Kentucky Tax Amnesty Begins October 2012
- Sep 21, 2012 | Gail Cole
There is good news in Kentucky. Anyone who owes the state back taxes, fees, penalties and interest from tax periods ending after December 1, 2001 and prior to October 1, 2011 may apply for tax amnesty. Applications must be submitted to the Kentucky Department of Revenue between October 1, 2012 and November 30, 2012.
According to a September 20, 2012, press release from the Finance and Administrative Cabinet of Kentucky, the program allows "people or businesses who owe back taxes to the Commonwealth of Kentucky to pay with no fees or penalties. The threat of prosecution will be waived, and only half the interest owed will be due."
Taxpayers have 61 days to take advantage of the program, and must remain current over the next three years or face "reinstated penalties, fees and interest." If they fail to participate in this tax amnesty program, they face stiffer penalties and an "additional 2 percent interest on unpaid amnesty-eligible taxes."
Tom Miller, Commissioner of the Kentucky Department of Revenue has stated that Kentucky "is making it as easy as possible for people to determine if they owe back taxes and to create multiple ways to pay." Payments may be mailed, made online, or put on a credit card.
Up-to-date information, FAQs, and forms for the tax amnesty program are available at http://www.amnesty.ky.gov/.
In these cash-strapped times, states are looking for ways to increase revenue. The last time Kentucky ran a tax amnesty program, in 2002, the state "netted approximately $40 million in new and accelerated money… . " (2002 Tax Amnesty Final Report.)
In other words, tax amnesty programs do what they're supposed to do: they bring in money.