Current through Register Vol. 50, No. 9, March 1, 2024
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations necessary for
the administration and enforcement of all tax laws in Kentucky. The Department
of Revenue has many policies and circulars that predate the enactment of KRS
Chapter 13A and conflict with, or are redundancies of, current tax laws. This
administrative regulation formally rescinds the previously issued policies and
circulars relating to taxes administered by the Department's Office of Sales
and Excise Taxes.
Section 1. These
policies merely restate or summarize the requirements or provisions of the
inheritance and estate tax statutes of KRS Chapter 140 as well as other
pertinent parts of KRS Chapters 6, 21, 61, 131, 161, 164, 304, 342, 395, and
411. The following policies are hereby formally rescinded and shall be null,
void, and unenforceable:
(1) Revenue Policy
92P010 (6/1/83), relating to deferred payment of inheritance tax (KRS
131.183 and
140.222);
(2) Revenue Policy 92P015 (12/1/86), relating
to deferred payment of inheritance tax when beneficiary dies (KRS
140.222,
140.224
and
395.195);
(3) Revenue Policy 92P020 (6/1/83), relating
to the statutory limit for collection of inheritance tax (KRS
140.160 and
140.210);
(4) Revenue Policy 92P025 (9/1/87), relating
to filing requirement (KRS
140.160(2),
140.190,
140.210(2),
and
140.220);
(5) Revenue Policy 92P026 (9/1/87), relating
to filing requirements (KRS
140.010,
140.190,
and
140.210);
(6) Revenue Policy 92P029 (12/1/92), relating
to interest for late payments of inheritance tax (KRS
131.010,
131.175,
and
140.210);
(7) Revenue Policy 92P030 (12/1/92), relating
to penalty for undervaluation of assets (KRS
131.010,
131.180,
140.210,
and
140.991);
(8) Revenue Policy 92P031 (12/1/92), relating
to penalties for late filing and late payment of inheritance tax (KRS
131.010,
131.180,
140.160,
140.210,
and
140.991);
(9) Revenue Policy 92P035 (8/16/95), relating
to valuation of real estate (KRS
131.110 and
140.165);
(10) Revenue Policy 92P040 (Revised 12/1/86),
relating to power of appointment-taxation of remainder interest (KRS
140.040 and
140.110(1));
(11) Revenue Policy 92P050 (Revised 7/13/90),
relating to power of appointment in donor's and donee's estates (KRS
140.040 and
140.080(1)(a));
(12) Revenue Policy 92P060 (6/1/83), relating
to assessment of real property for inheritance tax purposes (KRS
140.165. and 140.330);
(13) Revenue Policy 92P080 (Revised 7/10/90),
relating to qualified real estate (KRS
140.300(4)(c) and case
law);
(14) Revenue Policy 92P090
(6/1/83), relating to qualified real estate (KRS
140.300(4)(b) and case
law);
(15) Revenue Policy 92P100
(6/1/83), relating to qualified real estate (KRS
140.320);
(16) Revenue Policy 92P110 (6/1/83), relating
to qualified real estate (KRS
140.300 and
140.320);
(17) Revenue Policy 92P115 (12/1/86),
relating to conveyance of "Qualified Real Estate" (KRS
140.300 through
140.360);
(18) Revenue Policy 92P116 (12/1/86),
relating to conveyance of "Qualified Real Estate" (KRS
140.300 through
140.360);
(19) Revenue Policy 92P117 (12-1-86),
relating to conveyance of "Qualified Real Estate" (KRS
140.300 through
140.360)
rescinded in
103 KAR
2:020 (May, 2007);
(20) Revenue Policy 92P120 (Revised 7/10/90),
relating to taxability of jointly held property (KRS
140.050 and case law);
(21) Revenue Policy 92P130 (Revised
11/20/90), relating to taxability of jointly held government bonds
(KRS
140.050, and case law);
(22) Revenue Policy 92P140 (6/1/83), relating
to taxability of bequest of inheritance tax (KRS
140.010 and case law);
(23) Revenue Policy 92P150 (6/1/83), relating
to taxability of partnership property located in another state (KRS
140.010 and case law);
