Kansas Enacts Several Changes Affecting Statute of Limitations and Refunds

Taxpayers operating in Kansas need to be aware of several major changes recently signed into law by the Governor on May 22, 2009 (H.B. 2365).

1. The sales and use tax statute of limitations were shortened to one year from three years. The change applies to claims filed after June 15, 2009.
2. The income tax refund period is now limited to three years from the extended return due date.
3. Taxpayers are no longer allowed to claim a refund of tax within two years from when the tax was paid in, when the taxpayer hasn't filed returns.
4. The statute of limitations are tolled where a taxpayer fails to file an amended return within 180 days to report changes in Kansas income as a result of a final federal or other state adjustment.
5. The secretary now has the authority to resolve certain assessments pending in the administrative appeals process, state court of tax appeals, or in judicial review before any state or federal district or appellate court in an equitable manner. The authority also includes the ability to resolve the amount of tax, penalty, or interest due in the settlement agreement.

If you have any questions regarding these changes, please contact me at leveragesalt@earthlink.net.