131.020 Major organizational units of the Department of Revenue -- Functions and duties

131.020 Major organizational units of the Department of Revenue -- Functions and

duties.

(1) The department, headed by a commissioner appointed by the secretary with the

approval of the Governor, shall be organized into the following functional units:

(a) Office of the Commissioner, which shall consist of:

1. The Division of Protest Resolution, headed by a division director who

shall report directly to the commissioner. The division shall administer

the protest functions for the department from office resolution through

court action;

2. The Division of Taxpayer Ombudsman, headed by a division director

who shall report to the commissioner. The division shall perform those

duties set out in KRS 131.083;

3. The Special Investigations Division, headed by a division director who

shall report directly to the commissioner. The division shall investigate

alleged violations of the tax laws and recommend criminal prosecution

of the laws when warranted; and

4. The Division of Information Management, headed by a division director

who shall report directly to the commissioner. The division shall provide

project management, planning, analysis, application development,

implementation, security, support, and maintenance for new and existing

legacy systems of the department;

(b) Office of Tax Policy and Regulation, headed by an executive director who

shall report directly to the commissioner. The office shall be responsible for:

1. Providing oral and written technical advice on Kentucky tax law;

2. Drafting proposed tax legislation and regulations;

3. Testifying before legislative committees on tax matters;

4. Analyzing tax publications;

5. Publishing administrative writings on its official website promptly after

issuance or finalization, but no more than one hundred twenty (120)

days thereafter;

6. Publishing all tax forms and instructions to those tax forms on its

official website no later than:

a. Forty-five (45) days prior to the date a taxpayer is required to:

i. File a tax form;

ii. Make a payment of taxes due or estimated to be due; or

iii. Electronically submit the information or payment; or

b. In the case of income tax forms, thirty (30) days prior to the end of

the calendar year for which the tax form, payment, or information

applies;

7. Providing expert witness testimony in tax litigation cases;

8. Providing consultation and assistance in protested tax cases; and

9. Conducting training and education programs;

(c) Office of Registration and Operations, headed by an executive director who

shall report directly to the commissioner. The office shall be responsible for

processing documents, depositing funds, collecting debt payments, and

coordinating, planning, and implementing a data integrity strategy. The office

shall consist of the:

1. Division of Operations, which shall be responsible for opening all tax

returns, preparing the returns for data capture, coordinating the data

capture process, depositing receipts, maintaining tax data, and assisting

other state agencies with similar operational aspects as negotiated

between the department and the other agency; and

2. Division of Registration, which shall be responsible for registering

businesses for tax purposes, ensuring that the data entered into the

department's tax systems is accurate and complete, and assisting the

taxing areas in proper procedures to ensure the accuracy of the data over

time;

agencies with similar operational aspects as negotiated

between the department and the other agency; and

2. Division of Registration, which shall be responsible for registering

businesses for tax purposes, ensuring that the data entered into the

department's tax systems is accurate and complete, and assisting the

taxing areas in proper procedures to ensure the accuracy of the data over

time;

(d) Office of Property Valuation, headed by an executive director who shall

report directly to the commissioner. The office shall consist of the:

1. Division of Local Support, which shall be responsible for providing

supervision, assistance, and training to the property valuation

administrators and sheriffs within the Commonwealth;

2. Division of State Valuation, which shall be responsible for providing

assessments of public service companies and motor vehicles, and

providing assistance to property valuation administrators and sheriffs

with the administration of tangible and omitted property taxes within the

Commonwealth; and

3. Division of Minerals Taxation and Geographical Information System

Services, which shall be responsible for providing geographical

information system mapping support, ensuring proper filing of

severance tax returns, ensuring consistency of unmined coal

assessments, and gathering and providing data to properly assess

minerals to the property valuation administrators within the

Commonwealth;

(e) Office of Sales and Excise Taxes, headed by an executive director who shall

report directly to the commissioner. The office shall administer all matters

relating to sales and use taxes and miscellaneous excise taxes, including but

not limited to technical tax research, compliance, taxpayer assistance, tax-

specific training, and publications. The office shall consist of the:

1. Division of Sales and Use Tax, which shall administer the sales and use

tax; and

2. Division of Miscellaneous Taxes, which shall administer various other

taxes, including but not limited to alcoholic beverage taxes; cigarette

enforcement fees, stamps, meters, and taxes; gasoline tax; bank

franchise tax; inheritance and estate tax; insurance premiums and

insurance surcharge taxes; motor vehicle tire fees and usage taxes; and

special fuels taxes;

(f) Office of Income Taxation, headed by an executive director who shall report

directly to the commissioner. The office shall administer all matters related to

income and corporation license taxes, including technical tax research,

compliance, taxpayer assistance, tax-specific training, and publications. The

office shall consist of the:

1. Division of Individual Tax, which shall administer the following taxes

or returns: individual income, fiduciary, and employer withholding; and

2. Division of Corporation Tax, which shall administer the corporation

income tax, corporation license tax, pass-through entity withholding,

and pass-through entity reporting requirements;

(g) Office of Field Operations, headed by an executive director who shall report

directly to the commissioner. The office shall manage the regional taxpayer

service centers and the field audit program; and

2. Division of Corporation Tax, which shall administer the corporation

income tax, corporation license tax, pass-through entity withholding,

and pass-through entity reporting requirements;

(g) Office of Field Operations, headed by an executive director who shall report

directly to the commissioner. The office shall manage the regional taxpayer

service centers and the field audit program; and

(h) Office of Enforcement, headed by an executive director who shall report

directly to the commissioner. The office shall initiate all collection

enforcement activity related to due and owing tax assessments, including

protest resolution, and shall assist other state agencies with similar collection

aspects as negotiated between the department and other state agencies. The

office shall consist of the Division of Collections.

(2) The functions and duties of the department shall include conducting conferences,

administering taxpayer protests, and settling tax controversies on a fair and

equitable basis, taking into consideration the hazards of litigation to the

Commonwealth of Kentucky and the taxpayer. The mission of the department shall

be to afford an opportunity for taxpayers to have an independent informal review of

the determinations of the audit functions of the department, and to attempt to fairly

and equitably resolve tax controversies at the administrative level.

(3) The department shall maintain an accounting structure for the one hundred twenty

(120) property valuation administrators' offices across the Commonwealth in order

to facilitate use of the state payroll system and the budgeting process.

(4) Except as provided in KRS 131.190(4), the department shall fully cooperate with

and make tax information available as prescribed under KRS 131.190(3) to the

Governor's Office for Economic Analysis as necessary for the office to perform the

tax administration function established in KRS 42.410.

(5) Executive directors and division directors established under this section shall be

appointed by the secretary with the approval of the Governor under KRS 12.050.