Frequently Asked Questions
What relief is available for financial and personal hardships that prevent taxpayers from paying their full tax liability available?
You may be eligible for an offer in compromise. Revised Statute 47:1578(4) allows the Secretary of Revenue to settle a liability for less than the total amount due in certain cases. To qualify for an offer in compromise, one of the following circumstances must apply:
- There must be serious doubt as to the collectability of the outstanding judgment
- There must be serious doubt as to the taxpayer’s liability for the outstanding judgment, or
- The collection costs would exceed the amount of the outstanding liability.
If the taxpayer is applying for the offer in compromised based on inability to pay the liability, the Document Checklist for Offer in Compromise Based on Serious Doubt as to Collectability, Form R-20211, should also be completed and used as a guide for the documents required.
The LDR Offer In Compromise Program booklet, Form R-20212, explains the offer in compromise requirements and contains all of the required application and financial disclosure forms.