Tax Overview: Louisiana
Louisiana tax debts are handled by the Department of Revenue and can trigger liens, levies, wage garnishments, and driver's license suspensions. The state offers an OIC program but it will not stop collections. Installment agreements are available up to 60 months with financials and a 20% down payment. Bank levies will not be released under any circumstances. Louisiana underwent a major tax overhaul in 2025, moving to a flat 3% rate.
Key Tax Facts
- OIC available via Form R20212A — will NOT stop collections
- Installment agreements up to 24 months without financials
- Up to 60 months with financials (Form R19026) — requires 20% down payment and $105 IA fee
- Bank levy will NOT be released — no exceptions
- Wage garnishment can be reduced with full financials — must fit within 60-month criteria
- Driver's license hold: IA can lift the hold, must be current on most recent 3 years of filings, SFRs OK on older years
- Harris & Harris (collection agency): balance over $1K triggers license suspension, 20% DP (flexible to 10%), $105 fee, 23-month IA
- 15-year statute for tax liens
- 2025: MAJOR tax overhaul — flat 3% rate (from graduated 1.85%-4.25%), elimination of most deductions/exemptions
Common Tax Issues
Bank levies are permanent — no release available, making early intervention on levies impossible after the fact
The 20% down payment for extended plans is a significant barrier for cash-strapped taxpayers
License suspensions can be triggered on balances as low as $1K when referred to Harris & Harris
The 2025 flat rate overhaul is one of the biggest state tax changes nationally and will affect filing for years
Resolution Options in Louisiana
Payment Plans (Installment Agreements)
Without financials: Up to 24 months
With financials: Up to 60 months
60 months requires Form R19026, 20% down payment, and $105 fee.
Offer in Compromise (OIC)
Available: Yes
Does NOT stop collections while pending
Form: Form R20212A
Will NOT stop collections.
Wage Garnishment
Rate: Varies
Can lift with payment plan: No
Can reduce amount: Yes
Reduction requires full financials. IA must fit within 60-month criteria.
Penalty Abatement
Available: Yes
Bank Levy
Can release: No
Will NOT release bank levy — no exceptions.
Recent Tax Changes
- 2025: MAJOR overhaul — flat 3% rate (from graduated 1.85%-4.25%), elimination of most deductions/exemptions
Official Resources
How Tax Advocate Group Helps Louisiana Taxpayers
Whether you're dealing with the IRS, the Louisiana Department of Revenue, or both — we provide comprehensive tax resolution services to Louisiana residents and businesses.