The Kentucky 51A113 form is a Consumer's Use Tax Return that individuals and businesses in Kentucky must complete if they owe use tax on purchases made without paying sales tax. This form allows taxpayers to report and remit the appropriate tax for tangible personal property, digital property, and extended warranty services. To ensure compliance and avoid penalties, it's essential to fill out this form accurately and submit it on time; you can get started by clicking the button below.
The Kentucky 51A113 form is an essential document for individuals and businesses that are liable for use tax in the Commonwealth of Kentucky. This form is specifically designed for those who are not registered consumers or retailers, meaning it is applicable to those who have made purchases of tangible personal property, digital property, or extended warranty services without having paid sales tax at the time of purchase. The form requires detailed information about the taxpayer, including their name, address, and applicable identification numbers. It also necessitates an accurate description of the nature of the business, if applicable. Taxpayers must list all relevant purchases and provide the total sale price, which will then be used to calculate the use tax owed at a rate of 6%. Furthermore, the form includes sections for compensation, penalties, and interest, which may apply in case of late filing or payment. Completing the 51A113 form accurately and submitting it within the required timeframe is crucial to avoid unnecessary penalties and interest charges. Understanding the nuances of this form can help ensure compliance with Kentucky tax regulations and facilitate a smoother tax process.
51A113(O) (9-21)
Read instructions on reverse
Commonwealth of Kentucky
CONSUMER’S USE TAX RETURN
before completing return.
DEPARTMENT OF REVENUE
For Month of _____________________ , 20____
Type or Print
Enter Applicable Number:
SSN __ __ __ – __ __ – __ __ __ __
FEIN __ __ – __ __ __ __ __ __ __
Name and
Name
Address
P.O. Box or Number and Street
City or Town
County
State
ZIP Code
Nature of
Important: An accurate description of your business is necessary.
Business
(if any)
List All Purchases of Tangible Personal Property, Digital Property, and Extended Warranty Services Subject to Use Tax
Date of
Sale Price of
Name and Address of Seller
Description of Property
Purchase
Property and Services
Purchased
$
(If additional space is needed, see reverse.)
1.
Total sale price of tangible personal property, digital property, and extended warranty
services subject to use tax
1
2.
Use tax (6% of Line 1)
2
3.
Compensation (1 3/4% of first $1,000 of tax, 1.5% over $1,000)
(see instructions) (Compensation shall not exceed $50)
.............................................................
3
4.
Tax due (Line 2 minus Line 3)
4
5.
Penalty (if any) (see instructions)
5
6.
Interest (if any) (see instructions)
6
7.
Total amount due and payable (total of Lines 4, 5 and 6)
7
I declare, under the penalties of perjury, that this return (including any accompanying schedules and statements) has been examined by me and to the best of my knowledge and belief is a true, correct and complete return.
Date
Taxpayer’s Signature
Make check payable to Kentucky State Treasurer.
Mail return with check to: Department of Revenue
Frankfort, Kentucky 40619
NOTICE
This form is to be filed only by persons or firms liable for use tax who are not: (1) registered consumers or (2) registered retailers. Registered consumers and retailers must use returns mailed to them by the Department, or filed electronically.
INSTRUCTIONS
Time and Place for Filing—A consumer’s use tax return is due 20 days following the month in which a purchase of tangible personal property, digital property, and extended warranty services is made upon which Kentucky sales or use tax has not been paid. The return together with remittance for the total amount due shall be mailed to the Department of Revenue, Frankfort, Kentucky 40619. Remittance should be made payable to the Kentucky State Treasurer.
Tax Rate—The use tax rate is 6 percent of the sales price of all tangible personal property, digital property, and extended warranty services purchased during the month without payment of sales tax.
Sale Price—This means the cost of the tangible personal property, digital property, and extended warranty services to the purchaser less any cash discount received, valued in money or otherwise.
