A Louisiana voluntary disclosure agreement (VDA) is a written agreement with the Louisiana Department of Revenue (LDR) that lets an eligible business disclose previously unreported Louisiana tax liabilities, pay the tax and applicable interest, and request relief from eligible penalties and collection of liabilities outside a defined look-back period. For sales-tax businesses, the agreement can be a practical way to address an unregistered or underreported obligation before LDR contacts the business about that liability.
Louisiana requires special care because it is a home-rule state: local jurisdictions administer their own sales taxes. Louisiana also operates the Louisiana Sales and Use Tax Commission for Remote Sellers, commonly reached through the Louisiana Remote Sellers Commission portal, so qualifying remote sellers can register and file a single return for state and local remote-sales taxes. LDR’s VDA program generally covers taxes administered by LDR, while local sales-tax disclosures are handled separately. Sales Tax Compliance USA is a people-led, done-for-you service that can help ecommerce and cross-border sellers gather records, assess the exposure, coordinate the disclosure process, and move into ongoing compliance.
What is a Louisiana voluntary disclosure agreement?
A Louisiana VDA is a contractual agreement between an eligible taxpayer and LDR. The taxpayer agrees to disclose previously undisclosed liabilities and pay the tax and applicable interest for the agreed period. In return, LDR may waive eligible delinquent penalties and limit its collection of prior liabilities to the agreement’s look-back period, subject to the agreement’s terms.
For a seller, the issue may involve sales or use tax that was not registered, reported, or paid correctly. A VDA does not erase the underlying tax. It is a structured disclosure process intended to bring the business into compliance and resolve qualifying historical liabilities before enforcement or audit contact begins.
Louisiana’s remote-seller structure makes the analysis different from an ordinary state-only registration. Because parishes otherwise administer their own sales taxes, Louisiana has a separate commission specifically for remote sellers. The correct disclosure route depends on whether the liability is administered by LDR, the Remote Sellers Commission, or local tax authorities.
Who is eligible for a Louisiana VDA?
LDR says a taxpayer may qualify for consideration when it has a filing or payment obligation for a tax administered by LDR, is not currently registered with LDR for that same tax, and has not previously filed returns, extensions, or payments for the tax included in the request. The taxpayer must also have not been contacted by LDR about the liability or potential liability.
The sales and use tax category is included among the taxes for which LDR may offer a VDA. The liability must be genuinely undisclosed and administered by the relevant Louisiana program. LDR reviews the facts before deciding whether to enter into an agreement; satisfying the general conditions does not itself create an automatic approval.
Acquired or merged businesses require a separate review. LDR states that undisclosed taxes of an acquired company for periods before the acquisition or merger may be eligible. The disclosure should identify the entity, periods, registrations, filings, collections, and transaction history accurately so the department can determine the proper scope.
Who is ineligible for a Louisiana VDA?
A business generally cannot use LDR’s VDA process for the same tax if it is already registered with LDR, has previously filed a return or extension, or has made a payment for that tax. A taxpayer that has already been contacted by LDR about the liability or potential liability may also be outside the program.
LDR’s program is not a way to conceal an audit, examination, notice, or existing department inquiry. The application must include the required information and the representations made in the final agreement must be complete and accurate. Omitting a known filing obligation or misstating the facts can affect the agreement and the resulting liability.
Local sales taxes administered by local taxing authorities are generally not included in LDR’s VDA program. Motor fuels tax is also excluded from the general list of LDR VDA taxes. If the exposure concerns a remote-seller state-and-local obligation or a parish-administered liability, confirm the correct authority before applying.
Can you apply anonymously for a Louisiana VDA?
Yes. LDR permits an applicant to request consideration anonymously through an authorized representative. The request is made with Form R-60010, Application to Request Voluntary Disclosure Agreement, and the applicant may remain anonymous until after the agreement is signed by both parties.
