§ 47:1576.4 — Safe harbor

Louisiana § 47:1576.4

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§1576.4. Safe harbor
Any putative employer meeting the requirements provided for in this Section shall
not owe withholding tax, interest, or penalties otherwise due for the workers to whom these
requirements apply:
(1) Reporting consistency. The putative employer timely filed all required federal
tax and information returns for independent contractors who were paid six hundred dollars
or more, such as Form 1099-MISC or Form 1099-NEC. Relief is not available for any
worker for whom the employer did not file the required information return.
(2) Substantive consistency. The putative employer and any predecessor always
treated the worker as an independent contractor; however, if any similar worker was treated
as an employee, relief is not available.
(3)(a) Reasonable basis. The putative employer had a reasonable basis for not
treating the worker as an employee including any of the following:
(i) The putative employer relied on a court case or Internal Revenue Service ruling.
(ii) The putative employer was previously audited and the Internal Revenue Service
considered employment taxes but did not reclassify the workers.
(iii) Independent contractor treatment is common in the putative employer's industry
for workers providing similar services.
(iv) The putative employer and any predecessor always treated the worker as an
independent contractor.
(v) The putative employer relied on legal advice or advice of an accountant.
(b) Notwithstanding any contrary provision of this Paragraph, if any similar worker
was treated as an employee, relief is not available.

Legislative History

Acts 2022, No. 406, §2.