Agency 92, Article 12 — INCOME TAX

(Authorized by K.S.A. 79-3236, 79-32,128; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,129; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,130; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,131; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236; implementing K.S.A. 79-32,109; effective Jan. 1, 1968; amended May 1, 1982; amended May 10, 2002; revoked March 24, 2006.)

(Authorized by K.S.A. 79-3236, 79-32,132; effective Jan. 1, 1968; revoked May 1, 1982.) 652 DEPARTMENT OF REVENUE 92-12-41

(Authorized by K.S.A. 79-3236, 79-32,133; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,134; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,135; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,136; effective Jan. 1, 1968; revoked May 1, 1982.) 92-12-45 and 92-12-46. (Authorized by K.S.A. 79-3236, 79-32,137; effective Jan. 1, 1968; revoked May 1, 1982.)

Distribution withholding. The fiduciary of a resident estate or trust shall within 30 days of the close of the taxable year of the estate or trust furnish or mail to the last known address of each nonresident beneficiary from which deduc- tions have been made in accordance with K…

(Authorized by K.S.A. 79-3236, 79-32,138; effective Jan. 1, 1968; amended Jan. 1, 1970; amended Jan. 1, 1972; amended Jan. 1, 1974; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,139; effective Jan. 1, 1968; revoked May 1, 1982.)

Resident individual. (a) As used in this regulation, the term “Kansas resident” shall have the same meaning as that assigned to the term “resident individual” in K.S.A. 79-32,109, and amendments thereto. (b) This subsection shall apply in determining whether a natural person is a…

(Authorized by K.S.A. 79-3236, K.S.A. 1967 Supp. 79-32,109; effective Jan. 1, 1968; revoked March 24, 2006.)

(Authorized by K.S.A. 79-3236, 79-32,140; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3236, 79-32,141; effective Jan. 1, 1968; revoked May 1, 1982.)

Consolidated returns. Corpo- rations which are members of an affiliated group which do not derive their entire income from sources within Kansas and have filed a federal consolidated return for federal income tax pur- poses, may file a consolidated return for purposes of determin…

Methods of determining in- come allocable to Kansas business. Any tax- payer having income from business activity which is taxable both within and without this state, oth- er than activity as a financial organization or the rendering of purely personal services by an indi- vidual…

(Authorized by K.S.A. 79-3236, 79-32,143; effective Jan. 1, 1968; revoked May 1, 1982.)

Returns; who shall file. (a) Cop- ies of the prescribed return forms shall, so far as possible, be furnished to taxpayers. A taxpayer shall not be excused from making a return sole- ly because a return form was not furnished. Each taxpayer shall carefully prepare the return so as…

(Authorized by K.S.A. 79-3236; implementing K.S.A. 1981 Supp. 79-3220; effec- tive Jan. 1, 1968; amended May 1, 1982; revoked May 10, 2002.)

Records and income tax forms. Every person subject to the tax, except persons whose gross income consists solely of salary, wag- es, or similar compensation for personal services rendered, shall, for the purpose of enabling the di- rector to determine the correct amount of income…

Payment of tax; receipt; insuf- ficient fund checks. (a) Upon request, a receipt shall be furnished by the director for each tax pay- ment. In the case of payments made by check or money order, the cancelled check or the money or- der receipt shall be considered a sufficient rece…

(Authorized by K.S.A. 79-3226, 79-3236; effective Jan. 1, 1968; revoked May 1, 1982.)

Resident status of certain indi- viduals. A person who is a resident of this state, does not terminate residency upon entering the armed services or peace corps of the United States. A member of the armed services domiciled in Kansas at the time he entered such service gen- erall…

(Authorized by K.S.A. 79-3226, 79-3236; effective Jan. 1, 1968; revoked, L. 1980, ch. 344, May 1, 1980.)

(Authorized by K.S.A. 79-3236; effective Jan. 1, 1968; amended Feb. 15, 1977; re- voked May 1, 1982.)

(Authorized by K.S.A. 79-3228, 79-3236; effective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-3229, 79-3236; effective Jan. 1, 1968; revoked May 1, 1982.)

