KRS 138.705 — Audit of licensee's records -- Erroneous credits -- Refunds

(1) The cabinet may audit the books and records of each licensee who has at any time
since the last audit was made applied for a credit or refund thereunder and make
such other investigations as it deems necessary to determine whether the credits or
refunds applied for constitute proper claims.
(2) If gasoline or special fuels taxes are erroneously credited or refunded, the cabinet
shall advise the licensee of the erroneous credit or refund. If the licensee fails to
reimburse the Commonwealth within fifteen (15 ) days after the receipt of notice, an
action may be instituted by the cabinet in the Franklin Circuit Court and the cabinet
shall recover from the licensee the amount of the erroneous credit or refund plus a
penalty of twenty percent (20%).