How Kansas Collects Taxes & The Tax Help Available to Taxpayers
The Kansas Department of Revenue Taxation Division is responsible for the administration, enforcement and collection of a variety of individual and business taxes on behalf of the State. When taxpayers neglect to file their tax returns and/or do not fully pay their taxes, the Taxation Division will take steps to ensure they collect taxes owed to the State.
Taxpayers risk being charged penalties if they are late paying their taxes. Several of the most common penalties are for the following infractions:
- Being late or altogether failing to file tax returns
- Failing to make estimated payments or sending them late
- Underpaying your taxes or estimated payments
If you are delinquent in paying your Kansas State taxes, you are at risk of having a tax lien placed on any property you own, personal, business and/or real estate. A tax lien will secure the state’s financial interest and will allow collection activities to begin. This is a public record and will likely have an adverse effect your credit score and your ability to buy, transfer and/or sell property.
For those who owe back taxes, the State can place a levy on your bank account(s). When this is done the bank is legally obligated to take the funds out of your account(s) and send the money to the State, not to exceed the total amount owed. If you receive a notice threatening a levy, you need to seek tax help from a reputable professional who can advise you on your options so this can be avoided.
Taxpayers who are delinquent paying their taxes need to know that the State is within its rights to garnish their wages or any benefit checks they receive. If you have unpaid taxes and get a notice from the State of its intent to levy or garnish your wages it’s time to seek tax help from a reputable CPA or tax professional. It is much easier to avoid this happening than to try and reverse the action later. However, wage garnishments are easier to reverse than a bank levy.
Levies on Accounts Receivable
If a business owes back taxes the Department of Revenue has the right to place a levy on its accounts receivable. When this happens the business is legally compelled to use the funds paid to the business from customers who have been invoiced for goods and services supplied by the business. Ordinarily those funds would go back to the business, but when the accounts receivable have been levied by the State, the payments must go to the State to pay down the business’ tax debt.
This will likely have an adverse effect the business’ cash flow, damage business relationships and overall reputation. If you have received a request from the state for a list of all your accounts receivable, the names of your clients or customers, or if the State has possession of your bank records, it is time to seek the advice of a tax professional or CPA who can get you the tax help you need to save your business.
Personal Responsibility for Business Taxes
If a business does not pay its taxes, the State may be able to pierce the corporate veil and hold an individual personally responsible for the unpaid business taxes. If you are an officer of a corporation or if it is your responsibility to see that the business pays its taxes, you could be held personally liable for the business’ unpaid Kansas State taxes.
Taxpayers Can Take Advantage of Programs for Tax Help and Tax Relief
The Taxation Division of the Kansas Department of Revenue enforces the State’s tax laws and part of this involves working with taxpayers to help them pay what they owe. There are several programs available to taxpayers who need help resolving their tax problems.
Installment Payment Plans
If you owe back taxes to the State, you can request an installment payment plan to pay you tax liability over time. During this time interest and penalty charges will keep accruing until the entire amount you owe is paid. Any tax refunds or monies owed to you will instead be applied to your outstanding tax bill, even if you are making all your payments on time.
To easily apply for an Installment Payment Plan with the Kansas Department of Revenue they have created a booklet called, Payment Plan Request for Individuals. The booklet even has the required forms that applicants must fill out and submit.
To make the application process for an Installment Payment Plan as easy as possible, do the following:
- Obtain the Payment Plan Request for Individuals booklet and complete page 2 and include your signature at the bottom.
- There are several options available to you for submitting your request, which are the following:
- Email to email@example.com
- Fax to (785) 291-3613
- Mail to the address at the top of page 2
Kansas provides no indication as to how long it takes to process these requests, just that when they’ve made their determination they will send their answer to you in the mail. If they deny your request, they give you instructions in their denial letter on how you should proceed from here.
If they approve your request you can go online to the Kansas Department of Revenue Self Service Payment Center to set up direct payments.
Make checks and money orders out to “Kansas Income Tax.” If you intend to pay by credit card go online to “Official Payments Corporation” to get this set up. If you want your tax payment taken directly out of your wages, call (785) 296-6121 to arrange for this.
You can also request a payment plan by completing Payment Plan Request Form CM-15 for Individual Income and submit it to the Department of Revenue. You can email the form to firstname.lastname@example.org or fax it to (785) 291-3616 at the Collections Department.
