KRS 143.060 — Filing of return -- Review of department -- Assessment on understatement of value

(1) As soon as practicable after each return is received, the department shall
examine and audit it. If the amount of tax computed by the department is
greater than the amount returned by the taxpayer, the excess shall be
assessed within four (4) years from the date the return was filed, except as
provided in subsection (2) of this section, and except that in the case of a
failure to file a return or of a fraudulent return, the excess may be assessed at
any time. A notice of such assessment shall be mailed to the taxpayer. The
time herein provided may be extended by agreement between the taxpayer
and the department.
(2) For the purpose of subsections (1) and (4) of this section, a return filed before
the last day prescribed by law for the filing thereof shall be considered as filed
on such last day.
(3) Any final ruling, order or determination of the department with regard to the
administration of this chapter may be reviewed only in the manner provided in
KRS 49.200 to 49.250 and 131.110.
(4) Notwithstanding the four (4) year time limitation of subsection (1), in the case
of a return where the taxpayer understates the gross value by twenty-five
percent (25%) or more, the excess shall be assessed by the department within
six (6) years from the date the return was filed.