131.180 Uniform Civil Penalty Act.
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131.180 Uniform Civil Penalty Act. The provisions of this section shall be known as the "Uniform Civil Penalty Act." <br>Penalties to be assessed in accordance with this section shall apply as follows unless <br>otherwise provided by law: <br>(1) Any taxpayer who files any return or report after the due date prescribed for filing or the due date as extended by the department shall, unless it is shown to the <br>satisfaction of the department that the failure is due to reasonable cause, pay a <br>penalty equal to two percent (2%) of the total tax due for each thirty (30) days or <br>fraction thereof that the report or return is late. The total penalty levied pursuant to <br>this subsection shall not exceed twenty percent (20%) of the total tax due; however, <br>the penalty shall not be less than ten dollars ($10). (2) Any taxpayer who fails to withhold or collect any tax as required by law, fails to pay the tax computed due on a return or report on or before the due date prescribed <br>for it or the due date as extended by the department or, excluding underpayments <br>determined pursuant to subsections (2) and (3) of KRS 141.990, fails to have timely <br>paid at least seventy-five percent (75%) of the tax determined due by the <br>department shall, unless it is shown to the satisfaction of the department that the <br>failure is due to reasonable cause, pay a penalty equal to two percent (2%) of the tax <br>not withheld, collected, or timely paid for each thirty (30) days or fraction thereof <br>that the withholding, collection, or payment is late. The total penalty levied pursuant <br>to this subsection shall not exceed twenty percent (20%) of the tax not timely <br>withheld, collected, or paid; however, the penalty shall not be less than ten dollars <br>($10). (3) Any taxpayer who fails to pay any installment of estimated tax by the time prescribed in KRS 141.044 and 141.305 or who, pursuant to subsections (2) or (3) <br>of KRS 141.990, is determined to have a declaration underpayment shall, unless it <br>is shown to the satisfaction of the department that the failure or underpayment is <br>due to reasonable cause, pay a penalty equal to ten percent (10%) of the amount of <br>the underpayment or late payment; however, the penalty shall not be less than <br>twenty-five dollars ($25). (4) If any taxpayer fails or refuses to make and file a report or return or furnish any information requested in writing by the department, the department may make an <br>estimate of the tax due from any information in its possession, assess the tax at not <br>more than twice the amount estimated to be due, and add a penalty equal to five <br>percent (5%) of the tax assessed for each thirty (30) days or fraction thereof that the <br>return or report is not filed. The total penalty levied pursuant to this subsection shall <br>not exceed fifty percent (50%) of the tax assessed; however, the penalty shall not be <br>less than one hundred dollars ($100) unless the taxpayer demonstrates that the <br>failure to file was due to reasonable cause as defined in KRS 131.010(9). This <br>penalty shall be applicable whether or not any tax is determined to be due on a <br>subsequently filed return or if the subsequently filed return results in a refund. (5) If any taxpayer fails or refuses to pay within forty-five (45) days of the due date any tax assessed by the department which is not protested in accordance with KRS <br>131.110, there shall be added a penalty equal to two percent (2%) of the unpaid tax for each thirty (30) days or fraction thereof that the tax is final, due, and owing, but <br>not paid. (6) Any taxpayer who fails to obtain any identification number, permit, license, or other document of authority from the department within the time required by law shall, <br>unless it is shown to the satisfaction of the department that the failure is due to <br>reasonable cause, pay a penalty equal to ten percent (10%) of any cost or fee <br>required to be paid for the identification number, permit, license, or other document <br>of authority; however, the penalty shall not be less than fifty dollars ($50). (7) If any tax assessed by the department is the result of negligence by a taxpayer or other person, a penalty equal to ten percent (10%) of the tax so assessed shall be <br>paid by the taxpayer or other person who was negligent. (8) If any tax assessed by the department is the result of fraud committed by the taxpayer or other person, a penalty equal to fifty percent (50%) of the tax so <br>assessed shall be paid by the taxpayer or other person who committed fraud. (9) If any check tendered to the department is not paid when presented to the drawee bank