What were Kansas's simplified electronic return policies under the Streamlined Sales and Use Tax Agreement?

Plain-English summary

Revised Notice 10-05 explains Kansas's policies for the Streamlined Sales and Use Tax Agreement's simplified electronic return (SER). Agreement-registered sellers and certified service providers generally did not have to submit Part 2 exempt-sales information unless Kansas first notified the Agreement's Governing Board.

From January 1, 2013, sellers registered in Kansas but not under the Agreement could file an SER. They could submit Part 2 monthly with Part 1 or submit annual Part 2 totals with the December return, but only when Kansas had notified the Governing Board that it required Part 2 information.

An Agreement registrant that expected no Kansas-sourced sales did not have to file a no-sales SER. Once it made taxable Kansas sales, filing began with the return for that reporting period. Kansas also promised 30 days' notice before assessing tax solely for a late SER against an Agreement registrant that had no legal duty to register.

What this means for you

The filing treatment depended on how the seller registered, its Streamlined seller model, whether it made Kansas sales, and whether Kansas had activated Part 2 reporting. Confirm current SER requirements because this notice was revised July 1, 2014.

Citations and references

• Streamlined Sales and Use Tax Agreement, Section 318

Subject

Simplified Electronic Return Policies

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 10-05

Original ruling text

KANSAS DEPARTMENT OF REVENUE

                                   Revised Notice 10-05


                                  (revised July 1, 2014)


         KANSAS RETAILERS’ SALES OR COMPENSATING USE TAX


                          Simplified Electronic Return Policies

The Department accepts the simplified electronic return (SER), as provided in Section 318 of the
Streamlined Sales and Use Tax Agreement (Agreement), and as approved by the Governing
Board. For a seller or certified service provider registered under the Agreement filing the SER,
as provided in Section 318 of the Agreement, for reporting and remittance of sales or
compensating use tax, such filers are currently not required to submit part 2 information on the
SER. Part 2 of the SER requests information relating to exempt sales. Should the Department
begin requiring part 2 information to be submitted on the SER, the Department will first notify
the Governing Board of the Agreement. In any event, the Department will not require the
submission of part 2 information on an SER from a model 4 seller that has no legal requirement
to register as a retailer with the Department. A model 4 seller is a seller registered under the
Agreement that is not a model 1, 2, or 3 seller, as defined in the Agreement. A model 4 seller
may submit a SER. The Department allows a model 1, model 2, or model 3 seller to submit its
sales and use tax returns in a simplified format that does not include more data fields than
permitted by the Governing Board. For further information on registration by a seller or certified
service provider under the Agreement, see the Streamlined Sales Tax Governing Board website
at www.streamlinedsalestax.org.

As of January 1, 2013, sellers not registered under the Agreement that are registered in this
State are permitted to file a SER. Such sellers shall file part 1 of the SER monthly and shall have
the following options for meeting their obligation to furnish part 2 information:
i) File part 2 of the SER together with part 1 of the SER; or
ii) File part 2 of the SER at the same time part 1 of the SER for the month of December is due.
Part 2 information filed pursuant to this option shall cover the month of December and all
previous months of the same calendar year and shall only require annual and not monthly totals.
Such sellers shall only be required to file part 2 of the SER when the Department has notified the
Governing Board that it will require the submission of the part 2 information pursuant to
subparagraph (C)(2) of Section 318 of the Agreement.

A seller that is registered under the Agreement which has indicated at the time of registration that
it anticipates making no sales that would be sourced to this State shall have no obligation to file a
“no sales” SER with the Department. Any seller registered under the Agreement making taxable

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sales into this State shall commence filing SERs as of the due date for the return for the reporting
period in which such sales occur.

The Department will provide 30 days notice to a seller registered under the Agreement, prior to
establishing liability against such seller for an amount of tax based solely on the seller’s failure
to timely file an SER, if the seller failed to file an SER and has no legal requirement to register
with the Department.

This Notice states policies of the Department concerning sellers and certified service providers
registered under the Agreement and filing the SER in effect since January 1, 2010.

Taxpayer Assistance. Additional copies of this Notice, and other department forms or
publications, may be download from our web site, www.ksrevenue.org. If you have questions,
please contact:

Taxpayer Assistance Center Phone: 785-368-8222
Kansas Department of Revenue Fax: 785-291-3614
915 SW Harrison St., 1st Floor
Topeka, KS 66612-1588

Date Composed: 06/23/2010 Date Modified: 06/23/2010