Kentucky – Tax Amnesty Program

SALT Report 1573 – The Kentucky Department of Revenue is offering a tax amnesty program.  The program applies to tax liabilities that occurred after December 1, 2001 and prior to October 1, 2011. It is scheduled to run for a period of 60 – 120 days and will be conducted by the Department during the fiscal year ending June 30, 2013.

Under the program, the Department will waive civil penalties and one-half of the interest owed.  The program is available to all taxpayers that have failed to file, or owe taxes, penalties, fees, or interest.

The amnesty program includes, but is not limited to the following taxes:

  • Sales and use taxes
  • Limited liability entity taxes, and
  • Income taxes
The program excludes anyone who:
  • Is on notice, written or otherwise, of a criminal investigation being conducted by an agency of the state or any political subdivision in the United States, or
  • Is the subject of any criminal litigation, pending or otherwise, for nonpayment, delinquency, evasion or fraud in relation to any federal taxes or to any of the taxes that are included in the amnesty program
To qualify for the amnesty program, taxpayers must:
  • File an amnesty application
  • File completed tax returns for all reporting periods for which returns have not previously been filed, and
  • Pay all taxes due for the periods and taxes listed on the application
Failure to participate

Failure to participate in the amnesty program may result in an additional assessment of fees ranging from 25% to 50% of the tax due.  Any tax liability that remains unpaid after the amnesty program expires will be assessed interest at a rate 2% higher than the standard rate.

For Further Information:

Kentucky State Legislature – Tax Alert