Overdue license fees, extension requests, amended returns and refunds

Overdue license fees

The Business Services division verifies license fee returns for accuracy and the correct amount of fee paid. A license fee bill, called a "Notice of Corrected Annual Occupational License Fee Return", is generated when the total amount due for the tax period is not paid. This notice includes the fee due, plus applicable penalties and fees which are charged on the unpaid balance due from the original due date of the license fee period. The notice begins the collection process. The length and severity of this process depend on how soon the notice is paid or resolved.

Attempt to contact

The Business Services Division makes every attempt to contact the taxpayer regarding their outstanding tax liability, through telephone and mailings, throughout the collection process.

Penalties

Penalties are assessed for 5% each month or a portion thereof that the total fee due is paid after the due date. The maximum penalty is 25% with a minimum of $25 per locality.

Penalty waiver for reasonable cause

The Kenton County Occupational License Inspector may consider waiver of all or a portion of imposed penalties if the taxpayer can demonstrate reasonable cause. The taxpayer must demonstrate that the tax liability was the result of circumstances beyond his or her control, that the taxpayer acted in a reasonable manner trying to timely pay the tax, or that the strict enforcement of penalties would cause the taxpayer undue financial hardship. The penalty waiver request must be made in writing to the:
License Inspector, Kenton County Business Services Division
1840 Simon Kenton Way
Suite 5100
Covington, KY 41011

It is the responsibility of the license holder to supply the Business Services division with documentation to support the claim. Any Business Services account representative can assist the taxpayer with the appropriate requirements.

Interest Rates

Interest is computed on the unpaid tax due and there is no protest for imposed interest. The Business Services Division has established the following rates, per year:

Applying for a six month extension

A copy of taxpayer's application to the IRS for Automatic Extension does not apply. Only extension requests received by the due date of the Occupational License Fee and Business License Renewal Return Form and filed according to the form's instructions are acceptable. This is to avoid late filing penalties and interest. The steps include:

• Check the box that indicates "Extension..." on the Occupational License Fee/Renewal Form ACC1 (PDF)
• Calculate at least 90% of any estimated taxes and all license renewal fees due giving the allocated estimates for each city or county on the applicable line(s).
• Sign, attach remittance and return by the due date.

Amended returns

If an amended return needs to be submitted, please fill in the corrected amounts on Form ACC1 or Form QCC1 for the corresponding tax year and write “Amended Return” at the top of the form.  Forms are available via Get an Account & Other Forms. Amended returns cannot be submitted via the Filing Wizard or Standard Online Filing.

• A Kenton County Business Services account number must be included on the amended return.
• Submit applicable forms, schedules, and/or employee details with the amended return.
• Sign and remit any payment due with the return.

Refund requests

Refunds must be requested through the Kenton County and Cities’ Occupational Fee Refund Application Form, available online or at the Kenton County Fiscal Court Business Services Suite 5100. Refunds cannot be requested via the Filing Wizard or Standard Online Filing.

• Amounts paid for business licenses are nonrefundable. 
• Writing a negative amount on an Annual Occupational Fees and Business License Renewal Return (Form ACC1) or Employees’ Quarterly Payroll Withholding Return (Form QCC1) does not constitute a request for a refund.
• Refunds have a two year limitation starting with the date the payment is received. 
• Payroll withholding refunds are refundable to the employee only. The employee must request the refund if the fees were withheld from the employee. The employer cannot request the refund on the employee’s behalf.
• Form W-2 is required for any refund requests pertaining to employee payroll withholding.