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                                                                   R-20161 (8/17)

The mission of the Louisiana Department of Revenue (LDR) 
is to fairly and efficiently collect state tax revenues to fund 
public services and regulate the sale of alcoholic beverages,      Table of Contents
tobacco, and charitable gaming within Louisiana. LDR has a 
                                                                   Taxpayer’s Bill of Rights ..............................2
responsibility to provide taxpayers with a reasonable opportunity 
to disagree with a tax assessment and to satisfactorily resolve    Authority to Examine Records .....................3
that disagreement.                                                 Rights of a Taxpayer Under Examination ....3
                                                                   Retention of Records by Taxpayers .............3
This pamphlet provides information to apprise taxpayers of 
their legal rights when audited by the Department of Revenue.      The Tax Audit Process .................................3
Explained in this brochure are the procedures followed by the      How a Return Is Selected for Audit..............4
Department when a tax return is filed, selected for audit, and 
                                                                   Audit Procedures .........................................4
examined. The audit procedures followed by the Department are 
the same for all taxes, for individuals and businesses alike.      The Review Process ....................................5
                                                                   Board of Tax Appeals ..................................6
LDR assists taxpayers to develop a more thorough knowledge of the 
steps taken in processing and reviewing returns, so that taxpayers LDR Contact Info  .........................................6
will understand inquiries and notices from the Department.

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Taxpayer’s Bill of Rights

Louisiana Revised Statute 47:15 assures state taxpayers:

1. The right to be treated fairly, courteously, including penalty and interest, be reviewed at the
and with respect. management level of the Department of Revenue in
accordance with R.S. 47:1563.
2. The right to have all tax forms, instructions, and
information written in plain English. 13. The right to represent themselves or to authorize another
person to represent or accompany them in person when
3. The right to prompt and accurate answers to
communicating with the Department of Revenue.
questions in accordance with Department of Revenue
Policy and Procedure Memo randum Administrative No. 14. The right to a hearing in order to dispute an assessment
10.14. of taxes, interest, and penalties by filing an appeal with
the Board of Tax Appeals as provided by law. A taxpayer
4. The right to ask for and receive assistance in complying
shall not be required to pay the disputed tax, interest, and
with the tax laws, rules, and regulations of Louisiana.
penalties in order to exercise this right.
5. The right to strict confidentiality of tax records in
15. The right to a formal hearing in order to contest the
accordance with R.S. 47:1508.
assessment of taxes, interest, and penalties by filing suit
6. The right to review and receive a copy of tax records in with an appropriate state district court. An assessment
accordance with R.S. 47:1508(B)(1) and R.S. 44:31 et must be paid in full under protest in order to exercise
seq. this right in accordance with R.S. 47:1576.

7. The right to be free from harassment in audits and 16. The right to ask the Department of Revenue to consider
collection activities. accepting an installment payment agreement plan in
accordance with the provisions of R.S. 47:1576.2 and
8. The right to be served by employees who are not paid rules and regulations promulgated in accordance with
or promoted based on the amount of tax dollars billed the Administrative Procedure Act, for taxes, interest, and
or collected. penalties due.

9. The right to receive a refund, in some cases with If a taxpayer qualifies for an installment agreement,
interest, for any taxes overpaid so long as the refund no further collection action will be taken as long as
claim is filed in accordance with Article VII, Section the taxpayer complies with the installment payment
16 of the Constitution of Louisiana and the laws of agreement.
the state, including R.S. 47:1621(A); R.S. 47:1623; R.S.
47:2451; and R.S. 47:1580. 17 The right to a prompt release of a lien upon payment
of all taxes, penalties, interest, and filing fees due in
10. The right to be notified before records are audited, accordance with R.S. 47:1578.
and to receive information about the estimated time,
scope, and extent of the audit, unless the Department of 18. The right to have all other collection methods exhausted
Revenue determines the taxpayer is likely to remove the before assets are seized, unless the Department of Revenue
assets from the jurisdiction of the state. determines the taxpayer is likely to remove the assets from
the jurisdiction of the state.
11. The right to request a meeting to discuss an auditor’s
proposed assessment of tax due if a taxpayer does not 19. The right to a public hearing on all proposed
agree with the auditor’s findings in accordance with Department of Revenue administrative regulations
R.S. 47:1563. adopted under the Louisiana Administrative Procedure
Act, R.S. 49:950 et seq.
12. The right to request any assessment of taxes due,
20. The right to complain and be heard.

