Kansas Legislature Passes Tax Amnesty Bill

During its recent session, the Kansas Legislature passed a tax amnesty bill. Although the Governor vetoed several provisions of Senate Bill 572 (“SB 572”), the tax amnesty program (“Program”) was not vetoed. The Governor signed the bill on May 27, 2010. The Program runs from September 1, 2010 through October 15, 2010 and provides for the abatement of penalty and interest on certain delinquent taxes paid in full during the amnesty period.

Interested taxpayers may apply for amnesty on the payment of privilege taxes, estate tax, income tax, withholding tax, cigarette and tobacco taxes, retailers’ sales tax, compensating use tax, local sales and use taxes, liquor enforcement tax, liquor drink tax, and mineral severance tax that were due before January 1, 2009. Amnesty does not apply to audit assessments, taxes subject to administrative or judicial appeal, amounts assessed due to a criminal investigation, or liabilities in bankruptcy.

To take advantage of the Program, taxpayers must apply for amnesty and pay the qualifying taxes during the September 1, 2010 through October 15, 2010 amnesty period.