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131.440 Cost-of-collection fees -- Accrual of interest -- Applicability.
(1)
(2)
(a)
For purposes of the program described in KRS 131.400(4)(a), 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:
1.
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 paragraph;
2.
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
3.
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.
(b) For purposes of the program described in KRS 131.400(4)(b):
1.
In addition to all other penalties provided under KRS 131.180, 131.410
to 131.445, 131.990 and any other law, there are 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 paragraph;
b.
Taxes which are assessed and collected after the amnesty period
for taxable periods ending or transactions occurring prior to
October 1, 2011, 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.
2.
After expiration of the tax amnesty period, an amnesty-eligible tax
liability that remains unpaid and that is not covered by an installment
agreement as provided in KRS 131.420 shall accrue interest at a rate that
is two percent (2%) above the interest rate established by KRS 131.183
or other applicable provisions of the Kentucky Revised Statutes,
beginning on the day after the tax amnesty period ends.
The commissioner 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
(3)
(4)
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: April 11, 2012
History: Amended 2012 Ky. Acts ch. 110, sec. 5, effective April 11, 2012. -- 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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