An anonymous request is not an invitation to provide incomplete information. LDR requires the information needed to evaluate the request, including the nature of the liability and the relevant facts. A representative can present the business’s circumstances without initially identifying the taxpayer, but the disclosure must become properly identified as required by the agreement and payment process.
Anonymous disclosure is especially useful when a business wants to determine whether it can enter the program before revealing its identity. The exact handling of a particular application depends on the facts and current LDR procedures, so verify the current Form R-60010 instructions before submitting anything.
What is the Louisiana VDA look-back period?
For a typical existing entity, LDR describes the look-back period as the current calendar year and the three immediately preceding calendar years. More precisely, it covers returns due during the current calendar year and the three immediately preceding calendar years, subject to the rules applicable to the tax and the agreement.
There is an important exception when the business collected tax but did not remit it. LDR states that the look-back may include all periods in which collected tax was not remitted. Penalty relief and the limited look-back therefore need to be evaluated differently when customer tax was collected and retained.
Discontinued, acquired, or merged entities may have a different look-back analysis. The Remote Sellers Commission’s published proposed guidance also describes special treatment for discontinued, acquired, or merged entities. Do not assume that the general period applies to every seller; have the department or a qualified representative confirm the periods before the business makes representations.
Which Louisiana sales taxes can a VDA cover?
An LDR VDA can cover qualifying sales and use tax liabilities administered by LDR. For a remote seller, however, Louisiana state and local sales taxes may be administered through the Louisiana Sales and Use Tax Commission for Remote Sellers. The commission exists because Louisiana’s parishes otherwise administer their own local taxes and remote sellers need a dedicated administration and filing structure.
Qualifying remote sellers use the Louisiana Remote Sellers Commission portal to register and file the applicable remote-seller return for state and local taxes. Louisiana materials identify the remote-seller economic-nexus test as gross revenue exceeding $100,000 from sales delivered into Louisiana or 200 or more separate transactions for delivery into Louisiana during the previous or current calendar year. Confirm the current statutory test and its application to your business before relying on it.
The taxability of products, electronically transferred products, services, exemptions, sourcing, and local tax bases must be reviewed transaction by transaction. A VDA does not automatically make every sale taxable or exempt. Sales Tax Compliance USA can help organize the product catalog, customer locations, invoices, marketplace data, and prior filings for review by the appropriate Louisiana authority.
Does a Louisiana VDA waive penalties and interest?
A Louisiana VDA does not generally waive the tax or interest. The taxpayer is expected to pay the tax and applicable interest for the agreed look-back period. After those liabilities are paid, LDR states that delinquent penalties will be waived in qualifying cases.
Collected-but-not-remitted tax is treated differently. LDR says that when tax was collected but not remitted, a request to waive some portion of the penalty is considered case by case. That means penalty relief is not automatic for this fact pattern.
The agreement controls the final result. Do not represent that a VDA eliminates all penalties, interest, or historical exposure. Obtain the department’s written terms and confirm the payment requirements before signing.
How do I apply for a Louisiana VDA?
Start by determining which authority administers the liability. For an LDR-administered tax, complete Form R-60010, Application to Request Voluntary Disclosure Agreement. The application must contain the required facts and information, including the tax type, periods, business circumstances, registration status, filing history, and whether LDR has contacted the business.
LDR reviews the application and, if it determines that the taxpayer may qualify, provides a blank VDA for completion. The applicant or authorized representative must include the relevant facts and representations in the agreement. LDR then reviews the submission before deciding whether to enter into the agreement.
LDR’s current instructions identify mail, delivery, fax, and email submission methods. Because addresses and submission instructions can change, check the current Form R-60010 and the LDR voluntary-disclosure page at the time of filing. A done-for-you service can prepare the transaction analysis, reconcile tax collected, coordinate the application, and manage the transition to registration and recurring returns, but the taxpayer remains responsible for the accuracy of its information and payment.
Does Louisiana’s Department of Revenue handle local sales-tax VDAs?
