103 Ky. Admin. Regs. 1:060
Current through Register Vol. 51, No. 5, November 1, 2024
Section 103 KAR 1:060 - Electronic fund transferRELATES TO: KRS 131.155, 131.180, 131.183, 131.990, Chapter 139, 141.310
NECESSITY, FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue to promulgate administrative regulations for the administration and enforcement of all tax laws of this state. KRS 131.155(3) requires the department to promulgate administrative regulations establishing electronic fund transfer requirements for the payment of taxes and fees administered by the department. This administrative regulation establishes requirements relating to the remittance of funds to the department via electronic fund transfer.
Section 1. Definitions. (1) "Credit method" means the method of payment where the taxpayer or his authorized agent initiates the transfer of funds from the taxpayer or agent controlled account in a financial institution to the designated Commonwealth bank account to satisfy taxes or fees due.(2) "Debit method" means the method of payment where the taxpayer or his authorized agent authorizes the Department of Revenue or its authorized agent to initiate the transfer of a set amount of funds on a set date from a taxpayer or agent-controlled account in a financial institution to satisfy taxes or fees due based on required information transmitted to the department prior to the department effecting the transfer.(3) "Lookback period" means the twelve (12) month period ending on September 30 of the year immediately preceding the current calendar year. For example, the lookback period for calendar year 2001 is the period beginning on October 1, 1999 and ending on September 30, 2000.Section 2. Reporting and Payment Requirements. (1) Any taxpayer whose average payment per reporting period during the lookback period for the sales and use tax required to be collected or paid under KRS Chapter 139 exceeds $25,000 or any employer whose average payment per reporting period during the lookback period for the income tax required to be withheld under KRS 141.310 exceeds $25,000 shall submit to the department a properly executed Revenue Form 10A070 "Authorization Agreement for Electronic Funds Transfer" stating the method requested to be used and upon written approval of the method by the department shall pay the tax by electronic fund transfer using the debit method or other method approved by the department, including the credit method, provided the method complies with the guidelines set out in subsection (3) of this section.(2) Persons required by KRS 131.155(2) to remit funds by electronic fund transfer on behalf of other taxpayers shall conform to the provisions of subsection (1) of this section. In addition, these persons shall, for each taxpayer represented and for each payment period, provide the information necessary to properly credit the account as required in subsection (3) of this section.(3) Execution of any electronic fund transfer transaction shall conform to the guidelines and procedures of each participating financial institution. Any electronic transfer of funds shall provide information necessary to properly credit the taxpayer account, including: (a) Taxpayer account number;(e) Date of payment transfer; and(f) Any other information deemed necessary by the department to properly credit the account.(4) The department may withdraw approval to utilize the credit method or any method employed other than the debit method if the taxpayer or his authorized agent fails to provide required information necessary to effect the transfer and credit funds to the proper taxpayer account.(5) Any taxpayer or employer may volunteer to pay the tax by electronic fund transfer by making a written request to the department and, if approved by the department, shall be subject to the same requirements as any taxpayer or employer required to electronically transfer the tax. The taxpayer or employer shall comply with the electronic fund transfer requirements until a written request to change methods is filed and approved by the department.Section 3. Alternative Payment Method. (1) A taxpayer or authorized agent for a taxpayer or taxpayers shall make a request to remit funds by electronic means other than the previously approved method. This request may be either written or oral.(2) The department may approve this method if extreme circumstances are demonstrated.(3) The following information shall be provided with the request or upon approval of the request: (a) Reason for requesting alternate remittance method; and(b) Method of remittance proposed.Section 4. Procedures. (1) Due date of electronic fund transfer. (a) The due date of any electronic fund transfer for any tax shall be governed by the applicable law and administrative regulations pertaining to that tax.(b) The initiation date recorded in the automated clearing house system by the originating financial depository institution for any electronic fund transfer shall be the payment date.(2) Manner of electronic fund transfer. Separate electronic fund transfers shall be made for each type tax account number designated as an electronic fund transfer account under the provisions of KRS Chapter 131.(3) Overpayment or underpayment of tax. Any overpayment of tax may be applied toward the amount due for the next tax period or may be refunded upon request by the taxpayer or employer. If the amount of tax liability for a taxable period exceeds the total amount electronically transferred for the same period, the taxpayer or employer shall pay the additional tax due.Section 5. Change in Reporting and Payment Requirements for Electronic Fund Transfer. After the department makes a determination regarding a taxpayer's or employer's reporting and payment requirements for electronic fund transfer, the taxpayer or employer shall comply with the requirements until a written request to change is filed with and approved by the department.Section 6. Penalties and Interest. Any taxpayer or employer who fails to comply with the provisions of this administrative regulation shall be subject to penalties as provided in KRS 131.180 and 131.990 and interest as provided in KRS 131.183.Section 7. Form 10A70 may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Department of Revenue, 501 High Street, Frankfort, Kentucky 40601, or at any Kentucky Department of Revenue Taxpayer Service Center, Monday through Friday, 8 a.m. to 4:30 p.m. or online at https://revenue.ky.gov.21 Ky.R. 143; Am. 911; eff. 9-12-94; Recodified as 103 KAR 1:060, 8-14-2000; Am. 27 Ky.R. 2552; 3072; eff. 5-14-2001; 46 Ky.R. 48, 862, eff. 10-4-2019.STATUTORY AUTHORITY: KRS 131.130, 131.155(3)