KRS 138.705: Audit of licensee's records -- Erroneous credits -- Refunds.

(1) The cabinet may audit the books and records of each licensee who has at any time

since the last audit was made applied for a credit or refund thereunder and make

such other investigations as it deems necessary to determine whether the credits or

refunds applied for constitute proper claims.

(2) If gasoline or special fuels taxes are erroneously credited or refunded, the cabinet

shall advise the licensee of the erroneous credit or refund. If the licensee fails to

reimburse the Commonwealth within fifteen (15 ) days after the receipt of notice, an

action may be instituted by the cabinet in the Franklin Circuit Court and the cabinet

shall recover from the licensee the amount of the erroneous credit or refund plus a

penalty of twenty percent (20%).