reglab/statecodes huggingface dataset:
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:230 - Intangible expenses, intangible interest expenses and management fees

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.130,
				141.205
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations necessary to
				administer and enforce Kentucky's tax laws.
				KRS
				141.205 disallows intangible expenses,
				intangible interest expenses and management fees when those expenses and fees
				are directly or indirectly paid, accrued or incurred to, or in connection
				directly or indirectly with one (1) or more direct or indirect transactions
				with one (1) or more related members or with a foreign corporation, unless
				certain criteria are met. This administrative regulation establishes the
				requirements for when these expenses and fees are allowed or disallowed.
Section 1. Definitions.
(1) "Actual comparables" means transactions
			 between the recipient and unrelated parties that are identical to the subject
			 transaction.
(2) "Arm's length
			 transaction" means a freely negotiated transaction between unrelated parties as
			 provided in
			 26 C.F.R.
			 1.482-1.
(3) "Comprehensive income tax treaty" means a
			 convention, or agreement, entered into by the United States, and approved by
			 Congress, with a foreign government for the allocation of all categories of
			 income subject to taxation or the withholding of tax on interest, dividends,
			 and royalties, in order to prevent double taxation of the respective nations'
			 residents, and to promote the sharing of information.
(4) "Measured by, in whole or in part, net
			 income" means that the receipt of the payment by the recipient is reported and
			 included in income for purposes of a tax on net income or in the franchise for
			 purposes of the franchise tax.
(5)
			 "Reported and included in income for purposes of a tax on net income or in the
			 franchise," means:
(a) For a tax on net
			 income, reported and included in the net income apportioned or allocated to the
			 taxing jurisdiction; or
(b) For a
			 franchise tax, reported and included in the franchise apportioned or allocated
			 to the taxing jurisdiction.
(6) "Subject transaction" means the
			 transaction giving rise to the intangible expense, intangible interest expense,
			 or management fee.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:240 - Nexus standard for corporations and pass-through entities

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010,
				141.040,
				141.206
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.040(1) requires
				non-exempt corporations doing business in Kentucky to pay corporation income
				tax and file the required tax forms for that tax.
				KRS
				141.206 requires pass-through entities doing
				business in Kentucky to file tax forms to compute the distribution of income to
				the partners, members or shareholders.
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations for the
				administration and enforcement of Kentucky's tax laws.
				KRS
				141.018 requires the Department of Revenue to
				promulgate administrative regulations necessary to implement 2005 Ky. Acts ch.
				168 and 2006 Extra. Sess. Ky. Acts ch. 2. This administrative regulation
				establishes what constitutes nexus in Kentucky under a "doing business"
				standard and provides examples.
Section
			 1. Definitions.
(1) "Business
			 situs" means in relation to intangible personal property:
(a) The corporation's or pass-through
			 entity's commercial domicile;
(b)
			 The place where the intangible personal property is utilized by the corporation
			 or pass-through entity; or
(c) The
			 state where the intangible personal property is located if possession and
			 control of the intangible personal property is localized in connection with a
			 trade or business so that substantial use or value attaches to the
			 property.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:250 - Net operating loss computation and deduction for corporations

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.011,
				141.120,
				141.121,
				141.200,
				141.201,
				141.202,
				141.901
NECESSITY, FUNCTION AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations necessary to
				administer and enforce Kentucky's tax laws.
				KRS
				141.150(4) requires the
				department to promulgate administrative regulations and rules necessary for the
				proper administration of KRS Chapter 141. This administrative regulation
				establishes methods of computing a corporation's net operating loss deduction
				and application of the deduction to subsequent taxable years on taxable net
				income as authorized by
				KRS
				141.011,
				141.200(11)(c),
				and
				141.202(5).
Section 1. Definitions.
(1) "Carryforward" has the same meaning as
			 carryover as used in
			 KRS
			 141.202.
(2) "Combined group" is defined by
			 KRS
			 141.202(2)(a).
(3) "Combined group filer" means a group of
			 corporations filing in accordance with
			 KRS
			 141.202.
(4) "Combined group return" means a return
			 filed under
			 KRS
			 141.202(3).
(5) "Corporation" is defined by:
(a)
										KRS
			 141.202(2)(b) for a combined
			 group return;
(b)
										KRS
			 141.010(4) for a separate
			 return for periods beginning on or after January 1, 2018; or
(c)
										KRS
			 141.201(2)(d) for an
			 elective consolidated return.
(6) "Doing business in this state" is defined
			 by
			 KRS
			 141.010(7).
(7) "Elective consolidated filer" means a
			 corporation as defined in Section 7701(a)(3) of the Internal Revenue Code,
			 26
			 U.S.C. 7701(a)(3), filing in
			 accordance with
			 KRS
			 141.201.
(8) "Elective consolidated return" means a
			 return defined under
			 KRS
			 141.201(2)(b).
(9) "Net operating loss" or "NOL" means net
			 operating loss defined under Section 172 of the Internal Revenue Code as
			 adjusted for differences between KRS Chapter 141 and the Internal Revenue
			 Code.
(10) "Nexus consolidated
			 filer" means a corporation as defined under
			 KRS
			 141.010(4) or
			 141.900(24),
			 filing in accordance with
			 KRS
			 141.200(8), (9), (10) and
			 (11).
(11) "Nexus consolidated return" means a
			 return defined under
			 KRS
			 141.200(9)(g).
(12) "Separate return" is defined by
			 KRS
			 141.201(2)(c).
(13) "Separate return filer" means a
			 corporation filing in accordance with
			 KRS
			 141.201(3)(b).
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:290 - Apportionment; property factor