Tangible Personal Property, Digital Property, and Extended Warranty Services—Tangible Personal Property means personal property that is tangible and movable such as mobile homes, campers, airplanes, lumber, clothing, tools, machines, furniture and all other types of goods and merchandise. Digital property means any of the following which is transferred electronically: digital audio works, digital books, finished artwork, digital photographs, periodicals, newspapers, magazines, video greeting cards, audio greeting cards, video games, electronic games and any digital code related to this property. Extended warranty services means services provided through a service contract agreement between the contract provider and the purchaser where the purchaser agrees to pay compensation for the contract and the provider agrees to repair, replace, support, or maintain tangible personal property or digital property according to the terms of the contract. Extended warranty services are only subject to use tax provided the service agreement is sold or extended after July 1, 2018, and the tangible personal property or digital property for which the service agreement is purchased is subject to tax under KRS 139 or KRS 138.460.
Completing the Return—List in the space provided all purchases of tangible personal property, digital property, and extended warranty services subject to use tax, and enter the total on Line 1. All tangible personal property, digital property, and extended warranty services purchased for storage, use or consumption without payment of Kentucky sales and use tax should be listed and included on Line 1.
Penalties and Interest—The penalty for failure to file a return by the due date is 2 percent of the tax for each 30 days or fraction thereof. The total late filing penalty shall not exceed 20 percent of the tax except when the percentage penalty would be less than $10. In such case the penalty shall be $10. Interest will apply to any late payments as provided by KRS 131.183. To calculate the interest, divide the annual interest percentage for underpayments (for 2018 6%) by 365 days and multiply the result by the number of days late times the tax amount. (Example: for 2021, .05/365 X “#” of days late X “$” tax amount.)
The penalty for failure to pay the tax within the time prescribed is 2 percent of the tax not timely paid for each 30 days payment is late—a minimum of $10 is imposed.
Compensation—Compensation is not allowable on any tax not paid on or before the due date. (Compensation shall not exceed $50.)
Additional Space for Listing Tangible Personal Property, Digital Property, and
Extended Warranty Services Subject to Use Tax
Subtotal: Sale price of purchases (include in total on Line 1, front page) .............................................
Filling out the Kentucky 51A113 form is a straightforward process, but it’s important to take your time and ensure all information is accurate. This form is used to report purchases subject to use tax, and it requires specific details about your transactions. Follow these steps to complete the form correctly.
The Kentucky 51A113 form is a Consumer's Use Tax Return used by individuals or businesses in Kentucky who have purchased tangible personal property, digital property, or extended warranty services without paying sales tax. This form allows them to report these purchases and remit the appropriate use tax to the Kentucky Department of Revenue.
This form must be filed by individuals or firms that are liable for use tax but are not registered consumers or registered retailers. If you have made purchases subject to use tax and have not paid sales tax, you will need to file this form. Registered consumers and retailers should use the returns provided to them by the Department of Revenue instead.
The form is due 20 days after the end of the month in which the purchase was made. It is essential to file the form on time to avoid penalties and interest on any unpaid tax.
The use tax rate is 6 percent of the total sales price of the tangible personal property, digital property, and extended warranty services purchased during the month. You will need to calculate the total sale price of all applicable items and then multiply that amount by 0.06 to determine the use tax owed.
If the return is not filed by the due date, a penalty of 2 percent of the tax owed will apply for each 30 days or fraction thereof that the return is late. The maximum penalty is capped at 20 percent of the tax owed, unless this amount is less than $10, in which case the penalty will be $10. Additionally, interest will accrue on any late payments.
To complete the form, you need to:
Once completed, mail the form along with your payment to the Kentucky Department of Revenue in Frankfort.
Failing to provide an accurate description of the business. It is crucial to clearly state the nature of your business, if applicable, to avoid processing delays.
Not listing all purchases subject to use tax. Ensure you include every item, service, or warranty purchased without paying sales tax. Missing items can lead to incorrect tax calculations.
Incorrectly calculating the use tax. The tax rate is 6% of the total sale price. Double-check your math to avoid underpayment or overpayment.
Omitting the compensation calculation. If applicable, include the compensation on Line 3. Remember, it cannot exceed $50.
Neglecting to sign and date the return. Your signature is a declaration of the accuracy of the information provided. Without it, the form may be considered incomplete.
