KRS 131.180 — Uniform Civil Penalty Act

The provisions of this section shall be known as the "Uniform Civil Penalty Act."
Penalties to be assessed in accordance with this section shall apply as follows unless
otherwise provided by law:
(1) Any taxpayer who files any return or report after the du e date prescribed for filing
or the due date as extended by the department shall, unless it is shown to the
satisfaction of the department that the failure is due to reasonable cause, pay a
penalty equal to two percent (2%) of the total tax due for each th irty (30) days or
fraction thereof that the report or return is late. The total penalty levied pursuant to
this subsection shall not exceed twenty percent (20%) of the total tax due; however,
the penalty shall not be less than ten dollars ($10);
(2) Any taxpayer who fails to withhold or collect any tax as required by law, fails to
pay the tax computed due on a return or report on or before the due date prescribed
for it or the due date as extended by the department or, excluding underpayments
determined und er KRS 141.044 or 141.305, fails to have timely paid at least
seventy-five percent (75%) of the tax determined due by the department shall,
unless it is shown to the satisfaction of the department that the failure is due to
reasonable cause, pay a penalty equal to two percent (2%) of the tax not withheld,
collected, or timely paid for each thirty (30) days or fraction thereof that the
withholding, collection, or payment is late. The total penalty levied pursuant to this
subsection shall not exceed twenty pe rcent (20%) of the tax not timely withheld,
collected, or paid; however, the penalty shall not be less than ten dollars ($10);
(3) If any taxpayer fails or refuses to make and file a report or return or furnish any
information requested in writing by the d epartment, the department may make an
estimate of the tax due from any information in its possession, assess the tax at not
more than twice the amount estimated to be due, and add a penalty equal to five
percent (5%) of the tax assessed for each thirty (30 ) days or fraction thereof that the
return or report is not filed. The total penalty levied pursuant to this subsection shall
not exceed fifty percent (50%) of the tax assessed; however, the penalty shall not be
less than one hundred dollars ($100) unless the taxpayer demonstrates that the
failure to file was due to reasonable cause as defined in KRS 131.010(9). This
penalty shall be applicable whether or not any tax is determined to be due on a
subsequently filed return or if the subsequently filed return results in a refund;
(4) If any taxpayer fails or refuses to pay within sixty (60) days of the due date any tax
assessed by the department which is not protested in accordance with KRS 131.110,
there shall be added a penalty equal to two percent (2%) of th e unpaid tax for each
thirty (30) days or fraction thereof that the tax is final, due, and owing, but not paid;
(5) Any taxpayer who fails to obtain any identification number, permit, license, or other
document of authority from the department within the t ime required by law shall,
unless it is shown to the satisfaction of the department that the failure is due to
reasonable cause, pay a penalty equal to ten percent (10%) of any cost or fee
required to be paid for the identification number, permit, license, or other document
of authority; however, the penalty shall not be less than fifty dollars ($50);
(6) If any tax assessed by the department is the result of negligence by a taxpayer or
other person, a penalty equal to ten percent (10%) of the tax so assess ed shall be
paid by the taxpayer or other person who was negligent;
(7) If any tax assessed by the department is the result of fraud committed by the
taxpayer or other person, a penalty equal to fifty percent (50%) of the tax so
assessed shall be paid by the taxpayer or other person who committed fraud;
(8) If any check tendered to the department is not paid when presented to the drawee
bank for payment, there shall be paid as a penalty by the taxpayer who tendered the
check, upon notice and demand of the d epartment, an amount equal to ten percent
(10%) of the check. The penalty under this section shall not be less than ten dollars
($10) nor more than one hundred dollars ($100). If the taxpayer who tendered the
check shows to the department's satisfaction that the failure to honor payment of the
check resulted from error by parties other than the taxpayer, the department shall
waive the penalty;
(9) Any person who fails to make any tax report or return or pay any tax within the
time, or in the manner required by law, for which a specific civil penalty is not
provided by law, shall pay a penalty as provided in this section, with interest from
the date due at the tax interest rate as defined in KRS 131.010(6);
(10) The penalties levied pursuant to subsection (4) of this section shall apply to any tax
assessment protested pursuant to KRS 131.110 to the extent that any appeal of the
assessment or portion of it is ruled by the Board of Tax Appeals or, if appealed
from, the court of last resort, as not protested, app ealed, or pursued in good faith by
the taxpayer;
(11) Nothing in this section shall be construed to prevent the assessment or collection of
more than one (1) of the penalties levied under this section or any other civil or
criminal penalty provided for vio lation of the law for which penalties are imposed;
and
(12) All penalties levied pursuant to this section shall be assessed, collected, and paid in
the same manner as taxes. Any corporate officer or other person who becomes liable
for payment of any tax as sessed by the department shall likewise be liable for all
penalties and interest applicable thereto.