Tax amnesty deadline approaching in Kentucky | News
KY (FOX19) - Kentucky residents who owe back taxes to the state have just three weeks to pay before facing tougher penalties and fees.
The amnesty program began October 1, allowing most persons or businesses owing back taxes to the Commonwealth of Kentucky to pay up without penalties or fees and with the interest owed cut in half.
Taxpayers won’t like what happens if they fail to take advantage of tax amnesty. The amnesty legislation calls for all penalties and fees to be reinstated once amnesty is over, which may include:
- 25 percent cost-of-collection fee;
- 25 percent assessment fee;
- 50 percent fee for not filing a tax return;
- 25 percent fee on liabilities discovered through an audit; and
- all interest owed will be reinstated, plus another 2 percent added to the interest rate.
“This program has teeth,” said Sec. Flanery. “If you wait for us to come collecting, you’ll pay much more than if you had paid under amnesty.”
For taxpayers who want to take advantage of amnesty but can’t afford it, the Department of Revenue offers payment plans for those who can prove hardships. Under this plan, 25 percent of the amount owed must be paid with the request with the balance paid in full by May 31, 2013. Penalties and fees are still waived, but the interest is not reduced.
Once a taxpayer takes advantage of amnesty, the person or business must continue to make all tax payments for the next three years. Failure to do so will cause all fees, penalties and interest to be reinstated.
The final deadline to apply for amnesty is November 30. Residents in Northern Kentucky can report to the revenue office in Florence to apply. The office is located on Turfway Road.
To learn more about Tax Amnesty, visit www.amnesty.ky.gov.