Louisiana State Tax Payment Plan
The Louisiana Department of Revenue does give you the chance to request an installment agreement if you are unable to pay the full balance of your tax debt. However, there are two significant stipulations.
• You must agree to submit monthly payments equal to 1/6th of your total balance. (For example, if your tax liability is currently $5,004, you are required to submit a payment of $834 each month for six straight months.) However, you should keep in mind that your account will continue to accrue penalties and interest until the balance is paid in full, so your monthly payment will increase as the months go by. For information on how taxes and penalties are computed, visit the Department of Revenue’s FAQ section.
• Installment agreements cannot exceed six months.
To apply for an Installment Agreement, you will need to do the following:
• Complete Form R-19026, Installment Request for Individual Income. (Be aware that your signature is required on both the 2nd and 3rd page.)
• Submit your request to the address listed at the top of page 2 and 3.
• If you opt to have your monthly payment automatically deducted from your checking account, you will need to also send in a voided check. If the money is not in your account when the payment is scheduled to be taken out, you will be charged a fee for Nonsufficient Funds (NSF).
When your request for an Installment Agreement has been approved, you will receive an acceptance letter that outlines the terms of your agreement and includes a $105 installment fee that is added to the balance due. Be aware that a Tax Assessment and lien will likely be issued to protect the state’s interest in case you are unable to make your payments.
If you default on your agreement, you will immediately be responsible for your balance. However, you can contact the department to request that your Installment Agreement be reinstated. You will be charged a $60 reinstatement fee. If you have any questions, you can contact the Louisiana Department of Revenue office at 225-219-0102 for assistance.