Tax Fraud Enforcement

Special Investigations Team

Noncompliance with tax laws places an unfair burden on you, the honest taxpayer.

Part of living in a free and civilized society involves the payment of taxes so the government can provide an infrastructure to ensure its citizens have a fair opportunity to prosper. The government relies on its citizens and businesses to voluntarily pay a portion of their income and sales to fund education, roads and highways, social programs, criminal justice and other services.

Moreover, business owners who do not fulfill tax obligations, as set forth in Kansas law, unjustly and illegally gain a competitive advantage over their honest competitors.

The Kansas Department of Revenue is committed to upholding the integrity of Kansas tax laws and the Kansas Legislature has provided the department statutory tools to preserve a level playing field. These tools include wage garnishments, bank account levies and seizure of assets. Criminal sanctions also exist for the department to use when needed.

The Revenue Department employs a dedicated team of investigators and research analysts’ who work to eliminate elaborate tax schemes. These schemes include, but are not limited to, failure to file; over-stating exemptions, deductions and expenses; and under-reporting taxable income and/or sales. Also prevalent are tax refund schemes involving the use of fictitious information in order to fraudulently obtain a refund the taxpayer is not legally entitled to.

Revenue investigators also work closely with the Kansas Department of Labor in misclassification investigations. The misclassification of employees occurs when an employee is wrongly identified as an independent contractor.

It is critical for business owners to properly determine whether individuals providing services are employees or independent contractors. The owner must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to employees. By identifying incidents of intentional misclassification and applying the appropriate penalties, the revenue and labor departments ensure that unfair advantages are not realized.

To report a case of misclassification, or learn more about what misclassification of employment is, please see the information detailed here: https://www.kdor.ks.gov/Apps/Misc/Miscellaneous/MisclassDefault.

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