Tax Alert

Kansas, Oklahoma, Missouri Enact Tax Amnesty Legislation

money and pen image

August 24, 2015

Taxpayers with specific types of overdue tax liabilities have an opportunity in three states to pay up without the typical penalties and interest levied on late payments – but the window is very short.

Kansas, Oklahoma and Missouri are offering tax amnesties during the year 2015. Under the state amnesty programs, the states are providing specific time periods when taxpayers can file tax returns and pay associated tax debts without penalty and interest. Companies and individuals who may have undisclosed tax liabilities (e.g., nexus within Kansas, Missouri or Oklahoma) may use the amnesty programs to file past income, sales and use, and privilege taxes without paying interest and penalties. Following are the details of each state’s program.

KANSAS

Timing: September 1, 2015 to October 15, 2015

Periods covered: Taxes due and payable ending before December 31, 2013

Benefits: Waiver of all penalties and interest

Operation of Program: The following are eligible taxes under the program:

  • Corporate and personal income tax
  • Sales and use tax
  • Liquor, cigarette and tobacco tax
  • Severance and Privilege tax

A qualified taxpayer must submit a written amnesty application on forms provided by the Kansas Department of Revenue, file a tax return for each taxable period for which amnesty is requested, and pay the full amount of tax due during the amnesty period. There are a number of conditions that make a taxpayer not eligible for amnesty.

Oklahoma

Timing: September 14, 2015 to November 13, 2015

Periods covered: Taxes due and payable ending before January 1, 2015

Benefits: Waiver of all penalties and interest

Operation of Program: The following are eligible taxes under the program:

  • Corporate and personal income tax
  • Sales and use tax
  • Withholding tax
  • Privilege tax for banking associations and credit unions

A taxpayer is entitled to receive the benefits of the program if the taxpayer voluntarily files delinquent tax returns and pays the taxes due during the program period. A taxpayer may enter into a written payment program agreement with the Tax Commission for full payment of the unpaid taxes.

Missouri

Timing: September 1, 2015 to November 30, 2015

Periods covered: Taxes due and payable ending before December 31, 2014

Benefits: Waiver of all penalties and interest

Operation of Program: The following are eligible taxes under the program:

  • Corporate and personal income tax
  • Sales and use tax

A qualified taxpayer must submit a written amnesty application on forms provided by the Missouri Department of Revenue, file a tax return for each taxable period for which amnesty is requested, and pay the full amount of tax due during the amnesty period. Further, as part of the amnesty agreement, the taxpayer must agree to comply with all state tax laws for the next eight years from the date of the agreement.

For more information about these amnesty programs, please contact your AGH tax professional, or Jerry Capps below.

Gerald Capps, JD

Senior Vice President
State and Local Tax

Jerry Capps and his State and Local Tax (SALT) team provide sophisticated state and local tax planning, strategic advice and advocacy to numerous mid-market, Fortune 100 and industry-leading companies. The team has returned many millions of dollars in one-time and recurring tax savings to companies.

In addition to planning and compliance, the SALT practice includes legislation and policy, litigation, and controversy matters involving income, franchise, sales and use and property taxes. His work involves critical questions on nexus, apportionment, the Multistate Tax Compact, and the equal protection, due process, and commerce clauses of the United States Constitution. Capps is also a respected advocate on issues of tax policy. He represents clients in all phases of state and local tax controversy, including audit assistance and administrative hearings, and he provides counsel on state and local income and transactional costs for mergers, acquisitions and corporate reorganizations. He has been engaged as a keynote speaker for organizations including the Institute for Professionals in Taxation, state and local CPA societies, university and professional accounting conferences, and chambers of commerce.

Capps is a member of the Institute for Professionals in Taxation, the Kansas Society of Certified Public Accountants, the American Bar Association, and the Kansas Bar Association.

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NOTE: Any advice contained in this material is not intended or written to be tax advice, and cannot be relied upon as such, nor can it be used for the purpose of avoiding tax penalties that may be imposed by the IRS or states, or promoting, marketing or recommending to another party any transaction or matter addressed herein.