Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:352 - Corporation income taxes policies and circulars

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.130(1), (8),
				141.010,
				141.0101,
				141.012,
				141.039,
				141.040,
				141.044,
				141.050,
				141.120,
				141.140,
				141.160,
				141.170,
				141.210,
				141.206,
				141.990
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws. Prior to the enactment of KRS Chapter 13A, the department
				issued policies and circulars as guidance for the administration of Kentucky's
				tax laws. Since that time, changes to corporation income tax law have created
				conflict with these policies and circulars. This administrative regulation
				rescinds corporation income tax policies and circulars.
Section 1. The following corporation income
			 and license tax policies of the department are rescinded and shall be void:
(1) Revenue Policy 41P010 - Cooperatives.
			 This policy shall be rescinded because it conflicts with
			 KRS
			 141.160 and
			 141.170.
(2) Revenue Policy 41P020 - Short period
			 return or change in tax period resulting from change in ownership. This policy
			 shall be rescinded because it restates
			 KRS
			 141.140(1).
(3) Revenue Policy 41P030 - Six-year statute
			 of limitations. This policy shall be rescinded because it restates
			 KRS
			 141.210(2).
(4) Revenue Policy 41P040 - Declaration of
			 estimated tax penalty. This policy shall be rescinded because it is made
			 obsolete by
			 KRS
			 141.044(2)(c).
(5) Revenue Policy 41P070 - Income and
			 deductions. This policy shall be rescinded because it is obsolete and restates
			 KRS
			 141.010,
			 141.039,
			 and
			 141.050.
(6) Revenue Policy 41P071 - Claim of right.
			 This policy shall be rescinded because it was incorporated into
			 103 KAR
			 16:320.
(7) Revenue Policy 41P080 - Coal royalty
			 income. This policy shall be rescinded because it restates
			 KRS
			 141.039(1)(d).
(8) Revenue Policy 41P090 - Jobs Tax Credit.
			 This policy shall be rescinded because it conflicts with KRS Chapter
			 13A.
(9) Revenue Policy 41P100 -
			 Deductibility of state taxes. This policy shall be rescinded because it is
			 obsolete due to the repeal of the New York Subsidiary Capital tax. The
			 department issued guidance pursuant to
			 KRS
			 131.130(8) on the
			 deductibility of state taxes.
(10)
			 Revenue Policy 41P110 - Deductibility of state taxes. This policy shall be
			 rescinded because it restates
			 KRS
			 141.039(2)(c)1. and guidance
			 has been issued by the department pursuant to
			 KRS
			 131.130(8).
(11) Revenue Policy 41P120 - Deductibility of
			 state taxes. This policy shall be rescinded because the Indiana gross receipts
			 tax was repealed effective January 1, 2003, making this policy
			 obsolete.
(12) Revenue Policy
			 41P121 - Deductibility of state taxes. This policy shall be rescinded because
			 it restates
			 KRS
			 141.039(2)(c)1. and guidance
			 has been issued by the department pursuant to
			 KRS
			 131.130(8).
(13) Revenue Policy 41P125 - Windfall profit
			 tax. This policy shall be rescinded because it restates
			 KRS
			 141.039(2)(c) and the
			 provision of the Internal Revenue Code referred to in the policy has been
			 repealed.
(14) Revenue Policy
			 41P130 - Taxation of income from activities on the outer continental shelf.
			 This policy shall be rescinded because it restates provisions in
			 KRS
			 141.010,
			 141.039,
			 and
			 141.120
			 and the holding of a court decision.
(15) Revenue Policy 41P140 - Subpart F
			 Income. This policy shall be rescinded because it conflicts with
			 KRS
			 141.039(1)(b).
(16) Revenue Policy 41P150 - Expenses Related
			 to Nonbusiness or Nontaxable Income. This policy shall be rescinded because it
			 was incorporated into
			 103
			 KAR 16:060.