No. LDR states that it does not process voluntary disclosure agreements for local sales taxes administered by local tax authorities. Louisiana is a home-rule state, so local jurisdictions administer their own taxes and rules. That structure is why a seller may need to address state-administered and local-administered liabilities through different channels.
For local sales-tax voluntary disclosure, LDR directs taxpayers to the Louisiana Uniform Local Sales Tax Board. A local disclosure may require separate factual and tax-base analysis from the LDR or Remote Sellers Commission request. The business should identify each affected jurisdiction, the periods involved, whether tax was collected, and whether any local authority has already contacted it.
The Remote Sellers Commission is distinct from ordinary parish-by-parish administration. It provides a dedicated route for qualifying remote sellers and can administer state and local remote-sales tax obligations through the remote-seller system. Confirm with the commission or the local authority which program applies to the liability before filing a disclosure.
What happens after a Louisiana VDA is approved?
After the agreement is signed, the business must complete the agreed disclosure and pay the tax and applicable interest for the look-back period. The agreement should state the covered tax, periods, representations, payment terms, and treatment of penalties. LDR’s general program benefits apply only within the scope and conditions of the signed agreement.
The business must also become compliant going forward. For a qualifying remote seller, that normally means completing registration through the Louisiana Remote Sellers Commission portal and setting up accurate collection, sourcing, filing, and remittance processes. A seller that is not covered by the remote-seller commission may need a different state or local registration path.
Approval is not the end of the work. Keep the signed agreement, calculations, invoices, exemption documentation, marketplace records, payment evidence, registrations, and filed returns. Continue monitoring changes in products, fulfillment locations, sales channels, customer destinations, and Louisiana filing requirements. Ongoing compliance reduces the risk of repeating the same historical problem, but no provider can promise that a business will not be audited or questioned.
How Sales Tax Compliance USA helps with Louisiana
Sales Tax Compliance USA is a done-for-you service staffed by people, not a self-service software product. We work with ecommerce and cross-border sellers to map sales into Louisiana, identify the likely administering authority, organize records, and prepare the information needed for a voluntary-disclosure discussion.
Our team can help separate LDR-administered exposure from remote-seller commission and local-tax issues, review whether the business appears to meet the general VDA conditions, and coordinate the application process with the taxpayer’s authorized representative or adviser. We can also help with registration, filing calendars, return preparation, reconciliation, and documentation after the disclosure.
The exact position depends on the seller’s products, sales channels, registrations, prior filings, tax collections, nexus history, and any government contact. Confirm the current position with the Louisiana Department of Revenue, the Louisiana Sales and Use Tax Commission for Remote Sellers, or the applicable local authority—or talk to us and we will check the route and supporting facts for you.
Louisiana sales-tax compliance routes and VDA treatment for different seller situations
| Seller or liability situation | Primary Louisiana route | Historical disclosure treatment | Forward compliance action |
|---|---|---|---|
| Remote seller meeting Louisiana’s current economic-nexus test | Louisiana Sales and Use Tax Commission for Remote Sellers; registration uses the Louisiana Remote Sellers Commission portal | Determine whether the undisclosed liability is administered by the commission or another authority; do not assume LDR’s general VDA covers local amounts | Register with the commission and file the remote-seller return for applicable state and local taxes |
| Business with an unreported tax administered by LDR and no prior LDR registration for that tax | Louisiana Department of Revenue VDA program | Potentially eligible for a limited look-back and waiver of eligible delinquent penalties after tax and interest are paid | Complete the required registration and begin filing and paying under the applicable LDR rules |
| Tax collected from customers but not remitted | The authority administering the tax must be identified before disclosure | The look-back may include all periods in which collected tax was not remitted; penalty relief may be considered case by case | Reconcile customer collections, segregate the unpaid tax exposure, and establish remittance controls |
| Parish or other local sales tax administered by a local taxing authority | Louisiana Uniform Local Sales Tax Board or the applicable local authority, rather than LDR’s general VDA program | LDR does not process these local-tax VDAs; local procedures and terms must be confirmed | Complete the required local registration, returns, payments, and documentation |
| Seller already registered, has filed, has paid, or has been contacted by LDR about the same liability | Ordinary correction, audit, assessment, or other procedure may apply | The business may not meet the general eligibility conditions for an LDR VDA | Obtain authority-specific advice before amending, registering, or disclosing |
Frequently asked questions
What is a Louisiana voluntary disclosure agreement?