for payment, there shall be paid as a penalty by the taxpayer who tendered the <br>check, upon notice and demand of the department, an amount equal to ten percent <br>(10%) of the check. The penalty under this section shall not be less than ten dollars <br>($10) nor more than one hundred dollars ($100). If the taxpayer who tendered the <br>check shows to the department's satisfaction that the failure to honor payment of the <br>check resulted from error by parties other than the taxpayer, the department shall <br>waive the penalty. (10) Any person who fails to make any tax report or return or pay any tax within the time, or in the manner required by law, for which a specific civil penalty is not <br>provided by law, shall pay a penalty as provided in this section, with interest from <br>the date due at the tax interest rate as defined in KRS 131.010(6). (11) The penalties levied pursuant to subsection (5) of this section shall apply to any tax assessment protested pursuant to KRS 131.110 to the extent that any appeal of the <br>assessment or portion of it is ruled by the Kentucky Board of Tax Appeals or, if <br>appealed from, the court of last resort, as not protested, appealed, or pursued in <br>good faith by the taxpayer. (12) Nothing in this section shall be construed to prevent the assessment or collection of more than one (1) of the penalties levied under this section or any other civil or <br>criminal penalty provided for violation of the law for which penalties are imposed. (13) All penalties levied pursuant to this section shall be assessed, collected, and paid in the same manner as taxes. Any corporate officer or other person who becomes liable <br>for payment of any tax assessed by the department shall likewise be liable for all <br>penalties and interest applicable thereto. Effective: June 20, 2005 <br>History: Amended 2005 Ky. Acts ch. 85, sec. 121, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 366, sec. 14, effective January 1, 2003. -- Amended 1994 Ky. 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PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/kentucky/2009/131-00/pdf/180.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003e131.180 Uniform Civil Penalty Act. The provisions of this section shall be known as the \u0026quot;Uniform Civil Penalty Act.\u0026quot; \u003cbr\u003ePenalties to be assessed in accordance with this section shall apply as follows unless \u003cbr\u003eotherwise provided by law: \u003cbr\u003e(1) Any taxpayer who files any return or report after the due date prescribed for filing or the due date as extended by the department shall, unless it is shown to the \u003cbr\u003esatisfaction of the department that the failure is due to reasonable cause, pay a \u003cbr\u003epenalty equal to two percent (2%) of the total tax due for each thirty (30) days or \u003cbr\u003efraction thereof that the report or return is late. The total penalty levied pursuant to \u003cbr\u003ethis subsection shall not exceed twenty percent (20%) of the total tax due; however, \u003cbr\u003ethe penalty shall not be less than ten dollars (\u0026#36;10). (2) Any taxpayer who fails to withhold or collect any tax as required by law, fails to pay the tax computed due on a return or report on or before the due date prescribed \u003cbr\u003efor it or the due date as extended by the department or, excluding underpayments \u003cbr\u003edetermined pursuant to subsections (2) and (3) of KRS 141.990, fails to have timely \u003cbr\u003epaid at least seventy-five percent (75%) of the tax determined due by the \u003cbr\u003edepartment shall, unless it is shown to the satisfaction of the department that the \u003cbr\u003efailure is due to reasonable cause, pay a penalty equal to two percent (2%) of the tax \u003cbr\u003enot withheld, collected, or timely paid for each thirty (30) days or fraction thereof \u003cbr\u003ethat the withholding, collection, or payment is late. The total penalty levied pursuant \u003cbr\u003eto this subsection shall not exceed twenty percent (20%) of the tax not timely \u003cbr\u003ewithheld, collected, or paid; however, the penalty shall not be less than ten dollars \u003cbr\u003e(\u0026#36;10). (3) Any taxpayer who fails to pay any installment of estimated tax by the time prescribed in KRS 141.044 and 141.305 or who, pursuant to subsections (2) or (3) \u003cbr\u003eof KRS 141.990, is determined to have a declaration underpayment shall, unless it \u003cbr\u003eis shown to the satisfaction of the department that the failure or underpayment is \u003cbr\u003edue to reasonable cause, pay a penalty equal to ten percent (10%) of the amount of \u003cbr\u003ethe underpayment or late payment; however, the penalty shall not be less than \u003cbr\u003etwenty-five dollars (\u0026#36;25). (4) If