Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 25 - Sales and Use Tax; Registration and Collection › Section 103 KAR 25:131 - Current month accelerated payment of sales and use taxes by larger taxpayers

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS 131.183,
				139.590,
				139.980,
				139.990
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations for the administration and
				enforcement of tax laws in this state. To facilitate payment of the sales and
				use taxes levied in KRS Chapter 139,
				KRS
				139.590 authorizes the Department of Revenue,
				within its discretion, to permit or require returns or tax payments for periods
				other than monthly periods. This administrative regulation establishes a
				procedure whereby any taxpayer whose average monthly sales and use tax
				liability exceeds $50,000 is required to remit by the 25th of each month, taxes
				applicable to the period commencing on the 16th of the previous month and
				extending through the 15th of the current month.
Section 1. Any taxpayer whose average monthly
			 sales and use tax liability exceeds $50,000 shall report and remit by the 25th
			 of each month, sales and use taxes applicable to the period beginning on the
			 16th of the previous month and extending through the 15th of the current
			 month.
Section 2. The department
			 shall review all taxpayer payments annually on a calendar year basis and
			 identify those taxpayers who meet the $50,000 test based on the average monthly
			 tax liability for that period. In determining the amount of tax due from a
			 taxpayer for a reporting period, the department shall consider the total amount
			 due based on current tax reporting procedure. Changes in reporting procedure
			 for the purpose of circumventing the requirements of this administrative
			 regulation shall not be permitted. The department shall notify taxpayers in
			 writing of their obligation to begin remitting tax as set forth in this
			 administrative regulation at least forty (40) days in advance of the date that
			 the first payment is to be forwarded to the department.
Section 3.
(1) This accelerated filing requirementshall
			 be effective for the July tax return following the department's calendar year
			 review and notification referenced in Section 2 of this administrative
			 regulation.
(2) Those taxpayers
			 identified in Section 1 of this administrative regulation shall file the July
			 return no later than August 25th and remit tax for both the full month of July
			 and for the first fifteen (15) calendar days of August.
(3) The tax due for the first fifteen (15)
			 days of August may be computed either on an actual basis or an estimated basis.
			 If the taxpayer elects to use the estimated basis, the tax paid for the first
			 fifteen (15) days of August cannot be less than one-half (1/2) of the total tax
			 liability for the month of July.
(4) After the initial return is filed under
			 this procedure, subsequent returns shall be due on or before the 25th of each
			 month and shall include payment of tax covering the period from the 16th of the
			 previous month through the 15th of the current month, with the fifteen (15)
			 days of the current month reported on either an actual or estimated basis. The
			 estimated amount cannot be less than one-half (1/2) the total tax computed for
			 the previous calendar month before applying any credit for
			 prepayment.