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.120(12)(a) 2., 141.121,
				141.901
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.121 and
				141.901
				require business or apportionable income of multistate corporations to be
				apportioned to Kentucky by multiplying the income by a fractionKRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws. This administrative regulation establishes the
				requirements for determining the property factor of a multistate
				corporation.
Section 1. Definitions.
(1) "Annual rent" means the actual sum of
			 money or other consideration payable, directly or indirectly, by the
			 corporation for its benefit for the use of the property;
(a) Including:
1. Any amount payable for the use of real or
			 tangible personal property whether designated as a fixed sum of money or as a
			 percentage of sales, profits or otherwise; and
2. Any amount payable as additional rent or
			 in lieu of rents, such as interest, taxes, insurance, repairs or any other
			 items which are required to be paid by the terms of the lease or other
			 arrangement; and
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:330 - Apportionment and allocation; alternative apportionment; separate accounting

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.120,
				141.901
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.120 provides for the division of income
				of interstate business for tax purposes.
				KRS
				141.120(12)(a)(1) states
				that if the allocation and apportionment provisions do not fairly represent the
				extent of the taxpayer's business activity in Kentucky, a taxpayer may petition
				for, or the department may require, in respect to all or any part of the
				taxpayer's business activity, if reasonable, an alternative method of
				apportionment.
				KRS
				131.130(1) authorizes the
				Kentucky Department of Revenue to promulgate administrative regulations to
				administer and enforce Kentucky's tax laws. This administrative regulation
				establishes alternative apportionment request procedures and when the separate
				accounting method shall apply.
Section
			 1. Petition for Alternative Apportionment.
(1) Before a taxpayer may file a return with
			 an alternative method of allocation or apportionment pursuant to
			 KRS
			 141.120(12), a taxpayer
			 shall file a petition for the use of alternative apportionment with the
			 department, and the petition shall have been approved or denied by the
			 department. If the taxpayer chooses to be represented by a person or firm
			 outside of its business entity, Form 20A100, Kentucky Declaration of
			 Representative, shall be submitted to the department naming the taxpayer's
			 representative(s). Form 20A100, as prescribed by the department, may be found
			 online at
https://revenue.ky.gov
.
(2) All petitions shall be in written form
			 and submitted to the attention of the Commissioner of the Department of
			 Revenue. A petition submitted as an attachment to a return shall not be
			 considered a valid petition. If the department processes a return which uses an
			 unapproved alternative apportionment method, the action shall not be construed
			 as the department's acceptance of the taxpayer's proposed alternative
			 method.
(3) The department shall
			 notify the taxpayer, in writing, if the requested alternative method has been
			 approved. If approved, the taxpayer may then file an amended or original return
			 utilizing the approved alternative apportionment method.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:340 - Completed contract method

