Do Kansas fiduciaries filing Form K-41 have to make estimated income tax payments?

Plain-English summary

A trust or estate reports its Kansas income tax on Form K-41. An out-of-state accounting firm preparing a 2016 complex-trust return asked whether Kansas had estimated tax vouchers for fiduciaries. The Department's answer: fiduciaries filing a Kansas Form K-41 are not required to make estimated income tax payments.

At the time (2016), the Department's system was not designed to accept fiduciary estimated payments. Some fiduciaries sent voluntary payments using individual income tax vouchers, but those were frequently routed to the wrong accounts and hard to credit correctly. The Department said it was building a dedicated K-41V voucher and expected it "sometime in early 2017," and asked filers to wait rather than send early payments.

What this means for you

Trustees and executors

Kansas does not require fiduciaries to pay income tax in quarterly estimates the way individuals do. You file and pay with the K-41.

Tax preparers

If a client wants to pre-pay a fiduciary liability, note that in 2016 voluntary payments on individual vouchers risked misrouting. Because the mechanics were being updated, confirm the current Kansas fiduciary payment forms and procedures with the Department before making a voluntary estimate.

Common questions

Q: Do Kansas trusts and estates have to make estimated tax payments?
A: No. The Department stated that fiduciaries filing a Form K-41 are not required to make estimated income tax payments.

Q: Can a fiduciary choose to pay early?
A: In 2016 some did, using individual income tax vouchers, but those payments were often misrouted. The Department asked filers to wait for a dedicated K-41V voucher.

Q: Has this changed since 2016?
A: The Department said it planned to add a K-41V voucher and supporting programming in early 2017, so current procedures may differ — confirm today's forms with the Department.

Q: Does this ruling apply to me?
A: A Kansas private letter ruling addresses only the requesting taxpayer and cannot be relied on as precedent by others, though it shows how the Department approached the question.

Citations and references

• Kansas fiduciary income tax is reported on Form K-41. The Department's response is procedural and cites no specific statute; it states that fiduciaries filing a K-41 are not required to make estimated tax payments and describes a planned K-41V voluntary-payment voucher expected in early 2017.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2016-012

Original ruling text

Private Letter Ruling

Body:

June 16, 2016

XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
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XXXXXXXXXX

Re: Kansas Income Tax

Dear XXXXX

Your correspondence of June 1, 2016, has been referred to me for response. Thank you for your inquiry.

By your e-mail you have requested our advice regarding Kansas income tax. Specifically, your e-mail states:

. . . . . I am from an accounting firm in XXXXX Virginia and am not very familiar with Kansas tax. We have prepared a complex trust tax return and needed to file a K-41. I was wondering, does Kansas have such thing as estimated tax vouchers or forms for the complex trusts? We would like to make an estimated tax payment for 2016 but I am having trouble finding vouchers. I do not know where to mail the payment, what information needs to be on the check, or any of that stuff. In Virginia we have something estimated tax vouchers (see attached). Does Kansas have these? Or how should I go about sending this check? Any assistance would be greatly appreciated.

In response to your inquiry, please be advised fiduciaries filing a Kansas Form K-41 are not required to make estimated tax payments. As a result, at this time our system is not designed to accept estimate taxed tax payments. Some fiduciaries do make voluntary payments, using individual income tax vouchers, but when such payments are made they are frequently routed to incorrect accounts and it is difficult to properly credit the payments later.

However, because there have been a number of requests made, we are currently pursuing a method that will allow us to accept and properly account for voluntary estimated tax payments. We hope to have a K-41V voucher and the associated software programming completed sometime in early 2017. We would prefer it if you would delay making any estimated tax payments for fiduciary tax until that time.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.

JW:jw

NOTE: This opinion letter is based solely on the facts provided in your request for advice. If material facts or information were not disclosed this letter is null and void. This letter will be revoked without further action by the Department if the statutes, administrative regulations, published revenue rulings, or court decisions that materially affect this opinion are changed.

Date Composed: 09/16/2016 Date Modified: 09/16/2016

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