Less Than Thirty Days Remain in Kentucky Tax Amnesty ProgramNovember 8, 2012 – Articles
If you owe delinquent taxes to the Commonwealth of Kentucky, you have less than 30 days remaining to pay those taxes pursuant to the Tax Amnesty Program which concludes on November 30, 2012. After that, taxpayers who still owe taxes will be subject to full penalties and fees, a higher interest rate and prosecution.
Businesses and individuals who participate in the program will not be subject to penalties and fees and only have to pay one half the regular rate of interest and receive the added benefit of a waiver of prosecution. Taxpayers who take advantage of the Amnesty Program must remain current with their Kentucky tax obligations over the next three years or face reinstated penalties, fees and interest. The Department of Revenue believes that there are nearly 170,000 individuals and businesses who may qualify for tax amnesty for eligible tax years ending after December 1, 2001 and prior to October 1, 2011.
Notices are expected to be mailed to taxpayers; however Dinsmore’s Tax Group advises them not to wait to receive a notice before electing to participate in the program. Taxpayers who do not avail themselves of the benefits of the program will face substantially higher obligations due to additional penalties and interest which can easily be 25% or more than the amount of the tax.
For further information, the Commonwealth has established a website (www.amnesty.ky.gov) which provides news and information about the program and an on-line payment option. Taxpayers may also contact the tax amnesty toll-free hotline at 855-598-2937. While many taxpayers who are interested in satisfying their eligible Kentucky tax obligations may participate in the program, Dinsmore advises that certain taxpayers should seek counsel prior to doing so due to their unique circumstances.
Kentucky conducted a similar program in 2002 in which more than 23,000 taxpayers participated which resulted in the Commonwealth collecting over $40 million in back taxes. Statistics have shown that the prosecution of delinquent tax obligations always increases following the expiration of an amnesty program as state revenue departments must carry out enforcement activities in order to encourage taxpayers to voluntarily participate in the program.
Individuals and businesses who may be interested in learning more about this program may contact an attorney from Dinsmore’s Tax Group.