Press Release from Ed Hatchett, Release Date: March 28, 2001 Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2002KYTaxProtestSettlementProcess.pdf |
Commonwealth of Kentucky |
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(Frankfort - March 28, 2001)
The Kentucky Revenue Cabinet lacks formal tax protest settlement policies and procedures, yet it forgave more than $12 million in protested taxes from 1998 to 2000.
A performance audit conducted by State Auditor Ed Hatchett revealed that the Cabinet has undertaken no system review in the ten years it has had the authority to settle tax protests. In addition, the tax settlement process is not formalized, and relies upon non-lawyer Cabinet employees to make settlement decisions requiring knowledge of "risks of litigation." Other findings included: (1) failure to have review officers with legal training, (2) failure to collect and maintain settlement data, and (3) failure to properly adjust accounts receivable so a true picture of what is owed the Commonwealth can be determined. The audit contained ten recommendations designed to help the Revenue Cabinet improve the protest settlement process. The recommendations cover subjects from file maintenance to hiring practices. |
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