Claims for refund by taxpay- ers. Claims by the taxpayer for the refunding of taxes, interest, penalties, and additions to tax er- roneously or illegally collected shall set forth in detail and under oath the grounds upon which a refund is claimed and the facts which are suffi- c…

Powers of the director of taxa- tion. The director or his or her delegate shall be permitted to examine any books, papers, records, or memoranda of a taxpayer for the purpose of determining the correctness of information con- tained in, or the existence of additional informa- tio…

(Authorized by K.S.A. 79-3236; implementing K.S.A. 79-3233a, 79-3233b; effec- tive Jan. 1, 1968; amended May 1, 1975; amended May 1, 1982; revoked July 27, 2001.)

Abatement of final tax liabil- ities. (a) General. The authority of the secretary to abate all or part of a final tax liability shall be exercised only in cases in which there is serious doubt as to either the collectability of the tax due or the accuracy of the final tax liabili…

Extension of time for filing re- turns. A six-month extension of time to file shall be granted by the director of taxation if at least 90% of the current year’s tax liability is paid or 100% of the prior year’s tax liability is paid. An extension of time to file shall not constit…

(Authorized by K.S.A. 79-3236; implementing K.S.A. 79-3222; effective Jan. 1, 1968; amended Jan. 1, 1974; amended May 1, 1982; revoked May 10, 2002.)

(Authorized by K.S.A. 79-3236, K.S.A. 1979 Supp. 79-3220; effective Jan. 1, 1968; amended Jan. 1, 1970; amended, E-71-8, Jan. 1, 1971; amended Jan. 1, 1972; revoked, L. 1980, ch. 344, May 1, 1980.)

(Authorized by K.S.A. 79-3236; ef- fective Jan. 1, 1968; revoked May 1, 1982.)

(Authorized by K.S.A. 79-32,117a, 79-32,117b; effective Jan. 1, 1974; revoked May 1, 1982.)

Business and nonbusiness in- come defined. In essence, all income which arises from the conduct of trade or business op- erations of a taxpayer is business income. For ad- ministrative purposes, the income of the taxpayer is business income unless clearly classifiable as nonbusin…

Two or more businesses of a single taxpayer. A taxpayer may have more than one (1) “trade or business.” In such cases, it is necessary to determine the business income at- tributable to each separate trade or business. The income of each business is then apportioned by an apporti…

Business and nonbusiness in- come: application of definitions. The following are rules for determining whether particular in- come is business or nonbusiness income. (a) Rent- al income from real and tangible property is busi- ness income if the property with respect to which the…

Proration of deductions. In most cases an allowable deduction of a taxpayer will be applicable only to the business income arising from a particular trade or business or to a particular item of nonbusiness income. In some cases an allowable deduction may be applicable to the busi…

Definitions. (a) Apportionment means the division of business income between states by the use of a formula containing appor- tionment factors. (b) Allocation means the assignment of non- business income to a particular state. (c) Business activity means the transactions and acti…

Apportionment. If the business activity in respect to any trade or business of a tax- payer occurs both within and without this state, and if by reason of such business activity the tax- payer is taxable in another state, the portion of the net income (or net loss) arising from s…

Combined income method of reporting. If a particular trade or business is car- 659 Income Tax 92-12-82 ried on by a taxpayer and one (1) or more affil- iated corporations, nothing in K.S.A. 79-3271 et seq., and 79-4301, article IV or in these regula- tions shall preclude the use …

Allocation. Any taxpayer subject to the taxing jurisdiction of this state shall allo- cate all of its nonbusiness income or loss within or without this state in accordance with K.S.A. 79- 3275 through 79-3278. (Authorized by K.S.A. 79- 3236, 79-3272, 79-4301; effective May 1, 197…

Consistency and uniformity in reporting. In filing returns with this state, if the taxpayer departs from or modifies the manner in which income has been classified as business in- come or nonbusiness income in returns for prior years, the taxpayer shall disclose in the return for…

Corporation. The term “corpo- ration” as used in these regulations includes not only corporations which have been created or or- ganized under the laws of Kansas, but also every corporation doing business within this state or deriving income from sources within this state, in a c…

Taxableinanotherstate;ingen- eral. The taxpayer is subject to the allocation and apportionment if it has income from business activ- ity that is taxable both within and without this state. Ataxpayer’sincomefrombusinessactivityistaxable without this state if such taxpayer, by reas…