Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
131.130(1), (8),
141.010,
141.0101,
141.012,
141.039,
141.040,
141.044,
141.050,
141.120,
141.140,
141.160,
141.170,
141.210,
141.206,
141.990
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
department to promulgate administrative regulations to administer and enforce
Kentucky's tax laws. Prior to the enactment of KRS Chapter 13A, the department
issued policies and circulars as guidance for the administration of Kentucky's
tax laws. Since that time, changes to corporation income tax law have created
conflict with these policies and circulars. This administrative regulation
rescinds corporation income tax policies and circulars.
Section 1. The following corporation income
and license tax policies of the department are rescinded and shall be void:
(1) Revenue Policy 41P010 - Cooperatives.
This policy shall be rescinded because it conflicts with
KRS
141.160 and
141.170.
(2) Revenue Policy 41P020 - Short period
return or change in tax period resulting from change in ownership. This policy
shall be rescinded because it restates
KRS
141.140(1).
(3) Revenue Policy 41P030 - Six-year statute
of limitations. This policy shall be rescinded because it restates
KRS
141.210(2).
(4) Revenue Policy 41P040 - Declaration of
estimated tax penalty. This policy shall be rescinded because it is made
obsolete by
KRS
141.044(2)(c).
(5) Revenue Policy 41P070 - Income and
deductions. This policy shall be rescinded because it is obsolete and restates
KRS
141.010,
141.039,
and
141.050.
(6) Revenue Policy 41P071 - Claim of right.
This policy shall be rescinded because it was incorporated into
103 KAR
16:320.
(7) Revenue Policy 41P080 - Coal royalty
income. This policy shall be rescinded because it restates
KRS
141.039(1)(d).
(8) Revenue Policy 41P090 - Jobs Tax Credit.
This policy shall be rescinded because it conflicts with KRS Chapter
13A.
(9) Revenue Policy 41P100 -
Deductibility of state taxes. This policy shall be rescinded because it is
obsolete due to the repeal of the New York Subsidiary Capital tax. The
department issued guidance pursuant to
KRS
131.130(8) on the
deductibility of state taxes.
(10)
Revenue Policy 41P110 - Deductibility of state taxes. This policy shall be
rescinded because it restates
KRS
141.039(2)(c)1. and guidance
has been issued by the department pursuant to
KRS
131.130(8).
(11) Revenue Policy 41P120 - Deductibility of
state taxes. This policy shall be rescinded because the Indiana gross receipts
tax was repealed effective January 1, 2003, making this policy
obsolete.
(12) Revenue Policy
41P121 - Deductibility of state taxes. This policy shall be rescinded because
it restates
KRS
141.039(2)(c)1. and guidance
has been issued by the department pursuant to
KRS
131.130(8).
(13) Revenue Policy 41P125 - Windfall profit
tax. This policy shall be rescinded because it restates
KRS
141.039(2)(c) and the
provision of the Internal Revenue Code referred to in the policy has been
repealed.
(14) Revenue Policy
41P130 - Taxation of income from activities on the outer continental shelf.
This policy shall be rescinded because it restates provisions in
KRS
141.010,
141.039,
and
141.120
and the holding of a court decision.
(15) Revenue Policy 41P140 - Subpart F
Income. This policy shall be rescinded because it conflicts with
KRS
141.039(1)(b).
(16) Revenue Policy 41P150 - Expenses Related
to Nonbusiness or Nontaxable Income. This policy shall be rescinded because it
was incorporated into
103
KAR 16:060.
(17) Revenue Policy 41P160 - First-Year Net
Operating Loss. This policy shall be rescinded because it restates
KRS 141.012, which was
repealed effective for taxable years beginning on or after January 1,
2006.
(18) Revenue Policy 41P170 -
Sales Factor. This policy shall be rescinded because it is obsolete. Guidance
on the receipts factor is provided by
103 KAR
16:270.
(19) Revenue Policy 41P180 - Property Factor.
