Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 2 - Inheritance Tax › Section 103 KAR 2:030 - Policies and circulars relating to inheritance tax

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.130
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations necessary for
				the administration and enforcement of all tax laws in Kentucky. The Department
				of Revenue has many policies and circulars that predate the enactment of KRS
				Chapter 13A and conflict with, or are redundancies of, current tax laws. This
				administrative regulation formally rescinds the previously issued policies and
				circulars relating to taxes administered by the Department's Office of Sales
				and Excise Taxes.
Section 1. These
			 policies merely restate or summarize the requirements or provisions of the
			 inheritance and estate tax statutes of KRS Chapter 140 as well as other
			 pertinent parts of KRS Chapters 6, 21, 61, 131, 161, 164, 304, 342, 395, and
			 411. The following policies are hereby formally rescinded and shall be null,
			 void, and unenforceable:
(1) Revenue Policy
			 92P010 (6/1/83), relating to deferred payment of inheritance tax (KRS
			 131.183 and
			 140.222);
(2) Revenue Policy 92P015 (12/1/86), relating
			 to deferred payment of inheritance tax when beneficiary dies (KRS
			 140.222,
			 140.224
			 and
			 395.195);
(3) Revenue Policy 92P020 (6/1/83), relating
			 to the statutory limit for collection of inheritance tax (KRS
			 140.160 and
			 140.210);
(4) Revenue Policy 92P025 (9/1/87), relating
			 to filing requirement (KRS
			 140.160(2),
			 140.190,
			 140.210(2),
			 and
			 140.220);
(5) Revenue Policy 92P026 (9/1/87), relating
			 to filing requirements (KRS
			 140.010,
			 140.190,
			 and
			 140.210);
(6) Revenue Policy 92P029 (12/1/92), relating
			 to interest for late payments of inheritance tax (KRS
			 131.010,
			 131.175,
			 and
			 140.210);
(7) Revenue Policy 92P030 (12/1/92), relating
			 to penalty for undervaluation of assets (KRS
			 131.010,
			 131.180,
			 140.210,
			 and
			 140.991);
(8) Revenue Policy 92P031 (12/1/92), relating
			 to penalties for late filing and late payment of inheritance tax (KRS
			 131.010,
			 131.180,
			 140.160,
			 140.210,
			 and
			 140.991);
(9) Revenue Policy 92P035 (8/16/95), relating
			 to valuation of real estate (KRS
			 131.110 and
			 140.165);
(10) Revenue Policy 92P040 (Revised 12/1/86),
			 relating to power of appointment-taxation of remainder interest (KRS
			 140.040 and
			 140.110(1));
(11) Revenue Policy 92P050 (Revised 7/13/90),
			 relating to power of appointment in donor's and donee's estates (KRS
			 140.040 and
			 140.080(1)(a));
(12) Revenue Policy 92P060 (6/1/83), relating
			 to assessment of real property for inheritance tax purposes (KRS
			 140.165. and 140.330);
(13) Revenue Policy 92P080 (Revised 7/10/90),
			 relating to qualified real estate (KRS
			 140.300(4)(c) and case
			 law);
(14) Revenue Policy 92P090
			 (6/1/83), relating to qualified real estate (KRS
			 140.300(4)(b) and case
			 law);
(15) Revenue Policy 92P100
			 (6/1/83), relating to qualified real estate (KRS
			 140.320);
(16) Revenue Policy 92P110 (6/1/83), relating
			 to qualified real estate (KRS
			 140.300 and
			 140.320);
(17) Revenue Policy 92P115 (12/1/86),
			 relating to conveyance of "Qualified Real Estate" (KRS
			 140.300 through
			 140.360);
(18) Revenue Policy 92P116 (12/1/86),
			 relating to conveyance of "Qualified Real Estate" (KRS
			 140.300 through
			 140.360);
(19) Revenue Policy 92P117 (12-1-86),
			 relating to conveyance of "Qualified Real Estate" (KRS
			 140.300 through
			 140.360)
			 rescinded in
			 103 KAR
			 2:020 (May, 2007);
(20) Revenue Policy 92P120 (Revised 7/10/90),
			 relating to taxability of jointly held property (KRS
			 140.050 and case law);
(21) Revenue Policy 92P130 (Revised
			 11/20/90), relating to taxability of jointly held government bonds
			 (KRS
			 140.050, and case law);
(22) Revenue Policy 92P140 (6/1/83), relating
			 to taxability of bequest of inheritance tax (KRS
			 140.010 and case law);
(23) Revenue Policy 92P150 (6/1/83), relating
			 to taxability of partnership property located in another state (KRS
