KRS § 40.140 — KY Code / Title V / Chapter 40 / Section 40.140
40.140 Setting off tax delinquency against bonus
Status: in_force

40.140 Setting off tax delinquency against bonus.

(1) (a) If a claim is approved by the administrator or finally approved upon resort to

the board of review, in whole or in part the administrator shall promptly

certify to the secretary of the Finance and Administration Cabinet the names

and addresses of persons found entitled to be paid, as shown in the

application, and the amount payable to each.

(b) A copy of each such certificate shall be sent to the secretary of revenue, who

shall promptly ascertain from the records of his cabinet whether any person

proposed to be paid a veterans' bonus is delinquent in the payment of any tax

liability to the Commonwealth. No delinquency shall be deemed to exist as to

any asserted tax liability which is the subject of a bona fide dispute. If any

delinquency be found to exist, the secretary of revenue shall within three (3)

working days after this receipt of the certificate, furnish the details thereof to

the secretary of the Finance and Administration Cabinet; and if no advice of

tax delinquency is received by the secretary of the Finance and Administration

Cabinet before the end of the fourth working day after his receipt of

certification from the administrator, he shall, for the purposes of this chapter,

conclusively presume that no delinquency of tax liability to the

Commonwealth exists; but such presumption shall apply only to the existence

or absence of a setoff by the Commonwealth against a certified claim for a

veterans' bonus, and shall not alter the facts as between the Commonwealth

and any taxpayer.

(c) If no advice of tax delinquency is received within such allowed time, the

secretary of the Finance and Administration Cabinet may approve payment in

accordance with the certificate of the administrator, and may immediately

draw a warrant on the State Treasury for a check in payment.

(d) Upon receipt of such warrant the State Treasurer shall issue a check in

accordance therewith payable from the proceeds of bonds in accordance with

this chapter, and the same shall promptly be mailed to the payee thereof at the

address shown in the certificate.

(2) (a) If the secretary of the Finance and Administration Cabinet shall, within the

allowed time, receive advice from the secretary of revenue of the existence of

a delinquency on the part of any person having an approved claim for a

veterans' bonus, as to any tax liability to the Commonwealth, the secretary of

the Finance and Administration Cabinet shall note the same on the certificate

of the administrator, withhold payment, and forthwith send to the claimant by

certified mail, return receipt requested a notice of the asserted delinquency,

and the amount thereof, and that it is proposed that the same be set off against

the veterans' bonus payment.

(b) If the secretary of the Finance and Administration Cabinet receives no protest

in his office within ten (10) working days after recording such notice, he shall

conclusively presume that the proposed setoff is just, shall apply the amount

thereof in reduction or extinguishment of the payment certified by the

administrator, and shall advise the secretary of revenue of the amount set off

against the veterans' bonus, which advice shall be noted by the secretary of

revenue on the records of his office as a credit upon the delinquent tax

liability.

(c) If the tax setoff does not consume the entire amount of the veterans' bonus as

certified by the administrator, the secretary shall draw a warrant upon the

State Treasury for a check in the amount of the remainder, and upon receiving

such check from the State Treasurer shall send the same, together with advice

of the setoff, by mail, to the payee at the address shown in the certificate of the

administrator.

(3) If the secretary of the Finance and Administration Cabinet receives from the

claimant a protest of the asserted tax delinquency, within the allowed time, the

secretary shall withhold approval for payment, and shall refer the protest to the

secretary of revenue for disposition.

(4) If a tax setoff is made, and the claimant shall assert error with regard thereto, the

exclusive remedy shall be by seeking refund from the secretary of revenue.