{"data":{"id":"us-ky/krs-138.715","jurisdiction":"us-ky","citation":"KRS 138.715","heading":"Civil penalties and interest.","body":"(1) If any licensee neglects or refuses to make the return or pay the tax at the time\nprovided in KRS 138.685, a penalty of twenty percent (20%) of the tax and interest\nat the tax interest rate as defined in KRS 131.010(6) from the date when due shall\nbe paid on the tax.\n(2) If any licensee subject to the penalty provided in subsection (1) of this section\nsubmits to the department in writing the reasons for failure to comply with KRS\n138.660 to 138.7291 and if the department finds the reasons sufficient evidenc e or\njustifiable cause for modifying the penalty provided in subsection (1) of this\nsection, it may modify the penalty enacted therein to five percent (5%) of the\namount of the tax due and delinquent, provided the five percent (5%) penalty may\nbe reduced to one percent (1%) if the violation is the first violation by the taxpayer\nwithin the twelve (12) months.\n(3) If the penalties provided by this section are collected by proceedings in court, an\nadditional penalty of twenty percent (20%) shall be collected and distributed as is\nauthorized by KRS 134.552. Whenever any licensee neglects or refuses to make\nand file any report for any calendar quarter as required by KRS 138.685, or files an\nincorrect or fraudulent report, the department shall determine after an investigation\nthe amount of the liability which the licensee has incurred under KRS 138.660 to\n138.7291 for any particular quarter and assess and collect the amount of tax and\npenalties due.\n(4) Any licensee who fails to make any report required under the provisions of KRS\n138.660 to 138.7291 within the time allowed shall be required to pay a penalty of\nfive hundred dollars ($500) for any offense. The penalty is to be assessed and\ncollected in the manner provided for the assessment and collection of taxes, or the\nlicensee may be proceeded against in a civil action instigated by the department. In\naddition, such licensee may be compelled to make the required return.\n(5) In any action for the collection of taxes due under KRS 138.660 to 138.7291 and\nany penalt ies or interest imposed in connection therewith, an assessment by the\ndepartment of the amount of tax due and the interest or penalties due to the state\nshall constitute prima facie evidence of the claim of the state and the burden of\nproof shall be on the licensee to show that the assessment was incorrect or contrary\nto law.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55056","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:30Z","sha256":"6fa101a56e61da9d583f8cab78050ae4dce0e1f0b163cc0db003bced86261ffa","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.710","next":"us-ky/krs-138.720"},"notice":"GroundRules: Original legal text. Not legal advice."}