As part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue (DOR) is to administer tax laws, collect revenue, and provide services in a fair, courteous, and efficient manner for the benefit of the Commonwealth and its citizens.
As a Kentucky taxpayer, you have the right to expect the DOR to honor its mission and uphold your rights every time you contact or are contacted by the DOR.
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 DOR’s responsibilities to you as a Kentucky taxpayer.
RIGHTS OF TAXPAYER
You have the right to privacy with regard to information you provide pertaining to returns, reports, or the affairs of your business.
You have the right to advice and assistance from the DOR 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 DOR; 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 DOR 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 DOR. (See reverse for procedure to file a protest.)
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
DOR. 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 DOR 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 DOR. The DOR 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
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) as: “an event, happening, or circumstance entirely beyond the knowledge or control of a taxpayer who has exercised due care and prudence in the filing of a return or report or the payment of monies due the department pursuant to law or administrative regulation”);
- installment payments of delinquent taxes, interest and penalties;
- waiver of interest and penalties, but not taxes, resulting from incorrect written advice from the DOR 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 DOR.
You have the right to a guarantee that DOR 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 DOR 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 DOR 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 DOR;
- 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;
- 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; and
- notify you by certified mail 20 days prior to submitting name to the relevant agency for the revocation or denial of professional license, driver’s license or motor vehicle registration.
PROTEST AND APPEAL PROCEDURE
If you receive a notice of assessment, a Notice of Tax Due for tax or penalty or if the DOR notifies you that a tax refund or credit has been reduced or denied, a license or permit revoked or denied, or other determination made by the DOR, you have the right to
To do so:
- submit a written protest within 45 days of the original Notice of Tax Due, notice of refund reduction or denial, revocation or denial of a license or permit, or other DOR determination;
- identify the type of tax involved and give the account number, Social Security number or other identification number and attach a copy of the DOR notice of determination to support that protest is timely;
- explain why you disagree;
- attach any proof or documentation available to support your protest or request additional time to support your protest;
- sign your statement, include your daytime telephone number and mailing address; and
- mail to the Kentucky Department of Revenue,
Frankfort, Kentucky 40620.
You have the right to request a conference to discuss the issue.
If you do not want to have a conference or if the conference did not resolve your protest, you have the right to request a final ruling of the DOR so that you can appeal your case further.
If you do not agree with the DOR’s final ruling, you can file a written appeal with the Kentucky Board of Tax Appeals. If you do not agree with the decision of the Kentucky Board of Tax Appeals, you have the right to appeal their ruling to the Kentucky courts (first to the circuit court in your home county or in Franklin County, then to the Kentucky Court of Appeals, and finally to the Kentucky Supreme Court).
NOTE: The above protest and appeal procedures do not apply for real property which is valued by the local property valuation administrator (PVA). Contact the local PVA for information about how to appeal the valuation of real property.
The DOR has a Taxpayer Ombudsman whose job is to serve as an advocate for taxpayers’ rights. One of the main functions of the Ombudsman is to ensure that your rights as a Kentucky taxpayer are protected.
Also, an important function of the Taxpayer Ombudsman is to confer with DOR employees when you have a problem or conflict that you have been unable to resolve. However, it is not the role of
the Ombudsman to intercede in an audit, handle a protest, waive taxes, penalty or interest, or answer technical tax questions.
To file a protest, see PROTEST AND APPEAL PROCEDURE. Please do not mail your protest to the Ombudsman. The Taxpayer Ombudsman is your advocate and is there to make sure your rights are protected. If you think you are not being treated
fairly or if you have a problem or complaint, please contact the Ombudsman for assistance.
The Taxpayer Ombudsman may be contacted by telephone at (502) 564-7822 (between 8:00 a.m. and 5:00 p.m. weekdays). The mailing address is: Department of Revenue, Taxpayer Ombudsman, P. O.
Box 930, Frankfort, Kentucky 40602-0930.
WHERE TO GET ASSISTANCE
The DOR has offices in Frankfort and taxpayer service centers in nine cities and towns throughout Kentucky. DOR employees in the service centers answer tax questions and provide assistance. You may obtain assistance by contacting any of the following:
Ashland Taxpayer Service Center
134 Sixteenth Street, 41101-7670
Bowling Green Taxpayer Service Center
201 West Professional Park Court, 42104-3278
Corbin Taxpayer Service Center
15100 North US25E, Suite 2, 40701-6188
Frankfort Taxpayer Service Center
501 High Street
(502) 564-4581 (Taxpayer Assistance)
Hopkinsville Taxpayer Service Center
181 Hammond Drive, 42240-7926
Louisville Taxpayer Service Center
600 West Cedar Street, 2nd Floor West, 40202-2310
Northern Kentucky Taxpayer Service Center
Turfway Ridge Office Park
7310 Turfway Road, Suite 190
Owensboro Taxpayer Service Center
401 Frederica Street, Building C, Suite 201, 42301-6295
Paducah Taxpayer Service Center
Clark Business Complex, Suite G
2928 Park Avenue, 42001-4024
Pikeville Taxpayer Service Center
Uniplex Center, 126 Trivette Drive, Suite 203, 41501-1275
The DOR has an online taxpayer service center where you can download forms, publications, and obtain general information about the department. The address is www.revenue.ky.gov.
The information in this brochure merely summarizes your rights as a Kentucky taxpayer and the responsibilities of the Department of Revenue. The Kentucky Taxpayers’ Bill of Rights may be found in
the Kentucky Revised Statutes (KRS) at Chapter 131.041-131.083.
Additional rights and responsibilities are provided for in KRS 131.020, 131.110, 131.170, 131.1817, 131.183, 131.190, 131.500, 131.654, 133.120, 133.130, 134.580 and 134.590.