works
07:04 – A note on local sales taxes
07:27 – Key takeaway: timing is everything
Key takeaway: You generally lose VDA eligibility once LDR contacts you. If you think you have unreported Louisiana tax obligations, it pays to look at your options sooner rather than later.
Need help? Bryson Law Firm can review your situation, tell you whether a VDA may be available, and submit the application on your behalf so you can stay anonymous. Schedule a consultation at 337-233-4212 or BrysonLawFirm.com.
This episode is for general informational purposes only and is not legal or tax advice.
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