Kansas 2023-2024 Regular Session

Kansas House Bill HB2411 Compare Versions

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1	1	Session of 2023
2	2	HOUSE BILL No. 2411
3	3	By Committee on Taxation
4	4	2-13
5	5	AN ACT concerning income taxation; relating to withholding and
6	6	remittance of employee income taxes by employers; decreasing the
7	7	penalties for failing to timely remit; amending K.S.A. 79-32,107 and
8	8	repealing the existing section.
9	9	Be it enacted by the Legislature of the State of Kansas:
10	10	Section 1. K.S.A. 79-32,107 is hereby amended to read as follows:
11	11	79-32,107. (a) All penalties and interest prescribed by K.S.A. 79-3228, and
12	12	amendments thereto, for noncompliance with the income tax laws of
13	13	Kansas shall be applicable for noncompliance with the provisions of the
14	14	Kansas withholding and declaration of estimated tax act relating to
15	15	withholding tax which shall be enforced in the same manner as the Kansas
16	16	income tax act. A penalty at the same rate per annum prescribed by
17	17	subsection (b) of K.S.A. 79-2968(b), and amendments thereto, for interest
18	18	upon delinquent or unpaid taxes shall be applied and added to a taxpayer's
19	19	amount of underpayment of estimated tax due from the date the estimated
20	20	tax payment was due until the same is paid or until the 15
21	21	th
22	22	day of the
23	23	fourth month following the close of the taxable year for which such
24	24	estimated tax is a credit, whichever date is earlier, but such penalty shall
25	25	not be added if the total amount thereof does not exceed $1. For purposes
26	26	of this subsection, the amount of underpayment of estimated tax shall be
27	27	the excess of the amount of the installment which would be required to be
28	28	paid if the estimated tax were equal to 90% of the tax shown on the return
29	29	for the taxable year or, if no return was filed, 90% of the tax for such year,
30	30	over the amount, if any, of the installment paid on or before the last date
31	31	prescribed for payment. Amounts due from any employer on account of
32	32	withholding or from any taxpayer for estimated tax may be collected by
33	33	the director in the manner provided for the collection of state income tax in
34	34	K.S.A. 79-3235, and amendments thereto. For purposes of this subsection,
35	35	"underpayment of tax" means the difference between the amount of tax
36	36	actually paid and the amount of tax which would have been required to be
37	37	paid to avoid penalty pursuant to subsection (b) or (c).
38	38	(b) No penalty or interest shall be imposed upon any individual with
39	39	respect to any underpayment of any installment if the total amount of all
40	40	payments of estimated tax made on or before the last date prescribed for
41	41	the payment of such installment equals or exceeds the amount which
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78	78	would have been required to be paid on or before such date if the
79	79	estimated tax were whichever of the following is the least:
80	80	(1) The tax shown on the return of the individual for the preceding
81	81	taxable year, if a return showing a liability for tax was filed by the
82	82	individual for the preceding taxable year;
83	83	(2) zero if no return was required to be filed or if the tax liability on
84	84	the individual's return was less than $200 for the preceding taxable year;
85	85	(3) an amount equal to 66
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87	87	/3%, in the case of individuals referred to
88	88	in subsection (b) of K.S.A. 79-32,102(b), and amendments thereto, and
89	89	90%, in the case of all other individuals, of the tax for the taxable year
90	90	computed by placing on an annualized basis, pursuant to rules and
91	91	regulations adopted by the secretary of revenue, the taxable income for the
92	92	months in the taxable year ending before the month in which the
93	93	installment is required to be made.
94	94	(c) No penalty or interest shall be imposed upon any corporation with
95	95	respect to any underpayment of any installment of estimated tax if the total
96	96	amount of all payments of estimated tax made on or before the last date
97	97	prescribed for the payment of such installment equals or exceeds the
98	98	amount which would have been required to be paid on or before such date
99	99	if the estimated tax were whichever of the following is the least:
100	100	(1) The tax shown on the return of the corporation for the preceding
101	101	taxable year, if a return showing a liability for tax was filed by the
102	102	corporation for the preceding taxable year, or zero if no return was
103	103	required to be filed, or if the tax liability on the corporation's return was
104	104	less than $500 for the preceding taxable year; or
105	105	(2) (A) an amount equal to 90% of the tax for the taxable year
106	106	computed by placing on an annualized basis the taxable income:
107	107	(i) For the first three months of the taxable year, in the case of the
108	108	installment required to be paid in the fourth month;
109	109	(ii) for the first three months or for the first five months of the taxable
110	110	year, in the case of the installment required to be paid in the sixth month;
111	111	(iii) for the first six months or for the first eight months of the taxable
112	112	year in the case of the installment required to be paid in the ninth month;
113	113	and
114	114	(iv) for the first nine months or for the first 11 months of the taxable
115	115	year, in the case of the installment required to be paid in the 12
116	116	th
117	117	month of
118	118	the taxable year.
