KY Tax & Accounting Services
Kurt Simmons CPA provides comprehensive tax and financial services to individuals and businesses throughout Kentucky (KY). With its manufacturing, bourbon industry, and logistics, we understand the unique financial landscape that comes with doing business in Kentucky.
Under the CPA Mobility Act, our CPA — licensed in Maryland, Delaware, and Florida — is authorized to provide the full range of attestation, tax, and advisory services to Kentucky clients without the need for an additional state license. This means Kentucky individuals and businesses receive the same comprehensive service as our home-state clients: financial statement audits, tax strategy, IRS representation, virtual CFO services, and every other service we offer — delivered through our technology-forward, virtual-first practice model.
CPA Services Available in Kentucky (KY)
KY Individual Tax Preparation
Comprehensive federal and Kentucky state tax return preparation, including complex returns with investments, rental properties, and self-employment income.
Learn More →KY Business Tax Services
Tax preparation and planning for Kentucky-based businesses including S-Corps, C-Corps, partnerships, LLCs, and sole proprietorships.
Learn More →KY Cryptocurrency Tax
Specialized crypto tax services for Kentucky investors and traders. DeFi, NFTs, staking rewards, and exchange reporting handled with expertise.
Learn More →KY Trader Tax Services
Mark-to-market elections, wash sale tracking, and tax optimization strategies for active traders in Kentucky.
Learn More →KY IRS Resolution
Professional representation before the IRS for Kentucky taxpayers facing audits, collections, liens, levies, or offers in compromise.
Learn More →KY 83(b) Elections
Equity compensation planning and 83(b) election filing for Kentucky startup employees and founders receiving restricted stock.
Learn More →KY Financial Statement Audits
Full-scope GAAS-compliant financial statement audits for businesses, nonprofits, and organizations requiring independent assurance.
Learn More →KY Review Engagements
Limited assurance engagements providing meaningful confidence in financial statements for lender requirements and stakeholder reporting.
Learn More →KY Compilations
Professionally prepared financial statements from management-provided data for internal reporting, small business needs, and bank presentations.
Learn More →KY Agreed-Upon Procedures
Targeted, customized engagements designed to address specific areas of concern with flexible scope tailored to stakeholder needs.
Learn More →KY Employee Benefit Plan Audits
DOL-compliant audits for 401(k), pension, and employee benefit plans meeting ERISA filing requirements and fiduciary obligations.
Learn More →KY Tax Strategy & Advisory
Proactive, year-round tax planning that identifies savings opportunities. Entity structure optimization, multi-state planning, and strategic initiatives.
Learn More →KY Cost Segregation Studies
Engineering-based analysis to accelerate depreciation deductions on commercial and residential rental properties, maximizing cash flow.
Learn More →KY Virtual CFO Services
Fractional CFO capabilities including financial modeling, cash flow management, KPI dashboards, and strategic financial leadership.
Learn More →KY Business Consulting
Operational assessments, process improvement, internal control design, and strategic planning to drive efficiency and profitability.
Learn More →KY Estate & Succession Planning
Comprehensive estate planning, business succession strategies, and wealth transfer optimization for business owners and high-net-worth individuals.
Learn More →KY Capital Markets Advisory
Securities compliance, FINRA regulatory guidance, and capital markets advisory for businesses navigating public offerings, private placements, and broker-dealer requirements.
Learn More →Kentucky Audit Services in Detail
Kentucky businesses, nonprofits, and benefit plan sponsors typically need an independent audit when state law, federal rules, lenders, grantmakers, or boards require external assurance. We perform GAAS-compliant attest engagements scoped to the specific assurance need — most commonly:
Kentucky Bourbon Distillery Audits
Kentucky produces approximately 95% of the world's bourbon. Our distillery audit and accounting services address the unique requirements of Kentucky distilleries — including spirits aging inventory accounting (multi-year FIFO/specific identification), cooperage and rickhouse depreciation, federal TTB compliance, Kentucky Bourbon Barrel Tax compliance and the recent phase-out reform, lender and bonding audits typical for capital-intensive distillery operations, and IRC §263A capitalization of indirect costs. We work alongside heritage distilleries, craft distilleries, and the Kentucky Distillers' Association's member companies.
Kentucky Nonprofit Audits
Under Kentucky's Charitable Organizations registration, audited financial statements are generally expected for charities with annual contributions exceeding $500,000. Audited statements are also routinely required by major Kentucky funders — including the James Graham Brown Foundation, the Humana Foundation, the Foundation for a Healthy Kentucky, the Community Foundation of Louisville, the Bluegrass Community Foundation, the United Way affiliates, and federal subrecipient grantors.
Kentucky 401(k) & Employee Benefit Plan Audits
Kentucky plan sponsors filing Form 5500 generally require an ERISA-compliant audit when the plan has 100 or more participants with account balances at the start of the plan year. We perform full-scope and §103(a)(3)(C) limited-scope benefit plan audits for 401(k), 403(b), and defined-benefit plans across Kentucky, including plans sponsored by Toyota Motor Manufacturing Kentucky (Georgetown — Toyota's largest assembly plant in North America), Ford's Louisville and Kentucky Truck assembly plants, GE Appliances (Louisville), UPS Worldport (the world's largest air cargo hub), Yum! Brands (Louisville HQ), Humana, Brown-Forman (Louisville bourbon), and Kentucky thoroughbred breeding operations.
