KRS 131.020 — Major organizational units of the Department of Revenue -- Functions and duties

(1) The department, headed by a commissioner appointed by the secretary with the
approval of the Governor, shall be organized into the following functional units:
(a) Office of the Commissioner, which shall consist of:
1. The Division of Protest Resolution, headed by a division director who
shall report directly to the commissioner. The division shall administer
the protest functions for the department from office resolution through
court action;
2. The Division of Taxpayer Ombudsman, headed by a division director
who shall report to the commissioner. The division shall perform those
duties set out in KRS 131.083;
3. The Special Investigations Division, heade d by a division director who
shall report directly to the commissioner. The division shall investigate
alleged violations of the tax laws and recommend criminal prosecution
of the laws when warranted; and
4. The Division of Information Management, headed b y a division director
who shall report directly to the commissioner. The division shall provide
project management, planning, analysis, application development,
implementation, security, support, and maintenance for new and existing
legacy systems of the department;
(b) Office of Tax Policy and Regulation, headed by an executive director who
shall report directly to the commissioner. The office shall be responsible for:
1. Providing oral and written technical advice on Kentucky tax law;
2. Drafting proposed tax legislation and regulations;
3. Testifying before legislative committees on tax matters;
4. Analyzing tax publications;
5. Publishing administrative writings on its official website promptly after
issuance or finalization, but no more than one hundred twenty (120)
days thereafter;
6. Publishing all tax forms and instructions to those tax forms on its
official website no later than:
a. Forty-five (45) days prior to the date a taxpayer is required to:
i. File a tax form;
ii. Make a payment of taxes due or estimated to be due; or
iii. Electronically submit the information or payment; or
b. In the case of income tax forms, thirty (30) days prior to the end of
the calendar year for which the tax form, payment, or information
applies;
7. Providing expert witness testimony in tax litigation cases;
8. Providing consultation and assistance in protested tax cases; and
9. Conducting training and education programs;
(c) Office of Registration and Operations, headed by an executive director who
shall report directly to the commissioner. The office shall be responsible for
processing documents, depositing funds, collecting debt payments, and
coordinating, planning, and implementing a data integrity strategy. The office
shall consist of the:
1. Division of Operations, which shall be responsible for opening all tax
returns, preparing the returns for data capture, coordinating the data
capture process, depositing receipts, maintaining tax data, and assisting
other state agencies with similar operational as pects as negotiated
between the department and the other agency; and
2. Division of Registration, which shall be responsible for registering
businesses for tax purposes, ensuring that the data entered into the
department's tax systems is accurate and compl ete, and assisting the
taxing areas in proper procedures to ensure the accuracy of the data over
time;
(d) Office of Property Valuation, headed by an executive director who shall
report directly to the commissioner. The office shall consist of the:
1. Division of Local Support, which shall be responsible for providing
supervision, assistance, and training to the property valuation
administrators and sheriffs within the Commonwealth;
2. Division of State Valuation, which shall be responsible for providing
assessments of public service companies and motor vehicles, and
providing assistance to property valuation administrators and sheriffs
with the administration of tangible and omitted property taxes within the
Commonwealth; and
3. Division of Minerals Taxatio n and Geographical Information System
Services, which shall be responsible for providing geographical
information system mapping support, ensuring proper filing of
severance tax returns, ensuring consistency of unmined coal
assessments, and gathering and p roviding data to properly assess
minerals to the property valuation administrators within the
Commonwealth;
(e) Office of Sales and Excise Taxes, headed by an executive director who shall
report directly to the commissioner. The office shall administer all matters
relating to sales and use taxes and miscellaneous excise taxes, including but
not limited to technical tax research, compliance, taxpayer assistance, tax -
specific training, and publications. The office shall consist of the:
1. Division of Sales and Use Tax, which shall administer the sales and use
tax; and
2. Division of Miscellaneous Taxes, which shall administer various other
taxes, including but not limited to alcoholic beverage taxes; cigarette
enforcement fees, stamps, meters, and taxes; gasol ine tax; bank
franchise tax; inheritance and estate tax; insurance premiums and
insurance surcharge taxes; motor vehicle tire fees and usage taxes; and
special fuels taxes;
(f) Office of Income Taxation, headed by an executive director who shall report
directly to the commissioner. The office shall administer all matters related to
income and corporation license taxes, including technical tax research,
compliance, taxpayer assistance, tax -specific training, and publications. The
office shall consist of the:
1. Division of Individual Tax, which shall administer the following taxes
or returns: individual income, fiduciary, and employer withholding; and
2. Division of Corporation Tax, which shall administer the corporation
income tax, corporation license tax, p ass-through entity withholding,
and pass-through entity reporting requirements;
(g) Office of Field Operations, headed by an executive director who shall report
directly to the commissioner. The office shall manage the regional taxpayer
service centers and the field audit program; and
(h) Office of Enforcement, headed by an executive dire ctor who shall report
directly to the commissioner. The office shall initiate all collection
enforcement activity related to due and owing tax assessments, including
protest resolution, and shall assist other state agencies with similar collection
aspects as negotiated between the department and other state agencies. The
office shall consist of the Division of Collections.
(2) The functions and duties of the department shall include conducting conferences,
administering taxpayer protests, and settling tax c ontroversies on a fair and
equitable basis, taking into consideration the hazards of litigation to the
Commonwealth of Kentucky and the taxpayer. The mission of the department shall
be to afford an opportunity for taxpayers to have an independent informal review of
the determinations of the audit functions of the department, and to attempt to fairly
and equitably resolve tax controversies at the administrative level.
(3) The department shall maintain an accounting structure for the one hundred twenty
(120) property valuation administrators' offices across the Commonwealth in order
to facilitate use of the state payroll system and the budgeting process.
(4) Except as provided in KRS 131.190(4), the department shall fully cooperate with
and make tax informatio n available as prescribed under KRS 131.190(3) to the
Governor's Office for Economic Analysis as necessary for the office to perform the
tax administration function established in KRS 42.410.
(5) Executive directors and division directors established under this section shall be
appointed by the secretary with the approval of the Governor under KRS 12.050.