Title XI, Revenue and Taxation

The provisions of KRS 131.041 to 131.081 shall be known and may be cited as the "Kentucky Taxpayers' Bill of Rights."

As used in KRS 131.041 to 131.081, unless the context requires otherwise, "taxpayer representative" means any attorney, tax practitioner, or other person designated by a taxpayer to represent him before the department in any matter relating to taxes administered by the department…

of Revenue. In addition to all other rights or privileges afforded Kentucky taxpayers, and notwithstanding any provisions of the Kentucky Revised Statutes to the contrary, the provisions of KRS 131.041 to 131.081 shall apply with regard to all taxes administered by the Department…

Department of Revenue. The following rules, principles, or requirements shall apply in the administration of all taxes subject to the jurisdiction of the department: (1) The department shall develop and implement a Kentucky tax education and information program that: (a) Is direc…

The department shall provide the services of a Division of Taxpayer Ombudsman to carry out the spirit and specific purposes of KRS 131.041 to 131.081. The division shall: (1) Coordinate the resolution of taxpayer complaints and problems, if so requested by a taxpayer or the taxpa…

(1) (a) The department shall mail to the taxpayer a notice of any tax assessed by it. The assessment shall be due and payable if not protested in writing to the department within: 1. Forty-five (45) days from the date of notice, for assessments issued prior to July 1, 2018; and 2…

Without limitation of other duties assigned to it by law, the following powers and duties are vested in the department: (1) The department may promulgate administrative regulations, and direct proceedings and actions, for the administration and enforcement of all tax laws of this…

administrative regulation. Notwithstanding KRS 13A.110, the department shall publish tax forms and instructions to those forms on its official website in accordance with KRS 131.020(1)(b) without promulgation of an administrative regulation.

(1) The department shall submit an annual report to the Legislative Research Commission and the Interim Joint Committee on Appropriations and Revenue on October 1, 2024, and October 1 of each year thereafter. (2) The report required by subsection (1) of this section shall: (a) Su…

(1) Each employer subject to KRS Chapter 342 shall file annually with the Department of Revenue, in accordance with administrative regulations, a report providing the policy number and the name and address of the employer's workers' compensation insurance carrier. (2) The report …

of local officials in revenue duties. (1) The department shall requisition the Finance and Administration Cabinet to furnish to local officials an adequate supply of forms for listing property for taxation and other forms and blanks the state is required by law to provide. The bo…

(1) When the Department of Revenue reasonably believes that any taxpayer has withdrawn from the state or concealed his assets or a material part thereof so as to hinder or evade the assessment or collection of taxes, or has desisted from any taxable activity in the state, or has …

regulations -- Waiver -- Refund by electronic fund transfer. (1) For the purpose of facilitating the administration, payment, or collection of the taxes, the department may require any tax payment to be made by electronic fund transfer. (2) The following payments shall be made by…

If any taxpayer required to make bond for the payment of taxes fails to pay the taxes when due, the department shall notify him and his surety by mailing notice to their last known addresses. If, after expiration of a reasonable time from the date of the notice, the amount due re…

The Department of Revenue may, when extension is not otherwise provided for, grant a reasonable extension of time for filing reports or returns whenever, in its judgment, good cause therefor exists. The department shall keep a record of such extensions. Except where a taxpayer is…

Notwithstanding any other provisions of KRS Chapters 131 to 143A, for all taxes payable directly to the Department of Revenue, the sheriff or the county clerk, the commissioner shall have authority to waive the penalty, but not interest, where it is shown to the satisfaction of t…

The provisions of this section shall be known as the "Uniform Civil Penalty Act." Penalties to be assessed in accordance with this section shall apply as follows unless otherwise provided by law: (1) Any taxpayer who files any return or report after the due date prescribed for fi…

agent, contract miner, or delegate. (1) Whenever it is determined that a taxpayer, who holds a license to mine coal in Kentucky under KRS 351.175, is a "delinquent taxpayer" as defined in subsection (3) of this section, the Department of Revenue shall, after giving notice as prov…

taxpayer. (1) Whenever it is determined that a taxpayer, who holds a license under KRS Chapter 243, is a delinquent taxpayer as defined in subsection (2) of this section, the department may, after giving notice as provided in subsection (3) of this section, submit the name of the…

denial of professional or occupational license, driver's license, and motor vehicle registration -- Agencies' duties to assist department -- Notice -- Appeal -- Written tax clearance before reissuance -- Administrative regulations. (1) As used in this section: (a) "Attorney's lic…

(1) (a) Except for the addition to tax required when an underpayment of estimated tax occurs under KRS 141.044 and 141.305, all taxes payable to the Commonwealth not paid at the time prescribed by statute shall accrue interest at the tax interest rate. (b) 1. a. Except as provide…

Income tax returns shall be kept for five (5) years; primary accounting records of tax payments, seven (7) years; and records containing all data of motor vehicle registration, three (3) years. Records of the department which are not required by this section or other statutory pr…

