CCH Axcess Tax

Kansas General Information

The Kansas corporate income tax return is prepared for calendar, fiscal, and short-year corporations. The following forms and schedules are prepared for the Kansas return:

C Corporation
K-121 Combined Income Method of Reporting
K-120V Kansas Corporate Income Tax Voucher
K-120 Kansas Corporate Income Tax Return
K-120AS Corporation Apportionment Schedule
K-120ES Corporate Estimated Income Tax Voucher
K-220 Underpayment of Estimated Corporate Tax
Bank Privilege Tax Corporation
K-130V Kansas Privilege Tax Payment Voucher
K-130 Kansas Privilege Tax Return
K-130AS Financial Institution Apportionment Schedule
K-130ES Privilege Estimated Tax Voucher
K-230 Underpayment of Estimated Privilege Tax
Other Forms
K-84 Worksheet for Community College/Technical College Deferred Maintenance Credit (only filed electronically)
K-85 Worksheet for University Deferred Maintenance Credit (only filed electronically)
K-87 Kansas Declared Disaster Capital Investment Credit
K-64 Kansas Business Machinery & Equipment Credit
K-59 Kansas Business and Job Development Credit
K-34 Kansas High Performance Incentive Program Credit
FM-200 Local Intangibles Tax Return
Annual Reports and Franchise Tax
AR Kansas Corporate Annual Report
AG Agricultural Attachment for Form AR
PA Kansas Professional Corporate Annual Report

Copies of Federal Form 7004, as well as a copy of the federal return, are included with the Kansas return for Kansas filing purposes.

General Information Forms

These forms are used to enter data common to all states and cities returns. They provide a centralized location and generic format to simplify entering state and city data. Not all state and city data are entered on these forms. Fields which are unique or not shared by a group of entities are still located on the state and city input forms.

When using these forms, an entry is mandatory in the State / City Code field. Presence of data on this form does NOT create a state or city return. Either use a state input form with any field entered, or create one state or multiple states in a return by choosing from the list of states and cities on the State/City Generation worksheet located under the common State Category..

Kansas uses the following fields from the federal State / City Common Data worksheet:

State and City Common Data worksheet
Section     General Information section
Field         State and date of incorporation
Field         State of commercial domicile (if not Kansas)
Field         Name or address has changed ("Name," "address" or "both")
Field         Filing an amended return (Use "Amended," "Corrected state return," or "IRS audit adjustment"
Field         Date business commenced in state/city
Field         Final return date
Section     Corporate Records or Contact Information section
Field         Name of contact person
Section     Consolidated / Combined Return Information section
Field         Federal consolidated parent FEIN
Field         Member of federal consolidated group, but not for Kansas
Section     Prior Corporation Information section
Field         Street Address, if different than federal

You may designate data to apply to a particular state/city return or you can indicate for it to apply to all of the state returns present. To flag your entries to a particular state, enter the state code from the list in the State Code field. To apply your input to all of the states and cities present make an "ALL" entry in the State/City Code field.

There are 3 levels of default for the General Information input series:

The first level is to use the Basic Data entered with the federal return. This applies only to selected fields, specifically those followed with word "override." For example, if entries are not made on General Information input series for date of incorporation, the states default to the incorporation date used for the federal return.

The second level is to use Common Data input with a state code of "ALL." The "ALL" code means it applies to every state and city in the return, unless a unique state code is present. For example, if you make an entry for the incorporation date on the General Information section of the State Common Data worksheet, which is different from the federal, all the states will default to the "ALL" coded date and ignore the federal date. However, if a General Information entry is also present with a different date and Kansas state code of KS, then Kansas will use, if applicable, the KS coded date and will ignore the federal date and the General Information entry date coded "ALL."

The third level is to use the General Information input with a specific state code. If both an "ALL" occurrence and a specific state entry is present, data must be present in a particular field of the unique state occurrence or the default to the "ALL" entry for that field will result. For example, you have entered the General Information form coded "ALL" which contains an entry for Telephone Number. You have also entered a General Information form coded KS and make only one entry to indicate that it is an initial return for Kansas. The Kansas return will pick-up your initial return entry and also the telephone number from your "ALL" entry, since no telephone number was entered with the KS occurrence.

