News and Insights

Kentucky Amnesty Begins October 1, 2012

Tax Development Sep 27, 2012

Kentucky’s Tax Amnesty Program (“Program”) begins October 1, 2012 and expires November 30, 2012. The Program offers a waiver of penalties and half the interest due on taxes paid during the amnesty period. Amnesty applies to taxable periods ending or transactions occurring after December 1, 2001 and prior to October 1, 2011.

The Program is available to any taxpayer who has an outstanding tax liability, including taxpayers that are under audit. Taxpayers with liabilities currently subject to a pending administrative or judicial proceeding may participate in the Program regarding any uncontested portion of the assessed liability. An eligible taxpayer must do the following:

  • File completed tax returns for all tax reporting periods stated on the amnesty application for which returns have not previously been filed or for which tax was previously underreported
  • Pay the full tax due for the periods for which amnesty applies and pay any additional tax owed within 30 days of notification by the Kentucky Department of Revenue (“Department”)
  • Agree to file all tax returns and make all payments when due for three years following the date amnesty is granted

The Program is available for corporate income tax, sales and use tax, and most other taxes administered by the Commissioner. Amnesty does not extend to tax liabilities relating to a criminal investigation or locally administered property taxes. Eligible taxpayers who do not participate in the Program will be subject to more severe penalties and an escalated interest rate. An additional 2% interest will be charged on unpaid amnesty-eligible taxes.

More information is available on the Department’s special amnesty website: Questions can also be directed to a toll-free amnesty hotline at 855.KYTAXES (855.598.2937).


Jeremiah T. Lynch