Kentucky Notice of Tax Assessment Checklist
A Kentucky Notice of Tax Due is an official letter from the state informing you that your tax records have been reviewed and you owe a specific amount of money. This notice is sent when the Department identifies a discrepancy between what you reported, what the state found in its records, or what you paid.
What This Notice Means
This notice tells you that the state has calculated a tax amount it believes you owe based on its records or examination of your return. Your notice will show the tax year involved, the type of tax (income, sales, corporate, or other), the amount assessed, and the reason the state made this determination.
What Happens If You Ignore This Notice
Failure to respond triggers additional collection steps by the Kentucky Department of Revenue. After sixty days from the original notice date, the Department may add a twenty-five percent cost of collection fee to your debt under Kentucky Revised Statutes 131.440.
The state may send follow-up collection notices, including a certified Final Notice Before Seizure letter. Collection actions may include filing a tax lien on your property, levying your wages or bank account, offsetting your state or federal income tax refund, or requesting an injunction from the courts.
What This Notice Does Not Mean
Receiving this notice does not automatically mean your wages will be garnished, your bank account will be frozen, or criminal charges will be filed. The notice is the state’s opening move, and there are steps you can take afterward.
What to Do After Receiving This Notice
Step 1: Read the Notice Carefully and Locate Key Information
Open the notice and read it from beginning to end, even if it seems confusing. Write down or highlight the tax year covered, the type of tax involved, the total amount assessed, the reason given for the assessment, and the date of the notice.
Step 2: Understand the Statutory Deadline for Response
The statutory deadline to protest is sixty days from the date of the notice for assessments issued on or after July 1, 2018, and forty-five days for assessments issued before that date under Kentucky Revised Statutes 131.110. Failure to protest within this statutory period makes your tax bill final, due, and owing, and subject to collection action.
Write this date on a calendar or reminder system. Extensions to the statutory period for submitting a written protest are granted only by written request to the Department when justifiable cause exists.
Step 3: Check Your Records Against the Notice
Gather your original tax return for the year in question, along with any supporting documents you have, such as pay stubs, receipts, bank statements, or correspondence with the state. Compare what the notice says the state found with what you actually reported or what your records show.
Step 4: Decide Whether to Accept, Dispute, or Negotiate the Assessment
You have three general paths forward: accept the assessment and arrange payment, file a written protest to dispute the assessment, or contact the state to discuss the situation. Your decision will depend on whether you believe the assessment is correct, whether you have documents to support a different position, and whether you can afford to pay.
Step 5: File a Written Protest If You Disagree
Disagreement with the assessment requires filing a written protest directly with the Kentucky Department of Revenue within the statutory deadline. The protest must be accompanied by a supporting statement setting forth the grounds upon which the protest is made under Kentucky Revised Statutes 131.110. Your supporting statement should explain why you disagree and include any proof or documentation available to support your protest. Fully identify what you are disputing by stating the type of tax involved, the tax periods affected, all disputed tax notice numbers, and the appropriate account number or identification number.
Step 6: Request a Conference and Final Ruling
After filing a timely protest, you may request a conference with the Kentucky Department of Revenue and appear in person or through an authorized representative. At any time after filing a timely protest and supporting statement, you may submit a written request for a final ruling.
When a final ruling is requested, the Department must issue such a ruling within thirty days from the date the request is received under Kentucky Revised Statutes 131.110. A final ruling ends the internal protest process and provides you with the option to appeal to the Kentucky Board of Tax Appeals.
Step 7: Appeal to the Kentucky Board of Tax Appeals If Necessary
After the Department has issued a final ruling, you may appeal to the Kentucky Board of Tax Appeals pursuant to Kentucky Revised Statutes 49.220. The Board of Tax Appeals is vested with exclusive jurisdiction to hear and determine appeals from final rulings, orders, and determinations of the Department.
Step 8: Explore Payment Options If You Cannot Pay
Contact the Department to discuss payment arrangements if you agree that you owe the money but cannot pay it in full. The Department offers payment plans for qualified applicants, though after sixty days from the original Notice of Tax Due, a twenty-five percent cost of collection fee will be added to your debt.
Step 9: Keep Records of All Communications
Save copies of the original notice, any forms you complete, all documents you submit, and any emails or letters you send to the state. Document phone conversations by writing down the date, time, name of the person you spoke with, and what was discussed.
Step 10: Seek Help When Needed
Consider speaking with a tax professional, such as a certified public accountant, enrolled agent, or tax attorney, if the notice is confusing, the amount is very large, or you have a complex tax situation. Contact the Kentucky Taxpayer Ombudsman at (502) 564-7822 or at P.O. Box 930, Frankfort, Kentucky 40602-0930 if you believe you are not being treated fairly or have a problem or complaint.
A Kentucky Notice of Tax Due is a serious document, but it is not the end of the road. You have time, you have options, and you have the right to disagree or ask for review.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
