Kentucky is launching its first tax amnesty program in a decade allowing both people and businesses the chance to pay back taxes with no fees or penalties.
The program starts October 1, and any overdue taxes must be paid by the end of November. To be eligible the taxes owed must be from between December 2001 and October 2012.
A similar program was offered in 2002 that netted more than $40 million in back taxes. Spokeswoman for the Finance and Administration Cabinet Pamela Trautner says the department is aiming to bring in $56 million with the new program. She says,
“It’s a good deal for them. It’s a good deal for Kentucky. This money is needed to continue vital services for our citizens. So it’s only fair that everyone should pay their taxes.”
The department has identified 170,000 individuals and businesses that will qualify for tax amnesty. These taxpayers will soon be notified by mail.
Those who do not take advantage of the amnesty program will be charged an additional 2 percent interest on any unpaid amnesty-eligible taxes.