It is a written agreement with the Louisiana Department of Revenue to disclose previously unreported tax liabilities and pay the tax and applicable interest for the agreed period. Eligible taxpayers may receive a limited look-back and waiver of eligible delinquent penalties, subject to the agreement and exceptions such as collected-but-not-remitted tax.
Who is eligible for a Louisiana voluntary disclosure agreement?
LDR generally considers taxpayers that have a filing or payment obligation for an LDR-administered tax, are not currently registered for that same tax, have not previously filed or paid it, and have not been contacted by LDR about the liability. Approval is discretionary and depends on the complete facts.
Can you apply for a Louisiana VDA anonymously?
Yes. An applicant may apply anonymously through an authorized representative using Form R-60010 and may remain anonymous until after the agreement is signed by both parties. The application still must contain the information LDR requires to evaluate the request.
What is the Louisiana VDA look-back period?
For a typical existing entity, LDR generally describes the period as the current calendar year and the three immediately preceding calendar years. If tax was collected but not remitted, the look-back may include every period in which that tax was not remitted, and acquired, merged, or discontinued entities may require a different analysis.
Does a Louisiana voluntary disclosure agreement waive penalties and interest?
It does not generally waive the underlying tax or applicable interest. LDR states that eligible delinquent penalties may be waived after the tax and interest are paid, while penalty relief for collected-but-not-remitted tax is considered case by case.
How do I apply for a Louisiana VDA?
For an LDR-administered liability, complete Form R-60010 and submit it using the current instructions from the Louisiana Department of Revenue. LDR reviews the application, may provide a blank agreement if the taxpayer appears eligible, and decides whether to enter into the agreement after reviewing the completed disclosure.
Does Louisiana’s Department of Revenue handle local sales-tax VDAs?
No. LDR does not process VDAs for local sales taxes administered by local taxing authorities. LDR directs taxpayers to the Louisiana Uniform Local Sales Tax Board for local sales-tax voluntary disclosure, while qualifying remote sellers should also determine whether the Remote Sellers Commission is the correct administering authority.
Who is ineligible for a Louisiana VDA?
A taxpayer generally does not meet the LDR program’s conditions if it is already registered for the same tax, has filed a return or extension or made a payment for that tax, or has been contacted by LDR about the liability. Local sales taxes administered by local authorities are also outside LDR’s general VDA program.
How we handle this for you
Because Louisiana is a home-rule state, local jurisdictions there can administer and audit their own tax separately from the state, which is where doing this yourself usually stops being viable. We are a managed service: our team registers you with the Louisiana Department of Revenue, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Louisiana.
Official sources
- https://revenue.louisiana.gov/tax-professionals/general-resources/voluntary-disclosure-agreement/
- https://revenue.louisiana.gov/businesses/general-resources/voluntary-disclosure-agreement/
- https://revenue.louisiana.gov/tax-policy/general-resources/louisiana-sales-and-use-tax-commission-for-remote-sellers/
- https://revenue.louisiana.gov/Miscellaneous/Remote%20Sellers%20FAQs%2006.24.2020.pdf
- https://revenue.louisiana.gov/Miscellaneous/Remote%20Seller%20VDA_Reg_%20Final%20Draft.pdf
- https://revenue.louisiana.gov/tax-policy/rules-regulations/lac-61-iii-2103-ac-12-20-2014/
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.