{"data":{"id":"us-ky/krs-154.20-262","jurisdiction":"us-ky","citation":"KRS 154.20-262","heading":"Penalties and interest -- Liability of investors -- Powers and duties of","body":"Department of Revenue.\n(1) An investment fund that violates the provisions of KRS 154.20 -250 to 154.20 -284\nshall pay to the State Treasurer a penalty in an amount equal to the  amount of all\ncredits claimed by the investors when these credits are determined to be derived\nfrom unqualified investments, plus interest at the rate of two percent (2%) per\nmonth, compounded monthly, from the date the credits were taken. If the\ninvestment fund fails to pay the penalty and interest in full as required by the\nDepartment of Revenue, each investor shall be personally liable to the Department\nof Revenue for that investor's share of the unpaid penalty, which shall be\ndetermined by the amount o f credits received and utilized by the investor and all\napplicable interest. Any payment of unpaid penalty by an investor shall be included\nwith the investor's state tax return for the period in which the failure or violation\noccurred. The commissioner of the Department of Revenue shall give notice in\nwriting to the authority, the investment fund manager, and the investors of any\npenalties imposed. The commissioner of the Department of Revenue may abate any\nimposed penalty upon written request, if the inves tment fund manager establishes\nreasonable cause for the failure to make qualified investments in small businesses\nunder the provisions of KRS 154.20 -250 to 154.20 -284, or to otherwise comply\nwith the provisions of KRS 154.20 -250 to 154.20 -284. The State Tr easurer shall\ndeposit any amounts received pursuant to this section in the Commonwealth's\ngeneral fund.\n(2) The administration of this section shall be the responsibility of the Department of\nRevenue.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2705","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"9ecdc1c032945eadea0759ccd7c4d50f93484333374b8ffc14583cc9b4558cb9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-261","next":"us-ky/krs-154.20-263"},"notice":"GroundRules: Original legal text. Not legal advice."}