Kansas is the latest state to approve a tax amnesty program. The amnesty program will run from September 1, 2010 through October 15, 2010. Participants will receive all of their penalties and interest waived when their delinquent taxes are paid in full.
Eligibility for Kansas Tax Amnesty
Unpaid tax liabilities for tax periods ending on or before December 31, 2008 are eligible for amnesty. Underreported taxes, unfiled tax returns, or simply not paying your taxes are all situations that would qualify for amnesty. However, there are situations that are not eligible for amnesty. They are:
- Tax liabilities that are under audit, administrative, or judicial appeal
- Taxpayers who are in bankruptcy
- Taxpayers involved in a criminal investigation for nonpayment, delinquency, or fraud relating to any tax imposed by the state of Kansas
Taxes Covered by Amnesty
The following taxes are eligible for the Kansas tax amnesty program:
- Privilege tax
- Estate tax
- Income tax
- Withholding taxes
- Estimated taxes
- Cigarette and tobacco taxes
- Retailer’s sales tax
- Compensating use tax
- Local sales and use tax
- Liquor taxes
What You Give Up
By participating in the amnesty program you agree to give up all administrative and judicial rights of appeal for any tax liabilities for which you receive amnesty. Also, no tax payment received through the amnesty program will be eligible for a refund or credit in the future. Finally, tax returns filed under the amnesty program can still be adjusted as a result of a federal, Kansas Department of Revenue, or other state agency audits.
How to Apply
Tax returns for each year for which amnesty is requested must be filed with the state and all taxes must be paid in full. If you owe taxes from multiple years, but can only afford to pay off one year, you can do that. However, you will only receive interest and penalty waivers for the tax debts that are paid in full. An application form will be available on the Kansas Department of Revenue's webiste by the end of August. Payments must be made after September 1, 2010 and must be postmarked no later than October 15, 2010 to count for amnesty.
More information: Kansas Senate Bill 572, Summary of Kansas Legislative Changes