Exceptions. (1) No present or former commissioner or employee of the department, present or former member of a county board of assessment appeals, present or former property valuation administrator or employee, present or former secretary or employee of the Finance and Administra…

taxpayer information. The Department of Revenue shall not enter into any contract with the Department of Corrections, the United States Government, any local government, or any private contractor operating a correctional institution on behalf of the Department of Corrections, the…

Whenever it becomes necessary within the discretion of the commissioner of revenue to photostat, duplicate, publish or supply for the use and benefit of persons or agencies, other than agencies of state government, information contained in official records of the Department of Re…

All money received by the Department of Revenue, for supplying to persons or agencies other than state agencies information which is contained in the official files of the department, shall be promptly deposited with the State Treasurer in the same manner as provided by law for o…

department. (1) Any field representative of the Department of Revenue who is authorized to collect taxes or money due the Commonwealth may deposit to his special account as field representative of the department any money so collected in a state or national bank in this Commonwea…

Any field agent, accountant or attorney, when authorized in writing by the commissioner of revenue, may investigate the accounts, books and records of all officers whose duty it is to receive or collect money due the state, county, school district or other taxing district, and re…

The courts of this state shall recognize and enforce statutes concerning taxation constitutionally imposed by other states that extend like comity.

requirements. (1) If a taxpayer's required records are maintained as both electronic records and hard copies, the taxpayer shall make the records available to the department in electronic record format upon the department's request and in accordance with the following: (a) Electr…

Applicability to microbrewery licensees. (1) For the purpose of facilitating the administration of the taxes it administers, the department may require any tax return, report, or statement to be electronically filed. (2) (a) A person required to electronically file a return, repo…

(1) KRS 131.410 to 131.445 shall be known as and may be cited as the "Kentucky Tax Amnesty Act." (2) As used in KRS 131.410 to 131.445: (a) "Account receivable" means an amount of state or federal tax, penalty, fee, or interest which has been recorded as due and entered in the ac…

-- Exceptions -- Refunds and credits. (1) For any taxpayer who meets the requirements of KRS 131.420: (a) 1. For taxes which are owed as a result of the nonreporting or underreporting of tax liabilities or the nonpayment of any account receivable owed by an eligible taxpayer, the…

amnesty -- Protests. (See LRC Note below) (1) 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 under KRS 131.400(3) and does the following: (a) Files completed tax returns for all years o…

(1) Notwithstanding the provisions of KRS 131.183(1), all taxes paid under an amnesty program return filed under the program described in KRS 131.400(3)(a) shall bear interest at one-half (1/2) the tax interest rate established by KRS 131.183(1) or other applicable statutes. (2) …

The department shall promulgate administrative regulations as necessary, issue forms and instructions, and take all actions necessary to implement the provisions of KRS 131.410 to 131.445. The department shall extensively publicize the tax amnesty program in order to maximize the…

Evaluation -- Tax amnesty receipt account. (See LRC Note below) (1) The department and the Finance and Administration Cabinet shall begin procurement for services necessary to implement the tax amnesty program under KRS Chapter 45A, except as provided under subsection (2) of this…

Note below) (1) For purposes of the program described in KRS 131.400(3): (a) 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…

(See LRC Note below) (1) After the expiration of the tax amnesty period, the department shall vigorously pursue all civil, administrative, and criminal penalties authorized by state and federal law for all taxes found to be due the Commonwealth. (2) In addition to all other penal…

satisfy demand -- Maintenance of property. (1) (a) In addition to any other remedy provided by the laws of the Commonwealth, if any person has been assessed for a tax the collection of which is administered by the Department of Revenue as provided by the laws of the Commonwealth …

release of levy. (1) Levy may be made with respect to any unpaid tax only after the department has given notice and demand to such person in writing of the intention to make such levy. Such notice and demand shall be given in person, or shall be sent by certified mail to such per…

of Commonwealth -- Duration -- Notice. (1) If any person liable to pay any tax administered by the department, other than a tax subject to KRS 134.420, neglects or refuses to pay the tax after demand, the tax due together with all penalties, interest, and other costs applicable p…

failure to do so. (1) Any person in possession of or obligated with respect to property or rights to property subject to levy upon which a levy has been made shall, upon demand of the commissioner or his delegate, surrender such property or rights or discharge such obligation to …

(1) Any person whose property has been levied upon shall have the right to pay the amount due, together with the expense of the proceeding, to the commissioner or his delegate at any time prior to the sale thereof and upon such payment the commissioner or his delegate shall cause…

(1) It shall be lawful for the commissioner or his delegate, under regulations prescribed by the commissioner, to release the levy upon all or part of the property or rights to property levied upon where the commissioner or his delegate determines that such action will facilitate…

intent to hinder or evade collection of tax due from transferor. (1) 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…