(24) Revenue Policy 92P160 (Revised 6/30/88),
relating to partnership property located in Kentucky owned by a nonresident
decedent (KRS
140.010 and case law);
(25) Revenue Policy 92P165 (12/1/86),
relating to credit life insurance (KRS
140.030(2),
140.090(1),
and case law);
(26) Revenue Policy
92P166 (9/1/87), relating to assignment of life insurance proceeds
(KRS
140.090(1) and case
law);
(27) Revenue Policy 92P167
(9/1/87), relating to paid-up life insurance policies (KRS
140.030(2) and
304.1-030);
(28) Revenue Policy 92P170 (6/1/83), relating
to remainder interests (KRS
140.010);
(29) Revenue Policy 92P180 (1/29/88),
relating to trusts (KRS
140.020 and case law);
(30) Revenue Policy 92P190 (6/1/83), relating
to transfer with retained possession, enjoyment or income therefrom
(KRS
140.020);
(31) Revenue Policy 92P200 (Revised 12/1/86),
relating to transfers in contemplation of death (KRS
140.020);
(32) Revenue Policy 92P210 (Revised 9/1/87),
relating to Life estates-wills (KRS
140.100 and case law);
(33) Revenue Policy 92P220 (12/1/86),
relating to wrongful death (KRS
140.010,
140.090(1),
KRS
411.130);
(34) Revenue Policy 92P235 (11/14/88),
relating to Kentucky public employee's retirement plans (KRS
6.525,
21.470,
61.690,
140.063(1)(c),
161.700,
and
164.2871);
(35) Revenue Policy 92P245 (9/1/87), relating
to deferred compensation (KRS
140.010,
140.020,
and case law);
(36) Revenue Policy
92P250 (6/1/83), relating to federal civil service retirement plan annuities
(KRS
140.063);
(37) Revenue Policy 92P255 (11/1/97),
relating to death benefits (KRS
61.705,
140.090(1),
161.655,
and
342.720);
(38) Revenue Policy 92P260 ((12/1/86),
relating to deduction of interest on federal estate taxes (KRS
140.090);
(39) Revenue Policy 92P261 (9/1/87), relating
to deductions (KRS
140.010 and
140.090(1));
(40) Revenue Policy 92P262 (9/1/87), relating
to deductions (KRS
140.090(1));
(41) Revenue Policy 92P263 (9/1/87), relating
to deduction of interest on installment obligations (KRS
140.090(1)(h) and
395.195);
(42) Revenue Policy 92P264 (11/14/88),
relating to deduction of selling expenses (KRS
140.090(1)(h) and
395.195);
(43) Revenue Policy 92P265 (12/1/86),
relating to exemption of annuities payable to a beneficiary (KRS
140.063);
(44) Revenue Policy 92P270 (6/1/83), relating
to casualty losses (KRS
140.090);
(45) Revenue Policy 92P280 (6/1/83), relating
to power of appointment-minor beneficiary (KRS
140.040 and
140.080);
(46) Revenue Policy 92P290 (6/1/83), relating
to power of appointment in donee's estate (KRS
140.040 and case law);
(47) Revenue Policy 92P300 (6/1/83), relating
to power of appointment in donee's estate (KRS
140.040,
140.090,
and case law);
(48) Revenue Policy
92P310 (6/1/83), relating to classification of beneficiaries-remarried
daughter-in-law (KRS
140.070);
(49) Revenue Policy 92P311 (9/1/87), relating
to classification of beneficiaries-spouse of stepchild (KRS
140.070);
(50) Revenue Policy 92P330 (Revised
11/20/90), relating to classification of beneficiaries great-nieces, great
nephews, nieces, and nephews by marriage (KRS
140.070);
(51) Revenue Policy 92P335 (9/1/87), relating
to nonresident beneficiaries (KRS
140.010,
140.070,
and
140.080);
(52) Revenue Policy 92P336 (Revised 7/13/90),
relating to exemption for the mentally disabled (KRS
140.080(1));
(53) Revenue Policy 92P340 (Revised 12/1/86),
relating to contested wills (KRS
140.010 and
140.090(1));
(54) Revenue Policy 92P345 (3/1/88), relating
to federal income tax refund or liability (KRS
140.010 and
140.090(1));
(55) Revenue Policy 92P350 (Revised 12/1/96),
relating to previously-taxed property (KRS
140.095); and
(56) Revenue Policy 92P360 (6/20/89),
relating to confidentiality of tax returns (KRS
131.190(1) and
140.160).