If you receive a notice that you owe money to the Department of Revenue, it is extremely important to pay immediately or contact us in order to avoid collection actions.
Kentucky law allows the Division of Collections to collect debt due other agencies per
KRS Chapter 45, Section 237-241.
There is no protest period once the debt has been referred to the Division of Collections. The protest period was granted by the referring agency and expired prior to the debt being referred. The collection process begins immediately. In addition to the principal amount you owed to the agency, a 25% cost of collection fee will be added to each debt. Interest will begin to accrue when the debt is received by the department.
While Kentucky law allows the Division of Collections to collect debt for other agencies using the same administrative processes, it does not allow the division to do the following:
- Waive interest, penalties or fees
- Settle for a lesser amount
- Change the principal amount due
How to Pay
If you can't pay your debt in full, please don't panic or ignore the debt in hopes it will go away. We understand that many people deal with financial difficulties due to losing a job, health issues, or permanent or temporary disabilities. Owing money to the government can be frightening, but we're here to help you.
Make a Payment
Payment Plans Available for Qualified Applicants
If you don't pay your debt, make acceptable payment arrangements, or make the payments you agreed to, we will take action to collect the money you owe.
Learn About Payment Plans
Collection Activity Procedures
The Division of Collections will send a warning letter to your last known address.
Actions taken may include the following:
- Sending a certified Final Notice Before Seizure Letter
- Filing a lien against your property in the county where the property resides. A tax lien is the public notice of debt that attaches to your property and your rights to property. Once filed, it is public record and could harm your credit rating.
- Levying your wages, bank account or other contractual payments. Certain income, such as Social Security or disability payment, is protected from levying.
- Offsetting of your state tax refund will occur if you have a debt that has been placed with the Department of Revenue.