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131.420 Requirements for amnesty -- Installment payments -- Invalidation of
amnesty -- Protests.
(1)
(2)
(3)
The provisions of KRS 131.400 to 131.445 shall apply to any eligible taxpayer
who files an application for amnesty within the time prescribed by the
department and does the following:
(a) Files completed tax returns for all years or tax reporting periods as stated
on the application for which returns have not previously been filed and
files completed amended tax returns for all years or tax reporting periods
as stated on the application for which the tax liability was underreported,
except in cases in which the tax liability has been established through
audit;
(b) Pays in full the taxes due for the periods and taxes applied for at the time
the application or amnesty tax returns are filed within the amnesty period
and pays the amount of any additional tax owed within thirty (30) days of
notification by the department;
(c) Pays in full within the amnesty period all taxes previously assessed by
the department that are due and owing at the time the application or
amnesty tax returns are filed; and
(d) With regard to the program described in KRS 131.400(4)(b), agrees to file
all tax returns when due and make all tax payments when due for three
(3) years following the date amnesty is granted to the taxpayer.
An eligible taxpayer may participate in the amnesty program whether or not the
taxpayer is under audit, notwithstanding the fact that the amount due is
included in a proposed assessment or an assessment, bill, notice, or demand
for payment issued by the department, and without regard to whether the
amount due is subject to a pending administrative or judicial proceeding. An
eligible taxpayer may participate in the amnesty program to the extent of the
uncontested portion of any assessed liability. However, participation in the
program shall be conditioned upon the taxpayer's agreement that the right to
protest or initiate an administrative or judicial proceeding or to claim any refund
of moneys paid under the program is barred with respect to the amounts paid
under the amnesty programs.
(a) The department may enter into an installment payment agreement as
provided in KRS 131.081(9) in cases of severe hardship in lieu of the
complete payment required under subsection (1) of this section.
(b) Failure of the taxpayer to make timely payments shall void the amnesty
granted the taxpayer.
(c) 1.
All agreements and payments under the program described in KRS
131.400(4)(a) shall include interest as provided under subsection (2)
of KRS 131.425.
2.
All agreements and payments under the program described in KRS
131.400(4)(b) shall include interest as provided under KRS
131.425(3).
(d) All required payments under an installment payment agreement under the
program described in KRS 131.400(4)(b) shall be made on or before May
31, 2013.
(e) 1.
(4)
If a taxpayer fails to make all required payments under paragraph
(d) of this subsection by May 31, 2013, the amnesty received by the
taxpayer shall be invalidated, and all civil penalties, fees, and
interest waived under the amnesty agreement shall:
a.
Be reinstated;
b.
Be subject to immediate collection by the department; and
c.
Not be subject to protest under KRS 131.110.
2.
The department may utilize any remedy allowed by law to recover
the amounts reinstated, and no statute of limitations shall apply.
If, following the termination of the tax amnesty period, the department issues a
deficiency assessment based upon information independent of that shown on a
return filed pursuant to subsection (1) of this section, the department shall have
the authority to impose penalties and criminal action may be brought where
authorized by law only with respect to the difference between the amount
shown on the amnesty tax return and the correct amount of tax due. The
imposition of penalties or criminal action shall not invalidate any waiver granted
under KRS 131.410. With the exception of the cost-of-collection fee imposed
under subsection (1) of KRS 131.440, all assessments issued by the
department under KRS 131.410 to 131.445 may be protested by the taxpayer
in the same manner as other assessments pursuant to the terms of this
chapter.
Effective:April 11, 2012
History: Amended 2012 Ky. Acts ch. 110, sec. 3, effective April 11, 2012. -Amended 2005 Ky. Acts ch. 85, sec. 137, effective June 20, 2005. -- Amended
2002 Ky. Acts ch. 366, sec. 3, effective July 15, 2002. -- Created 1988 Ky. Acts
ch. 322, sec. 3, effective July 15, 1988.
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