Can the Kansas Department of Revenue release a list of businesses by their sales tax filing frequency?

Plain-English summary

Someone e-mailed the Department asking for a list of Wichita businesses registered to report sales tax on a monthly or quarterly basis. The Department refused: the information is confidential taxpayer information that cannot be released to the public.

The Department explained why the request effectively sought sales-volume data. Under K.S.A. 79-3607, "businesses are required to report sales tax on a monthly basis if their sales tax liability is more than $1,600 but less than $32,000 per year," and "[q]uarterly filers are those whose total sales tax liability is between $80 and $1,600 per year." So, "assuming a 5% sales tax rate," a list of monthly and quarterly filers is really a list of the businesses making between $1,600 and $32,000, and between $32,000 and $640,000, in retail sales each year.

Because that comes from taxpayers' returns, K.S.A. 79-3614 bars its release: "All information received by the director from returns filed under this act, or from any investigations conducted under the provisions of this act, shall be confidential, except for official purposes, and it shall be unlawful for any officer or employee of such director to divulge any such information in any manner, except in accordance with a proper judicial order, or as provided in K.S.A. 74-2424 . . . ."

What this means for you

Anyone requesting taxpayer lists from the Department

The Department will not hand out lists that identify businesses by their filing frequency, sales volume, or other information drawn from tax returns. That data is confidential by statute.

Why filing frequency is sensitive

Filing frequency is a direct proxy for a business's sales tax liability — and therefore its sales — so releasing "who files monthly vs. quarterly" would indirectly disclose confidential return information.

The narrow exceptions

Return information can be shared only for official purposes, under a proper judicial order, or as specifically allowed by K.S.A. 74-2424. A general public or business request does not qualify.

Common questions

Q: Will the Kansas Department of Revenue tell me which businesses file sales tax monthly or quarterly?
A: No. That information is confidential taxpayer information under K.S.A. 79-3614 and cannot be released to the public.

Q: What determines whether a business files monthly or quarterly?
A: Its annual sales tax liability. Under K.S.A. 79-3607, monthly filing applies when liability is more than $1,600 but less than $32,000 a year, and quarterly filing when it is between $80 and $1,600.

Q: When can return information be disclosed?
A: Only for official purposes, under a proper judicial order, or as provided in K.S.A. 74-2424 — not on a general public request.

Citations and references

• K.S.A. 79-3607 — sets sales tax filing frequency by annual liability (monthly if more than $1,600 but less than $32,000; quarterly if between $80 and $1,600). The Department used these thresholds to show the requested list would reveal each business's sales volume.
• K.S.A. 79-3614 — makes all information from returns and investigations confidential except for official purposes, and unlawful to divulge except by proper judicial order or as provided in K.S.A. 74-2424. This is the basis for refusing to release the list.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-2000-031

Original ruling text

Opinion Letter

Body:

October 30, 2000

XXXX
XXXX
XXXX

RE: Your e-mail request of October 24, 2000

Dear XXXX:

I have been asked to answer your e-mail that we received earlier this month. You ask for a list of Wichita businesses that are registered to report sales tax on a monthly or quarterly basis. Please be advise that this information is considered to be confidential taxpayer information that cannot be released to the public.

Under K.S.A. 79-3607, businesses are required to report sales tax on a monthly basis if their sales tax liability is more than $1,600 but less than $32,000 per year. Quarterly filers are those whose total sales tax liability is between $80 and $1,600 per year. Thus, assuming a 5% sales tax rate, you are asking the department to provide you a list of the Wichita businesses that make between $1,600 and $32,000 in retail sales each year and another list for those who make between $32,00 and $640,000 in retail sales each year. K.S.A. 79-3614 prohibits the department from releasing this type of information.

K.S.A. 79-3614 states in relevant part:

All information received by the director from returns filed under this act, or from any investigations conducted under the provisions of this act, shall be confidential, except for official purposes, and it shall be unlawful for any officer or employee of such director to divulge any such information in any manner, except in accordance with a proper judicial order, or as provided in K.S.A. 74-2424, and amendments thereto. . . .

Sincerely,

Thomas E. Hatten

Attorney/Policy & Research

Date Composed: 10/30/2000 Date Modified: 10/10/2001

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