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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
(3)
(4)
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: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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