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at that time. If the taxpayer is in agreement with part additional taxes are due, the cost of the examination
or all of the audit findings, the auditor will inform performed may be charged to the taxpayer. All audits
the taxpayer of the Department’s refund procedures, are then forwarded to the Field Audit Services Division
or methods for making payments for taxes owed. If for further review, billing or refunding.
The Review Process
An audit reviewer will examine the audit report. If the assessment in accordance with La. R.S. 47:1564, as an
audit reviewer agrees with the auditor’s findings and aggrieved party, you also have the right to appeal to the
additional taxes are owed, a notice of proposed assessment Louisiana Board of Tax Appeals.
(30-day letter) will be mailed to the last known address
If a taxpayer does not respond to this notice within 30
of the taxpayer. This notice will indicate the Department’s
days, the Department may send a second notice (formal
file number, the accounting periods audited, and the tax,
assessment) by registered or certified mail to the last
penalties, and interest due. A telephone number and the
known address of the taxpayer. This notice is a formal
audit reviewer’s name will be included on this form to
bill, and the taxpayer has 60 days to pay or appeal
allow the taxpayer the opportunity to speak directly with
the formal assessment to the Board of Tax Appeals;
the audit reviewer about the audit.
otherwise, the assessment becomes legally due and
If the taxpayer disagrees with the audit findings, a written subject to immediate collection. The Department may
protest may be filed with the Audit Protest Bureau. Please choose not to issue a formal assessment and may file
visit www.revenue.louisiana.gov/auditprotest for more suit, bypassing the Board of Tax Appeals.
information about the Audit Protest Bureau.
Instead of filing an appeal with the Board of Tax Appeals,
The taxpayer’s protest letter should contain a brief and a taxpayer may pay the bill under protest within 60
concise factual statement for each disputed issue, as days. When payments are made under protest, they are
well as a statement of the law or authority on which held in escrow pending resolution through litigation.
the taxpayer relies. When the protest is received, an The taxpayer has 30 days to file suit for recovery of the
audit protest officer is assigned to review the protest. payment. If the taxpayer files suit, the payment remains
The audit protest officer notifies the appropriate in escrow until a decision is rendered on the case. Should
Department division and requests a response. After the the taxpayer win the suit, the payment is returned to the
Department’s response is received, a status conference is taxpayer with interest accrued from the date the payment
scheduled with the taxpayer and/or their representative was received by the Department until the date of refund.
and the appropriate Division within the Department. If the taxpayer does not file suit within the 30-day period,
After reviewing the information presented, the protest the money is removed from escrow and added to the
officer will take the matter under advisement, render a general fund of the State.
decision, and notify both parties.
When paying taxes under protest, the taxpayer should
If the Audit Protest Bureau agrees with the taxpayer, the inform the Department in writing of his intent to file
appropriate Division will be directed to adjust the audit suit within 30 days. Any document sent with a payment
findings in accordance with the decision. Should the under protest should have “payment under protest”
Audit Protest Bureau agree with the Division, the audit boldly printed on it. Checks, money orders, etc., used
findings will proceed to the next step. to pay the tax should also clearly state the taxpayer’s
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 file suit within thirty days in accordance with If a refund of taxes is indicated by the audit, the reviewer
La. R.S. 47:1576. Should the Department issue a formal will process the refund and interest due.
LOUISIANA DEPARTMENT OF REVENUE RIGHTS OF THE TAXPAYER 5
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