2014 Kentucky Revised Statutes CHAPTER 131 - DEPARTMENT OF REVENUE 131.550 Assessment against transferee of a fraudulent conveyance made with intent to hinder or evade collection of tax due from transferor.
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131.550 Assessment against transferee of a fraudulent conveyance made
with intent to hinder or evade collection of tax due from transferor.
(1)
(2)
(3)
(4)
When the Department of Revenue reasonably believes that any taxpayer has
divested himself by gift, conveyance, assignment, transfer of, or charge upon
any property, whether real, personal, tangible or intangible, with the intent to
hinder or evade the collection of any tax assessed or to be assessed by the
department or declared by the taxpayer on a return filed with the department,
any transferee of such property may be assessed by the Department of
Revenue an amount equal to the lesser of the amount of tax assessed against
the transferor taxpayer or the fair market value of the property so transferred.
However, no assessment shall be made pursuant to this section against a
transferee who takes the property for full and valuable consideration in money
or money's worth, unless it appears that such transferee had notice of the
intent of the transferor taxpayer to hinder or evade the collection of any tax.
Any assessment made by the Department of Revenue against a transferee
pursuant to subsection (1) of this section is, except as provided in this section,
subject to the same provisions and limitations as in the case of the taxes for
which the liabilities were incurred.
The period of limitation for assessment of any liability against a transferee
pursuant to subsection (1) of this section shall be as follows:
(a) In the case of an initial transferee, within one (1) year after the expiration
of the period of limitation for assessment against the transferor taxpayer;
and
(b) In the case of the liability of a transferee of a transferee, within one (1)
year after the expiration of the period of limitation for assessment against
the preceding transferee, but not more than three (3) years after the
expiration of the period of limitation for assessment against the initial
transferor taxpayer.
The notice of any assessment against a transferee made pursuant to
subsection (1) of this section shall be either given to the transferee in person or
sent by mail to such transferee's last known address.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 146, effective June 20, 2005. -Created 1982 Ky. Acts ch. 238, sec. 5, effective July 15 ,1982.
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