Session of 1998
By Committee on Taxation
            9             AN ACT relating to income taxation; concerning periods of limitation for
10             assessments and refunds; amending K.S.A. 79-3230 and repealing the
11             existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 79-3230 is hereby amended to read as follows:
15       79-3230. (a) The amount of income taxes imposed by this act shall be
16       assessed within three years after the return was filed or the tax as shown
17       to be due on the return was paid, whichever is the later date, and no
18       proceedings in court for the collection of such taxes shall be begun after
19       the expiration of such period. For purposes of this act any return filed
20       before the 15th day of the fourth month following the close of the taxable
21       year shall be considered as being filed on the 15th day of the fourth month
22       following the close of the taxable year, and any tax shown to be due on
23       the return and paid before the 15th day of the fourth month following
24       the close of the taxable year shall be deemed to have been paid on the
25       15th day of the fourth month following the close of the taxable year.
26           (b) In the case of a false or fraudulent return with intent to evade
27       tax, the tax may be assessed, or a proceeding in court for collection of
28       such tax may be begun at any time.
29           (c) No refund or credit shall be allowed by the director of taxation
30       after three years from the date prescribed by law for filing the return,
31       provided it was filed before the due date, unless before the expiration of
32       such period a claim therefor is filed by the taxpayer. If the return was
33       filed after the due date, a refund claim must be filed not later than three
34       years from the time the return was actually filed, or two years from the
35       date the tax was paid, whichever of such periods expires later. Where the
36       assessment of any income tax imposed by this act has been made within
37       the period of limitation properly applicable thereto, such tax may be col-
38       lected by distraint or by a proceeding in court, but only if begun within
39       one year after the period of limitation as defined in this act.
40           (d) In case a taxpayer has made claim for a refund, the taxpayer shall
41       have the right to commence a suit for the recovery of the refund at the
42       expiration of six months after the filing of the claim for refund, if no action
43       has been taken by the director of taxation.

HB 3023


  1           (e) Before the expiration of time prescribed in this section for the
  2       assessment of additional tax or the filing of a claim for a refund, the
  3       director of taxation is authorized to enter into an agreement in writing
  4       with the taxpayer consenting to the extension of the periods of limitations
  5       as defined in this act for the assessment of tax or for the filing of a claim
  6       for refund, at any time prior to the expiration of the period of limitations.
  7       The period so agreed upon may be extended by subsequent agreements
  8       in writing made before the expiration of the period previously agreed
  9       upon. A copy of all such agreements and extensions thereof shall be filed
10       with the director of taxation within 30 days after their execution.
11           (f) Any taxpayer whose income has been adjusted by the federal in-
12       ternal revenue service or by the income tax collection agency of another
13       state is required to report such adjustments to the Kansas department of
14       revenue by mail within 180 days of the date the federal or other state
15       adjustments are paid, agreed to or become final, whichever is earlier.
16       Such adjustments shall be reported by filing an amended return for the
17       applicable taxable year and a copy of the federal or state revenue agent's
18       report detailing such adjustments. In the event such taxpayer is a cor-
19       poration, such report shall be by certified or registered mail.
20           Notwithstanding the provisions of subsection (a) or (c) of this section,
21       additional income taxes may be assessed and proceedings in court for
22       collection of such taxes may be commenced and any refund or credit may
23       be allowed by the director of taxation within 180 days following receipt
24       of any such report of adjustments by the Kansas department of revenue.
25       No assessment shall be made nor any refund or credit shall be allowable
26       under the provisions of this paragraph except to the extent the same is
27       attributable to changes in the taxpayer's income due to adjustments in-
28       dicated by such report.
29           (g) In the event of failure to comply with the provisions of this section,
30       the statute of limitations shall be tolled.
31           Sec. 2. K.S.A. 79-3230 is hereby repealed.
32           Sec. 3. This act shall take effect and be in force from and after its
33       publication in the Kansas register.