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138.715 Civil penalties and interest.
(1)
(2)
(3)
(4)
(5)
If any licensee neglects or refuses to make the return or pay the tax at the time
provided in KRS 138.685, a penalty of twenty percent (20%) of the tax and
interest at the tax interest rate as defined in KRS 131.010(6) from the date
when due shall be paid on the tax.
If any licensee subject to the penalty provided in subsection (1) of this section
submits to the department in writing the reasons for failure to comply with KRS
138.660 to 138.7291 and if the department finds the reasons sufficient
evidence or justifiable cause for modifying the penalty provided in subsection
(1) of this section, it may modify the penalty enacted therein to five percent
(5%) of the amount of the tax due and delinquent, provided the five percent
(5%) penalty may be reduced to one percent (1%) if the violation is the first
violation by the taxpayer within the twelve (12) months.
If the penalties provided by this section are collected by proceedings in court,
an additional penalty of twenty percent (20%) shall be collected and distributed
as is authorized by KRS 134.552. Whenever any licensee neglects or refuses
to make and file any report for any calendar quarter as required by KRS
138.685, or files an incorrect or fraudulent report, the department shall
determine after an investigation the amount of the liability which the licensee
has incurred under KRS 138.660 to 138.7291 for any particular quarter and
assess and collect the amount of tax and penalties due.
Any licensee who fails to make any report required under the provisions of
KRS 138.660 to 138.7291 within the time allowed may be required to pay a
penalty of fifty dollars ($50) for a first offense, two hundred fifty dollars ($250)
for a second offense, or five hundred dollars ($500) for any subsequent offense
within any four (4) year period. The penalty is to be assessed and collected in
the manner provided for the assessment and collection of taxes, or the
licensee may be proceeded against in a civil action instigated by the
department. In addition, such licensee may be compelled to make the required
return.
In any action for the collection of taxes due under KRS 138.660 to 138.7291
and any penalties or interest imposed in connection therewith, an assessment
by the department of the amount of tax due and the interest or penalties due to
the state shall constitute prima facie evidence of the claim of the state and the
burden of proof shall be on the licensee to show that the assessment was
incorrect or contrary to law.
Effective:January 1, 2010
History: Amended 2009 Ky. Acts ch. 10, sec. 51, effective January 1, 2010. -Amended 1998 Ky. Acts ch. 31, sec. 5, effective July 15, 1998. -- Amended
1988 Ky. Acts ch. 175, sec. 9, effective July 15, 1988. -- Amended 1986 Ky.
Acts ch. 174, sec. 7, effective January 1, 1987. -- Amended 1982 Ky. Acts
ch. 452, sec. 19, effective July 1, 1982. -- Amended 1970 Ky. Acts ch. 57,
sec. 2. -- Amended 1956 (2d Extra. Sess.) Ky. Acts ch. 9, sec. 26. -- Amended
1956 Ky. Acts ch. 171, sec. 5. -- Created 1954 Ky. Acts ch. 97, sec. 14.
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