Kentucky Single Audits (Uniform Guidance)
Kentucky nonprofits, municipalities, school districts, and pass-through subrecipients that expend $1,000,000 or more in federal awards in a fiscal year are subject to the Single Audit requirements of 2 CFR Part 200.
Kentucky Reviews & Compilations
Where a full audit is not required, we deliver review engagements (limited assurance) and compilations (no assurance) — both routinely accepted by Kentucky lenders and stakeholders requiring CPA-prepared financial statements.
Kentucky (KY) Tax & Business Landscape
Key Kentucky Tax Numbers. Personal income tax: 4% flat (lowered from 4.5% in 2023, with statutory triggers planned to continue reducing the rate toward 3.5% over time). Corporate income tax: 5% flat. Sales and use tax: 6% state, with NO local sales tax (one of few states with a statewide-only sales tax). Estate tax: none. Inheritance tax: graduated by beneficiary class — Class A (spouse, lineal descendants/ancestors, siblings) fully exempt; Class B (nieces, nephews, daughters/sons-in-law, aunts/uncles) 4%–16%; Class C (all other beneficiaries) 6%–16%. Pass-through entity (PTE) elective tax: 4% available since tax year 2022. KY local occupational license tax (OLT): most cities and counties impose 0.5%–2.5%; Louisville Metro approximately 2.2%; Lexington-Fayette 2.25%.
Filing Mechanics. Individuals file Form 740 (residents) or Form 740-NP (nonresidents and part-year residents). C-corporations file Form 720. Partnerships and S-corps file Form 765 / Form 720S; PTE election is made on Form 740-PTET. Local Occupational License Tax is filed at the city/county level. Returns are due April 15 and administered by the Kentucky Department of Revenue.
KY Reciprocity & Multi-State Considerations. Kentucky has wage reciprocity agreements with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin (subject to specific conditions for some). KY residents earning wages in those jurisdictions generally pay KY tax (not the other state's tax) provided proper withholding paperwork is filed. We routinely handle KY/IN, KY/OH, KY/WV, and KY/TN combinations for commuters.
Kentucky Bourbon & the Bourbon Barrel Tax. Kentucky produces approximately 95% of the world's bourbon and is home to roughly 12.5+ million aging barrels at any given time. The Kentucky Bourbon Barrel Tax (a property tax on aging spirits stored in Kentucky) was historically a major industry burden but is being phased out under recent reform. We support Kentucky's bourbon industry — heritage distilleries, craft distilleries, and the Kentucky Distillers' Association's members — with specialized aging-spirits inventory accounting, federal TTB compliance, lender audits, and bourbon-specific tax planning.
Kentucky Economy & Who We Serve. Kentucky's economy is anchored by bourbon (97%+ of world production — Brown-Forman, Beam Suntory, Sazerac, Buffalo Trace, Heaven Hill, Wild Turkey, Maker's Mark), automotive manufacturing (Toyota's Georgetown plant — the largest Toyota assembly plant in North America; Ford's Louisville and Kentucky Truck plants), thoroughbred horse racing and breeding (the Kentucky Derby; the Bluegrass region), aerospace and logistics (UPS Worldport in Louisville — the world's largest air cargo hub), healthcare and pharma (Humana HQ in Louisville), coal/energy (declining), and agriculture (tobacco, hemp, soybeans). Our typical KY clients include Toyota and Ford automotive professionals, bourbon industry executives and distillery owners, UPS Worldport workers, thoroughbred breeders and trainers, healthcare professionals, and high-net-worth families navigating KY's inheritance tax classes.
CPA Mobility in Kentucky. KY has adopted CPA mobility provisions under the Uniform Accountancy Act. Kurt Simmons holds active CPA licenses in Maryland, Delaware, and Florida, and we confirm all applicable Kentucky State Board of Accountancy mobility and firm registration requirements before commencing any engagement.
Cities and Communities We Serve. Our virtual-first practice serves clients across all of Kentucky, including Louisville (largest city; UPS Worldport; Yum! Brands; Brown-Forman), Lexington (Bluegrass; thoroughbred capital; UK), Bowling Green (Western Kentucky; Corvette plant), Owensboro, Covington (Greater Cincinnati; Northern KY), Hopkinsville, Richmond, Florence (NKY), Georgetown (Toyota), Henderson, Frankfort (state capital), the Bourbon Trail (Bardstown, Lawrenceburg, Loretto), the Bluegrass region, Eastern Kentucky, and every Kentucky county.
Kentucky Economy & Who We Serve. Kentucky's economy features bourbon and distilling, automotive manufacturing (Ford and Toyota), horse breeding and equine industries, coal and energy, and logistics around UPS Worldport in Louisville. We serve Kentucky distillers, equine operations, manufacturers, and real estate investors.
