131.440 Cost of collection fees -- Applicability.
(1)
(2)
(3)
(4)
In addition to all other penalties provided under KRS 131.180, 131.410 to 131.445,
and 131.990 and any other law, there is hereby imposed after the expiration of the
tax amnesty period the following cost of collection fees:
(a) A cost of collection fee of twenty-five percent (25%) on all taxes which are or
become due and owing to the department for any reporting period, regardless
of when due. This fee shall be in addition to any other applicable fee provided
in this subsection;
(b) Taxes which are assessed and collected after the amnesty period for taxable
periods ending or transactions occurring prior to December 1, 2001, shall be
charged a cost of collection fee of twenty-five percent (25%) at the time of
assessment; and
(c) For any taxpayer who failed to file a return for any previous tax period for
which amnesty is available and fails to file the return during the amnesty
period, the cost of collection fee shall be fifty percent (50%) of any tax
deficiency assessed after the amnesty period.
The commissioner of revenue shall have the right to waive any penalties or
collection fees when it is demonstrated that any deficiency of the taxpayer was due
to reasonable cause as defined in KRS 131.010(9). However, any taxes that cannot
be paid under the amnesty program because of the exclusions in subsection (2) of
KRS 131.410 shall not be subject to these fees.
The provisions of subsection (1) of this section shall not relate to any account which
has been protested pursuant to KRS 131.110 as of the expiration of the amnesty
period and which does not become due and owing, or to any account on which the
taxpayer is remitting timely payments under a payment agreement negotiated with
the department prior to or during the amnesty period.
The fee levied under subsection (1) of this section shall not apply to taxes paid
pursuant to the terms of the amnesty program nor shall the judgment penalty of
twenty percent (20%) levied under KRS 135.060(3) apply in any case in which the
fee levied under this section is applicable.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 139, effective June 20, 2005. -- Amended
2002 Ky. Acts ch. 366, sec. 5, effective July 15, 2002. -- Created 1988 Ky. Acts
ch. 322, sec. 7, effective July 15, 1988.
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