AN ACT relating to taxation.

UNOFFICIAL COPY 26 RS BR 92
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AN ACT relating to taxation. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 131.150 is amended to read as follows: 3
(1) When the Department of Revenue reasonably believes that any taxpayer has 4
withdrawn from the state or concealed his or her assets or a material part thereof so 5
as to hinder or evade the assessment or collec tion of taxes, or has desisted from any 6
taxable activity in the state, or has become domiciled elsewhere, or has departed 7
from this state with fraudulent intent to hinder or evade the assessment or collection 8
of taxes, or has done any other act tending to render partly or wholly ineffective 9
proceedings to assess or collect any such taxes, or contemplates doing any of these 10
acts in the immediate future, or that any tax claim for any other reason is being 11
endangered, such tax liability shall become due and pa yable immediately upon 12
assessment or determination of the amount of taxes due, as authorized in this 13
section. 14
(2) Under any of the circumstances set out in subsection (1) of this section, the 15
department may make a tentative assessment or determination of t he taxes due, and 16
may proceed immediately to bring garnishment, attachment or any other legal 17
proceedings to collect the taxes so assessed or determined to be due. 18
Notwithstanding the provisions of KRS 131.180(1), if the tax so assessed is due to 19
the failure of the taxpayer to file a required tax return a minimum penalty of one 20
hundred dollars ($100) shall be assessed unless the taxpayer demonstrates that the 21
failure to file was due to reasonable cause as defined in KRS 131.010(9). This 22
penalty shall be app licable whether or not any tax is determined to be due on a 23
subsequently filed return or if the subsequently filed return results in a refund. No 24
bond shall be required of the department in such proceedings. The taxpayer may 25
stay legal proceedings by filing a bond in an amount sufficient in the opinion of the 26
department to cover the taxes, penalties, interest, and costs. If no legal proceedings 27
UNOFFICIAL COPY 26 RS BR 92
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have been instituted, the department may require a bond adequate to cover all taxes, 1
penalties, and interest. On m aking bond, exception to the assessment or 2
determination of tax liability may be filed in the same manner and time as provided 3
in KRS 131.110. If no exceptions are filed to the tentative assessment or 4
determination, it shall become final. 5
(3) The department may require any such taxpayer to file with it forthwith the reports 6
required by law or regulation, or any additional reports or other information 7
necessary to assess the property or determine the amount of tax due. 8
(4) If the department fails to exercise the authority conferred by this section, such 9
taxpayer shall report and pay all taxes due as otherwise provided by law. 10