TAX DEBT RELIEF OPTIONS – Kentucky Department of Revenue

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Kentucky since 2007 and nationwide since 2005.  We deal with the IRS and State taxing authorities for you, so you do not have to!  

If you or your business owe back-taxes to the Kentucky Department of Revenue, we recommend first reading about your Taxpayer Rights the Kentucky DOR Collection Process. 

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.

PAYMENT PLANS TO RESOLVE KENTUCKY BACK TAXES

A good option for many taxpayers to resolve a Kentucky Department of Revenue tax debt is through a monthly Payment Agreement.  

Here are the basic parameters of KY-DOR Payment Agreements:

• 25% collection fee is added to the balance due after 45 days,
• 20% down payment is typically required for business Payment Agreements,
• Detailed collection information statements are often required: 
  • Statement of Financial Condition for Individuals
  • Statement of Financial Condition for Businesses

Quick Tip:  In rare cases, Kentucky DOR will allow a flexible monthly installment agreement that starts at a low payment and increases at a later date!

REDUCE YOUR KY-DOR TAX DEBT

Offer in Compromise

The Kentucky Department of Revenue does have an Offer in Compromise (OIC) settlement program for those that qualify.  The OIC is NOT a good program for operating businesses, in most cases, but may be a better option for individual taxpayers.  

To be a good OIC candidate, you’ll need to show little or no ability to pay monthly, have little or no equity in assets and be in full tax compliance (all required tax returns filed and current taxes paid).  

Get started with the Kentucky OIC Application.  

Penalty Relief

The Kentucky Department of Revenue has a broad list of reasons that may be considered "Reasonable Cause" for the abatement penalties.  If you can demonstrate that - 

• your tax liability was the result of circumstances beyond your control, 
• you acted in a reasonable manner trying to timely pay the tax, or 
• the enforcement of penalties would cause an undue financial hardship, 

you may be eligible for penalty relief.  Learn more HERE.

KENTUCKY TAX RESOLUTION CASE EXAMPLES

The Kentucky Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.


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