Kansas Enacts Amnesty Program!

Kansas legislation (S572) has been passed that creates an Amnesty program which runs from September 1, 2010 to October 15, 2010 (see Legislation, Sec. 164, page 197).

The amnesty program provides relief from penalties and interest related to the following taxes due and unpaid for tax periods ending on or before December 31, 2008:

  1. Privilege tax
  2. Estate tax
  3. Income taxes (corporate and individual)
  4. Franchise tax
  5. Withholding tax
  6. Cigarette and tobacco products taxes
  7. Sales tax
  8. Compensating use tax
  9. Liquor enforcement tax
  10. Mineral Severance tax

Amnesty applies to the under-reporting of tax liabilities, the non-payment of such taxes and the non-reporting of such tax liabilities.

Amnesty does NOT apply to taxpayers in any of the following situations:

  1. The taxpayer has received notice of the commencement of an audit;
  2. An audit is in progress;
  3. The taxpayer has received notice of an assessment;
  4. As a result of an audit, the taxpayer has received notice of a proposed or estimated assessment or notice of an assessment;
  5. The time to administratively appeal an issued assessment has not yet expired;
  6. An assessment resulting from an audit, or any portion of such assessment, is pending in the administrative appeals process before the secretary or the state court of tax appeals, or is pending in the judicial review process before any state or federal district or appellate court.

Amnesty also does not apply to any matter that is the subject of an assessment, or any portion of an assessment, which has been affirmed by a reviewing state or federal district or appellate court.

Amnesty also does not apply to any party to any criminal investigation or to any civil or criminal litigation that is pending in any court of the United States or this state for nonpayment, delinquency or fraud in relation to any tax imposed by the state of Kansas.

Requirements for Amnesty

Amnesty for penalties and interest will be granted only to those eligible taxpayers who, within the amnesty period of September 1, 2010, to October 15, 2010, and in accordance with rules and regulations established by the secretary of revenue, have properly filed a tax return for each taxable period for which amnesty is requested, paid the entire balance of tax due and obtained approval of such amnesty by the department of revenue.

Cost of Amnesty

If a taxpayer elects to participate in the amnesty program as evidenced by full payment of the tax due as established by the secretary of revenue, that election shall constitute an express and absolute relinquishment of all administrative and judicial rights of appeal with respect to such tax liability. No tax payment received pursuant to this section shall be eligible for refund or credit. No payment of penalties or interest made prior to September 1, 2010, shall be eligible for amnesty.

Assistance?

Please contact me at brian.strahle@bakertilly.com with questions or for assistance in determining if you are eligible and should take advantage of Kansas' amnesty program.

Kansas should release more details prior to September 1, 2010.

This blog

Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States.  He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect."  For more info, visit his website: www.leveragestateandlocaltax.com

You can reach Brian at strahle@leveragesalt.com.

Connect with Brian on LinkedIn. Follow Brian on Twitter. Join the Leverage | SALT LinkedIn Group, connect and contribute with your colleagues!  

Because state and local taxes are deceptively simple and endlessly complicated.

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