Taxpayer Bill of Rights
As a Kentucky taxpayer, you have the right to expect the Department of Revenue to honor its mission and uphold your rights every time you contact or are contacted by the Department of Revenue.
Some Kentucky taxpayer rights are very specific, such as when and how to protest an assessment or the denial of a refund or credit. Others are more general.
The following is a summary of your rights and the Department of Revenue’s responsibilities to you as a Kentucky taxpayer.
||RIGHTS OF TAXPAYER
You have the right to privacy of information provided to the Department of Revenue.
You have the right to advice and assistance from the Department of Revenue in complying with state tax laws.
You have the right to a clear and concise explanation of:
- basis of assessment of additional taxes, interest and penalties, or the denial or reduction of any refund or credit claim;
- procedure for protest and appeal of a determination of the Department of Revenue; and
- tax laws and changes in tax laws so that you can comply with the law.
Protest and Appeal
You have the right to protest and appeal a determination of the Department of Revenue if you disagree with an assessment of tax or penalty, reduction or a denial of a refund, a revocation of a license or permit, or other determination made by the Department of Revenue.
You have the right to a conference to discuss a tax matter.
You have the right to representation by your authorized agent (attorney, accountant or other person) in any hearing or conference with the Department of Revenue. You have the right to be informed of this right prior to the conference or hearing. If you intend for your representative to attend the conference or hearing in your place, you may be required to give your representative a power of attorney before the Department of Revenue can discuss tax matters with your authorized agent.
You have the right to make an audio recording of any
meeting, conference or hearing with the Department of Revenue. The Department of Revenue has the right to make an audio recording, if you are notified in writing in advance or if you make a recording. You have the right to receive a copy of the recording.
You have the right to consideration of:
- waiver of penalties or collection fees if “reasonable cause” for reduction or waiver is given (“reasonable cause” is defined in KRS 131.010(9))
- installment payments of delinquent taxes, interest and penalties;
- waiver of interest and penalties, but not taxes, resulting from incorrect written advice from the Department of Revenue if all facts were given and the law did not change or the courts did not issue a ruling to the contrary;
- extension of time for filing reports or returns; and
- payment of charges incurred resulting from an erroneous filing of a lien or levy by the Department of Revenue.
You have the right to a guarantee that Department of Revenue employees are not paid, evaluated or promoted based on taxes assessed or collected, or a tax assessment or collection quota or goal imposed or suggested.
You have the right to file a claim for actual and direct monetary damages with the Kentucky Board of Claims if a Department of Revenue employee willfully, recklessly and intentionally disregards your rights as a Kentucky taxpayer.
You may have the right to receive interest on an overpayment of tax.
||Department of Revenue Responsibilities
The Department of Revenue has the responsibility to:
- perform audits, conduct conferences and hearings with you at reasonable times and places;
- authorize, require or conduct an investigation or surveillance of you only if it relates to a tax matter;
- make a written request for payment of delinquent taxes which are due and payable at least 30 days prior to seizure and sale of your assets;
- conduct educational and informational programs to
help you understand and comply with the laws;
- publish clear and simple statements to explain tax procedures, remedies, your rights and obligations, and the rights and obligations of the Department of Revenue;
- notify you in writing when an erroneous lien or levy is released and, if requested, notify major credit reporting companies in counties where lien was filed;
- advise you of procedures, remedies and your rights and obligations with an original notice of audit or when an original notice of tax due is issued, a refund or credit is denied or reduced, or whenever a license or permit is denied, revoked or canceled;
- notify you in writing prior to termination or modification of a payment agreement;
- furnish copies of the agent’s audit workpapers
and a written narrative explaining the reason(s)
for the assessment;
- resolve tax controversies on a fair and equitable basis at the administrative level whenever possible; and
- notify you in writing at your last known address at least 60 days prior to publishing your name on a list of delinquent taxpayers for which a tax or judgment lien has been filed.