{"data":{"id":"us-ky/krs-131.130","jurisdiction":"us-ky","citation":"KRS 131.130","heading":"General powers and duties of department -- Prosecution duties.","body":"Without limitation of other duties assigned to it by law, the following powers and duties\nare vested in the department:\n(1) The department may promulgate administrative re gulations, and direct proceedings\nand actions, for the administration and enforcement of all tax laws of this state. To\nassist taxpayers in understanding and interpreting the tax laws, the department may,\nthrough incorporation by reference, include example s as part of any administrative\nregulation. The examples may include demonstrative, nonexclusive lists of items if\nthe department determines the lists would be helpful to taxpayers in understanding\nthe application of the tax laws.\n(2) The department, by re presentatives it appoints in writing, may take testimony or\ndepositions, and may examine hard copy or electronic records, any person's\ndocuments, files, and equipment if those records, documents, or equipment will\nfurnish knowledge concerning any taxpayer' s tax liability, when it deems this\nreasonably necessary to the performance of its functions. The department may\nenforce this right by application to the Circuit Court in the county where the person\nis domiciled or has his or her principal office, or by ap plication to the Franklin\nCircuit Court, which courts may compel compliance with the orders of the\ndepartment.\n(3) The department shall prescribe the style, and determine and enforce the use or\nmanner of keeping, of all assessment and tax forms and records  employed by state\nand county officials, and may prescribe forms necessary for the administration of\nany revenue law.\n(4) The department shall advise on all questions respecting the construction of state\nrevenue laws and its application to various classes of taxpayers and property.\n(5) Attorneys employed by the Finance and Administration Cabinet and approved by\nthe Attorney General as provided in KRS 15.020 may prosecute all violations of the\ncriminal and penal laws relating to revenue and taxation. If a Fi nance and\nAdministration Cabinet attorney undertakes any of the actions prescribed in this\nsubsection, that attorney shall be authorized to exercise all powers and perform all\nduties in respect to the criminal actions or proceedings which the prosecuting\nattorney would otherwise perform or exercise, including the authority to sign, file,\nand present any complaints, affidavits, information, presentments, accusations,\nindictments, subpoenas, and processes of any kind, and to appear before all grand\njuries, courts, or tribunals.\n(6) In the event of the incapacity of attorneys employed by the Finance and\nAdministration Cabinet or at the request of the secretary of the Finance and\nAdministration Cabinet, the Attorney General or his or her designee shall prosecute\nall violations of the criminal and penal laws relating to revenue and taxation. If the\nAttorney General undertakes any of the actions prescribed in this subsection, he or\nshe shall be authorized to exercise all powers and perform all duties in respect to\nthe criminal actions or proceedings which the prosecuting attorney would otherwise\nperform or exercise, including but not limited to the authority to sign, file, and\npresent any and all complaints, affidavits, information, presentments, accusations,\nindictments, subpoenas, and processes of any kind, and to appear before all grand\njuries, courts, or tribunals.\n(7) The department may require the Commonwealth's attorneys and county attorneys to\nprosecute actions and proceedings and perform other services incid ent to the\nenforcement of laws assigned to the department for administration.\n(8) (a) Notwithstanding KRS Chapter 13A, the department may research the fields of\ntaxation, finance, and local government administration, publish its findings,\nrespond to the public's and taxpayers' questions, and publish its responses.\n(b) To assist taxpayers and the public in understanding and interpreting the tax\nlaws, the department:\n1. May include examples as part of any response or publication. The\nexamples may include demonstrative, nonexclusive lists of items, if the\ndepartment determ ines that the list would be helpful to taxpayers in\nunderstanding the application of the tax laws; and\n2. Shall publish its administrative writings, tax forms, and instructions to\nthose tax forms on its official website in accordance with KRS\n131.020(1)(b).\n(9) The department may promulgate administrative regulations necessary to establish a\nsystem of taxpayer identifying numbers for the purpose of securing proper\nidentification of taxpayers subject to any tax laws or other revenue measure of this\nstate, an d may require the taxpayer to place on any return, report, statement, or\nother document required to be filed, any number assigned pursuant to the\nadministrative regulations.\n(10) The department may, when it is in the best interest of the Commonwealth and\nhelpful to the efficient and effective enforcement, administration, or collection of\nsales and use tax, motor fuels tax, or the petroleum environmental assurance fee,\nenter into agreements with out -of-state retailers or other persons for the collection\nand remittance of sales and use tax, the motor fuels tax, or the petroleum\nenvironmental assurance fee.\n(11) (a) The department may enter into annual memoranda of agreement with any\nstate agency, officer, board, commission, corporation, institution, cabinet,\ndepartment, or other state organization to assume the collection duties for any\ndebts due the state entity, except for consumer debt owed for health care\ngoods and services, and may renew that agreement for up to five (5) years.\nUnder such an agreement, the  department shall have all the powers, rights,\nduties, and authority with respect to the collection, refund, and administration\nof those liquidated debts as provided under:\n1. KRS Chapters 131, 134, and 135 for the collection, refund, and\nadministration of delinquent taxes; and\n2. Any applicable statutory provisions governing the state agency, officer,\nboard, commission, corporation, institution, cabinet, department, or\nother state organization for the collection, refund, and administration of\nany liquidated debts due the state entity.\n(b) Notwithstanding paragraph (a) of this subsection, each public postsecondary\neducation institution and the department:\n1. Shall enter into an annual memorandum of agreement for the collection\nof enrollment-related debts and liquidated debts in accordance with KRS\n45.241; and\n2. May enter into an annual memorandum of agreement for the collection\nof other debts prior to liquidation.\nAny agreement under this paragraph shall require that recovered funds and\ninterest be returne d to the referring institution in accordance with KRS\n45.238.\n(12) Notwithstanding subsection (11) of this section, KRS 45.237, 45.238, 45.241, or\n131.030, or any agreement to the contrary, the department shall not collect or\ncontinue collection duties of any consumer debts owed for health care goods and\nservices. For the purpose of this section, \"consumer debt\" shall be defined as a debt\nincurred by an individual, as defined in KRS 141.010, for a personal or family\npurpose, regardless of whether an obligation has been reduced to judgment.\n(13) The department may refuse to accept a personal check in payment of taxes due or\ncollected from any person who has ever tendered a check to the state which, when\npresented for payment, was not honored. Any check so ref used shall be considered\nas never having been tendered.","path":["KRS Chapter 131"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58010","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:21Z","sha256":"b2af1a66f9b1d1c80dc095b0c3fe6221a1941ed8fb0a1d7a51211aab3c65d1ea","source_id":"us-ky","stale":false,"prev":"us-ky/krs-131.125","next":"us-ky/krs-131.131"},"notice":"GroundRules: Original legal text. Not legal advice."}