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.120
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.120 provides for the division of income
				of interstate business for tax purposes.
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and interpret
				Kentucky's tax laws. This administrative regulation explains how the
				apportionable income allocation and apportionment factors shall be calculated
				when net income is reported on a completed contract basis.
Section 1. Definitions.
(1) "Completed contract method of accounting"
			 means a method of accounting whereby apportionable income from long-term
			 contracts is reported for the taxable year in which the contract is finally
			 completed and accepted.
(2) "Gross
			 contract price" means the percentage of the entire contract that has been
			 completed, from the commencement of the contract to the date of withdrawal,
			 dissolution, or cessation of business.
(3) "Long-term contracts" means contracts
			 covering a period in excess of one (1) year from the date of execution of the
			 contract to the date on which the contract is finally completed and
			 accepted.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:370 - Corporation income tax treatment of foreign sales corporations and domestic international sales corporations

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010,
				141.040,
				141.050,
				141.900
NECESSITY, FUNCTION AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws.
				KRS
				141.040(1) imposes the
				corporation income tax on corporations that are doing business in this state.
				Foreign sales corporations and domestic international sales corporations are
				special corporate entity designations for federal income tax purposes under the
				Internal Revenue Code. This administrative regulation establishes the
				requirements for the Kentucky corporation income tax treatment of foreign sales
				corporations and domestic international sales corporations.
Section 1. Definitions.
(1) "Domestic international sales
			 corporation" means a DISC as defined in Section 992 of the Internal Revenue
			 Code,
			 26
			 U.S.C. 992.
(2) "Foreign sales corporation" means a
			 foreign sales corporation as defined in Section 922 of the Internal Revenue
			 Code, 26 U.S.C. 922 in effect prior to its repeal by
			 Pub.L.
			 106-519.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 16 - Income Tax; Corporations › Section 103 KAR 16:400 - Combined unitary Kentucky corporation income tax return

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.120,
				141.121,
				141.202
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.202 establishes the general rules for
				combined unitary reporting in Kentucky.
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations necessary to
				administer and enforce Kentucky's tax laws.
				KRS
				141.050(4) requires the
				Department of Revenue to promulgate administrative regulations and rules
				necessary for the proper administration of KRS Chapter 141. This administrative
				regulation establishes terms and procedures required for the implementation of
				combined unitary reporting in
				KRS
				141.202.
Section
			 1. Definitions.
(1) "Combined
			 group" is defined by
			 KRS
			 141.202(2)(a).
(2) "Corporation" is defined by
			 KRS
			 141.202(2)(b).
(3) "Designated Filer" means the taxpayer
			 member of the combined group annually designated per
			 KRS
			 141.202(9) to file the
			 return.
(4) "Person" is defined by
			 KRS
			 141.010(24).
(5) "Taxpayer" is defined by
			 KRS
			 141.202(2)(e).
(6) "Unitary Business" is defined by
			 KRS
			 141.202(2)(f).
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 17 - Income Tax; Individual › Section 103 KAR 17:010 - Residence

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010,
				141.020
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Kentucky Department of Revenue to promulgate administrative regulations to
				prescribe tax return filing requirements for residents, part-year residents,
				and nonresidents. This administrative regulation provides guidelines for
				determining whether an individual qualifies as a resident, part-year resident,
				or nonresident for Kentucky income tax purposes.
Section 1. Definitions.
(1) "Domicile" means the place where an
			 individual has established permanent residency.
(2) "Nonresident" is defined by
			 KRS
			 141.010(18).
(3) "Nonresident citizen" means an individual
			 residing in a foreign country who may file federal income tax returns as a
			 nonresident citizen.
(4) "Part-year
			 resident" is defined by
			 KRS
			 141.010(20).
(5) "Resident" is defined by
			 KRS
			 141.010(24).
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 17 - Income Tax; Individual › Section 103 KAR 17:020 - Combined individual returns

