Kentucky Tax Amnesty Program begins October 1, 2012!
Kentucky has announced that it will provide an Amnesty Program for taxpayers that owe back taxes, penalties, fees, and interest to Kentucky from tax bills due December 1, 2001 to October 1, 2011.
From October 1, 2012 to November 30, 2012, taxpayers can apply for tax amnesty with the Kentucky Department of Revenue.
If taxpayers qualify, they will pay only the taxes owed and half of the interest. Kentucky will waive all penalties and fees and the other half of the interest on the taxpayer's bill.
Who is Eligible for Amnesty?
1. Taxpayers who did not file a required return for Amnesty eligible tax periods.
2. Taxpayers who are amending the tax liability on a previously filed tax return for Amnesty eligible tax periods.
3. Taxpayers who have an outstanding tax liability for Amnesty eligible tax periods.
4. Taxpayers who have omitted personal or public service property for Amnesty eligible tax periods.
What if You Don't Take Advantage of Amnesty Program?
1. Cost of collection fee of 25% on all taxes which are or become due and owing for any reporting period, regardless of when due.
2. Taxes which are assessed and collected after the amnesty period for taxable periods ending or transactions occurring prior to October 1, 2011, shall be charged an assessment fee of 25% at the time of assessment.
3. The addition of a 50% fee for non-filed returns, eligible for Tax Amnesty
4. Increased interest (2%) on all Tax Amnesty eligible bills not paid during amnesty
5. Additional 25% fee on amnesty eligible liabilities discovered through audit
For more info, go to Kentucky Amnesty.
If you are thinking about utilizing the Amnesty program, please consider Kentucky's Voluntary Disclosure Program and speak to a qualified multistate tax consultant to determine which path makes the most sense.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.