LOUISIANA DEPARTMENT OF REVENUE RIGHTS OF THE TAXPAYER 2

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                                                            by the taxpayer until the tax prescribes. These records 
Authority to                                                should clearly support any and all items claimed on 
                                                            the return.
Examine Records
                                                            Other provisions within the tax laws impose fines 
                                                            or imprisonment for failure to keep proper records. 
Louisiana Revised Statute 47:1542 authorizes the Secretary 
                                                            The auditor or their supervisor will cooperate in 
of Revenue, or any authorized assistant, to examine or 
                                                            answering any questions a taxpayer may have about 
investigate the place of business and any records of a 
                                                            these requirements.
taxpayer to determine tax liability. The auditor and their 
supervisors are authorized assistants to the Secretary of 
Revenue. Any information provided by a taxpayer is strictly The Tax Audit Process
confidential (R.S. 47:1508). Public disclosure of such 
information could subject the Department and the auditor 
to civil proceedings, fines, and/or incarceration.          Pre-Audit
                                                            As tax returns are received at the Department, they are 
                                                            evaluated through computer analytics and comparisons 
Rights of a Taxpayer                                        of records received from third party data sources to assist 
                                                            in identifying obvious errors or questionable reporting. 
Under Examination                                           Through this computer based evaluation, tax returns may 
                                                            be corrected systematically or stopped for manual review.  
                                                            If these reviews uncover an error on the return or the 
  › Fair and courteous treatment                            omission of essential information, the tax return will be 
  › Strict confidentiality of tax records within the        adjusted. Subsequently, a letter notifying the taxpayer of 
provisions of the law                                       the adjustment, a letter requesting information, an adjusted 
                                                            refund, or an adjusted billing notice will be issued. 
  › Reasonably convenient examination of the return or 
records                                                     Audit
                                                            A tax return may be selected for audit. An audit may 
  › To retain legal or accounting representation when the 
                                                            include a thorough review of items claimed on the 
return or records are examined
                                                            return. It may also include an on-site reconciliation 
  › Knowledge of the reasons for any proposed change to     of the business’s books and records as compared to 
the tax liability and a detailed explanation of anything    information entered on the tax return. A Department 
not understood                                              auditor may review the return and determine the correct 
                                                            tax liability. The auditor’s calculations may be the same 
  › Written notice detailing any adjustments made to        as those on the return. If not, the taxpayer may receive a 
the tax return and a statement of any balance due           refund or a bill for additional tax plus interest. 
or additional refund developed
                                                            Notice of Proposed Assessment (30-Day Letter)
                                                            If the auditor determines that more tax is due, a notice 
Retention of Records By                                     of proposed assessment (30-day letter) will be issued to 
                                                            the taxpayer. The 30-day letter notifies the taxpayer that 
Taxpayers                                                   the Department plans to assess additional tax, plus any 
                                                            accrued interest and penalties. The taxpayer is allowed 
                                                            30 days from the date of the proposed assessment to: 
Louisiana Revised Statute 47:1542.1 requires that 
                                                            pay the additional tax, interest, and applicable penalties; 
any document or record necessary to support any tax 
                                                            protest the tax deficiency; or request an extension of 
administered by the Department shall be maintained 
                                                            time to reply to the proposed assessment.

LOUISIANA DEPARTMENT OF REVENUE  RIGHTS OF THE TAXPAYER                                                                 3