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.010,
				141.010,
				141.019,
				141.050,
				141.180,
				141.900
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws. This administrative regulation provides a basis for the
				combined individual income tax return which permits married taxpayers to gain
				the benefits of separate filing on one return.
Section 1. Separate Return. Any individual,
			 whether married or single, may elect to file a separate return. If both spouses
			 have income, separate returns are required for married taxpayers that do not
			 have the same residency status as a resident, nonresident, or part year
			 resident.
Section 2. Joint Return.
			 A taxpayer and spouse may elect, for any year, to file a joint return if they
			 are married at the close of the taxable year; or a surviving spouse may elect
			 to file a joint return if the deceased spouse died during the taxable year even
			 though one (1) spouse had no gross income. If a joint return is filed, the
			 gross income and adjusted gross income of the taxpayer and spouse are computed
			 in an aggregate amount and the deductions and the net income are also computed
			 on an aggregate basis. If separate returns have been filed by both spouses for
			 the taxable year, the taxpayers may elect to file an amended joint return if
			 the Department of Revenue is notified in writing that the separate return
			 election is rescinded. Likewise, if two (2) married taxpayers have filed a
			 joint return for the taxable year, they may elect to file an amended combined
			 or amended separate returns. Taxpayers filing joint returns are jointly and
			 severally liable for all taxes, penalties, and interest accruing under the
			 return.
Section 3. Combined Return.
			 Taxpayers may elect, for any year, to file a combined return if they are
			 married at the close of the taxable year and have the same residency status as
			 a resident, nonresident, or part year resident. If a combined return is filed,
			 the gross income, adjusted gross income, deductions, net income, tax credits,
			 and tax liabilities of the taxpayer and spouse are computed separately, but the
			 tax shall be assessed on an aggregate basis. If married taxpayers elect to file
			 a combined return, refunds shall be made payable to the taxpayers jointly and
			 the taxpayers shall be jointly and severally liable for all taxes, penalties,
			 and interest. Married couples electing to file a combined return shall not be
			 permitted to rescind such election and file separate returns for that taxable
			 year.
STATUTORY AUTHORITY:
				  KRS
				  131.130,
				  141.050
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 17 - Income Tax; Individual › Section 103 KAR 17:060 - Income subject to taxation; portions

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010,
				141.017,
				141.019,
				141.020,
				141.900
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws.
				KRS
				141.020 establishes the income tax
				requirements for residents, part-year residents, and nonresidents. This
				administrative regulation prescribes methods of determining the Kentucky
				portion of certain income tax deductions of nonresidents and part-year
				residents.
Section 1. Definitions.
(1) "Nonresident" is defined by
			 KRS
			 141.010(18).
(2) "Part-year resident" is defined by
			 KRS
			 141.010(20).
(3) "Resident" is defined by
			 KRS
			 141.010(24).
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 17 - Income Tax; Individual › Section 103 KAR 17:100 - Division of income between married individuals filing separate tax returns

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010,
				141.020,
				141.050,
				141.300,
				141.305
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws. This administrative regulation establishes the
				requirements for determining how income derived from joint ownership of
				property and self-employment is divided among married individuals filing
				separate tax returns.
Section 1.
			 Definition. "Internal Revenue Code" is defined by
			 KRS
			 141.010.
Section 2. Income derived from the joint
			 ownership of real property, tangible personal property, or intangible property
			 shall be divided in accordance with the actual ownership of the property by
			 married individuals filing separate tax returns. If actual ownership is not
			 known or specified, income shall be divided equally. Income derived from
			 property not held jointly shall be attributable to its individual
			 owner.
Section 3. Income derived
			 from self-employment by a husband and wife filing separate tax returns shall be
			 divided according to Section 6017 of the Internal Revenue Code,
			 26 U.S.C.
			 6017 and other guidance issued by the U.S.
			 Department of the Treasury and the Internal Revenue Service.
STATUTORY AUTHORITY:
				  KRS
				  131.130(1)
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 17 - Income Tax; Individual › Section 103 KAR 17:130 - Individual income tax; military personnel; nonresidents

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.020 and
				50 U.S.C.
				4001
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations to administer
				and enforce Kentucky's tax laws.
				50 U.S.C.
				4001 prohibits a state from imposing a tax on
				income or compensation from military service on servicemembers who are
				temporarily located in the state because of military assignments and prohibits
				a state from using the military income to increase any tax due on income from
				nonmilitary sources. A servicemember shall file state income tax returns with
				his or her state of legal domicile, which usually is the state of residence
				prior to entering military service. This administrative regulation establishes
				the income tax filing requirements for servicemembers of the U.S. government,
				including residents of other states that are serving in the military and
				stationed in Kentucky.
Section 1.
			 Definition. "Servicemember" means servicemember as defined by
			 50
			 U.S.C. 3911(1).
Section 2. A Kentucky resident servicemember
			 shall file and report all income earned or received under the provisions of
			 103 KAR
			 17:060.
Section
			 3. A nonresident servicemember who is temporarily located in
			 Kentucky because of military assignment shall not be required to report income
			 or compensation from service in the military. Income from nonmilitary Kentucky
			 sources shall be subject to Kentucky income tax and shall be reported under the
			 provisions of
			 103 KAR
			 17:060.
Section
			 4. A civilian spouse of a nonresident servicemember shall be taxed
			 in Kentucky in accordance with the provisions of
			 50 U.S.C.
			 4001.
Section
			 5. A nonresident civilian who marries a Kentucky resident
			 servicemember who is living outside of Kentucky shall not be considered a
			 resident of Kentucky merely because the servicemember is considered a resident
			 for tax purposes.
Section 6. A
			 resident servicemember may change his or her state of domicile from Kentucky to
			 another state in which he or she resides. Notice of intent to change shall be
			 filed with the personnel department of the appropriate military
			 service.
STATUTORY AUTHORITY:
				  KRS
				  131.130,
				  141.020,
				  141.050
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 17 - Income Tax; Individual › Section 103 KAR 17:140 - Individual income tax - reciprocity - nonresidents

