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Louisiana Interest and Penalties

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Louisiana Interest and Penalties

Answer

In general, you will be charged interest and penalties if you do not pay all amounts due on or before the due date.

1. A 2014 calendar year return is due on or before May 15, 2015.
2. Returns for fiscal years are due on or before the 15th day of the fifth month after the close of the taxable year.
3. If the due date falls on a weekend or legal holiday, the return is due the next business day.

Important: An extension does not relieve you of your obligation to pay all tax amounts due by the original due date.

Interest – If your income tax is not paid by the due date, you will be charged interest on the unpaid tax until the balance is paid in full. The interest rate is variable and the 2015 interest rate is posted on LDR’s website on Form R-1111, Interest Rate Schedule Collected on Unpaid Taxes. To compute the DAILY INTEREST RATE, multiply the 2015 monthly interest rate by 12 then divide the result by 365 and carry out to seven places to the right of the decimal.

Example: Assume the 2015 monthly interest rate is 0.5833 percent, multiply 0.00583 by 12 then divide the result by 365 to get the daily interest rate of 0.0001917.

Delinquent Filing Penalty – A delinquent filing penalty will be charged for failure to file a return on or before your due date, or your approved extension
date. The penalty is five percent of the tax for each 30 days or fraction thereof during which the failure to file continues. By law, the maximum
delinquent filing penalty that can be imposed is 25 percent of the tax due.

Delinquent Payment Penalty – If you fail to pay 90 percent of the tax due by the due date, a delinquent payment penalty of 0.5 percent of the tax not
paid by the due date will accrue for each 30 days, or fraction thereof, during which the failure to pay continues. This penalty cannot exceed 25 percent of the tax due.

Important Notice: The sum of both the delinquent filing and delinquent payment penalties cannot exceed 25 percent of the tax due. Thirty-day increments are used for the calculation of the delinquent filing and delinquent payment penalties. These penalties are based on the date LDR receives the return or payment. In addition to the delinquent penalties mentioned above, you may also incur a negligence penalty if circumstances indicate willful negligence or intentional disregard of rules and regulations.

 

Underpayment Penalty – Louisiana imposes an underpayment penalty
on an individual’s failure to sufficiently pay income tax throughout the
year by withholding or declaration payments. In order to determine if an
underpayment penalty is due and to compute the amount of the underpayment
penalty, you must complete Form R-210R, Resident Underpayment
Penalty Return and attach the completed form to your return. See
Revenue Information Bulletin 04-004 for the definition of farmer for purposes
of applying underpayment penalty.

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Article Details
Views: 980 Created on: Jun 15, 2013
Date updated: Sep 17, 2015
Posted in: STATES, Louisiana

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