{"data":{"id":"us-ky/krs-40.540","jurisdiction":"us-ky","citation":"KRS 40.540","heading":"Setting off tax delinquency against bonus.","body":"(1) If a claim is approved by the administrator or finally approved upon resort to the\nboard of review, the administrator shall promptly certify to the secretary of the\nFinance and Administration Cabinet the names and addresses of persons found\nentitled to be paid, as shown in the application, and the amount payable to each.\n(a) A copy of each such certificate shall be sent to the commissioner of the\nDepartment of Revenue, who shall promptly ascertain from the records of his\nagency whether any person proposed t o be paid a bonus is delinquent in the\npayment of any tax liability to the Commonwealth. No delinquency shall be\ndeemed to exist as to any asserted tax liability which is the subject of a bona\nfide dispute. If any delinquency be found to exist, the commiss ioner of\nrevenue shall, within three (3) working days after this receipt of the certificate,\nfurnish the details thereof to the secretary of finance and administration; and if\nno advice of tax delinquency is received by the secretary of finance and\nadministration before the end of the fourth working day after his receipt of\ncertification from the administrator, he shall, for the purposes of KRS 40.410\nto 40.560, conclusively presume that no delinquency of tax liability to the\nCommonwealth exists, but such p resumption shall apply only to the existence\nor absence of a set -off by the Commonwealth against a certified claim for a\nbonus, and shall not alter the facts as between the Commonwealth and any\ntaxpayer.\n(b) If no advice of tax delinquency is received with in such allowed time, the\nsecretary of finance and administration may approve payment in accordance\nwith the certificate of the administrator, and may immediately draw a warrant\non the State Treasury for a check in payment, except that no warrant shall be\ndrawn by the secretary until sufficient funds have become available to pay the\nbonus authorized by KRS 40.410 to 40.560.\n(c) Upon receipt of such warrant the State Treasurer shall issue a check in\naccordance therewith payable from funds made available for payment of the\nbonus authorized by KRS 40.410 to 40.560, and the same shall promptly be\nmailed to the payee thereof at the address shown in the certificate.\n(2) If the secretary of finance and administration shall, within the allowed time, receive\nadvice from the commissioner of revenue of the existence of a delinquency on the\npart of any person having an approved claim for a bonus, as to any tax liability to\nthe Commonwealth, the secretary of finance and administration shall note the same\non the certificate of the administrator, withhold payment, and forthwith send to the\nclaimant by registered mail a notice of the asserted delinquency, and the amount\nthereof, and that it is proposed that the same be set off against the bonus payment.\n(a) If the secretary o f finance and administration receives no protest in his office\nwithin ten (10) working days after recording such notice, he shall conclusively\npresume that the proposed set -off is just, shall apply the amount thereof in\nreduction or extinguishment of the payment certified by the administrator, and\nshall advise the commissioner of revenue of the amount set off against the\nbonus, which advice shall be noted by the commissioner of revenue on the\nrecords of his office as a credit upon the delinquent tax liability.\n(b) If the tax set-off does not consume the entire amount of the bonus as certified\nby the administrator, the secretary shall draw a warrant upon the State\nTreasury for a check in the amount of the remainder, and upon receiving such\ncheck from the Stat e Treasurer, shall send the same, together with advice of\nthe set-off, by mail, to the payee at the address shown in the certificate of the\ndirector.\n(3) If the secretary of finance and administration receives from the claimant a protest of\nthe asserted ta x delinquency, within the allowed time, the secretary shall withhold\napproval for payment, and shall refer the protest to the commissioner of revenue for\ndisposition.\n(4) If a tax set -off is made, and the claimant shall assert error with regard thereto, th e\nexclusive remedy shall be by seeking refund from the commissioner of revenue.","path":["KRS Chapter 40"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=21876","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:00Z","sha256":"508476f18b2628ceafa55d1773108f3620c4ca607ffe3085ad7a3c362e364579","source_id":"us-ky","stale":false,"prev":"us-ky/krs-40.530","next":"us-ky/krs-40.550"},"notice":"GroundRules: Original legal text. Not legal advice."}