Did Kansas give corporate filers penalty relief for 2019 income tax returns?

Plain-English summary

Kansas Notice 20-03 provides late-filing penalty relief for 2019 corporate income tax returns.

The relief. The extended Kansas corporate income tax due date of October 15, 2020 was the same as the federal return. To give taxpayers more time to file accurately, the Department will waive the late-filing penalty for a corporate income taxpayer that has a properly extended federal return due date of October 15, 2020, as long as the Kansas return is filed by Monday, November 16, 2020 (because November 15 fell on a Sunday). For a fiscal-year filer with a tax year beginning in 2019 and a properly extended federal due date, the Department will waive the late-filing penalty as long as the Kansas return is filed within an additional month of the federal extended due date.

Elections. The Department will consider elections as made on a timely filed return if they are made on a 2019 corporate return filed by November 16, 2020 (or, for a fiscal-year corporation, within the additional month) under this penalty relief.

Limits and how to claim it. This penalty relief applies only to filing the original 2019 Kansas corporate return -- interest and penalties for late payment of the tax may still apply. To use the extension, a taxpayer should mark on its return that it is seeking "an October 15 to November 16 Penalty Relief Extension." Failure to file by November 16, 2020 (unless abated by the Department) results in a late-filing penalty based on the October 15, 2020 due date.

What this means for you

Corporations filing 2019 Kansas returns

• If your federal 2019 return was properly extended to October 15, 2020, you avoid the Kansas late-filing penalty by filing the Kansas return by November 16, 2020.
• Mark the return as seeking "an October 15 to November 16 Penalty Relief Extension" to claim it.

Fiscal-year corporate filers

• You get the penalty waiver if you file the Kansas return within an additional month of your federal extended due date.

Corporations that owe tax

• This is filing-penalty relief only -- interest and penalties for late payment of the tax may still apply, so pay on time.

Common questions

What penalty was waived? The late-filing penalty for the 2019 Kansas corporate income tax return.

By when did I have to file to get the relief? By November 16, 2020 (calendar-year filers with a federal extension to October 15, 2020); fiscal-year filers within an additional month of their federal extended due date.

Does it cover late payment? No -- interest and penalties for late payment of the tax may still apply.

How do I claim it? Mark on the return that you are seeking "an October 15 to November 16 Penalty Relief Extension."

Citations and references

• October 15, 2020 extended due date -- the Kansas corporate due date matched the federal return.
• November 16, 2020 filing date -- filing by this date (November 15 fell on a Sunday) obtains the late-filing penalty waiver; fiscal-year filers get an additional month past the federal extended due date.
• This relief covers filing only -- interest and penalties for late payment may still apply.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 20-03

Original ruling text

Tax Policy
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.org
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 20-03

         EXTENDED FILING DATE FOR 2019 CORPORATE INCOME TAX RETURNS
                             (SEPTEMBER 28, 2020)

The extended filing date of October 15, 2020, for the Kansas corporate income tax return is the
same due date as the federal return. To allow a taxpayer more time to accurately file its Kansas
corporate income tax return, and as long as a corporate income taxpayer has a properly extended
federal return due date to October 15, 2020, the Kansas Department of Revenue will waive the
imposition of the late filing penalty. For any fiscal filer with a tax year beginning in 2019 and a
properly extended federal return due date, the Kansas Department of Revenue will waive the
imposition of the late filing penalty as long as the Kansas income tax return is filed within an
additional month of the federal extended due date.

The Kansas Department of Revenue will consider elections as made on a timely filed income tax
return if the elections are made on a 2019 corporate income tax return filed by Monday, November
16, (since November 15th falls on a Sunday) [or with an additional month on a 2019 corporate
income tax return for a fiscal year corporation] under this penalty relief.

Note, this penalty relief only applies to the filing of the 2019 original Kansas corporate income tax
return. As applicable, interest and penalties for late payment of the tax may still apply. To utilize
this extension, a taxpayer should mark on its return that it is seeking "an October 15 to November
16 Penalty Relief Extension." Failure to file by the November 16, 2020, date, unless abated by
the Kansas Department of Revenue, will result in the imposition of a late filing penalty based on
the October 15, 2020, due date.

                                    Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about this Notice, please contact:

                                Taxpayer Assistance Center
                               Kansas Department of Revenue
                                 Topeka, KS 66612-1588
                                   Phone: 785-368-8222
                                    Fax: 785-291-3614