Electronic Filing Requirement for Practitioners

What is the electronic filing requirement?
The electronic filing requirement is for certain tax preparers to file Individual Income tax returns electronically beginning Jan. 1, 2009, as authorized by Sections 9 and 19 of 2008 House Bill 2434, amending K.S.A. 79-3220.
Back to top.

Who is subject to the tax return preparer electronic filing requirement?
The requirement applies to any paid preparer that prepares 50 or more Kansas Individual Income tax returns during any calendar year.
Back to top.

Who is considered a tax preparer?
A tax preparer is defined in K.S.A. 79-3220 as any person or business that prepares tax returns for compensation or employs or authorizes one or more persons to prepare such returns.
Back to top.

How do I determine if I meet the 50 return threshold and am required to electronically file?
The requirement is based on the number of Individual Income tax returns, including resident, nonresident, and part-year returns, filed by the tax preparer in a calendar year. The combined total of the returns prepared by all employees at all of the tax preparer’s locations is used to determine whether or not the tax preparer is subject to the electronic filing requirement. If a tax preparer files 50 or more in a calendar year, then 90% of the returns must be electronically filed.
Back to top.

Will you notify me if I am subject to the electronic filing requirement?
No, it is the responsibility of the tax preparer to comply with the electronic filing requirement.
Back to top.

I have employees who prepare tax returns. How should I count those returns with regard to the threshold?
Returns are counted at the entity level. It is the combined total of returns prepared by you and your employees that will be used to determine whether or not you are subject to the electronic filing requirement.
Back to top.

My business has multiple locations. Does the threshold apply to each location separately?
No. Returns are counted at the entity level. It is the combined total of the returns prepared at all of your locations that determine whether or not you are subject to the electronic filing requirement.
Back to top.

My business is located outside of Kansas. Am I still subject to the electronic filing requirement?
Yes. If you meet the requirements in the law, you are subject to the electronic filing requirement even though you are located outside the state of Kansas.
Back to top.

I have never e-filed. What do I have to do?
A tax preparer that is subject to the electronic filing requirement must be accepted in the IRS e-file Program and have an Electronic Filer Identification Number (EFIN) and use software that has been approved for e-file by the Kansas Department of Revenue. There is no separate e-file registration requirement for Kansas.

For information about e-file registration and the IRS e-file program, go to the IRS web site. For an overview of the IRS electronic filing program with links to registration forms, go to e-File Made Easy-A Tax Professional's One-Stop e-file & e-Pay Shop.
Back to top.

How do I find software that is approved by the Department?
A list of approved electronic filing software vendors is posted on the Department of Revenue website at http://www.ksrevenue.gov/efileappvendorssp.html
Back to top.

How many returns must be filed electronically?
For Individual Income tax returns due on or after Jan. 1 of the calendar year, 90 percent of the authorized returns must be filed electronically.
Back to top.

Am I required to file Corporate and Partnership tax returns electronically?
Currently the electronic filing requirement only applies to Individual Income tax returns. However, the Statute states that the Secretary of Revenue may require paid preparers to electronically file tax returns for any tax administered by the Department.
Back to top.

Will tax preparers be penalized for not filing the required percentage of tax returns electronically?
Although K.S.A. 79-3220 does not provide for assessment of a penalty for failure to comply with the electronic filing requirement, we hope that the requirement will encourage tax preparers to switch to state electronic filing and to persuade their clients of the advantages that electronic filing provides.

1. Tax preparers will benefit by simpler return preparation and ensured mathematical accuracy. Faster error-free processing and refund issuance will make for happier clients.
2. Clients will benefit by the faster refunds-returns are processed in less than 10 days-and the ability to directly deposit refunds into their bank account and pay taxes by direct debit or e-check from their bank account scheduled to occur anytime on or before the tax due date.

Based on tax-return data from filings received during the initial implementation period, the compliance levels will be reviewed. Depending on the results, the Department may consider recommending to the legislature adoption of compliance penalties, if necessary.
Back to top.

What is an authorized Individual Income tax return?
An authorized Individual Income tax return is any individual tax return that can be filed electronically using software that has been approved for electronic filing by the Kansas Department of Revenue.
Back to top.

What returns can be filed electronically?
Most approved electronic filing software allows electronic filing of all Kansas resident and nonresident Individual Income tax returns and schedules. However, you should check to ensure that the software supports the returns and schedules that you need to file before purchasing it.
Back to top.

What about requesting an extension to file a return?
Kansas automatically accepts the federal extension. No separate extension request needs to be made to the Department when filing electronically.
Back to top.

