Monday, September 24, 2012

New Kentucky Tax Amnesty Program

Kentucky has rolled-out a tax amnesty. It exists for a very short period of time: from October 1, 2012 to November 30, 2012. If this applies to you, you will have 61 days to apply.
The amnesty applies to taxes for periods…
·         after November 30, 2001 and
·         before October 1, 2011
You will be eligible if …
·         you did not file a return
·         you did file but are now amending a return
·         you did file but still have an outstanding tax liability
That last one is amazing. It indicates that Kentucky wants money, and it is willing to cut a break on assessed tax already due.
Certain taxes are not eligible, such as ...
·         your real estate taxes (as they are collected locally)
·         motor vehicle taxes (collected by county clerks)
·         tangible property taxes (again, collected locally)

What do you gain? You still owe the tax, of course, but Kentucky will waive one-half the interest and ALL the penalties.

What is the hitch? Kentucky wants your cash, so you will have to write them a check. There is a very limited exception for hardship, but even there you will have to pay-off Kentucky in full by May 31, 2013.

Consider this program if you have nexus with Kentucky but never filed, or if you have unfiled or unpaid sales taxes.

For more information you can contact Kentucky at 1-855-KYTAXES.

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