Frequently Asked Questions
What should I do about a Cease and Desist Order issued to me?
If a taxpayer collects sales tax or income tax withholding and fails to pay the tax to LDR, the secretary may use a summary process in any court of competent jurisdiction to require the taxpayer to show cause why he should not be ordered to cease from further pursuit of his business. The rule to show cause must be heard at least two but not more than ten days after the rule is filed. If the rule is made absolute, the order rendered shall be considered a judgment in favor of the state, prohibiting the dealer from the further pursuit of the business until the delinquent tax, interest, penalties and costs are paid. If the dealer does not obey the cease and desist order, every violation shall be considered as a contempt of court, and punished according to law. See Revised Statute 47:314 and LAC 61:I.4367 for sales tax and Revised Statute 47:1574.1 and Revised Statute 47: 1582 for sales and income tax withholding
If you have been notified that a cease and desist order has been filed against your business for unpaid sales tax or income tax withholding, you should immediately contact the tax official assigned to your account and whose name appears at the bottom of the notice. Failure to immediately respond could result in the closure of your business.