Kansas Taxing Information
Accounts Receivable Levies
Businesses that owe delinquent taxes may have levies sent to their receivables. When an accounts receivable gets a levy notice, they are then legally obligated to pay the state rather than the business to which they owe the money. This can have devastating effects on cash flow, business relationships, and reputation. If the state has requested a list of accounts receivable, who you do business with, or if the state already has your bank records, you should seek get professional advice.
If you have a delinquent tax bill, the state of Kansas can take money out of your bank account, up to the total of the amount due. If you receive a threat of levy, you must act immediately.
Priority One: Stopping Aggressive Enforced Collections
Payment Plan Request
The Kansas Department of Revenue may consider a payment plan agreement for delinquent tax bills. Penalty and interest will continue to accrue during the life of the agreement, based upon any unpaid tax. Any refunds or other monies due to you will be applied to the liability, even if you have made all of your installment payments on time.
While on a payment plan you must file and pay all current and future taxes and estimated payments when due. Any additional debts not included in the agreement or missed payments will be considered default of the agreement and the Department of Revenue may take immediate enforcement action.
The state requires verification of assets, income, and expenses prior to considering a payment plan. It is crucial to prepare these documents swiftly and properly if you are to get affordable payment arrangements.
Penalty Charges on Tax
There are many different situations in which the state will charge penalties. Some of the most common are:
- Failure to file or late filing
- Failure to deposit or late deposit
- Under deposit
Personal Assessment on Business Taxes
When a business fails to meet a tax obligations, the corporate veil may be pierced in some situations. If you are a corporate officer, or had the "power of the pen" at the time the liability was incurred, you may be held responsible and personally
Power of Attorney
You may have a qualified professional represent you. This requires that you have a Power of Attorney form completed and signed before any tax matter can be discussed with your representative. The state of Kansas accepts the Power of Attorney form for this purpose.
If you have a delinquent tax assessment in Kansas, the state may place tax liens on your personal property and/or business property. A tax lien is a legal instrument that secures the state's interest and allows for enforced collections. A tax lien is a public record and can compromise your credit score, as well as limit the ability to sell or transfer property.
Wage Garnishments in Kansas
The state may garnish wages or benefits checks. If you have received notice of an intent to garnish or levy, or are being garnished, get professional help. It is easier to avoid than reverse a bank levy, though garnishments can be reversed.