CPA Mobility in Kentucky. Under the AICPA/NASBA CPA Mobility Act adopted by Kentucky, a CPA licensed in good standing in another U.S. state may provide attestation, tax, and advisory services to Kentucky clients without obtaining a separate Kentucky license. Kurt Simmons is a CPA in active good standing in Maryland, Delaware, and Florida, and is fully authorized to provide the complete range of CPA services to Kentucky (KY) individuals, businesses, and nonprofits under this mobility framework.
Cities We Serve. While our practice is virtual-first and not tied to any single office, we regularly work with clients in Louisville, Lexington, Bowling Green, Owensboro, Covington, Hopkinsville, and Richmond, and throughout the rest of Kentucky.
Why Kentucky Clients Choose Us
- GAAS-compliant audit, review, and compilation experience for nonprofits, benefit plans, bourbon distilleries, and privately held businesses
- Deep expertise in KY-specific issues: Kentucky's flat-tax phase-down, Louisville Metro and Lexington-Fayette local Occupational License Tax compliance, KY inheritance tax class planning, KY PTE elections, KY bourbon distillery accounting (aging spirits inventory, Bourbon Barrel Tax, federal TTB), and KY's 7-state reciprocity
- Capital markets background — Kurt Simmons has passed the Series 65 examination (Passed; not currently held as an active license) in addition to holding the CPA
- Specialized practices in cryptocurrency taxation, active trader tax, and 83(b) elections for KY tech/automotive employees
- Technology-forward, virtual-first delivery — secure client portal, e-signature, and video consultations
- Transparent, fixed-fee engagements where possible — no surprise hourly invoices
Kentucky CPA — Frequently Asked Questions
Do I need a Kentucky-licensed CPA?
Kentucky has adopted CPA mobility provisions under the Uniform Accountancy Act. Kurt Simmons holds active CPA licenses in Maryland, Delaware, and Florida, and we confirm any applicable firm-level Kentucky State Board of Accountancy registration before commencing attest engagements.
What is Kentucky's income tax rate?
Kentucky has a flat 4% personal income tax (lowered from 4.5% in 2023, with statutory triggers planned to continue reducing the rate toward 3.5% over time). The KY corporate income tax is 5%. Form 740 (residents) or 740-NP (nonresidents/part-year) is due April 15.
What is the Kentucky local occupational license tax, and where does it apply?
Most Kentucky cities and counties impose a local Occupational License Tax (OLT) on wages and net business profits earned within the jurisdiction — typically 0.5% to 2.5%, applying to both residents and nonresidents who work there. Louisville Metro is approximately 2.2%; Lexington-Fayette is 2.25%; many other counties impose lower rates. Multi-city employers face filings in multiple jurisdictions. We handle Kentucky's complex local tax web routinely.
Does Kentucky have a SALT-cap workaround?
Yes. Kentucky enacted an elective Pass-Through Entity Tax effective for tax years beginning on or after January 1, 2022. Eligible S-corps and partnerships pay 4% (matching the personal flat rate) at the entity level, and members receive a corresponding credit on Form 740. The election is made on Form 740-PTET.
Does Kentucky have an estate or inheritance tax?
Kentucky has no estate tax, but it does impose a Kentucky Inheritance Tax at graduated rates depending on beneficiary class: Class A (spouse, lineal descendants and ancestors, siblings) is fully exempt; Class B (nieces, nephews, daughters/sons-in-law, aunts, uncles) is taxed at 4%–16%; Class C (all other beneficiaries) is taxed at 6%–16%. Charitable bequests are exempt. The tax is paid by heirs from their share.
Kentucky has reciprocity with which states?
Kentucky has wage reciprocity agreements with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin (subject to specific conditions for some). Kentucky residents earning wages in those jurisdictions generally pay KY tax (not the other state's tax) provided proper withholding paperwork is filed. We routinely handle KY/IN, KY/OH, and KY/WV combinations for commuters.
I run a Kentucky bourbon distillery. What special tax issues apply?
Kentucky produces approximately 95% of the world's bourbon, and Kentucky's bourbon industry faces unique tax considerations: Kentucky Bourbon Barrel Tax (a property tax on aging spirits stored in Kentucky — partially being phased out under recent reform), federal excise taxes (Beer/Wine/Spirits TTB compliance), state and federal alcohol licensing, inventory accounting for spirits aging multiple years, cooperage and warehouse depreciation, and the Kentucky Distilled Spirits Production Credit. We support Kentucky distilleries with these specialized issues.
Do you serve Kentucky clients outside Louisville and Lexington?
Yes. Our practice is virtual-first, so we serve clients across all of Kentucky — including Bowling Green, Owensboro, Covington, Hopkinsville, Richmond, Florence, Georgetown (Toyota), Henderson, Frankfort (state capital), the Bourbon Trail (Bardstown, Frankfort, Lawrenceburg, Loretto), the Bluegrass region, and every Kentucky county.