(17) Revenue Policy 41P160 - First-Year Net
			 Operating Loss. This policy shall be rescinded because it restates
			 KRS 141.012, which was
			 repealed effective for taxable years beginning on or after January 1,
			 2006.
(18) Revenue Policy 41P170 -
			 Sales Factor. This policy shall be rescinded because it is obsolete. Guidance
			 on the receipts factor is provided by
			 103 KAR
			 16:270.
(19) Revenue Policy 41P180 - Property Factor.
			 This policy shall be rescinded because it is obsolete. Guidance on the property
			 factor is provided by
			 103 KAR
			 16:290.
(20) Revenue Policy 41P190 - Net Rental
			 Income. This policy shall be rescinded because guidance on the treatment of net
			 rental income in the property factor is provided by
			 103 KAR
			 16:290, Apportionment; Property Factor.
(21) Revenue Policy 41P200 - Partnership and
			 Joint Venture Income Classified Business Income. This policy shall be rescinded
			 because it conflicts with
			 KRS
			 141.206.
(22) Revenue Policy 41P210 - Business
			 Apportionment Factor for Corporations Reporting Income on Completed Contract
			 Method. This policy shall be rescinded because it was incorporated into
			 103 KAR
			 16:340.
(23) Revenue Policy 41P220 - Separate
			 Accounting. This policy shall be rescinded because it restates
			 KRS
			 141.120(12) and was
			 incorporated into
			 103
			 KAR 16:330.
(24) Revenue Policy 41P230 - Financial
			 Organizations. This policy shall be rescinded because it is obsolete.
(25) Revenue Policy 41P240 - Homeowners
			 Associations. This policy shall be rescinded because it restates
			 KRS
			 141.010,
			 141.039,
			 and
			 141.040.
(26) Revenue Policy 41P250 - Taxation of
			 Foreign Sales Corporations and Domestic International Sales Corporations. This
			 policy shall be rescinded because it is obsolete. Updated guidance is provided
			 in
			 103
			 KAR 16:370, Corporation Income Tax Treatment of
			 Foreign Sales Corporations and Domestic International Sales
			 Corporations.
(27) Revenue Policy
			 41P260 - Corporate Distributions, Liquidations and Reorganizations. This policy
			 shall be rescinded because it restates
			 KRS
			 141.0101(10).
(28) Revenue Policy 41P500 - Agreement to
			 extend statute of limitations. This policy shall be rescinded because it is
			 obsolete. Corporation license tax was repealed in 2005.
(29) Revenue Policy 41P520 - Capital. This
			 policy shall be rescinded because it is obsolete. Corporation license tax was
			 repealed in 2005.
(30) Revenue
			 Policy 41P530 - Borrowed moneys. This policy shall be rescinded because it is
			 obsolete. Corporation license tax was repealed in 2005.
(31) Revenue Policy 41P540 - Unearned
			 leasehold income. This policy shall be rescinded because it is obsolete.
			 Corporation license tax was repealed in 2005.
(32) Revenue Policy 41P550 - Borrowed moneys.
			 This policy shall be rescinded because it is obsolete. Corporation license tax
			 was repealed in 2005.
(33) Revenue
			 Policy 41P560 - Outer continental shelf. This policy shall be rescinded because
			 it is obsolete. Corporation license tax was repealed in 2005.
(34) Revenue Policy 41P570 - Corporation
			 license tax apportionment factor. This policy shall be rescinded because it is
			 obsolete. Corporation license tax was repealed in 2005.
(35) Revenue Policy 41P580 - Sales factor.
			 This policy shall be rescinded because it is obsolete. Corporation license tax
			 was repealed in 2005.
(36) Revenue
			 Policy 41P590 - Homeowners associations. This policy shall be rescinded because
			 it is obsolete. Corporation license tax was repealed in 2005.
(37) Revenue Policy 41P600 - Real estate
			 investment trust. This policy shall be rescinded because it is obsolete.
			 Corporation license tax was repealed in 2005.