Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
131.081(11),
131.170,
141.160,
141.170
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.170 and
141.170
authorize the Department of Revenue to grant a taxpayer an extension of time to
file a tax return. This administrative regulation establishes the procedures to
be used by an individual, a corporation, a pass-through entity, or a fiduciary
to obtain an extension of time to file an income or limited liability entity
tax return.
Section 1. Definitions.
(1) "Corporation" means a corporation as
defined by
KRS
141.010(4), a limited
liability company taxed as a corporation, or other entity taxed as a
corporation for Kentucky income tax purposes.
(2) "Date prescribed by
KRS
141.160" means the
15th day of the fourth month following the close of
the taxable year.
(3) "Fiduciary"
is defined by
KRS
141.010(10).
(4) "General partnership" is a partnership
composed of only general partners, who are personally liable for the
partnership debts.
(5)
"Pass-through entity" has the same meaning as
KRS
141.010(22).
Section 2. An extension of Time for Filing an
Individual, General Partnership, or Fiduciary Tax Return.
(1) Pursuant to
KRS
131.081(11) and
141.170,
a taxpayer may obtain an extension of time for filing a Kentucky individual,
fiduciary, or general partnership tax return by means of either a federal
extension or a Kentucky extension.
(2) Federal extension.
(a) A taxpayer granted an extension of time
for filing a federal income tax return shall be granted the same extension of
the due date for filing a Kentucky tax return for the same taxable year. A copy
of the federal extension approval or the request for an automatic extension
shall be attached to the Kentucky tax return when it is filed if the taxpayer
is relying upon the federal extension to extend the due date.
(b) An extension of time for filing a
Kentucky tax return granted pursuant to this subsection shall be valid for the
extension period granted by the Internal Revenue Service.
(c) A copy of the federal extension shall not
be mailed to the department separate from the Kentucky tax return.
(3) Kentucky extension. A taxpayer
may file an application for extension with the department, on or before the
date prescribed by
KRS
141.160 for filing the return. An individual,
general partnership, or fiduciary shall file Form 740EXT "Application for
Extension of Time to File", Revenue Form 40A102.
(a) An individual, general partnership, or
fiduciary shall state the reason for the request on the application for
extension. The inability to pay shall not be a valid reason.
(b) An individual, general partnership, or
fiduciary shall be notified by mail if the application for extension is denied.
A copy of an approved application for extension shall not be returned to the
taxpayer.
(c) In accordance with
KRS
141.170, an individual, general partnership,
or fiduciary be granted an extension of time to file for six (6) months unless
the application is denied.
(d) In
accordance with
KRS
141.170, an individual outside the United
States shall be granted an extension of time to file for twelve (12) months
unless the application is denied.
(e) A copy of the signed and dated
application for extension shall be attached to the tax return when it is
filed.
Section
3. An extension of Time for Filing a Corporation, S-corporation,
or Pass-Through Entity Income or Limited Liability Entity Tax Return.
(1) Pursuant to
KRS
131.081(11) and
141.170,
a taxpayer may obtain an extension of time for filing a Kentucky corporation,
S-corporation, or pass-through entity income or limited liability entity tax
return by means of either a federal extension or a Kentucky
extension.
(2) Federal extension.
(a) A taxpayer granted an extension of time
for filing a federal income tax return shall be granted the same extension of
the due date, except as otherwise provided in
KRS
141.170(2), for filing a
Kentucky income or limited liability entity tax return for the same taxable
year. A copy of the federal extension approval or the request for an automatic
extension shall be attached to the Kentucky income or limited liability entity
tax return when it is filed if the taxpayer is relying upon the federal
extension to extend the due date.
(b) An extension of time for filing a
Kentucky income or limited liability entity tax return granted pursuant to this
subsection shall be valid for the extension period granted by the Internal
Revenue Service, except as otherwise provided in
KRS
141.170(2).
(c) A copy of the federal extension shall not
be mailed to the department separate from the Kentucky tax return.
(3) Kentucky extension. A taxpayer
may file an application for extension with the department, on or before the
date prescribed by
KRS
141.160 for filing the return. A corporation,
S-corporation, or pass-through entity shall file Form 720EXT "Extension of Time
to File Kentucky Corporation/LLET Return", Revenue Form 41A720SL.
(a) A corporation shall be granted an
extension of time to file for seven (7) months pursuant to
KRS
141.170(2).
(b) A pass-through entity or S-corporation
shall be granted an extension of time to file for six (6) months.
(c) A copy of an approved application for
extension shall not be returned to the corporation, S-corporation, or
pass-through entity.
(d) The
extension shall become valid when mailed to the department on or before the
date prescribed by
KRS
141.160 for filing the return.
(e) The corporation, S-corporation or
pass-through entity shall attach a copy of the signed and dated application for
extension to its Kentucky income tax or limited liability entity tax return
when it is filed.
(4) An
extension of time for filing a unitary combined or elective consolidated income
and limited liability entity tax return shall constitute an extension of time
for filing each member of the group.
(5) An extension of time for filing a
corporation income tax return shall constitute an extension of time for filing
a limited liability entity tax return for the same taxable
year.
Section 4. Payment
of Tax.
(1) An extension of time to file an
income or limited liability entity tax return shall not constitute an extension
to pay the tax.
(2) A taxpayer
shall determine if an amount of tax remains unpaid on or before the date
prescribed by
KRS
141.160 for filing the return.
(3) If tax remains unpaid, a payment for the
amount of the unpaid tax shall be submitted to the department on or before the
date prescribed by
KRS
141.160 for filing the return along with the
Kentucky extension.
(4) A group
filing a unitary or elective consolidated income and limited liability entity
tax return and making a payment of tax with the application for extension shall
file a Kentucky extension to ensure proper processing of payments.
Section 5. Interest and Penalties.
(1) Statutory interest shall be paid from the
date prescribed by
KRS
141.160 for filing the return until the tax
is paid.
(2) If the envelope
bearing the return is postmarked on or before the filing date, the late filing
penalty prescribe by 131.180 shall not apply.
Section 6. The forms and materials listed
herein may be obtained or inspected, subject to applicable copyright law, from
8:00 a.m. until 4:30 p.m. at the Kentucky Department of Revenue, 501 High
Street, Frankfort, Kentucky 40601, on the department Web site at
http://revenue.ky.gov, or at a
Kentucky Department of Revenue Taxpayer Service Center during their hours of
operation.
STATUTORY AUTHORITY:
KRS
131.130,
131.170,
141.050,
141.170