Amnesty Program Designed To Help Avoid Penalties While Generating Needed Revenue For The State
So you’re a little behind in paying your taxes? Then you’ll be glad to know that the state is offering you a “fresh start” on paying those taxes paid without getting clobbered by escalating fees and penalties. In addition, you will only be responsible for half the interest you owe and any threat of prosecution will be waived. Sound good?
Here’s how it works.
Essentially, you have until November 30, 2012, to apply for amnesty as an individual or for your business, and pay any back taxes owed for tax periods between December 1, 2001 and October 1, 2011. The Kentucky Tax Amnesty program began October 1 of this year so time is starting to get away from you. You can pay by snail mail, credit card, in-person at one of 10 offices around the state or online at www.amnesty.ky.gov.
Here’s how it pays off.
If you owe back taxes and fail to apply for amnesty, penalties become more severe and accruing interest increases by 2%. You must remain current on your taxes for the next three years or previous penalties, fees and interest will be reassessed.
Here’s why Kentucky is participating.
Since 1982, forty-two states, the District of Columbia and New York City have offered tax amnesties that have recovered billions of dollars for governments and helped to more evenly distribute the tax burden. Amnesty programs ferret out dollars that communities would likely never see at a relatively low cost compared to the ongoing “seek and find” and “audit and assess” methods traditionally used to find tax delinquents.
The last time Kentucky offered a tax amnesty program was in 2002 and it netted more than $40 million in back taxes from more than 23,000 taxpayers.
Today, the list of delinquent taxpayers has grown to 170,000. That includes residents of Kentucky plus people from all 50 states and a few foreign countries. Don’t worry. If you were one of these folks, you more than likely would have already received a notice in the mail. If you’re curious, you can go to
www.amnesty.ky.gov and see if you’re there. The website provides a full listing. You can also call the toll free hotline at 855-KYTAXES (855-598-2937).
In case you were planning on developing some bad habits and waiting until the next amnesty program rolls around, here’s a word to the wise. According to Mack Gilliam, Executive Director of the Office of Processing and Enforcement with the Kentucky Department of Revenue, the state is continually gathering taxpayer information to discover non-filers and under-reporters. Clearly, it is always better to “pay now rather than pay more later.”