Kansas Sales Tax Guide
Chapter 7: How to manage late Kansas sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Kansas sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Kansas sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Kansas Department of Revenue?
There is a penalty of 1%, of the amount due and not paid for each month or fraction of month the payment is late, up to 24%. Late payment is any payment due that is not made on or before its due date.
Interest is also charged on late payments at a rate tied to the Federal underpayment rate (changes yearly). For 2014 and through 12/31/2015 the rate is .0333% per month or fraction of a month, or APR of 4%. Should you need to know rates prior to 2014 or after 2015, check the Kansas Penalty and Interest page.
The Kansas Department of Revenue recognizes there are circumstances beyond your control that can result in late filing and payments. In such situations, waivers of late penalties may be granted upon request.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Kansas Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Kansas sales and use tax liability.