{"data":{"id":"us-ky/krs-141.210","jurisdiction":"us-ky","citation":"KRS 141.210","heading":"Auditing of returns -- Assessment of additional tax.","body":"(1) As soon as practicable after each return is received, the department shall examine\nand audit it.\n(2) (a) 1. If the amount of tax computed by the department is greater than the\namount returned by the taxpayer, the additional tax shall be assessed and\na notice of assessment mailed to the taxpayer by the department within\nfour (4) years from the date the return was filed, except as otherwise\nprovided in this subsection.\n2. In the case of a failure to file a return or of a fraudulent return the\nadditional tax may be assessed at any time.\n3. In the case of a return where a taxpayer other than a corporation\nunderstates his net income or omits an amount properly includable in net\nincome or both which understatement or omission or both is in excess of\ntwenty-five pe rcent (25%) of the amount of net income stated in the\nreturn the additional tax may be assessed at any time within six (6) years\nafter the return was filed.\n4. In the case of a return where a corporation understates its taxable net\nincome or omits an amount properly includable in taxable net income or\nboth, which understatement or omission or both is in excess of twenty -\nfive percent (25%) of the amount of taxable net income stated in the\nreturn, the additional tax may be assessed at any time within six (6)\nyears after the return was filed.\n5. In the case of an assessment of additional tax relating directly to\nadjustments resulting from a final federal adjustment, as defined in KRS\n141.211, the additional tax may be assessed before the expiration of the\ntimes provided in KRS 141.211.\n6. In the case of the assessment of additional tax resulting from a decrease\nof a net operating loss deduction or a capital loss deduction, resulting\nfrom the carryback of a loss which occurs in a taxable year beginning\nafter December 31, 1993, the additional tax may be assessed at any time\nbefore the expiration of the times provided for in this subsection for\nassessing additional tax for the taxable year which resulted in the net\noperating loss or capital loss carryback.\n(b) The times provided in this subsection may be extended by agreement between\nthe taxpayer and the department.\n(c) For the purposes of this subsection, a return filed before the last day\nprescribed by law for filing the return shall be considered as filed on the l ast\nday.\n(d) Any extension granted for filing the return shall also be considered as\nextending the last day prescribed by law for filing the return.\n(3) If any additional tax is assessed on account of any income which has been returned\nfor taxation by any other taxpayer, the department, with the consent of the other\ntaxpayer, his personal representatives, or heirs, shall reduce the amount of the\nadditional tax assessed for each year by the amount of the income tax paid for that\nyear by the other taxpayer on account of the income in question.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49948","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:34Z","sha256":"5de8bb27746bacf31b872d72a190b495531db1adb446d1182a1b1a6bc6ebc21a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.209","next":"us-ky/krs-141.211"},"notice":"GroundRules: Original legal text. Not legal advice."}