			 140.010 and case law);
(24) Revenue Policy 92P160 (Revised 6/30/88),
			 relating to partnership property located in Kentucky owned by a nonresident
			 decedent (KRS
			 140.010 and case law);
(25) Revenue Policy 92P165 (12/1/86),
			 relating to credit life insurance (KRS
			 140.030(2),
			 140.090(1),
			 and case law);
(26) Revenue Policy
			 92P166 (9/1/87), relating to assignment of life insurance proceeds
			 (KRS
			 140.090(1) and case
			 law);
(27) Revenue Policy 92P167
			 (9/1/87), relating to paid-up life insurance policies (KRS
			 140.030(2) and
			 304.1-030);
(28) Revenue Policy 92P170 (6/1/83), relating
			 to remainder interests (KRS
			 140.010);
(29) Revenue Policy 92P180 (1/29/88),
			 relating to trusts (KRS
			 140.020 and case law);
(30) Revenue Policy 92P190 (6/1/83), relating
			 to transfer with retained possession, enjoyment or income therefrom
			 (KRS
			 140.020);
(31) Revenue Policy 92P200 (Revised 12/1/86),
			 relating to transfers in contemplation of death (KRS
			 140.020);
(32) Revenue Policy 92P210 (Revised 9/1/87),
			 relating to Life estates-wills (KRS
			 140.100 and case law);
(33) Revenue Policy 92P220 (12/1/86),
			 relating to wrongful death (KRS
			 140.010,
			 140.090(1),
			 KRS
			 411.130);
(34) Revenue Policy 92P235 (11/14/88),
			 relating to Kentucky public employee's retirement plans (KRS
			 6.525,
			 21.470,
			 61.690,
			 140.063(1)(c),
			 161.700,
			 and
			 164.2871);
(35) Revenue Policy 92P245 (9/1/87), relating
			 to deferred compensation (KRS
			 140.010,
			 140.020,
			 and case law);
(36) Revenue Policy
			 92P250 (6/1/83), relating to federal civil service retirement plan annuities
			 (KRS
			 140.063);
(37) Revenue Policy 92P255 (11/1/97),
			 relating to death benefits (KRS
			 61.705,
			 140.090(1),
			 161.655,
			 and
			 342.720);
(38) Revenue Policy 92P260 ((12/1/86),
			 relating to deduction of interest on federal estate taxes (KRS
			 140.090);
(39) Revenue Policy 92P261 (9/1/87), relating
			 to deductions (KRS
			 140.010 and
			 140.090(1));
(40) Revenue Policy 92P262 (9/1/87), relating
			 to deductions (KRS
			 140.090(1));
(41) Revenue Policy 92P263 (9/1/87), relating
			 to deduction of interest on installment obligations (KRS
			 140.090(1)(h) and
			 395.195);
(42) Revenue Policy 92P264 (11/14/88),
			 relating to deduction of selling expenses (KRS
			 140.090(1)(h) and
			 395.195);
(43) Revenue Policy 92P265 (12/1/86),
			 relating to exemption of annuities payable to a beneficiary (KRS
			 140.063);
(44) Revenue Policy 92P270 (6/1/83), relating
			 to casualty losses (KRS
			 140.090);
(45) Revenue Policy 92P280 (6/1/83), relating
			 to power of appointment-minor beneficiary (KRS
			 140.040 and
			 140.080);
(46) Revenue Policy 92P290 (6/1/83), relating
			 to power of appointment in donee's estate (KRS
			 140.040 and case law);
(47) Revenue Policy 92P300 (6/1/83), relating
			 to power of appointment in donee's estate (KRS
			 140.040,
			 140.090,
			 and case law);
(48) Revenue Policy
			 92P310 (6/1/83), relating to classification of beneficiaries-remarried
			 daughter-in-law (KRS
			 140.070);
(49) Revenue Policy 92P311 (9/1/87), relating
			 to classification of beneficiaries-spouse of stepchild (KRS
			 140.070);
(50) Revenue Policy 92P330 (Revised
			 11/20/90), relating to classification of beneficiaries great-nieces, great
			 nephews, nieces, and nephews by marriage (KRS
			 140.070);
(51) Revenue Policy 92P335 (9/1/87), relating
			 to nonresident beneficiaries (KRS
			 140.010,
			 140.070,
			 and
			 140.080);
(52) Revenue Policy 92P336 (Revised 7/13/90),
			 relating to exemption for the mentally disabled (KRS
			 140.080(1));
(53) Revenue Policy 92P340 (Revised 12/1/86),
			 relating to contested wills (KRS
			 140.010 and
			 140.090(1));
(54) Revenue Policy 92P345 (3/1/88), relating
			 to federal income tax refund or liability (KRS
			 140.010 and
			 140.090(1));
(55) Revenue Policy 92P350 (Revised 12/1/96),
			 relating to previously-taxed property (KRS
			 140.095); and
(56) Revenue Policy 92P360 (6/20/89),
			 relating to confidentiality of tax returns (KRS
			 131.190(1) and
			 140.160).