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or methods for making payments for taxes owed. If are then forwarded to the Audit Review and Appeals
additional taxes are due, the cost of the examination Division for further review, billing and/or refunding.
performed may be charged to the taxpayer. All audits
The Review Process
An audit reviewer will examine the audit report. If the audit subject to immediate collection. The Department may
reviewer agrees with the auditor’s findings and additional choose not to issue a formal assessment and may file
taxes are owed, a notice of proposed assessment (30-day suit, bypassing the Board of Tax Appeals.
letter) will be mailed to the last known address of the
Instead of filing an appeal with the Board of Tax Appeals,
taxpayer in accordance with R.S. 47:1564. This notice will
a taxpayer may pay the bill under protest within 60 days
indicate the Department’s file number, the accounting
of receiving a formal assessment. When payments are
periods audited, and the tax, penalties, and interest due. A
made under protest, they are held in escrow pending
telephone number and the audit reviewer’s name will be
resolution through litigation. The taxpayer has 30 days to
included on this form to allow the taxpayer the opportunity
file suit for recovery of the payment. If the taxpayer files
to speak directly with the audit reviewer about the audit.
suit, the payment remains in escrow until a decision is
If the taxpayer disagrees with the audit findings, a written rendered on the case. Should the taxpayer win the suit,
protest may be submitted to the audit reviewer. the payment is returned to the taxpayer with interest
accrued from the date the payment was received by
The taxpayer’s protest letter should contain a brief and
the Department until the date of refund. If the taxpayer
concise factual statement for each disputed issue, as
does not file suit within the 30-day period, the money is
well as a statement of the law or authority on which the
removed from escrow and added to the general fund of
taxpayer relies. When the protest is received, the audit
the State.
reviewer will review the protest.
When paying taxes under protest, the taxpayer should
If the audit reviewer agrees with the taxpayer based on
inform the Department in writing the intention to file
the information provided, appropriate adjustments will
suit within 30 days. Any document sent with a payment
be made to the audit findings accordingly. Should the
under protest should have “payment under protest”
audit reviewer not agree with the taxpayer based on the
boldly printed on it. Checks, money orders, etc., used
information provided, the audit findings will proceed to
to pay the tax should also clearly state the taxpayer’s
the next step.
intentions. Payments can be made online using the
At any time during this process, the taxpayer may pay Department’s web site www.revenue.lousiana.gov.
the disputed tax, interest and penalties under protest and
If a refund of taxes is indicated by the audit, and the
file suit within thirty days in accordance with La. R.S.
review agrees with the auditor’s findings, the audit
47:1576. In addition, the taxpayer is encouraged to pay
reviewer will circulate the refund to obtain the appropriate
undisputed tax amounts at any time during the review
approvals. Once approvals are obtained, the audit
process to stop interest from accruing.
reviewer will then process the refund and interest due and
If a taxpayer does not respond to the notice of issue the amount due to the taxpayer.
proposed assessment (30-day letter) within 30 days,
the Department may send a second notice (formal
assessment) by certified mail to the last known address
of the taxpayer. This notice is a formal assessment or
bill, and the taxpayer has 60 days to pay or appeal
the formal assessment to the Board of Tax Appeals;
otherwise, the assessment becomes legally due and
LOUISIANA DEPARTMENT OF REVENUE RIGHTS OF THE TAXPAYER 5
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