What Are the Louisiana 1099 Filing Requirements?
Navigate Louisiana's 1099 reporting, a distinct process with its own state-specific obligations that go beyond federal requirements for compliant filing.
Businesses that make certain payments, such as non-employee compensation, rent, or dividends, must issue Form 1099 to the recipient and the IRS. Beyond this federal requirement, many states have their own reporting mandates. Louisiana requires businesses to submit 1099 information directly to its Department of Revenue under specific circumstances, a process with separate forms and deadlines from the federal system.
Determining Your Louisiana Filing Obligation
A business’s requirement to file 1099s with the Louisiana Department of Revenue (LDR) is triggered by specific conditions. The most common trigger is withholding Louisiana income tax from a payment reported on any 1099 form. If any state tax was withheld on forms like the 1099-R, 1099-DIV, or 1099-INT, a copy of that 1099 must be filed with the LDR, regardless of the amount.
The rules for Form 1099-NEC, which reports nonemployee compensation, are broader. A copy must be sent to the LDR if the form is for services performed in Louisiana or paid to a Louisiana resident, even if no state tax was withheld. A Form 1099-MISC must be filed if it reports payments of $1,000 or more to a non-resident for rents or royalties from property located in Louisiana.
If Louisiana income tax was withheld on any payment, the associated 1099s must be filed with the LDR by January 31. This deadline applies to all 1099 forms. For Form 1099-NEC on which no state tax was withheld, the filing deadline is February 28.
Louisiana participates in the IRS’s Combined Federal/State Filing (CF/SF) Program. If a business files electronically with the IRS and opts into this program, the IRS will forward the information to the LDR. This only satisfies the state filing requirement for 1099s on which no Louisiana tax was withheld. If state tax was withheld, the forms must still be filed directly with the LDR.
Information and Forms Needed for Filing
A business must gather specific data for both itself (the payer) and each recipient (the payee). This includes the complete legal name, current mailing address, and taxpayer identification number for every party. For individuals, this is a Social Security Number (SSN), and for businesses, it is a Federal Employer Identification Number (FEIN). The total payment amount for the calendar year and the amount of any Louisiana income tax withheld are also required for each 1099.
Form L-3, Transmittal of Withholding Tax Statements, is used to submit any 1099s on which Louisiana income tax was withheld. This form acts as a summary cover sheet, reconciling the total income and state tax withholding on the 1099s with amounts remitted to the LDR during the year. Completing Form L-3 involves entering the LDR account number, business name, and address, and comparing quarterly totals to those reported on Form L-1 returns.
Form R-91001, Annual Summary and Transmittal of Form 1099-NEC, is used to file Forms 1099-NEC on which no Louisiana income tax was withheld. This form is a simpler transmittal that summarizes the number of NEC forms being submitted.
How to Submit Your 1099s to Louisiana
The state provides two methods for filing: mail and electronic submission. The method chosen often depends on the number of forms, as businesses submitting 50 or more 1099-NEC forms are required to file electronically. For those filing fewer forms, either method is acceptable.
For filers submitting by mail, a physical package must be assembled with the completed transmittal form placed on top of the corresponding state copies of the Forms 1099. It is important to ensure all forms are legible. The complete package must be mailed to the Louisiana Department of Revenue at P.O. Box 91017, Baton Rouge, LA 70821-9017.
Electronic filing is handled through the Louisiana Taxpayer Access Point (LaTAP) online portal. Filers use the LaWage application to upload a file containing the 1099 information, which must follow the format in IRS Publication 1220. After submission, the system provides a confirmation receipt that should be saved for your records.
Correcting Errors and Associated Penalties
To amend a previous submission made with Form L-3, a filer must prepare a new Form L-3 and clearly mark the “AMENDED” box. This amended L-3 should be completed with the corrected, year-to-date totals as they should have been originally reported. It must be submitted along with copies of only the corrected 1099 forms for the affected recipients.
The Louisiana Department of Revenue imposes penalties for failing to file required 1099s or for filing them late. The penalty for failure to file an information return is $5 per form, with a maximum of $7,500 per calendar year.
The penalty for late payment of withholding tax is 5% of the tax due for each 30-day period the payment is late, up to a maximum of 25%. The LDR may waive penalties if the filer can demonstrate reasonable cause by submitting a formal waiver request.