KRS § 131.420 — KY Code / Title XI / Chapter 131 / Section 131.420
131.420 Requirements for amnesty -- Installment payments -- Invalidation of amnesty -- Protests. (See LRC Note below)
Status: in_force

131.420 Requirements for amnesty -- Installment payments -- Invalidation of

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 or tax reporting periods as stated on

the application for which returns have not previously been filed and files

completed amended tax returns for all years or tax reporting periods as stated

on the application for which the tax liability was underreported, except in

cases in which the tax liability has been established through audit;

(b) Pays in full the taxes due for the periods and taxes applied for at the time the

application or amnesty tax returns are filed within the amnesty period and

pays the amount of any additional tax owed within thirty (30) days of

notification by the department;

(c) Pays in full within the amnesty period all taxes previously assessed by the

department that are due and owing at the time the application or amnesty tax

returns are filed;

(d) Pays in full within the amnesty period all taxes, penalties, fees, and interest

assessed by the federal government and referred to the department for

collection purposes; and

(e) With regard to the program described in KRS 131.400(3), agrees to file all tax

returns when due and make all tax payments when due for three (3) years

following the date amnesty is granted to the taxpayer.

(2) An eligible taxpayer may participate in the amnesty program whether or not the

taxpayer is under audit, notwithstanding the fact that the amount due is included in

a proposed assessment or an assessment, bill, notice, or demand for payment issued

by the department, and without regard to whether the amount due is subject to a

pending administrative or judicial proceeding. An eligible taxpayer may participate

in the amnesty program to the extent of the uncontested portion of any assessed

liability. However, participation in the program shall be conditioned upon the

taxpayer's agreement that the right to protest or initiate an administrative or judicial

proceeding or to claim any refund of moneys paid under the program is barred with

respect to the amounts paid under the amnesty programs.

(3) (a) The department may enter into an installment payment agreement as provided

in KRS 131.081(9) in cases of severe hardship in lieu of the complete

payment required under subsection (1) of this section.

(b) Failure of the taxpayer to make timely payments shall void the amnesty

granted the taxpayer.

(c) All agreements and payments under the program described in KRS

131.400(3) shall include interest as provided under KRS 131.425(3).

(d) All required payments under an installment payment agreement under the

program described in KRS 131.400(3) shall be made on or before May 31,

2025.

(e) 1. If a taxpayer fails to make all required payments under paragraph (d) of

this subsection by May 31, 2025, the amnesty received by the taxpayer

shall be invalidated, and all civil penalties, fees, and interest waived

under the amnesty agreement shall:

a. Be reinstated;

b. Be subject to immediate collection by the department; and

c. Not be subject to protest under KRS 131.110.

2. The department may utilize any remedy allowed by law to recover the

amounts reinstated, and no statute of limitations shall apply.

(4) If, following the termination of the tax amnesty period, the department issues a

deficiency assessment based upon information independent of that shown on a

return filed pursuant to subsection (1) of this section, the department shall have the

authority to impose penalties and criminal action may be brought where authorized

by law only with respect to the difference between the amount shown on the

amnesty tax return and the correct amount of tax due. The imposition of penalties or

criminal action shall not invalidate any waiver granted under KRS 131.410. With

the exception of the cost-of-collection fee imposed under KRS 131.440(1), all

assessments issued by the department under KRS 131.410 to 131.445 may be

protested by the taxpayer in the same manner as other assessments pursuant to the

terms of this chapter.