KRS 131.130 — General powers and duties of department -- Prosecution duties

Without limitation of other duties assigned to it by law, the following powers and duties
are vested in the department:
(1) The department may promulgate administrative regula tions, and direct proceedings
and actions, for the administration and enforcement of all tax laws of this state. To
assist taxpayers in understanding and interpreting the tax laws, the department may,
through incorporation by reference, include examples as part of any administrative
regulation. The examples may include demonstrative, nonexclusive lists of items if
the department determines the lists would be helpful to taxpayers in understanding
the application of the tax laws.
(2) The department, by repres entatives it appoints in writing, may take testimony or
depositions, and may examine hard copy or electronic records, any person's
documents, files, and equipment if those records, documents, or equipment will
furnish knowledge concerning any taxpayer's ta x liability, when it deems this
reasonably necessary to the performance of its functions. The department may
enforce this right by application to the Circuit Court in the county where the person
is domiciled or has his or her principal office, or by applic ation to the Franklin
Circuit Court, which courts may compel compliance with the orders of the
department.
(3) The department shall prescribe the style, and determine and enforce the use or
manner of keeping, of all assessment and tax forms and records emp loyed by state
and county officials, and may prescribe forms necessary for the administration of
any revenue law.
(4) The department shall advise on all questions respecting the construction of state
revenue laws and its application to various classes of taxpayers and property.
(5) Attorneys employed by the Finance and Administration Cabinet and approved by
the Attorney General as provided in KRS 15.020 may prosecute all violations of the
criminal and penal laws relating to revenue and taxation. If a Financ e and
Administration Cabinet attorney undertakes any of the actions prescribed in this
subsection, that attorney shall be authorized to exercise all powers and perform all
duties in respect to the criminal actions or proceedings which the prosecuting
attorney would otherwise perform or exercise, including the authority to sign, file,
and present any complaints, affidavits, information, presentments, accusations,
indictments, subpoenas, and processes of any kind, and to appear before all grand
juries, courts, or tribunals.
(6) In the event of the incapacity of attorneys employed by the Finance and
Administration Cabinet or at the request of the secretary of the Finance and
Administration Cabinet, the Attorney General or his or her designee shall prosecute
all violations of the criminal and penal laws relating to revenue and taxation. If the
Attorney General undertakes any of the actions prescribed in this subsection, he or
she shall be authorized to exercise all powers and perform all duties in respect to
the criminal actions or proceedings which the prosecuting attorney would otherwise
perform or exercise, including but not limited to the authority to sign, file, and
present any and all complaints, affidavits, information, presentments, accusations,
indictments, subpoenas, and processes of any kind, and to appear before all grand
juries, courts, or tribunals.
(7) The department may require the Commonwealth's attorneys and county attorneys to
prosecute actions and proceedings and perform other services incident to the
enforcement of laws assigned to the department for administration.
(8) (a) Notwithstanding KRS Chapter 13A, the department may research the fields of
taxation, finance, and local government administration, publish its findings,
respond to the public's and taxpayers' questions, and publish its responses.
(b) To assist taxpayers and the public in understanding and interpreting the tax
laws, the department:
1. May include examples as part of any response or publication. The
examples may include demonstrative, nonexclusive lists of items, if the
department determ ines that the list would be helpful to taxpayers in
understanding the application of the tax laws; and
2. Shall publish its administrative writings, tax forms, and instructions to
those tax forms on its official website in accordance with KRS
131.020(1)(b).
(9) The department may promulgate administrative regulations necessary to establish a
system of taxpayer identifying numbers for the purpose of securing proper
identification of taxpayers subject to any tax laws or other revenue measure of this
state, an d may require the taxpayer to place on any return, report, statement, or
other document required to be filed, any number assigned pursuant to the
administrative regulations.
(10) The department may, when it is in the best interest of the Commonwealth and
helpful to the efficient and effective enforcement, administration, or collection of
sales and use tax, motor fuels tax, or the petroleum environmental assurance fee,
enter into agreements with out -of-state retailers or other persons for the collection
and remittance of sales and use tax, the motor fuels tax, or the petroleum
environmental assurance fee.
(11) The department may enter into annual memoranda of agreement with any state
agency, officer, board, commission, corporation, institution, cabinet, depar tment, or
other state organization to assume the collection duties for any debts due the state
entity, except for consumer debt owed for health care goods and services, and may
renew that agreement for up to five (5) years. Under such an agreement, the
department shall have all the powers, rights, duties, and authority with respect to the
collection, refund, and administration of those liquidated debts as provided under:
(a) KRS Chapters 131, 134, and 135 for the collection, refund, and administration
of delinquent taxes; and
(b) Any applicable statutory provisions governing the state agency, officer, board,
commission, corporation, institution, cabinet, department, or other state
organization for the collection, refund, and administration of any liquidated
debts due the state entity.
(12) Notwithstanding subsection (11) of this section, KRS 45.237, 45.238, 45.241, or
131.030, or any agreement to the contrary, the department shall not collect or
continue collection duties of any consumer debts owed for health care goods and
services. For the purpose of this section, "consumer debt" shall be defined as a debt
incurred by an individual, as defined in KRS 141.010, for a personal or family
purpose, regardless of whether an obligation has been reduced to judgment.
(13) The department may refuse to accept a personal check in payment of taxes due or
collected from any person who has ever tendered a check to the state which, when
presented for payment, was not honored. Any check so refused shall be considered
as never having been tendered.