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.070
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations to administer
				and enforce Kentucky's tax laws. This administrative regulation establishes
				reciprocity requirements for Kentucky residents, and residents of states with
				which Kentucky has negotiated reciprocal agreements under the provisions of
				KRS
				141.070.
Section
			 1. In accordance with
			 KRS
			 141.070, reciprocal agreements with other
			 states exempting specific income from tax shall apply only to the specific
			 types of income listed. Income from other sources may require the filing of a
			 nonresident income tax return.
Section
			 2. The agreements shall provide the same exemption for the listed
			 income from withholding tax.
Section
			 3. A list of states that Kentucky has negotiated reciprocal
			 agreements and the type of income exemption available are listed in this
			 section:
(1) Illinois.
(a) Reciprocity with Illinois shall be in
			 accordance with the reciprocity agreement titled "Agreement between Director of
			 Revenue for the State of Illinois and the Commissioner of Revenue of the
			 Commonwealth of Kentucky".
(b)
			 Residents of Illinois shall be exempt from Kentucky income tax on wages and
			 salaries.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:010 - Employers required to withhold

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.070,
				141.310,
				141.320
NECESSITY, FUNCTION, AND CONFORMITY: This administrative
				regulation defines the terms "employer" and "wages" from the standpoint of
				Kentucky income tax withholding requirements.
Section 1. Employers. Every employer
			 incorporated in Kentucky, qualified to do business in Kentucky, doing business
			 in Kentucky, or subject to the jurisdiction of Kentucky in any manner, and
			 making payment of wages subject to withholding shall deduct, withhold, and pay
			 to the department the tax required to be withheld.
Section 2. Wages. All wages paid to a
			 Kentucky resident whether working in or out of Kentucky, as a regular employee
			 in the conduct of business of an employer required to withhold taxes, are
			 subject to withholding. The wages paid to nonresidents of Kentucky are subject
			 to withholding to the extent that they are wages for personal services rendered
			 in Kentucky as a regular employee in the conduct of the business of an employer
			 in Kentucky. However, the nonresident is not subject to withholding where a
			 reciprocal exemption agreement is in effect between Kentucky and the state of
			 residence of the nonresident employee.
STATUTORY AUTHORITY: KRS Chapter
				  13A
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:020 - Withholding return adjustment

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.330,
				141.355
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws.
				KRS
				141.050(4) requires the
				department to promulgate administrative regulations to effectively carry out
				the provisions of KRS Chapter 141. This administrative regulation establishes
				the procedure the employer is required to use in correcting errors in the
				withholding and payment of Kentucky income tax.
Section 1. General. If the amount of tax
			 withheld by the employer exceeds or is less than the tax required to be
			 withheld and paid to the department for any period, proper adjustment may be
			 made on the return for a subsequent period of the same calendar year. Every
			 return on which an adjustment for a preceding period is reported shall include
			 a statement explaining the adjustment and designating the period in which the
			 error occurred. A claim for refund may be filed for any overpayment.
Section 2. Under-withholding. If less than
			 the correct amount of the tax required to be withheld is deducted from any wage
			 payment, the employer may deduct the under-collection from the remuneration of
			 the employee under his or her control. If there is no remuneration under the
			 control of the employer, the matter is one for settlement between the employer
			 and the employee, but the amount under-collected shall be the liability of the
			 employer.
Section 3.
			 Over-withholding. If more than the correct amount of tax required to be
			 withheld is deducted from any wage payment, the over-collection may be repaid
			 to the employee. The employer shall obtain and keep, as part of his or her
			 records, the written acknowledgement of receipt of the repayment by the
			 employee showing the date and amount of the repayment. Any over-collection not
			 repaid and receipted for by the employee shall be reported and paid to the
			 department for the period in which the over-collection was made.
Section 4. Other Errors. Employers shall
			 consult the department for correction of errors in withholding which cannot be
			 adjusted in a return for a subsequent period of the same calendar
			 year.
STATUTORY AUTHORITY:
				  KRS
				  131.130(1),
				  141.050(4)
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:050 - Withholding statements

