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131.420 Requirements for amnesty -- Installment payments -- Protests.

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131.420 Requirements for amnesty -- Installment payments -- Protests. (1) The provisions of KRS 131.400 to 131.445 shall apply to any eligible taxpayer who files an application for amnesty within the time prescribed by the department and <br>does the following: <br>(a) Files completed tax returns for all years or tax reporting periods as stated on the application for which returns have not previously been filed and files <br>completed amended tax returns for all years or tax reporting periods as stated <br>on the application for which the tax liability was underreported, except in <br>cases in which the tax liability has been established through audit. (b) Pays in full the taxes due for the periods and taxes applied for at the time the application or amnesty tax returns are filed within the amnesty period and <br>pays the amount of any additional tax owed within thirty (30) days of <br>notification by the department. (c) Pays in full within the amnesty period all taxes previously assessed by the department that are due and owing at the time the application or amnesty tax <br>returns are filed. (2) An eligible taxpayer may participate in the amnesty program whether or not the taxpayer is under audit, notwithstanding the fact that the amount due is included in <br>a proposed assessment or an assessment, bill, notice, or demand for payment issued <br>by the department, and without regard to whether the amount due is subject to a <br>pending administrative or judicial proceeding. An eligible taxpayer may participate <br>in the amnesty program to the extent of the uncontested portion of any assessed <br>liability. However, participation in the program shall be conditioned upon the <br>taxpayer's agreement that the right to protest or initiate an administrative or judicial <br>proceeding or to claim any refund of moneys paid under the program is barred with <br>respect to the amounts paid with the application or amnesty returns. (3) The department may enter into an installment payment agreement as provided in KRS 131.081(9) in cases of severe hardship in lieu of the complete payment <br>required under subsection (1) of this section. Failure of the taxpayer to make timely <br>payments shall void the terms of the amnesty program. All such agreements and <br>payments shall include interest as provided under subsection (2) of KRS 131.425. (4) If, following the termination of the tax amnesty period, the department issues a deficiency assessment based upon information independent of that shown on a <br>return filed pursuant to subsection (1) of this section, the department shall have the <br>authority to impose penalties and criminal action may be brought where authorized <br>by law only with respect to the difference between the amount shown on the <br>amnesty tax return and the correct amount of tax due. The imposition of penalties or <br>criminal action shall not invalidate any waiver granted under KRS 131.410. With <br>the exception of the cost of collection fee imposed under subsection (1) of KRS <br>131.440, all assessments issued by the department under KRS 131.410 to 131.445 <br>may be protested by the taxpayer in the same manner as other assessments pursuant <br>to the terms of this chapter. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 137, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 366, sec. 3, effective July 15, 2002. -- Created 1988 Ky. Acts <br>ch. 322, sec. 3, effective July 15, 1988.