How does an estate claim a refund of Kansas succession tax after its retroactive repeal?

Plain-English summary

This notice sets out the refund procedures after HB2005 retroactively repealed the Kansas succession tax.

• Who qualifies: any estate that filed a succession tax return and paid the succession tax. The tax applied to decedents dying on or after June 6, 2002 until its repeal effective May 22, 2003.
• The estate (pick-up) tax is not refunded and remains in effect — it must be reported and paid on time or penalties and interest apply.
• How to claim: the personal representative, attorney for the estate, or preparer of the succession return completes and submits Form K-709 (Kansas Succession Tax Refund Claim). It may be submitted immediately, to Kansas Succession Tax, 915 SW Harrison Street, Topeka, KS 66625-2222.
• What's refunded: all the succession tax the estate paid. Interest is not included if the refund is made within 60 days of the claim; refunds made after 60 days include interest from the date of the claim.
• Documentation: once approved, the Department issues a refund letter explaining the repeal and the amount; a refund check follows separately.

The notice also spells out how Closing Letters are handled in five specific situations (Form K-707 vs. Form K-708 filers, estate tax vs. succession tax paid, and whether a Closing Letter was already issued) — in several cases the refund letter itself should be retained to explain the change in the estate's liability.

What this means for you

If you handled an estate that paid Kansas succession tax for a death between June 6, 2002 and May 22, 2003, file Form K-709 to get that tax back — you can do it right away. Expect a refund letter, then a check. File promptly if you want to avoid the state owing you interest becoming a non-issue: interest only accrues if the refund takes more than 60 days. Keep any refund letter with the estate's records, especially if no revised Closing Letter is issued.

Common questions

Q: How do I claim the succession tax refund?
A: File Form K-709 (Kansas Succession Tax Refund Claim); it can be submitted immediately to the Kansas Succession Tax unit in Topeka.

Q: Will I get interest on the refund?
A: Only if the refund is not made within 60 days of the claim; then interest runs from the claim date.

Q: Is the estate pick-up tax refunded too?
A: No. Only succession tax is refunded; the estate (pick-up) tax remains due.

Q: Will I get a revised Closing Letter?
A: It depends on which return you filed and what you paid; in some cases a revised Closing Letter issues, in others you keep the refund letter to explain the change.

Citations and references

• 2003 House Bill 2005, New Section 49 -- retroactive repeal of the succession tax.
• Form K-709 -- Kansas Succession Tax Refund Claim.
• Forms K-707 / K-708 -- Estate and Succession Tax Return / Succession Tax Return (referenced for Closing Letter handling).
• Notice 03-06 -- announcement of the retroactive repeal.

Subject

Retroactive Repeal of Succession Tax - Refund Procedures

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 03-07

Original ruling text

Notice
Notice Number: 03-07
Tax Type: Estate Tax
Brief Description: Retroactive Repeal of Succession Tax - Refund Procedures
Keywords:
Approval Date: 06/20/2003

Body:
Office of Policy & Research

                                                NOTICE 03-07

                                     Retroactive Repeal of Succession Tax
                                             Refund Procedures

In the final days of the 2003 Session, the Kansas Legislature passed HB2005. New Section 49 of the bill provides for
the retroactive repeal of the succession tax.
Which Estates Qualify For Refund

The Kansas succession tax was effective for estates of decedent’s dying on or after June 6, 2002 until its repeal
effective May 22, 2003. Any estate that filed a succession tax return and paid the succession tax will qualify for a
refund.

The Kansas law that imposes the estate tax (pick-up tax) has not been repealed. Estate tax paid during this period will
not be refunded. And, because the estate tax (pick-up tax) remains in effect, the estate tax must be reported and paid
on time or penalties and interest will be imposed.
How To Claim A Refund

To claim a refund, the personal representative of the estate, attorney for the estate, or preparer of the succession tax
return must complete and submit a claim of refund. Please use Form K-709, Kansas Succession Tax Refund Claim.
This form is available on the Department of Revenue’s web site at: www.ksrevenue.org or can be obtained by calling
the voice mail forms request line at (785) 296-4937.
When And Where To File A Claim Of Refund

A claim for refund may be submitted immediately. Form K-709 should be submitted to:

Kansas Succession Tax
915 SW Harrison Street
Topeka, KS 66625-2222
What Will Be Included In The Refund

The refund will include all of the succession tax paid by the estate. Interest will not be included if the refund is made
within sixty (60) days of the date the claim is submitted. Refunds made after sixty (60) days of the date of submission
will include interest from the date of the claim.
What Kind Of Documentation To Expect

As soon as a claim of refund has been approved, the Department of Revenue will issue a refund letter. This letter will
explain that the succession tax has been repealed, and will indicate the amount of tax to be refunded. A refund check
will be issued shortly thereafter, and will be mailed separately.

The following situations will be handled in the manner indicated:

Page 2

· If the estate filed an Estate and Succession Tax Return, Form K-707, paid both estate tax and succession tax and a
Closing Letter was previously issued, a revised Closing Letter that reflects only the estate tax will be issued.

· If the estate filed an Estate and Succession Tax Return, Form K-707, paid both estate and succession tax but a
Closing Letter has not yet been issued, the Closing Letter will reflect only the estate tax.

· If the estate filed an Estate and Succession Tax Return, Form K-707, paid only the estate tax and a Closing Letter
has not yet been issued, the Closing Letter will reflect only the estate tax.

· If the estate filed a Succession Tax Return, Form K-708, paid the succession tax and a Closing Letter was previously
issued, a revised Closing Letter will not be issued. The refund letter should be retained to explain the change in the
estate’s tax liability.

· If the estate filed a Succession Tax Return, Form K-708, but did not pay the succession tax a Closing Letter will not
be issued. A letter that explains the tax has been repealed will be issued, and that letter should be retained to explain
the estate’s tax liability.

                                            For More Information

To obtain additional copies of this or any other notice call the Kansas Department of Revenue’s voice mail forms
request line at (785) 296-4937 or download them from our web site: www.ksrevenue.org. If you have any questions
about this notice or Kansas estate tax, please contact our Estate Tax Unit.
Kansas Estate Tax
Kansas Department of Revenue
915 SW Harrison St.
Topeka, KS 66625-2222
In Topeka call: 368-8222
Outside Topeka call toll free: 1-877-526-7738

Fax: (785) 296-4993

Date Composed: 06/20/2003 Date Modified: 06/20/2003

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