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Formal Assessment (60-Day Letter)                         and the accounting periods to be audited. The records 
If the taxpayer fails to protest the proposed notice of   required to conduct the examination are therein discussed, 
assessment within the time prescribed, the Department     and an audit date is set during this conversation. A letter 
may issue a formal assessment (60-day letter). A formal   is sent to confirm the records needed and the date of 
assessment requires the taxpayer to pursue further        the audit. The amount of time the auditor will spend at 
appeal by applying to the Board of Tax Appeals within     the taxpayer’s location to perform the examination will 
60 days of the formal assessment date. However, the       depend on the tax issues involved, the amount of records 
taxpayer may choose to pay the formal assessment under    involved, the size and complexity of the taxpayer’s 
protest and file suit within 30 days for recovery of the  operation, and the level of cooperation and assistance 
payment. The Department may choose not to issue a         provided the auditor by the taxpayer.
formal assessment and may instead file suit, bypassing 
                                                          When the auditor arrives at the taxpayer’s office, a pre-audit 
the Board of Tax Appeals.
                                                          conference is conducted. During the pre-audit conference, 
                                                          the auditor will ask questions about the business activities of 
Board of Tax Appeals
                                                          the taxpayer, the types of records maintained, and how the 
The Board of Tax Appeals is a formal, legal body, 
                                                          tax return is prepared. The answers to these questions are 
independent of the Department of Revenue, and 
                                                          designed to assist the auditor understand the nature of the 
authorized to decide tax issues between the 
                                                          taxpayer’s business and the accounting system employed 
Department and taxpayers. Rulings of the Board of 
                                                          by the taxpayer. From this information, the auditor will 
Tax Appeals may be appealed by either party to the 
                                                          determine the best way to conduct the audit. 
appropriate Louisiana District Court.
                                                          A taxpayer is encouraged to ask any questions about 
                                                          the audit procedures to be used. Also, the taxpayer is 
                                                          encouraged to make any audit payment amount at any 
How a Return Is 
                                                          time during the audit process or review process for taxes 
Selected for Audit                                        he/she believes and/or agrees is due in order to stop 
                                                          interest from accruing. 

The Department employs many methods for selecting         During the course of the audit, the auditor will inform 
returns for audit. A return may be selected at random,    the taxpayer of problems encountered and areas where 
or because of an unusual item reported. A return may be   taxable issues may be involved. When the initial field 
chosen for audit as a result of discrepancies discovered  work is completed, the auditor will present the taxpayer 
through computer comparisons of state and federal         with a copy of the preliminary audit schedules and 
returns, or as a result of an examination of a federal    explain any proposed adjustments in detail. 
return by the Internal Revenue Service. A taxpayer may 
be selected for audit as a result of an audit of another  Unless a prescriptive period (statute of limitations) 
company with whom a taxpayer conducts business, or        does not allow for a review period, the taxpayer will be 
by a computer-generated program designed to identify      allowed a reasonable time to review the audit schedules 
and select taxpayers who may owe substantial amounts      and discuss the findings with the auditor before the 
of additional taxes.                                      audit is submitted to the Audit Review and Appeals 
                                                          Division of the Louisiana Department of Revenue. 
                                                          During this time, the taxpayer will have the opportunity 
                                                          to discuss the findings with the auditor and present 
Audit Procedures                                          additional facts and documentation to substantiate 
                                                          proposed treatment of items included in the audit. The 
Once a return is selected for audit, it is assigned to    taxpayer and the auditor will try to resolve all issues 
an auditor who will be responsible for performing the     at that time. If the taxpayer is in agreement with part 
examination. The taxpayer will be contacted in advance    or all of the audit findings, the auditor will inform 
by telephone, letter, or e-mail and informed of the taxes the taxpayer of the Department’s refund procedures, 

LOUISIANA DEPARTMENT OF REVENUE  RIGHTS OF THE TAXPAYER                                                               4

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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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Board of Tax Appeals                                      LDR Contact Info

The Board of Tax Appeals hears and decides, at            Baton Rouge (Headquarters)
minimum expense, tax disputes between taxpayers and       P.O. Box 201
the Department. It is an independent agency comprised     Baton Rouge, LA 70821-0201
                                                          617 North Third Street
of three members appointed by the Governor. The 
                                                          Baton Rouge, LA 70802
Board will notify the taxpayer and the Department of its  (855) 307-3893
decision. If neither the taxpayer nor the Department is 
satisfied with the decision, it may be appealed by either LDR New Orleans Office
                                                          1450 Poydras St. Suite 800
party to the appropriate Louisiana District Court. 
                                                          New Orleans, LA 70112
                                                          (855) 307-3893

Location:        627 North Fourth Street
                 Baton Rouge, LA 70802
                 This is the address only for 
                 UPS, FedEx, and similar courier 
                 services. 

Mailing Address: P.O. Box 3217
                 Baton Rouge, LA 70821

Telephone:       (225) 219-3145

Fax:             (225) 219-3150

Information is also available at the Board of Tax Appeals 
website www.labta.la.gov

PDF file checksum: 1894359597

(Plugin #1/9.12/13.0)