The following rules shall apply when an employer fails to file a return, fails to pay the occupational license fees withheld when due, or pays less than the amount due.
(A) If the person (employer) liable for withholding the occupational license fees and filing a return fails to make a return, the Collector shall prepare an estimate of the amount of occupational license fees due based on the best information available to the Collector. The Collector may make investigations to assist in making the estimate. The Collector may consider the number of employees, the wages or other compensation customarily paid in the type of business, the volume of business done, customary commissions or bonuses paid to employees in the same type of business, and any other relevant matters. The Collector may estimate the compensation customary in the business or similar businesses. When the Collector estimates the occupational license fees, the amount of interest and late charges provided by this subchapter shall be added to the fees due. In addition to all the provisions set out in this chapter, the Collector shall also have the discretion to use all the powers for collection, enforcement and all the penalties for failure to file or pay under KRS 67.750-795.
(1) The Collector shall notify the person (employer) of the amount due. Notification shall be in writing and shall contain a brief description of the method and estimated figures used in arriving at the estimated tax.
(2) Any person (employer) may dispute the amount of the estimated tax by filing within 30 days of notification of the estimated fees, a return accompanied by payment of the entire balance due together with the interest and late charges due. This return shall be processed like any late return by the Collector and shall establish the occupational license fees liability of the person (employer) in place of the estimated amount prepared by the Collector. The Collector may, however, later determine that the amount shown in the return is insufficient so there is a deficiency, in the same manner as in the case of other returns.
(B) If the Collector determines, by examining available evidence, that the amount of occupational license fees paid over by the employer is less than the amount required by this subchapter, the Collector shall notify the employer of the deficiency.
(1) The Collector may use any of the methods authorized in division (A) of this section to determine whether a deficiency exists and to determine the amount of deficiency.
(2) The Collector shall thereupon notify the employer of the deficiency. Notice shall be in writing and shall state not only the amount of the deficiency but also the methods and estimates used in arriving at the amount of the deficiency.
(3) If the employer does not object within 30 days of the date of receiving notice, the employer shall be deemed to have accepted the revised figures for the occupational tax liability. If the employer does file written objection within the time specified, the employer shall pay the fees, together with penalties and interest, under protest and may thereupon pursue administrative and judicial remedies as provided by ordinance and by state law to seek a refund.
(C) If the Collector finds that any employer has overpaid, the Collector shall notify the employer of the overpayment and shall refund the amount of the overpayment to the employer.
(D) When the Collector notifies any employer of any estimated amount due, alleged overpayment, or refund, the Collector shall include in the notice clear instructions on how, when, and where the employer may protest or appeal the decision.
(E) If an employer or any person, firm, association, or corporation required by this subchapter to pay a fee or to file a return shall fail to file any return for any year, failure to file shall constitute a continuing offense against the city and the Collector may proceed to estimate and collect the occupational license fees at any time. In all other cases, no increases shall be made in the employer's occupational license fee liability unless notice of such increase is received by the employer within three years of the time the annual return was first due.
(Ord. 7-24-23, passed 8-28-23)