Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
49.220,
49.250,
131.010,
131.030,
131.081,
131.110,
131.180
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Kentucky Department of Revenue to promulgate administrative regulations for the
administration and enforcement of all tax laws of this state. This
administrative regulation provides guidance regarding a taxpayer's protest
rights and outlines procedures to facilitate the filing, processing, and
disposition of a protest.
Section 1.
Definition. "Notice" means a letter, memorandum, or other document from the
department that:
(1) Notifies the taxpayer
that tax has been assessed and is due, or a request for refund has been
partially denied or denied in full; and
(2) Explains the taxpayer's right to protest
the assessment, refund denial, or refund reduction, and the time period for
filing a protest.
Section
2. Protest - Assessments.
(1)
Taxpayers shall be notified of additional tax assessments by mail. Payment
including interest from the original due date, in the absence of protest, shall
be made within sixty (60) days from the date of the notice informing the
taxpayer that tax is owed.
(2) A
written protest may be filed by the taxpayer, or other persons representing the
taxpayer, against additional assessments. The department may require the
taxpayer to furnish a "Declaration of Representative," Form 20A100 if a
representative is serving on behalf of the taxpayer. The time period for
submitting a supporting statement may be extended as provided in
KRS
131.110(1).
(3) A taxpayer or taxpayer representative may
submit a written protest and supporting statements to the department by one (1)
of the following methods:
(a) Hand delivery
to the department at 501 High Street, Frankfort, Kentucky 40601, or a
department Taxpayer Service Center location as listed on the department's Web
site;
(b) By the United States
postal service or express mail service to the address listed in the notice;
or
(c) Electronically to an email
address, if provided, listed in the assessment or notice.
(4) When determining if the protest was
timely filed, the department shall record the submission as:
(a) The date stamped as received by the
department, if hand delivered;
(b)
The postmark date from the United States post office, if the postal service is
used, but excluding the date from a postage meter;
(c) The delivery confirmation date when
received by the department, if an express mail service is used; or
(d) The electronic date and time received, if
electronically delivered. If the protest is submitted to the department
electronically, the taxpayer shall also mail a copy of the protest and
supporting statements to the department at the address listed in the
notice.
(5) The
department shall acknowledge receipt of the taxpayer's protest in writing
within ninety (90) calendar days from the date received by the
department.
(6) Scheduling options
for a conference shall be communicated to the taxpayer by the department within
forty-five (45) days of the taxpayer's written request for a
conference.
Section 3.
Protest - Refund Denials.
(1) The department
shall send the taxpayer a notice by mail of any denial or partial denial of any
refund applied for, including a refund claimed upon any return.
(2) The department shall include with each
notice of the denial:
(a) References to the
statutes and administrative regulations that are the basis for the denial;
and
(b) The date by which the
taxpayer may protest the denial.
(3) If the taxpayer disagrees with the
disallowance of any refund, the taxpayer may file a written protest and
supporting statements with the department by the methods set forth in Section 2
of this administrative regulation.
(4) If the taxpayer or taxpayer
representative has submitted all supporting statements and documentation
requested by the department, but has not received a determination regarding the
refund request from the department within 180 calendar days from the date the
request was submitted, the taxpayer may file a protest on the claim as if the
refund has been denied by the department.
Section 4. Protest - Transfer.
(1) Unless the assessment results from an
audit performed by the Office of Field Operations, the department shall attempt
to resolve the protest within the taxing area from which the assessment was
issued.
(2) If the protest cannot
be resolved by the taxing area, the taxing area shall transfer the protest to
the Division of Protest Resolution.
(3) A taxpayer may request in writing that a
protest be transferred to the Division of Protest Resolution by the methods
outlined in Section 2 of this administrative regulation for consideration by
the department.
(4) The taxing area
shall complete the transfer within forty-five (45) days of receipt of the
taxpayer's written request to transfer the protest to the Division of Protest
Resolution.
(5) The Division of
Protest Resolution shall acknowledge receipt of the protest in writing to the
taxpayer within forty-five (45) days of the transfer. The acknowledgement shall
contain:
(a) The name and contact information
of the department employee assigned to the taxpayer's protest; and
(b) The name and contact information of the
employee's direct supervisor.
Section 5. Final Ruling. If the department
cannot resolve the protest after transfer to the Division of Protest
Resolution, the department shall issue a final ruling to the
taxpayer.
Section 6. Failure by the
department to meet any of the deadlines imposed by this administrative
regulation:
(1) May justify a waiver of
penalties, in accordance with
103 KAR
1:040; and
(2) Shall not be interpreted to allow a
reduction in any tax, interest, or fees assessed by the department.
STATUTORY AUTHORITY:
KRS
131.130