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40.140 Setting off tax delinquency against bonus.
(1)
(a)
(b)
(c)
(d)
(2)
(a)
(b)
If a claim is approved by the administrator or finally approved upon resort
to the board of review, in whole or in part the administrator shall promptly
certify to the secretary of the Finance and Administration Cabinet the
names and addresses of persons found entitled to be paid, as shown in
the application, and the amount payable to each.
A copy of each such certificate shall be sent to the secretary of revenue,
who shall promptly ascertain from the records of his cabinet whether any
person proposed to be paid a veterans' bonus is delinquent in the
payment of any tax liability to the Commonwealth. No delinquency shall
be deemed to exist as to any asserted tax liability which is the subject of a
bona fide dispute. If any delinquency be found to exist, the secretary of
revenue shall within three (3) working days after this receipt of the
certificate, furnish the details thereof to the secretary of the Finance and
Administration Cabinet; and if no advice of tax delinquency is received by
the secretary of the Finance and Administration Cabinet before the end of
the fourth working day after his receipt of certification from the
administrator, he shall, for the purposes of this chapter, conclusively
presume that no delinquency of tax liability to the Commonwealth exists;
but such presumption shall apply only to the existence or absence of a
setoff by the Commonwealth against a certified claim for a veterans'
bonus, and shall not alter the facts as between the Commonwealth and
any taxpayer.
If no advice of tax delinquency is received within such allowed time, the
secretary of the Finance and Administration Cabinet may approve
payment in accordance with the certificate of the administrator, and may
immediately draw a warrant on the State Treasury for a check in payment.
Upon receipt of such warrant the State Treasurer shall issue a check in
accordance therewith payable from the proceeds of bonds in accordance
with this chapter, and the same shall promptly be mailed to the payee
thereof at the address shown in the certificate.
If the secretary of the Finance and Administration Cabinet shall, within the
allowed time, receive advice from the secretary of revenue of the
existence of a delinquency on the part of any person having an approved
claim for a veterans' bonus, as to any tax liability to the Commonwealth,
the secretary of the Finance and Administration Cabinet shall note the
same on the certificate of the administrator, withhold payment, and
forthwith send to the claimant by certified mail, return receipt requested a
notice of the asserted delinquency, and the amount thereof, and that it is
proposed that the same be set off against the veterans' bonus payment.
If the secretary of the Finance and Administration Cabinet receives no
protest in his office within ten (10) working days after recording such
notice, he shall conclusively presume that the proposed setoff is just, shall
apply the amount thereof in reduction or extinguishment of the payment
certified by the administrator, and shall advise the secretary of revenue of
the amount set off against the veterans' bonus, which advice shall be
noted by the secretary of revenue on the records of his office as a credit
(3)
(4)
upon the delinquent tax liability.
(c) If the tax setoff does not consume the entire amount of the veterans'
bonus as certified by the administrator, the secretary shall draw a warrant
upon the State Treasury for a check in the amount of the remainder, and
upon receiving such check from the State Treasurer shall send the same,
together with advice of the setoff, by mail, to the payee at the address
shown in the certificate of the administrator.
If the secretary of the Finance and Administration Cabinet receives from the
claimant a protest of the asserted tax delinquency, within the allowed time, the
secretary shall withhold approval for payment, and shall refer the protest to the
secretary of revenue for disposition.
If a tax setoff is made, and the claimant shall assert error with regard thereto,
the exclusive remedy shall be by seeking refund from the secretary of revenue.
Effective:July 15, 1980
History: Amended 1980 Ky. Acts ch. 114, sec. 7, effective July 15, 1980. -Amended 1978 Ky. Acts ch. 155, sec. 41, effective June 17, 1978. -- Amended
1974 Ky. Acts ch. 74, Art. II, sec. 9(2); and ch. 315, sec. 4. -- Created 1960 Ky.
Acts ch. 15, sec. 14.
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