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Kentucky Amnesty Begins October 1, 2012

State and Local Tax

By Cathleen Condrac

Kentucky announced a tax amnesty program, which begins October 1, 2012 and ends November 30, 2012, for taxpayers owing taxes, penalties, fees or interest subject to the administrative jurisdiction of the Kentucky Department of Revenue (Department). Eligible taxpayers receive a waiver of penalties and half the interest due on taxes paid during the amnesty period.

Authorized by the General Assembly in the 2012 legislative session, amnesty is available for corporate income tax, sales and use tax, and most other taxes administered by the Commissioner. However, tax liabilities relating to criminal investigations or locally administered property taxes are excluded. The program applies to eligible periods ended after December 1, 2001 and prior to October 1, 2011.

Notifications will be mailed to delinquent taxpayers stating the known amount of back taxes. Eligible taxpayers who do not participate in the tax amnesty program will be subject to more severe penalties and an escalated interest rate. An additional 2% interest will be charged on unpaid amnesty-eligible taxes. Also, taxpayers taking advantage of amnesty must remain current over the next three years or face reinstated penalties, fees and interest.

The current database shows nearly 170,000 individuals and businesses qualifying for tax amnesty located in all 50 states plus several other countries, but does not include those who may owe taxes and have not filed.

The Department has created a website to provide news and information about the program, including online payment options and a database of delinquent debtors.

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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter

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