Current through Register Vol. 50, No. 6, December 1, 2023
RELATES TO:
KRS
65.7621,
131.010,
131.130,
131.155,
131.250,
131.990,
136.604,
136.616,
136.620,
138.135,
138.140,
138.143,
138.146,
138.195,
138.240,
138.250,
138.260,
139.200,
139.310,
141.010,
141.020,
141.040,
141.0401,
141.150,
141.201,
141.202,
141.206,
141.220;
141.310,
141.315,
141.330,
141.335,
142.115,
142.400,
142.402,
160.613,
160.614,
160.615,
224.50-868,
224.60-145,
234.320,
365.390,
446.010.
NECESSITY, FUNCTION AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations necessary for
the administration and enforcement of Kentucky tax laws.
KRS
131.250(1) authorizes the
department to require any tax return, report, or statement to be electronically
filed to facilitate the administration of the taxes it administers.
KRS
131.155(1) authorizes the
department to require any tax payment to be made by electronic fund transfer to
facilitate the administration, payment, or collection of the taxes.
KRS
131.155(3) requires the
department to promulgate administrative regulations establishing electronic
fund transfer requirements for the payment of fees and taxes administered by
the department. This administrative regulation establishes requirements for the
electronic filing of tax returns, reports, and statements, and for tax payments
to be made by electronic fund transfer for certain taxes administered by the
department.
Section 1. Definitions.
(1) "Commercial mobile radio service" and
"CMRS" is defined by
KRS
65.7621(4).
(2) "Corporation" is defined by
KRS
141.010(4).
(3) "Department" is defined by
KRS
131.010(2).
(4) "Electronic fund transfer" is defined by
KRS
131.010(14).
(5) "Employer" is defined by
KRS
141.010(9).
(6) "Limited liability pass-through entity"
is defined by
KRS
141.010(16).
(7) "Pass-through entity" is defined by
KRS
141.010(22).
(8) "Person" is defined by
KRS
446.010(33).
(9) "Reasonable cause" is defined by
KRS
131.010(9).
(10) "Specified tax return preparer" means,
with respect to any calendar year, any tax return preparer unless the preparer
reasonably expects to file ten (10) or fewer individual income tax returns
during the calendar year.
(11)
"Taxpayer" is defined by
KRS
131.010(4).
Section 2. Tax Returns, Reports, Statements,
and Tax Payments.
(1) The tax returns,
reports, schedules, and statements relating to the taxes subject to this
administrative regulation shall be electronically filed with the
department.
(2) The tax or fee
payments relating to taxes or fees included in this administrative regulation
shall be made by electronic fund transfer.
Section 3. Income Taxes. The following income
tax returns, reports, schedules, statements, and payments shall be submitted
electronically:
(1) Individuals. Individual
income tax returns, reports, statements, and related tax payments filed by a
specified tax return preparer to report taxes imposed pursuant to
KRS
141.020;
(2) Corporations and limited liability
pass-through entities. Corporation income and limited liability entity tax
returns, reports, statements, and related tax payments filed by corporations
and limited liability pass-through entities in accordance with
KRS
141.201(3),
141.202,
and
141.0401(4)
to report and pay corporation and limited liability entity taxes imposed
pursuant to
KRS
141.040 and
141.0401
if the corporation or limited liability pass-through entity has gross receipts
in an amount equal to, or greater than, $1,000,000 on its annual federal income
tax return in the current year;
(3)
Pass-through entities. Pass-through entity returns, reports, statements, and
related tax payments filed to report and pay taxes in accordance with the
requirements under
KRS
141.206 if the pass-through entity reports
gross receipts in an amount equal to, or greater than, $1,000,000 on its
federal income tax return; and
(4)
Employers.
(a) Reports, statements, and
payment requirements imposed upon employers with regard to the deduction and
withholding of income taxes from wages paid pursuant to
KRS
141.310 and
141.315
shall be filed and paid electronically as provided under
103 KAR
18:150; and
(b) Annual withholding statements filed
pursuant to
KRS
141.335 and
141.150
shall be filed electronically as provided under
103 KAR
18:050.
Section 4. Sales and Excise Taxes and Fees.
The following returns, reports, statements, and payments shall be submitted
electronically when filing, reporting, and paying sales and excise taxes and
fees:
(1) Cigarettes, tobacco products, and
vapor products excise taxes and license fees.
(a) License applications, license fees,
excise taxes, returns and reports, stamp orders, and statements filed and paid
pursuant to
KRS
138.135,
138.140,
138.143,
138.146,
and
138.195,
as provided under 103 KAR 41.220; and
(b) Enforcement and administrative fees
required to be filed and paid pursuant to
KRS
365.390;
(2) Commercial mobile radio service (CMRS)
fees. Returns and payments to report and pay the CMRS prepaid service charges
collected and remitted to the department in accordance with
KRS
142.115;
(3) Gasoline, special fuels, and liquefied
petroleum gas motor fuels excise taxes and fees. Reports, excise taxes, and
fees required to be filed and paid pursuant to
KRS
138.240,
138.250,
138.260,
224.60-145,
and
234.320;
(4) Multichannel video programming and
communications services excise taxes. Returns, reports, statements, and related
tax payments required to be filed and paid in accordance with
KRS
136.620 to report the taxes imposed pursuant
to
KRS
136.604 and
136.616;
(5) Sales and use taxes.
(a) Returns, reports, supplementary
schedules, and related tax payments required to be filed and paid to report
retail sales or services subject to the tax imposed pursuant to
KRS
139.200; and
(b) Returns, reports, supplementary
schedules, and related tax payments required to be filed and paid for the
storage, use, or other consumption of tangible personal property, digital
property, and extended warranty services subject to the tax imposed pursuant to
KRS
139.310;
(6) Statewide transient room taxes. Returns,
reports, statements, and related tax payments required to be filed and paid in
accordance with
KRS
142.402 to report the tax imposed pursuant to
KRS
142.400;
(7) Tire fees. Returns, reports, and related
fee payments required to be filed and paid to report sales of new motor vehicle
tires and the number of waste tires received and pay fees pursuant to
KRS
224.50-868; and
(8) Utility gross receipts license taxes.
Returns, reports, statements, and related tax payments required to be filed and
paid in accordance with
KRS
160.615 to report the taxes imposed pursuant
to
KRS
160.613 and
160.614.
Section 5. Penalties for
Noncompliance. Any person, taxpayer, or tax preparer who fails or refuses to
comply with the requirements of this administrative regulation shall, unless it
is shown to the satisfaction of the department that the failure is due to
reasonable cause, pay applicable penalties as provided under
KRS 131.990.
Section 6. Waiver.
(1) A person, taxpayer, or tax preparer
required to electronically file a return, report, or statement may contact the
department to request a waiver as authorized by
KRS
131.250(2). A written
request for waiver of the electronic filing requirement shall be submitted to
the department via the method required for the particular tax involved. The
contact information by tax type may be found on the Department of Revenue's Web
site at
http://revenue.ky.gov.
(2) The Department may waive the electronic
fund transfer requirement if a taxpayer is unable to remit funds
electronically, as provided in
KRS
131.155(4).
Section 7. Effective Date. The returns,
reports, statements, or payments required to be submitted electronically by
this administrative regulation shall be effective for tax periods beginning on
or after October 1, 2021.
47 Ky.R. 1710,
2356; eff. 8-3-2021.
STATUTORY AUTHORITY:
KRS
131.130,
131.155;
131.250