State Tax Payments, Estimates, Underpayment Penalty and Interest

Use the State Tax Payments worksheet under the Payment / Penalty category to enter estimated tax payments, amount paid on extension and other tax payments for Kansas.

Enter Kansas estimated tax payments, as follows, on:

Payments worksheet

State Tax Payments section

If estimated payments were paid timely and equally, enter the total in the "Total if four equal, timely installments" field.

Alternatively, enter individual payments in Payment fields. Enter corresponding dates in the "Payment date" fields.

Enter Prior-year overpayment in the "Prior year overpayment applied" field.

To include payments made with Form K-19 (Kansas report of Nonresident Owner Tax Withheld), use the "Tax paid or withheld for nonresidents" field.

Estimates and Application of Overpayment worksheet

State Estimates and Application of Overpayment to next year section

Penalties worksheet

General section

Enter annualized amounts on the Annualized and Seasonal Installment Method section

Request computation of late payment interest and penalty, and late filing penalty in the State / City Late Interest and Penalties section

Refer to the above forms' instructions for further details.

Kansas Business Codes

Kansas uses the 6 digit business code from NAICS (North American Industry Classification System). Select a code from the NAICS table, and enter it on Kansas General Information worksheet, basic data section, in the field NAICS six-digit business code.

The Kansas Department of Revenue website provides a copy of these codes. Refer to the website for specific codes at

http://www.ksrevenue.org/pdf/pub1500.pdf.

Additional information regarding NAICS may be found at: www.NAICS.com.

Federal Notes and Automatic Features

Kansas Form K-121 - Combined Income Method of Reporting

ProSystem processes Kansas Combined returns. Refer to Kansas Combined help and use the Combined Return worksheet to make additional entries to be used for the combining unit.

Note: ProSystem does not process Consolidated Kansas Returns.

Depreciation

Kansas allows federal depreciation. Kansas depreciation is computed from entries for the federal return. Adjustments are not made for federal bonus depreciation differences.

FS Codes

Except as noted for municipal bond interest, FS codes are not required to prepare the Kansas corporation return. All income and expenses included on the federal input forms carry to the Kansas return. Generally, additions and subtractions to federal taxable income are handled through entries on worksheets.

Automatic Transfers: The following items from the federal return are carried to the Kansas return and do not require additional state entries:

U.S. Obligations

Interest on obligations of the United States (used for the federal return) carries to Kansas Form K-120 as exempt interest.

Municipal Bond Interest

Included in Kansas income is municipal bond interest from all sources. Interest on municipal bonds and tax-exempt private activity bonds from all states carries to the Kansas return as an addition to federal taxable income.

Interest from Kansas state and local obligations is included on the Kansas return, as a subtraction from federal taxable income. Enter the source in which the interest originated; "State" code fields. Interest is considered to originate in the state entered as the home state return if the "State" field is blank.

Employment Credit

Wages or salaries eligible for the federal employment credit which were not deducted on the federal return carry to the Kansas return, as a subtraction from federal income.

Federal Net Operating Loss Deduction

The federal net operating loss deduction is carried to the Kansas return as an addition to federal taxable income.

Kansas Net Operating Loss Deduction

Federal entries without FS code, or State codes or entries with an FS code of "S" and a State code of "KS," are deducted on Form K-120 or K-130. To override entries made on the Income and Deduction worksheet, NOL Carryover section, enter the Kansas NOL deduction on Kansas Income and Deductions worksheet, Other Adjustments and Override section. Attach an accountant prepared statement to the return.

Balance Sheet Information

The amounts for the federal return balance sheet are also used for the Kansas Annual Report balance sheet.

Tax Accrual

For all of the options discussed below, Kansas Annual Report tax carries to the federal return only if an "X" is entered on the Annual Reports worksheet, Annual Reports Options section.

State taxes accrue to the federal return when a "State and City Tax Accrual Option" is selected. Taxes computed on the Kansas return carry to page 1 of the federal return, when entered on the federal Return Options worksheet, Calculations Options section, State and City Tax Accrual Option field. This also accrues to the appropriate sections of the federal balance sheet.

