Kentucky's Department of Revenue (DOR) is instituting a tax amnesty program running from July 1, 2012 to June 30, 2013. The program will cover tax liabilities incurred during the time period December 1, 2001 to October 1, 2011.

If you qualify for the program the Kentucky DOR will waive criminal prosecution, all civil penalties, and one-half of the otherwise applicable interest.

The initial qualification hurdle is relatively simple, even if the taxpayer is under audit they will qualify as long they are not "on notice, written or otherwise, of a criminal investigation being conducted by an agency of the state or any political subdivision thereof or the United States, [and] ... any taxpayer who is the subject of any criminal litigation which is pending on the date of the taxpayer's [amnesty] application in any court of this state or the United States for nonpayment, delinquency, evasion or fraud in relation to any federal taxes or to any of the taxes to which this amnesty program is applicable."

Once the taxpayer has passed this hurdle there are several additional requirements. For more on these, and whether or not your particular facts and circumstances allow you to qualify, subscribe today and not only get your questions answered, but also get a free 2012 Compliance Guide - our top selling compliance tool!