Frequently Asked Questions
I was billed for interest. Can the interest be waived?
In most cases interest cannot be waived.
- Compromise of Interest—Taxpayers may request an interest compromise under the following circumstance:
- The taxpayer has paid all outstanding taxes.
- The taxpayer interpreted the law differently and there is no binding judicial decision regarding the issue.
- The taxpayer has not had interest compromised within the past five years.
- The taxpayer nor any affiliates or related entities have had interest compromised on the same issue.
- Interest may be compromised for any portion of the total interest compromise requested.
- Interest will not be compromised if the taxpayer is party to a voluntary disclosure agreement for the period in which the interest accrued, interest accrues as a result of participation in an abusive tax avoidance transaction, or interest that accrues on taxes that were collected on behalf of the state but not remitted
- Managerial Act—an administrative act that occurs during the processing of a taxpayer's case involving the temporary or permanent loss of records or the exercise of judgment or discretion relating to management of personnel. A decision concerning the proper application of the law is not a managerial act. Further, a general administrative decision, such as the department's decision on how to organize the processing of tax returns or its delay in implementing an improved computer system, is not a managerial act for which interest can be abated under this Section.
- Ministerial Act—a procedural or mechanical act that does not involve the exercise of judgment or discretion, and that occurs during the processing of a taxpayer's case after all prerequisites, such as conferences and review by supervisors, have taken place. A decision concerning the proper application of the law is not a ministerial act.
- Failure to pay the tax liability when due.
- Failure to pay the entire balance owed.
- Delays caused by the taxpayer waiting for a determination of a refund claim to offset prior period underpayments, or
- Failure of the taxpayer to cooperate with LDR personnel.