119	119	(B) For purposes of this subsection paragraph (2), the taxable income
120	120	shall be placed on an annualized basis by:
121	121	(i) Multiplying by 12 the taxable income referred to in subsection (2)
122	122	(A), subparagraph (A); and
123	123	(ii) dividing the resulting amount by the number of months in the
124	124	taxable year (three, five, six, eight, nine, or 11, as the case may be)
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168	168	referred to in subsection (2)(A) subparagraph (A).
169	169	(d) If the employer, in violation of the provisions of this act, fails to
170	170	deduct and withhold under this chapter, and thereafter the tax against
171	171	which such withholding may be credited is paid, the amount otherwise
172	172	required to be deducted and withheld shall not be collected from the
173	173	employer. This subsection shall in no case relieve the employer from
174	174	liability for any penalties or additions to the tax otherwise applicable in
175	175	respect of such failure to deduct and withhold.
176	176	(e) Any person required to collect, truthfully account for, and pay
177	177	over any tax imposed by this act, who willfully fails to collect such tax, or
178	178	truthfully account for and pay over such tax, or willfully attempts in any
179	179	manner to evade or defeat any such tax or the payment thereof, shall in
180	180	addition to the other penalties of this section be liable to a penalty equal to
181	181	the total amount of the tax evaded, or not collected, or not accounted for
182	182	and paid over. As used in this section, "willfully" has the same meaning as
183	183	such term has for federal tax purposes in 26 U.S.C. § 6672.
184	184	(f) (1) In case of failure by any employer required by subsection (b)
185	185	of K.S.A. 79-3298(b), and amendments thereto, to remit any amount of
186	186	withheld taxes by the date prescribed therefor, unless it is shown that such
187	187	failure is due to reasonable cause and not due to willful neglect, there shall
188	188	be imposed upon such person a penalty of 15% of the amount of the
189	189	underpayment:
190	190	(A) 2% of the amount of the underpayment if remitted within one to
191	191	five days;
192	192	(B) 5% of the amount of the underpayment if remitted within six to 15
193	193	days;
194	194	(C) 10% of the amount of the underpayment if remitted after 15 days;
195	195	and
196	196	(D) 15% of the amount of the underpayment if remitted after 15 days
197	197	and the department has issued a notice to the person regarding the
198	198	underpayment but the amount of the underpayment was not remitted
199	199	within 10 days of issuance of the notice.
200	200	(2) For purposes of this subsection, the term "underpayment" means
201	201	the excess of the amount of the tax required to be withheld and remitted
202	202	over the amount, if any, remitted on or before the date prescribed therefor.
203	203	The failure to remit for any withholding period shall be deemed not to
204	204	continue beyond the last date prescribed for filing the annual return as
205	205	required by subsection (d) of K.S.A. 79-3298(d), and amendments thereto.
206	206	Penalty and interest as prescribed by K.S.A. 79-3228, and amendments
207	207	thereto, shall not begin to accrue under subsection (a) of this section on the
208	208	amount of any such underpayment until the due date of the annual return
209	209	for the calendar year in which such failure to remit occurs.
210	210	(g) Whenever the secretary or the secretary's designee determines that
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254	254	the failure of the taxpayer to comply with the provisions of subsections (a),
255	255	(e), or (f) of this section was due to reasonable causes, the secretary or the
256	256	secretary's designee may waive or reduce any of said such penalties and
257	257	may reduce the interest rate to the underpayment rate prescribed and
258	258	determined for the applicable period under section 6621 of the federal
259	259	internal revenue code as in effect on January 1, 1994, upon making a
260	260	record of the reasons therefor.
261	261	Sec. 2. K.S.A. 79-32,107 is hereby repealed.
262	262	Sec. 3. This act shall take effect and be in force from and after its
263	263	publication in the statute book.
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