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.250,
				141.330,
				141.335
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Kentucky Department of Revenue to promulgate administrative regulations for the
				administration and enforcement of all tax laws of this state.
				KRS
				141.335(2) authorizes the
				department to establish the form and required contents of the withholding
				statement to be filed pursuant to
				KRS
				141.335(1).
				KRS
				131.250 authorizes the department to
				establish requirements for electronic filing. This administrative regulation
				establishes those requirements.
Section
			 1. Acceptable Forms and Information.
(1) Employers shall provide to their
			 employees the following forms as withholding statements to report Kentucky
			 withholding:
(a) Federal Form W-2, "Wage and
			 Tax Statement";
(b) Federal Form
			 W-2G, Certain Gambling Winnings;
(c) Federal Form 1099 series; or
(d) Facsimiles of the forms listed in this
			 subsection that are acceptable to the Internal Revenue Service.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:060 - Miscellaneous payroll period

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.315
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.315 requires the department to promulgate
				administrative regulations governing certain specified types of wage payments.
				This administrative regulation provides an income tax withholding method for
				payroll periods of more than one (1) year.
Section
			 1. Miscellaneous Payroll Period. If wages are paid to an employee
			 for a payroll period of more than one (1) year, the amount of tax required to
			 be deducted and withheld in respect to such wages shall be determined as if
			 such payroll period constituted a miscellaneous payroll period of 365
			 days.
STATUTORY AUTHORITY:
				  KRS
				  131.130,
				  141.315
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:070 - Supplemental wages and other payments subject to withholding

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010(29),
				141.020,
				141.310,
				141.315,
				141.900(22),
				341.020,
				341.090,
				341.395,
				26 U.S.C.
				3402(q)
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				141.050(4) requires the
				Department of Revenue to promulgate administrative regulations and prescribe
				the forms and reports necessary for the proper administration of any and all
				provisions of KRS Chapter 141.
				KRS
				141.310(8) authorizes the
				department to promulgate an administrative regulation for withholding in
				addition to those provided in
				KRS
				141.310 and
				141.315
				if the employer and employee agree to additional withholding.
				KRS
				141.315 requires the department to promulgate
				administrative regulations governing certain specified types of payments. This
				administrative regulation prescribes procedures for withholding income tax on
				gambling winnings, supplemental wages, vacation pay, and unemployment
				benefits.
Section 1. Definitions.
(1) "Benefit year" is defined by
			 KRS
			 341.090(3).
(2) "Benefits" is defined by
			 KRS
			 341.020(4).
(3) "Cabinet" means the Education and
			 Workforce Development Cabinet as defined by
			 KRS
			 341.005.
(4) "Department" means the Department of
			 Revenue as defined by
			 KRS
			 141.010(5).
(5) "Fund" is defined by
			 KRS
			 341.020(1).
(6) "Gambling winnings" means winnings that
			 are subject to withholding as defined by
			 26 U.S.C.
			 3402(q) of the Internal
			 Revenue Code.
(7) "Supplemental
			 wages" means payments made to an employee by the individual's employer in
			 addition to regular wages.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:090 - Payroll records

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.130,
				141.050,
				141.310,
				141.315,
				141.325
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations to administer
				and enforce Kentucky's tax laws.
				KRS
				141.050(4) requires the
				department to promulgate administrative regulations to effectively carry out
				the provisions of KRS Chapter 141. This administrative regulation provides
				guidelines for the maintenance and retention of records relative to income tax
				withholding by employers.
Section 1.
			 Maintain Records.
(1)
(a) Every employer required to deduct and
			 withhold income tax upon wages shall keep employee withholding exemption
			 certificates and records showing the following:
1. The number of persons employed during the
			 year whose wages are subject to withholding;
2. The periods of employment; and
3. The amounts and dates of payment to each
			 person.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:110 - Voluntary withholding

