KRS 131.420 — Requirements for amnesty -- Installment payments -- Invalidation of amnesty -- Protests. (See LRC Note below)

completed amended tax returns for all years or tax reporting periods as stated
on the application for which the tax liability was underreported, except in
cases in which the tax liability has been established through audit;
(b) Pays in full the taxes due for the periods and taxes applied for a t the time the
application or amnesty tax returns are filed within the amnesty period and
pays the amount of any additional tax owed within thirty (30) days of
notification by the department;
(c) Pays in full within the amnesty period all taxes previously assessed by the
department that are due and owing at the time the application or amnesty tax
returns are filed;
(d) Pays in full within the amnesty period all taxes, penalties, fees, and interest
assessed by the federal government and referred to the depar tment for
collection purposes; and
(e) With regard to the program described in KRS 131.400(3), agrees to file all tax
returns when due and make all tax payments when due for three (3) years
following the date amnesty is granted to the taxpayer.
(2) An elig ible taxpayer may participate in the amnesty program whether or not the
taxpayer is under audit, notwithstanding the fact that the amount due is included in
a proposed assessment or an assessment, bill, notice, or demand for payment issued
by the departmen t, and without regard to whether the amount due is subject to a
pending administrative or judicial proceeding. An eligible taxpayer may participate
in the amnesty program to the extent of the uncontested portion of any assessed
liability. However, particip ation in the program shall be conditioned upon the
taxpayer's agreement that the right to protest or initiate an administrative or judicial
proceeding or to claim any refund of moneys paid under the program is barred with
respect to the amounts paid under the amnesty programs.
(3) (a) The department may enter into an installment payment agreement as provided
in KRS 131.081(9) in cases of severe hardship in lieu of the complete
payment required under subsection (1) of this section.
(b) Failure of the taxpayer to make timely payments shall void the amnesty
granted the taxpayer.
(c) All agreements and payments under the program described in KRS
131.400(3) shall include interest as provided under KRS 131.425(3).
(d) All required payments un der an installment payment agreement under the
program described in KRS 131.400(3) shall be made on or before May 31,
2025.
(e) 1. If a taxpayer fails to make all required payments under paragraph (d) of
this subsection by May 31, 2025, the amnesty receive d by the taxpayer
shall be invalidated, and all civil penalties, fees, and interest waived
under the amnesty agreement shall:
a. Be reinstated;
b. Be subject to immediate collection by the department; and
c. Not be subject to protest under KRS 131.110.
2. The department may utilize any remedy allowed by law to recover the
amounts reinstated, and no statute of limitations shall apply.
(4) If, following the termination of the tax amnesty period, the department issues a
deficiency assessment based upon informa tion independent of that shown on a
return filed pursuant to subsection (1) of this section, the department shall have the
authority to impose penalties and criminal action may be brought where authorized
by law only with respect to the difference between the amount shown on the
amnesty tax return and the correct amount of tax due. The imposition of penalties or
criminal action shall not invalidate any waiver granted under KRS 131.410. With
the exception of the cost -of-collection fee imposed under KRS 131.4 40(1), all
assessments issued by the department under KRS 131.410 to 131.445 may be
protested by the taxpayer in the same manner as other assessments pursuant to the
terms of this chapter.