Businesses that do not take advantage of the state’s upcoming tax amnesty program could face a visit by government agents sooner or later to settle the score, but even tax enforcers have a sense of humor about their unwelcome work. For example, in February the Louisiana Department of Revenue targeted suspicious florists for inspection in an operation that the agency nicknamed its “Valentine’s Day massacre.”
Cynthia Bridges, secretary of the department, gave away a couple of secrets for going after deadbeats during her talk Monday for the Baton Rouge Press Club, but her impetus was to publicize how people and companies can legitimately settle up between Sept. 1 and Oct. 31. Those who underpaid or skipped previous state tax bills can clean the slate during that period in exchange for the department’s waiving of all penalties and half the interest due.
“This is a chance for the state to receive a quick infusion of cash,” Bridges says. The department estimates it will take in $150 million through the amnesty, down from the previous take of $192 million in the 2001 amnesty but vastly more than in three amnesties in the 80s and 90s, which brought in less than $3 million total. As it stands, Bridges says 96,000 businesses owe the state $288 million, and 242,000 individuals owe $184.8 million.
After the two-month program expires, Bridges says the revenue department would ramp up efforts to collect outstanding debts, some of which are two years old, through wage garnishment, property liens and seizures and other methods. For more information, click here.—Todd R. Brown
