KRS 131.410: Circumstances for waiver of criminal prosecution and civil penalties

-- Exceptions -- Refunds and credits.

(1) For any taxpayer who meets the requirements of KRS 131.420:

(a) 1. For taxes which are owed as a result of the nonreporting or

underreporting of tax liabilities or the nonpayment of any account

receivable owed by an eligible taxpayer, the Commonwealth shall

waive criminal prosecution and all civil penalties and fees which may

be assessed under any KRS chapter subject to the administrative

jurisdiction of the department for the taxable years or periods for

which tax amnesty is requested.

2. For the amnesty period described in KRS 131.400(3), the

Commonwealth shall waive interest as provided in KRS 131.425(1).

(b) Except when the taxpayer and department enter into an installment

payment agreement authorized under KRS 131.420(3), failure to pay all

taxes as shown on the taxpayer's amnesty tax return shall invalidate any

amnesty granted under KRS 131.410 to 131.445.

(2) This section shall not apply to any taxpayer who is on notice, written or

otherwise, of a criminal investigation being conducted by an agency of the

state or any political subdivision thereof or the United States, nor shall this

section apply to any taxpayer who is the subject of any criminal litigation which

is pending on the date of the taxpayer's application in any court of this state or

the United States for nonpayment, delinquency, evasion or fraud in relation to

any federal taxes or to any of the taxes to which this amnesty program is

applicable.

(3) No refund or credit shall be granted for any interest, fee, or penalty paid prior to

the time the taxpayer requests amnesty pursuant to KRS 131.420.

(4) Unless the department in its own discretion redetermines the amount of taxes

due, no refund or credit shall be granted for any taxes paid under the amnesty

program. Any administrative or judicial proceeding or claim seeking the refund

or recovery of any amount paid under an amnesty program is hereby barred.