KRS 131.130: General powers and duties of department -- Prosecution duties.

Without limitation of other duties assigned to it by law, the following powers and duties

are vested in the department:

(1) The department may promulgate administrative re gulations, and direct proceedings

and actions, for the administration and enforcement of all tax laws of this state. To

assist taxpayers in understanding and interpreting the tax laws, the department may,

through incorporation by reference, include example s as part of any administrative

regulation. The examples may include demonstrative, nonexclusive lists of items if

the department determines the lists would be helpful to taxpayers in understanding

the application of the tax laws.

(2) The department, by re presentatives it appoints in writing, may take testimony or

depositions, and may examine hard copy or electronic records, any person's

documents, files, and equipment if those records, documents, or equipment will

furnish knowledge concerning any taxpayer' s tax liability, when it deems this

reasonably necessary to the performance of its functions. The department may

enforce this right by application to the Circuit Court in the county where the person

is domiciled or has his or her principal office, or by ap plication to the Franklin

Circuit Court, which courts may compel compliance with the orders of the

department.

(3) The department shall prescribe the style, and determine and enforce the use or

manner of keeping, of all assessment and tax forms and records employed by state

and county officials, and may prescribe forms necessary for the administration of

any revenue law.

(4) The department shall advise on all questions respecting the construction of state

revenue laws and its application to various classes of taxpayers and property.

(5) Attorneys employed by the Finance and Administration Cabinet and approved by

the Attorney General as provided in KRS 15.020 may prosecute all violations of the

criminal and penal laws relating to revenue and taxation. If a Fi nance and

Administration Cabinet attorney undertakes any of the actions prescribed in this

subsection, that attorney shall be authorized to exercise all powers and perform all

duties in respect to the criminal actions or proceedings which the prosecuting

attorney would otherwise perform or exercise, including the authority to sign, file,

and present any complaints, affidavits, information, presentments, accusations,

indictments, subpoenas, and processes of any kind, and to appear before all grand

juries, courts, or tribunals.

(6) In the event of the incapacity of attorneys employed by the Finance and

Administration Cabinet or at the request of the secretary of the Finance and

Administration Cabinet, the Attorney General or his or her designee shall prosecute

all violations of the criminal and penal laws relating to revenue and taxation. If the

Attorney General undertakes any of the actions prescribed in this subsection, he or

she shall be authorized to exercise all powers and perform all duties in respect to

the criminal actions or proceedings which the prosecuting attorney would otherwise

perform or exercise, including but not limited to the authority to sign, file, and

present any and all complaints, affidavits, information, presentments, accusations,

indictments, subpoenas, and processes of any kind, and to appear before all grand

juries, courts, or tribunals.

(7) The department may require the Commonwealth's attorneys and county attorneys to

prosecute actions and proceedings and perform other services incid ent to the

enforcement of laws assigned to the department for administration.

(8) (a) Notwithstanding KRS Chapter 13A, the department may research the fields of

taxation, finance, and local government administration, publish its findings,

respond to the public's and taxpayers' questions, and publish its responses.

(b) To assist taxpayers and the public in understanding and interpreting the tax

laws, the department:

1. May include examples as part of any response or publication. The

examples may include demonstrative, nonexclusive lists of items, if the

department determ ines that the list would be helpful to taxpayers in

understanding the application of the tax laws; and

2. Shall publish its administrative writings, tax forms, and instructions to

those tax forms on its official website in accordance with KRS

131.020(1)(b).

(9) The department may promulgate administrative regulations necessary to establish a

system of taxpayer identifying numbers for the purpose of securing proper

identification of taxpayers subject to any tax laws or other revenue measure of this

state, an d may require the taxpayer to place on any return, report, statement, or

other document required to be filed, any number assigned pursuant to the

administrative regulations.

(10) The department may, when it is in the best interest of the Commonwealth and

helpful to the efficient and effective enforcement, administration, or collection of

sales and use tax, motor fuels tax, or the petroleum environmental assurance fee,

enter into agreements with out -of-state retailers or other persons for the collection

and remittance of sales and use tax, the motor fuels tax, or the petroleum

environmental assurance fee.

(11) (a) The department may enter into annual memoranda of agreement with any

state agency, officer, board, commission, corporation, institution, cabinet,

department, or other state organization to assume the collection duties for any

debts due the state entity, except for consumer debt owed for health care

goods and services, and may renew that agreement for up to five (5) years.

Under such an agreement, the department shall have all the powers, rights,

duties, and authority with respect to the collection, refund, and administration

of those liquidated debts as provided under:

1. KRS Chapters 131, 134, and 135 for the collection, refund, and

administration of delinquent taxes; and

2. Any applicable statutory provisions governing the state agency, officer,

board, commission, corporation, institution, cabinet, department, or

other state organization for the collection, refund, and administration of

any liquidated debts due the state entity.

(b) Notwithstanding paragraph (a) of this subsection, each public postsecondary

education institution and the department:

1. Shall enter into an annual memorandum of agreement for the collection

of enrollment-related debts and liquidated debts in accordance with KRS

45.241; and

2. May enter into an annual memorandum of agreement for the collection

of other debts prior to liquidation.

Any agreement under this paragraph shall require that recovered funds and

interest be returne d to the referring institution in accordance with KRS

45.238.

(12) Notwithstanding subsection (11) of this section, KRS 45.237, 45.238, 45.241, or

131.030, or any agreement to the contrary, the department shall not collect or

continue collection duties of any consumer debts owed for health care goods and

services. For the purpose of this section, "consumer debt" shall be defined as a debt

incurred by an individual, as defined in KRS 141.010, for a personal or family

purpose, regardless of whether an obligation has been reduced to judgment.

(13) The department may refuse to accept a personal check in payment of taxes due or

collected from any person who has ever tendered a check to the state which, when

presented for payment, was not honored. Any check so ref used shall be considered

as never having been tendered.