This policy shall be rescinded because it is obsolete. Guidance on the property
factor is provided by
103 KAR
16:290.
(20) Revenue Policy 41P190 - Net Rental
Income. This policy shall be rescinded because guidance on the treatment of net
rental income in the property factor is provided by
103 KAR
16:290, Apportionment; Property Factor.
(21) Revenue Policy 41P200 - Partnership and
Joint Venture Income Classified Business Income. This policy shall be rescinded
because it conflicts with
KRS
141.206.
(22) Revenue Policy 41P210 - Business
Apportionment Factor for Corporations Reporting Income on Completed Contract
Method. This policy shall be rescinded because it was incorporated into
103 KAR
16:340.
(23) Revenue Policy 41P220 - Separate
Accounting. This policy shall be rescinded because it restates
KRS
141.120(12) and was
incorporated into
103
KAR 16:330.
(24) Revenue Policy 41P230 - Financial
Organizations. This policy shall be rescinded because it is obsolete.
(25) Revenue Policy 41P240 - Homeowners
Associations. This policy shall be rescinded because it restates
KRS
141.010,
141.039,
and
141.040.
(26) Revenue Policy 41P250 - Taxation of
Foreign Sales Corporations and Domestic International Sales Corporations. This
policy shall be rescinded because it is obsolete. Updated guidance is provided
in
103
KAR 16:370, Corporation Income Tax Treatment of
Foreign Sales Corporations and Domestic International Sales
Corporations.
(27) Revenue Policy
41P260 - Corporate Distributions, Liquidations and Reorganizations. This policy
shall be rescinded because it restates
KRS
141.0101(10).
(28) Revenue Policy 41P500 - Agreement to
extend statute of limitations. This policy shall be rescinded because it is
obsolete. Corporation license tax was repealed in 2005.
(29) Revenue Policy 41P520 - Capital. This
policy shall be rescinded because it is obsolete. Corporation license tax was
repealed in 2005.
(30) Revenue
Policy 41P530 - Borrowed moneys. This policy shall be rescinded because it is
obsolete. Corporation license tax was repealed in 2005.
(31) Revenue Policy 41P540 - Unearned
leasehold income. This policy shall be rescinded because it is obsolete.
Corporation license tax was repealed in 2005.
(32) Revenue Policy 41P550 - Borrowed moneys.
This policy shall be rescinded because it is obsolete. Corporation license tax
was repealed in 2005.
(33) Revenue
Policy 41P560 - Outer continental shelf. This policy shall be rescinded because
it is obsolete. Corporation license tax was repealed in 2005.
(34) Revenue Policy 41P570 - Corporation
license tax apportionment factor. This policy shall be rescinded because it is
obsolete. Corporation license tax was repealed in 2005.
(35) Revenue Policy 41P580 - Sales factor.
This policy shall be rescinded because it is obsolete. Corporation license tax
was repealed in 2005.
(36) Revenue
Policy 41P590 - Homeowners associations. This policy shall be rescinded because
it is obsolete. Corporation license tax was repealed in 2005.
(37) Revenue Policy 41P600 - Real estate
investment trust. This policy shall be rescinded because it is obsolete.
Corporation license tax was repealed in 2005.
Section 2. The following corporation income
tax circulars of the department are rescinded and shall be void:
(1) Revenue Circular 40C005 - Kentucky
depreciation system. This circular shall be rescinded because it restates
provisions in
KRS
141.0101.
(2) Revenue Circular 40C010 - Reporting
requirements for nonresident partners' of S-corporation shareholders' combined
Kentucky income tax return. This circular shall be rescinded because it was
superseded by
KRS
141.206.
(3) Revenue Circular 40C030 - Corporation and
individual income tax-special reporting procedures. This circular shall be
rescinded because it is obsolete.
(4) Revenue Circular 41C020 - Safe harbor or
finance leases. This circular shall be rescinded because it is
obsolete.