If you are approved for an installment payment plan, the Department will send you a notice and this is when you would start making payments,
If you agree to an installment payment plan you will be required to file your state tax return and include full payment or estimated payments on time for the duration of the agreement. If there are any missed payments or other debts owed to the State that are not covered by this payment agreement, you will be in default. At this point, the Department of Revenue is within its rights to begin enforcement or collection activities.
When requesting tax relief through an installment payment plan it would be wise to get a tax professional to help you fill out the paperwork. The State is going to require that you provide information that verifies your income and expenses as well as any assets you own or partially own before they will consider offering you a payment plan. These documents must be properly prepared so it would be advisable to get a professional’s help so that your monthly payments are affordable.
You will be charged a $10.00 administration fee if your payment plan goes beyond 90 days. If your payment plan goes beyond 6 months, or if the statute of limitations for being able to legally collect your tax debt is going to expire before your payment plan is over, the Department will file with the District Court for a tax warrant in an effort to protect the State’s financial interests.
Petition for Abatement
A Petition for Abatement is the same as an Offer in Compromise and allows taxpayers to settle their delinquent taxes for less than what they owe. The Department of Revenue will only consider this when there is no way that the taxpayer could ever pay everything they owe. It is also used if there is serious doubt that the taxpayer actually owes the full amount. To ensure that you have the best chance of getting the tax relief you seek through this program, you need to prepare your paperwork properly and submit the required documents. Therefore, it might be wise to have a qualified tax professional help you with this.
To be eligible, you must meet the following qualifications:
- Be current on filing all your tax returns.
- Have paid all your estimated taxes on time for the current year.
- Not be involved in a bankruptcy that is still active.
Your Petition for Abatement must include a lump sum offer of the amount of money you can pay and the date that you would be making the payment. If you are requesting the abatement due to being unable to pay or because you’re financially insolvent, you must fill out the required forms to provide the Taxation Division with details concerning your assets, income, expenses and debts so they have the full picture of your current financial situation.
To have the Department of Revenue consider your offer, you will need to submit:
- Individual Income Financial Statement Form CE-3
- Collectability Petition for Abatement Form CE-5
- Individual Tax Waiver of Confidentiality Form CE-7
- An application fee of $50
- Your initial payment
When you submit your Petition for Abatement you will need to select which payment option you want to use. If you’re not sure which to choose, consult with a reputable professional or CPA to provide you the tax help you need in this situation. These are your options:
You make an initial payment of 20% and pay off the balance in no more than 5 payments.
Your first payment is included with your offer and you pay the balance according to the terms you propose in your offer.
Furthermore, if you expect the Taxation Division to look at your original income tax returns rather than your final assessments or if you’re asking them to accept additional information (like tax returns you’ve submitted to other states) once the deadline has passed to submit added information, you will have to fill out and submit what’s called a “Validity of Debt Petition for Abatement.”
If you want to use a secure email address to submit your offer, please call (785) 296-6124. If you want to mail your offer, send it to the following address:
Kansas Department of Revenue
Problem Resolution Team
P.O. Box 12005
Topeka, KS 66601-3005
Once the Department of Revenue has made their decision, it is final and will not be reviewed. If they reject your offer, your $50 application fee and the initial payments you made or any subsequent payments you may have made will not be refunded.
If you have exhausted all possible remedies to resolve your unpaid taxes you can always turn to the Taxpayer Advocate. This was set up to help taxpayers when they have hit a brick wall trying to resolve their tax issues. Email the Taxpayer Advocate at .
Power of Attorney
Taxpayers are entitled to have someone else represent them before the Kansas Department of Revenue regarding tax matters. This individual must be a trusted qualified professional and have signed an official Power of Attorney form. Once this form is submitted, the Department is legally allowed to discuss the taxpayer’s tax situation with their representative.
Department of Revenue Contact Information
For general tax questions, contact the Department of Revenue:
In person: Weekdays from 8:00 a.m. – 4:45 p.m., or by mail:
Docking State Office Building, Room 150
915 S.W. Harrison Street
Topeka, KS 66612
Phone: (785) 368-8222
Fax: (785) 291-3614
Tax forms: (785) 296-4937 (voice mail)
Hearing impaired / TTY: (785) 296-6461Contact Us