Can tax preparers opt-out?
No, there is no provision in the law that allows a preparer to opt-out.

However K.S.A. 79-3220 provides that the Secretary or designee may waive the electronic filing requirement if it is determined that complying with the requirement would cause an undue hardship. Waivers must be requested and each request will be considered individually. Requests should be addressed to:
Electronic Services
Kansas Department of Revenue
915 SW Harrison
Topeka, KS 66625-4066

Requests should include the tax preparer's identification number and the valid reasons why the tax preparer cannot comply with the electronic filing requirement.
Back to top.

I am a volunteer return preparer. Am I subject to the requirement?
No, the requirement applies to individuals and entities that employ one or more individuals that receive compensation for preparing a return.
Back to top.

What if my client does not want to e-file?
Since tax preparers will only be required to file 90 percent of their tax returns and will never be required to file all returns electronically, clients refusing e-file will be included in the tax preparer's percentage not required to e-file.
Back to top.

What if I prepare less than 50 returns in future years?
Once a tax preparer meets the 50 return threshold and is subject to the requirement, the tax preparer should continue to e-file the required percentages for subsequent years as stated in the requirement.
Back to top.

My software does not support Kansas e-file. Am I still subject to the filing requirement?
Yes, you must purchase approved Kansas electronic filing software.
Back to top.

I have not received my e-file authorization from the IRS yet. What should I do?
You must have your IRS e-file authorization before you can e-file Kansas Individual Income tax returns. If you have not yet applied for an e-file authorization from the IRS, you must do so. Visit the IRS web site for information on the application process. Once you have registered for e-file with the IRS, you can electronically check the status of your e-file application on the IRS web site.

As soon as you receive your IRS EFIN and your Kansas approved software, you can begin e-filing Individual Income tax returns.
Back to top.

Will I receive notification from Kansas that an electronic return filing was received?
Yes, receipt information will be available to the transmitter through the IRS. Kansas will create the appropriate acknowledgement file and post it to the IRS after each retrieval.
Back to top.

Do I submit a signature page to the Department?
No, the tax preparer should not submit a signature page.
Back to top.

What forms do I maintain on file?
The state copies of the Forms W-2, W-2G, 1099R, and all supporting documentation required for state return line items as defined in the instruction booklet should also be maintained.

In addition, The tax preparer should retain all IRS documenation in accordance with the recordkeeping guidelines in Rev. Proc. 97-22.
Back to top.

What forms do I give to my clients?
Tax preparers must furnish your clients documentation of all completed forms and schedules filed for them, including all Kansas state forms and schedules.
Back to top.

What if there is a change on the return after IRS accepts the transmission?
Electronically filed returns may not be changed after the IRS accepts the transmission. If the returns are submitted and rejected by the IRS for federal or state reasons, the returns can be corrected and retransmitted.

If the tax preparer or taxpayer needs to make changes after the IRS has accepted the returns, an amended return must be filed.
Back to top.

If the taxpayer has a balance due, can I still e-file their returns?
Yes, a return with a balance due can be e-filed and there are several ways to make payment:

1. Direct Debit-Taxpayers may directly debit all or part of their amount due from their bank account when e-filing. The debit may be scheduled to occur anytime on or before the tax due date.
2. Credit Card-Payments may be made by credit card or on our web site at http://www.ksrevenue.gov/faqs-credit.html
3. Electronic Check (e-check)-is also available through our web site at https://www.kdor.ks.gov/Apps/KCSC/Default.aspx
4. Check-Submitted with an Individual Income Tax Electronic Filing Payment Voucher, Form K-40V, available at http://www.ksrevenue.gov/formsii.html that can be printed from your electronic filing software or from our web site.

Back to top.

How are refunds handled?
The taxpayer can elect to have their refund mailed to the address on their tax return or directly deposited into their bank account. For faster receipt of the refund, direct deposit is strongly encouraged.
Back to top.

How does my client check the status of their refund?
Taxpayers can check on the status of their refund online at the Department's web site using the Individual Income Tax Refund Status page here https://www.kdor.ks.gov/Apps/kcsc/increfundstatus.aspx.
Back to top.

Who do I contact if I have questions or problems with regard to the transmission of the state return or acknowledgements?
For Kansas WebFile or Customer Service Center assistance regarding individual income tax, fiduciary, homestead, corporate income, or privilege tax please call 785-368-8222 or e-mail KDOR_IncomeEServ@ks.gov.

For all other Business related Customer Service Center assistance regarding Sales, Withholding, or Miscellaneous taxes please call 785-368-8222 or email KDOR_BusinessTaxEServices@ks.gov.
Back to top.