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.310,
				141.370
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations necessary to
				administer and enforce Kentucky's tax laws. This administrative regulation
				authorizes employers and employees to voluntarily agree to additional
				withholding as set forth in
				KRS
				141.310(8).
Section 1. Additional withholding. In
			 addition to tax required to be withheld by the tables required by
			 KRS
			 141.370 or by any withholding computer
			 formula published by the department, an employee may authorize his employer to
			 withhold additional Kentucky income tax using Form K-4, Kentucky Withholding
			 Certificate, Revenue Form 42A804.
STATUTORY AUTHORITY:
				  KRS
				  131.130,
				  141.310,
				  141.370
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:120 - Security for compliance; bonds

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.310
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations to enforce
				Kentucky's tax laws. This administrative regulation implements
				KRS
				141.310(14) which authorizes
				the Department of Revenue to require certain employers to post withholding
				performance bonds.
Section 1.
			 Enforcement of Trusteeship. Additional means of enabling the Department of
			 Revenue to collect withholding taxes has been provided in
			 KRS
			 141.310(4) which authorizes
			 the department to fix the amount of and demand the posting of a corporate
			 surety bond or cash not to exceed $50,000 by any employer required under KRS
			 Chapter 141, or the administrative regulations promulgated thereunder, to
			 withhold Kentucky income taxes from wages of employees.
Section 2. Bond Requirements. For purposes of
			 KRS
			 141.310(14), a person from
			 whom the department may require a withholding tax security bond and those
			 persons from whom a security bond may be required includes the following:
(1) An employer who is delinquent in either
			 filing withholding tax returns required by law or is delinquent in submitting
			 to the department any tax withheld from an employee, or both; or
(2) An employer, who for any reason, the
			 department determines is or may become an insecure risk for which there is a
			 need to ensure compliance with the law.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:150 - Employer's withholding reporting requirements

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.155,
				141.330
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.155(3)(c) requires the
				department to promulgate administrative regulations establishing electronic
				fund transfer payment requirements for the payment of taxes and fees
				administered by the department.
				KRS
				141.330(1) authorizes the
				department to promulgate administrative regulations to require employers to
				remit the tax withheld under
				KRS
				141.310 and
				141.315
				within a reasonable time after the payroll period or other period. This
				administrative regulation prescribes the reporting and payment requirements for
				employers withholding Kentucky income tax.
Section
			 1. Definitions. "Lookback period" means the twelve (12) month
			 period ending on December 31 of the year immediately preceding the current
			 calendar year. For example, the lookback period for calendar year 2020 is the
			 period beginning on January 1, 2019 and ending on December 31, 2019.
Section 2. Reporting and Payment
			 Requirements. Unless otherwise required or allowed by Section 3 of this
			 administrative regulation:
(1)
(a) Any employer who withheld income tax of
			 less than $400 during the lookback period shall report and pay the tax annually
			 using Revenue Form K-3, "Employer's Annual Reconciliation Return."
(b) Revenue Form K-3 and the income tax
			 withheld shall be filed and paid on or before the last day of the month
			 following the close of the calendar year in which the tax was withheld (January
			 31).
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 18 - Income Tax; Withholding › Section 103 KAR 18:172 - Withholding tax circulars

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				131.130(1)
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				department to promulgate administrative regulations to administer and enforce
				Kentucky's tax laws. The Department of Revenue has many policies and circulars,
				a number of which predate the enactment of KRS Chapter 13A, that conflict with
				current tax laws. This administrative regulation formally rescinds obsolete
				withholding tax circulars.
Section 1.
			 The following withholding tax circulars of the Department of Revenue are
			 rescinded and shall be null, void, and unenforceable:
(1) Revenue Circular 42C010 - Withholding tax
			 reporting procedures under the Ky. Revitali-zation Authority. This circular is
			 being rescinded because it is obsolete. Guidance on withholding tax reporting
			 procedures under the Kentucky Revitalization Authority is available in
			 103 KAR
			 18:180 - Withholding Tax Reporting Procedures Under
			 the Kentucky Revitalization Authority.
(2) Revenue Circular 42C011 - Kentucky.
			 Withholding tax reporting procedures under the Kentucky Jobs Development
			 Authority. This circular is being rescinded because it is obsolete. Guidance on
			 withholding tax reporting procedures under the Kentucky Jobs Development
			 Authority is available in
			 103
			 KAR 18:210, Kentucky Jobs Development Act Service and
			 Technology Job Creation Assessment Fee.
(3) Revenue Circular 42C012 - Kentucky.
			 Withholding tax reporting procedures under the Ky. Rural Economic Development
			 Authority. This circular is being rescinded because it is obsolete. Guidance on
			 withholding tax reporting procedures under the Kentucky Rural Economic
			 Development Authority is available in
			 103
			 KAR 18:190, Kentucky Rural Economic Development Act
			 Job Development Assessment Fee.
(4)
			 Revenue Circular 42C013 - Kentucky. Withholding tax reporting procedures under
			 the Ky. Industrial Development Act. This circular is being rescinded because it
			 is obsolete. Guidance on withholding tax reporting procedures under the
			 Kentucky Industrial Development Act is available in
			 103
			 KAR 18:200, Kentucky Industrial Development Act Job
			 Development Assessment Fee.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 19 - Income Tax; Miscellaneous › Section 103 KAR 19:010 - Computation of income; estates and trusts

