{"data":{"id":"us-ky/krs-40.140","jurisdiction":"us-ky","citation":"KRS 40.140","heading":"Setting off tax delinquency against bonus.","body":"(1) (a) If a claim is approved by the administrator or finally approved upon resort to\nthe board of review, in whole or in part the administrator shall promptly\ncertify to the secretary of the Finance and Administration Cabinet the names\nand addresses of persons f ound entitled to be paid, as shown in the\napplication, and the amount payable to each.\n(b) A copy of each such certificate shall be sent to the secretary of revenue, who\nshall promptly ascertain from the records of his cabinet whether any person\nproposed to be paid a veterans' bonus is delinquent in the payment of any tax\nliability to the Commonwealth. No delinquency shall be deemed to exist as to\nany asserted tax liability which is the subject of a bona fide dispute. If any\ndelinquency be found to exist, t he secretary of revenue shall within three (3)\nworking days after this receipt of the certificate, furnish the details thereof to\nthe secretary of the Finance and Administration Cabinet; and if no advice of\ntax delinquency is received by the secretary of the Finance and Administration\nCabinet before the end of the fourth working day after his receipt of\ncertification from the administrator, he shall, for the purposes of this chapter,\nconclusively presume that no delinquency of tax liability to the\nCommonwealth exists; but such presumption shall apply only to the existence\nor absence of a setoff by the Commonwealth against a certified claim for a\nveterans' bonus, and shall not alter the facts as between the Commonwealth\nand any taxpayer.\n(c) If no advice of t ax delinquency is received within such allowed time, the\nsecretary of the Finance and Administration Cabinet may approve payment in\naccordance with the certificate of the administrator, and may immediately\ndraw a warrant on the State Treasury for a check in payment.\n(d) Upon receipt of such warrant the State Treasurer shall issue a check in\naccordance therewith payable from the proceeds of bonds in accordance with\nthis chapter, and the same shall promptly be mailed to the payee thereof at the\naddress shown in the certificate.\n(2) (a) If the secretary of the Finance and Administration Cabinet shall, within the\nallowed time, receive advice from the secretary of revenue of the existence of\na delinquency on the part of any person having an approved claim for a\nveterans' bonus, as to any tax liability to the Commonwealth, the secretary of\nthe Finance and Administration Cabinet shall note the same on the certificate\nof the administrator, withhold payment, and forthwith send to the claimant by\ncertified mail, return  receipt requested a notice of the asserted delinquency,\nand the amount thereof, and that it is proposed that the same be set off against\nthe veterans' bonus payment.\n(b) If the secretary of the Finance and Administration Cabinet receives no protest\nin his office within ten (10) working days after recording such notice, he shall\nconclusively presume that the proposed setoff is just, shall apply the amount\nthereof in reduction or extinguishment of the payment certified by the\nadministrator, and shall advise the secretary of revenue of the amount set off\nagainst the veterans' bonus, which advice shall be noted by the secretary of\nrevenue on the records of his office as a credit upon the delinquent tax\nliability.\n(c) If the tax setoff does not consume the entir e amount of the veterans' bonus as\ncertified by the administrator, the secretary shall draw a warrant upon the\nState Treasury for a check in the amount of the remainder, and upon receiving\nsuch check from the State Treasurer shall send the same, together w ith advice\nof the setoff, by mail, to the payee at the address shown in the certificate of the\nadministrator.\n(3) If the secretary of the Finance and Administration Cabinet receives from the\nclaimant a protest of the asserted tax delinquency, within the al lowed time, the\nsecretary shall withhold approval for payment, and shall refer the protest to the\nsecretary of revenue for disposition.\n(4) If a tax setoff is made, and the claimant shall assert error with regard thereto, the\nexclusive remedy shall be by seeking refund from the secretary of revenue.","path":["KRS Chapter 40"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=21834","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:59Z","sha256":"74dfa77740cb5a83aaa2b26899e6841c726c90f43ac18dad2f1c3ef8169c934d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-40.130","next":"us-ky/krs-40.150"},"notice":"GroundRules: Original legal text. Not legal advice."}