Mailing the form after the due date. The return must be submitted within 20 days of the end of the month in which the purchase was made. Late submissions incur penalties.
Forgetting to make the check payable to the Kentucky State Treasurer. Ensure your payment is correctly addressed to avoid processing issues.
The Kentucky 51A113 form is a Consumer’s Use Tax Return that individuals and businesses must file when they purchase tangible personal property, digital property, or extended warranty services without paying sales tax. Along with this form, there are several other documents that may be relevant in the context of use tax compliance. Understanding these documents can help ensure that all tax obligations are met accurately and timely.
These documents work in conjunction with the Kentucky 51A113 form to facilitate accurate reporting and compliance with Kentucky tax laws. Ensuring that all necessary forms are completed and submitted on time can help avoid penalties and ensure a smooth tax process.
The Kentucky 51A113 form, used for reporting consumer’s use tax, shares similarities with the IRS Form 1040, which is the standard individual income tax return. Both forms require the taxpayer to report specific financial information related to purchases or income. While the 51A113 focuses on use tax for tangible and digital property, the 1040 encompasses a broader range of income sources. Each form also includes sections for penalties and interest, emphasizing the importance of timely and accurate reporting to avoid additional charges.
Another document similar to the Kentucky 51A113 is the state-level Sales Tax Return form. This form is utilized by registered retailers to report sales tax collected on taxable sales. Like the 51A113, it requires detailed information about transactions, including the total sales amount and applicable tax rates. The main difference lies in the fact that the Sales Tax Return is filed by sellers, while the 51A113 is for consumers who have not paid sales tax on their purchases.
The IRS Form 1099 is also comparable to the Kentucky 51A113 in that it serves as a reporting mechanism for specific types of income or payments. Form 1099 is used to report income received from sources other than employment, such as freelance work or rental income. Both forms require accurate reporting of amounts and can lead to penalties if filed incorrectly or late. However, the 1099 focuses on income rather than tax owed on purchases.
Additionally, the Kentucky Individual Income Tax Form (740) bears resemblance to the 51A113. Both forms require taxpayers to provide personal information and details about financial transactions. The 740 form encompasses a broader range of income types, while the 51A113 specifically addresses use tax on purchases. Each form emphasizes the importance of accuracy and completeness to avoid penalties.
The IRS Schedule C is another document that is similar to the Kentucky 51A113. This form is used by sole proprietors to report income and expenses related to their business. Both forms require detailed reporting of specific transactions and can lead to penalties if not filed correctly. While Schedule C focuses on business income, the 51A113 centers on consumer purchases subject to use tax.
Finally, the Kentucky Corporation Income Tax Return (Form 720) is akin to the 51A113 in that it requires corporations to report their tax obligations. Both forms necessitate detailed financial reporting and have specific deadlines for submission. However, the Form 720 is geared towards corporate income tax, while the 51A113 is for individual consumers reporting use tax on personal purchases.
When filling out the Kentucky 51A113 form, it is crucial to ensure accuracy and completeness. Here is a list of ten essential do's and don'ts to guide you through the process.
By adhering to these guidelines, you can avoid potential penalties and ensure a smoother filing process.
Below are some common misconceptions about the Kentucky 51A113 form, along with clarifications for each:
This form is required for both individuals and businesses that have made purchases subject to use tax. If you bought items without paying sales tax, you must file.
The Kentucky 51A113 form also applies to digital property and extended warranty services. All applicable purchases must be reported.
Filing is mandatory regardless of the amount owed. Even if the tax is minimal, you are still required to submit the form.
The form must be filed within 20 days after the end of the month in which the purchase was made. Late filings can incur penalties and interest.
Compensation is only available for timely payments. If you file late, you will not receive this benefit.
Filing late does not eliminate penalties and interest. These charges accumulate from the due date until the tax is paid in full.
When filling out and using the Kentucky 51A113 form, it is important to follow specific guidelines to ensure compliance and accuracy. Here are key takeaways to keep in mind:
By keeping these points in mind, individuals can effectively navigate the process of completing and submitting the Kentucky 51A113 form.