any taxpayer fails or refuses to make and file a report or return or furnish any information requested in writing by the department, the department may make an \u003cbr\u003eestimate of the tax due from any information in its possession, assess the tax at not \u003cbr\u003emore than twice the amount estimated to be due, and add a penalty equal to five \u003cbr\u003epercent (5%) of the tax assessed for each thirty (30) days or fraction thereof that the \u003cbr\u003ereturn or report is not filed. The total penalty levied pursuant to this subsection shall \u003cbr\u003enot exceed fifty percent (50%) of the tax assessed; however, the penalty shall not be \u003cbr\u003eless than one hundred dollars (\u0026#36;100) unless the taxpayer demonstrates that the \u003cbr\u003efailure to file was due to reasonable cause as defined in KRS 131.010(9). This \u003cbr\u003epenalty shall be applicable whether or not any tax is determined to be due on a \u003cbr\u003esubsequently filed return or if the subsequently filed return results in a refund. (5) If any taxpayer fails or refuses to pay within forty-five (45) days of the due date any tax assessed by the department which is not protested in accordance with KRS \u003cbr\u003e131.110, there shall be added a penalty equal to two percent (2%) of the unpaid tax for each thirty (30) days or fraction thereof that the tax is final, due, and owing, but \u003cbr\u003enot paid. (6) Any taxpayer who fails to obtain any identification number, permit, license, or other document of authority from the department within the time required by law shall, \u003cbr\u003eunless it is shown to the satisfaction of the department that the failure is due to \u003cbr\u003ereasonable cause, pay a penalty equal to ten percent (10%) of any cost or fee \u003cbr\u003erequired to be paid for the identification number, permit, license, or other document \u003cbr\u003eof authority; however, the penalty shall not be less than fifty dollars (\u0026#36;50). (7) If any tax assessed by the department is the result of negligence by a taxpayer or other person, a penalty equal to ten percent (10%) of the tax so assessed shall be \u003cbr\u003epaid by the taxpayer or other person who was negligent. (8) If any tax assessed by the department is the result of fraud committed by the taxpayer or other person, a penalty equal to fifty percent (50%) of the tax so \u003cbr\u003eassessed shall be paid by the taxpayer or other person who committed fraud. (9) If any check tendered to the department is not paid when presented to the drawee bank for payment, there shall be paid as a penalty by the taxpayer who tendered the \u003cbr\u003echeck, upon notice and demand of the department, an amount equal to ten percent \u003cbr\u003e(10%) of the check. The penalty under this section shall not be less than ten dollars \u003cbr\u003e(\u0026#36;10) nor more than one hundred dollars (\u0026#36;100). If the taxpayer who tendered the \u003cbr\u003echeck shows to the department's satisfaction that the failure to honor payment of the \u003cbr\u003echeck resulted from error by parties other than the taxpayer, the department shall \u003cbr\u003ewaive the penalty. (10) Any person who fails to make any tax report or return or pay any tax within the time, or in the manner required by law, for which a specific civil penalty is not \u003cbr\u003eprovided by law, shall pay a penalty as provided in this section, with interest from \u003cbr\u003ethe date due at the tax interest rate as defined in KRS 131.010(6). (11) The penalties levied pursuant to subsection (5) of this section shall apply to any tax assessment protested pursuant to KRS 131.110 to the extent that any appeal of the \u003cbr\u003eassessment or portion of it is ruled by the Kentucky Board of Tax Appeals or, if \u003cbr\u003eappealed from, the court of last resort, as not protested, appealed, or pursued in \u003cbr\u003egood faith by the taxpayer. (12) Nothing in this section shall be construed to prevent the assessment or collection of more than one (1) of the penalties levied under this section or any other civil or \u003cbr\u003ecriminal penalty provided for violation of the law for which penalties are imposed. (13) All penalties levied pursuant to this section shall be assessed, collected, and paid in the same manner as taxes. Any corporate officer or other person who becomes liable \u003cbr\u003efor payment of any tax assessed by the department shall likewise be liable for all \u003cbr\u003epenalties and interest applicable thereto. Effective: June 20, 2005 \u003cbr\u003eHistory: Amended 2005 Ky. Acts ch. 85, sec. 121, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 366, sec. 14, effective January 1, 2003. -- Amended 1994 Ky. 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