The option to not accrue a particular state's taxes has been added to the State or City Generation worksheet. This option must be used in conjunction with the state tax accrual option on the Return Options worksheet, Calculation section.

Tax to page 1, adjust Schedule M-1: the State and City taxes are carried to Form 1120S, page 1, but are NOT accrued to the balance sheet.

Tax to rental, adjust the balance sheet: Taxes are accrued to the balance sheet; tax expense carries to the rental schedule instead of Form 1120S, page 1.

Tax to rental, adjust Schedule M-1: Taxes are NOT accrued to the balance sheet, tax expense carries to the rental schedule instead of Form 1120S, page 1.

Note: State & local income taxes entered on the Business (income) worksheet, State and City Taxes section, are added-back on Form K-120, as income taxes deducted on the federal return. This is done whether or not the state tax accrual option is used. Kansas ("KS") need not be the "home state."

State and City Tax Refunds

All state and city refunds based on income, are subtracted on K-120 or K-130, regardless of the "Home" state.

Annual Report Due Date

Annual reports are due on the 15th day of the fourth month. Extensions for annual reports are not permitted. The Secretary of State's Office feels that since the Franchise Fee is not payable with the annual reports, with only a $55 annual report fee due with the AR or PA, there is no reason to allow an extension:

"Extensions of time to file the annual report will not be accepted after December 30, 2005, the last business day of the year. The new law is not based on tax year end and does not accommodate post marks, therefore extensions that arrive in our office after December 30, 2005 will not be accepted."

Filing on time will avoid jeopardizing the Corporation's status with the Secretary of State, and avoid forfeiture of the corporation in Kansas. For further information, please contact the

Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-1594

or, call (785) 296-4564 if you have questions about your annual report filing.

You can also refer to their website for additional information at: http://www.kssos.org/other/2006_law_changes.html

General Information Returns

Refunds

URL: https://www.kdor.ks.gov/apps/kcsc/increfundstatus.aspx

Taxpayers expecting refunds that filed electronically can expect a deposit in 10 to 14 business days.

Taxpayers expecting a refund that filed using a paper form should allow at least 16 to 20 weeks to receive a refund back by mail.

To check your current year tax refund go to our website or call 1-800-894-0318 for automated refund information. You will need your Social Security number(s) and the expected amount of your refund. Any errors, inaccurate forms or information, photocopied forms, or incomplete information will delay the processing of a return and can extend the timeframe for you to expect your refund.

Taxes Due

Make a direct payment using your banking information allows you to “file now, pay later” by choosing the date you would like your bank account debited. Go to the Kansas Department of Revenue Customer Service Center at https://www.kdor.ks.gov/Apps/kcsc/login.aspx to create a login and make an electronic payment. To create a login you will need access to your email and an access code that is assigned by the department or your prior year’s tax information. To avoid any penalties or interest you must have the balance due paid in full no later than the April 15th due date. Payments can created on the due date no later than 11:59pm to be considered timely submitted. If you need the access code or assistance please call 1-785-368-8222 or send an email to: kdor_tac@ks.gov.

Make a credit card payment for your Kansas tax can be done online through third-party vendors. Services and fees vary, but all vendors accept major credit cards. Go to https://ksrevenue.org/faqs-credit.html for a list of vendors authorized to accept payments for Kansas. To make sure your payment is timely you can create the payment on the due date of April 15th no later than 11:59pm.

If you are unable to pay the full amount due, you should file your Kansas income tax return then pay as much as you can before the filing due date by making smaller payments to Kansas using our Customer Service Center for bank account withdraws at https://www.kdor.ks.gov/Apps/kcsc/login.aspx or our credit card payment options at https://ksrevenue.org/faqs-credit.html. Penalties and interest will accrue on any unpaid balance due after the due date until fully paid. If you cannot get the tax debit paid by the due date there is an option to set up a payment plan once the debit is considered past due. For the payment plan request information go to https://ksrevenue.org/payplan.html or call 1-785-296-6121 for payment plan assistance.


Product Support - support.cch.com/axcess
Customer Support Knowledge Base - support.cch.com/kb
Customer Support Contacts - support.cch.com/contact