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				141.010,
				141.019,
				141.020,
				141.030,
				141.081,
				141.190,
				141.900
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Kentucky Department of Revenue to promulgate administrative regulations to
				prescribe tax return filing requirements for fiduciaries including estates and
				trusts. This administrative regulation outlines procedure for computing estate
				and trust income for Kentucky income tax purposes including instructions
				covering both resident and nonresident situations.
Section 1. Computation of Income. Taxable
			 income of an estate or trust is net income as defined by
			 KRS
			 141.019 except:
(1) The standard deduction permitted
			 individuals in
			 KRS
			 141.081 is not allowed;
(2) Federal estate tax paid on income accrued
			 at the date of death of a decedent is deductible;
(3) Deductions that have been allowed on the
			 Kentucky inheritance tax return or the Kentucky individual income tax return
			 may not be claimed on the fiduciary income tax return; and
(4) Any deductions (or federal tax) related
			 to nontaxable income are not allowed.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 25 - Sales and Use Tax; Registration and Collection › Section 103 KAR 25:050 - Factors and agents

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				139.010,
				139.200,
				139.310,
				139.340
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations for the
				administration and enforcement of Kentucky tax laws. This administrative
				regulation interprets the sales and use tax law as it applies to transactions
				involving factors and agents.
Section
			 1. Definitions.
(1) "Factors"
			 and "agents" means persons, excluding marketplace providers, to whom products
			 are consigned, entrusted, or delivered by a principal owner for the purpose of
			 selling.
(2) "Marketplace
			 providers" is defined by
			 KRS
			 139.010.
(3) "Principal owner" means a person who has
			 the primary and ultimate ownership of the products for sale.
(4) "Products" means tangible personal
			 property, digital property, and services subject to sales tax according to the
			 provisions of
			 KRS
			 139.200.
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 25 - Sales and Use Tax; Registration and Collection › Section 103 KAR 25:060 - Temporary vendors and transient merchants

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				139.010,
				139.200,
				139.550,
				139.660,
				365.650,
				365.665,
				365.680
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				131.130(1) authorizes the
				Department of Revenue to promulgate administrative regulations for the
				administration and enforcement of Kentucky tax laws. This administrative
				regulation interprets the sales and use tax law as it applies to temporary
				vendors and transient merchants.
Section
			 1. Definitions.
(1) "Temporary
			 vendor" means a person engaged in selling as described in
			 KRS
			 139.550(4).
(2) "Transient merchant" is defined by
			 KRS
			 365.650(1).
Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 26 - Sales and Use Tax; Service and Professional Occupations › Section 103 KAR 26:010 - Nontaxable service enterprises

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				139.010,
				139.200
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. This
				administrative regulation establishes sales and use tax requirements for
				nontaxable service enterprises.
Section
			 1.
(1) Persons engaged in the
			 business of rendering nontaxable services shall be classified as consumers, not
			 retailers, of the tangible personal property, digital property, and taxable
			 services specifically enumerated in
			 KRS
			 139.200, which they use incidentally in
			 rendering the service. Tax shall apply to the sale of tangible personal
			 property, digital property, and taxable services specifically enumerated in
			 KRS
			 139.200 to consumers.
(2) The list in this subsection shall serve
			 as general examples of nontaxable service enterprises:
(a) Advertising agencies;
(b) Automobile detailers;
(c) Banks;
(d) Barbers;
(e) Beauty shop operators;
(f) Shoe shiners;
(g) Taxidermists;
(h) Tire repairers; and
(i) Similar
			 enterprises.