Offer in Compromise

The Louisiana Department of Revenue’s Offer in Compromise program allows a taxpayer to settle a tax liability for less than the total amount owed. Generally, the Department approves an offer in compromise when the amount offered represents the most the Department can expect to collect within a reasonable period of time.

Although the Department evaluates each case based on its own unique set of facts and circumstances, the Department gives the following factors strong consideration:

• The taxpayer's ability to pay
• The amount of equity in the taxpayer's assets
• The taxpayer's current and future income
• The taxpayer's current and future expenses
• Whether the offer is in the best interest of the state

The Department will process an offer in compromise only after a taxpayer has filed all of the required tax returns and submitted a completed application along with supporting documentation. The Department has prepared an Offer In Compromise Program booklet to provide taxpayers basic instructions on how to prepare an offer.

To submit an offer, complete all forms accompanying the Offer in Compromise Program booklet and mail to the address listed in the application. The Offer in Compromise application requires a down payment of 20% of the assessed tax due amount offered and a $186.00 nonrefundable application fee. The offer will not be reviewed until both of these payments have cleared the bank.

If you need any assistance you may email us at business.tax@la.gov or call us at 1-855-307-3893.