Kansas State Income Tax Protest and BOTA Appeal

KANSAS STATE INCOME TAX PROTEST — INFORMAL CONFERENCE REQUEST AND BOTA APPEAL

TABLE OF CONTENTS

1. Header and Addressee
2. Caption and Identification
3. Timeliness and Statutory Authority
4. Statement of Facts
5. Issues Presented
6. Legal Argument
7. Relief Requested
8. Hearing Request and Representation
9. Verification and Signature
10. BOTA Notice of Appeal (Post-Final Determination)
11. Certificate of Service
12. Kansas Practice Notes
13. Sources and References

1. HEADER AND ADDRESSEE

[DATE]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
AND ELECTRONIC FILING (where available)

Office of Administrative Appeals
Kansas Department of Revenue
PO Box 3506
Topeka, KS 66625-3506
Email: [email protected]

Re: Request for Informal Conference and Written Protest of Notice of Additional Tax
Taxpayer: [TAXPAYER NAME]
Kansas Tax Account / SSN / FEIN: [ID NUMBER]
Notice Number: [NOTICE / ASSESSMENT NUMBER]
Notice Date: [__/__/____]
Tax Year(s) at Issue: [YEAR(S)]
Amount in Dispute: $[AMOUNT] (tax: $[___] + penalty: $[___] + interest: $[___])

2. CAPTION AND IDENTIFICATION

3. TIMELINESS AND STATUTORY AUTHORITY

3.1. This Written Protest and Request for Informal Conference is filed pursuant to K.S.A. 79-3226(a), which provides that a taxpayer may, "within 60 days after the mailing of the notice [of additional tax]," request an informal conference with the Secretary of Revenue or the Secretary's designee.

3.2. The Notice of Additional Tax was mailed by the Kansas Department of Revenue ("KDOR") on [__/__/____]. The 60th day thereafter is [__/__/____]. This protest is timely filed.

3.3. Taxpayer reserves all rights conferred by the Kansas Taxpayer Bill of Rights and Privileges, K.S.A. 79-3268, including (i) the right to appeal, (ii) the right to rely on prior written advice of KDOR, (iii) the right to be represented by counsel, accountant, or other authorized representative, and (iv) the right to recover attorney's fees if KDOR's assessment is shown to be "without a reasonable basis in law or fact."

3.4. Taxpayer further reserves the right, upon issuance of the Secretary's written final determination, to appeal to the Kansas Board of Tax Appeals ("BOTA") within thirty (30) days under K.S.A. 79-1609 and K.A.R. 94-5-8, and thereafter to seek judicial review under K.S.A. 74-2426 and the Kansas Judicial Review Act, K.S.A. 77-601 et seq.

4. STATEMENT OF FACTS

4.1. Taxpayer is [an individual resident of Kansas / a corporation organized under the laws of [STATE] and authorized to do business in Kansas / a non-resident with Kansas-source income].

4.2. For the tax year(s) at issue, Taxpayer timely filed Kansas Form [K-40 / K-120 / K-120S / K-130] reporting Kansas taxable income of $[AMOUNT] and Kansas income tax of $[AMOUNT].

4.3. On [__/__/____], KDOR issued a Notice of Additional Tax asserting [BRIEFLY DESCRIBE BASIS — e.g., disallowance of a subtraction modification under K.S.A. 79-32,117; reclassification of business income; denial of a credit; federal RAR adjustment; residency determination].

4.4. The Notice asserts additional tax of $[___], penalty of $[___] under K.S.A. 79-3228 / K.S.A. 79-32,107, and interest of $[___] computed through [__/__/____].

4.5. [ADDITIONAL OPERATIVE FACTS — e.g., prior audit history, reliance on KDOR private letter ruling, federal partnership audit results, change-in-residency facts, supporting documentation produced during the audit].

5. ISSUES PRESENTED

5.1. Whether KDOR erred in [ISSUE 1 — e.g., disallowing the modification under K.S.A. 79-32,117 for [item]].

5.2. Whether KDOR erred in [ISSUE 2 — e.g., asserting Kansas residency for the year at issue under K.S.A. 79-32,109(b) and K.A.R. 92-12-4].

5.3. Whether KDOR erred in imposing penalties under K.S.A. 79-3228 in light of Taxpayer's reasonable cause and good-faith reliance on [STATUTE / REGULATION / PROFESSIONAL ADVICE].

5.4. Whether the assessment is barred in whole or in part by the three-year statute of limitations under K.S.A. 79-3230.

6. LEGAL ARGUMENT

6.1. Standard of Review

The burden at the informal conference is on KDOR to support its assessment by competent evidence; once Taxpayer presents credible evidence rebutting the assessment, the Secretary must issue a written final determination addressing each issue. See K.S.A. 79-3226(c); In re Tax Appeal of [Cite], ___ Kan. ___ (___).

6.2. [ISSUE 1] — [Heading]

[ARGUMENT 1: state the rule, apply to the facts, cite K.S.A. provisions, K.A.R. regulations, and any Kansas Supreme Court / Court of Appeals / BOTA precedent. Address KDOR's stated rationale and explain why it is incorrect or inapplicable.]

6.3. [ISSUE 2] — [Heading]

[ARGUMENT 2.]

6.4. Penalty Abatement — Reasonable Cause

Under K.S.A. 79-3228 and KDOR Policy Statement, penalties shall be abated where the taxpayer demonstrates that the failure to pay the correct tax was due to reasonable cause and not willful neglect. Taxpayer [describe reasonable cause — reliance on competent tax advisor, complex first-impression issue, KDOR's own prior guidance, ordinary business care and prudence].

6.5. Statute of Limitations

K.S.A. 79-3230(a) bars assessment of additional Kansas income tax more than three (3) years after the return was filed (or due, whichever is later), absent fraud, a 25%+ omission of income, or a written waiver. [Apply to facts; identify the bar date and demonstrate the assessment is untimely as to year(s) [____]].

7. RELIEF REQUESTED

WHEREFORE, Taxpayer respectfully requests that the Secretary of Revenue:

• A. Schedule and conduct an informal conference under K.S.A. 79-3226;
• B. Issue a written final determination withdrawing the Notice of Additional Tax in full, or in the alternative reducing the assessment to $[AMOUNT];
• C. Abate all penalties for reasonable cause;
• D. Abate or recompute interest to the extent attributable to KDOR delay (K.S.A. 79-3268(d));
• E. Grant such other and further relief as is just and proper.

8. HEARING REQUEST AND REPRESENTATION

8.1. Hearing Format. Taxpayer requests an informal conference to be held: ☐ in person at the KDOR Topeka office; ☐ by telephone; ☐ by video conference; ☐ on the written record only.

8.2. Representation. Taxpayer ☐ will appear pro se / ☐ will be represented by [NAME, FIRM, BAR/CPA NUMBER], who is authorized under attached Form DO-10 (Power of Attorney) to act on Taxpayer's behalf.

8.3. Record. ☐ Taxpayer requests that a record of the conference be made at Taxpayer's expense, as permitted by K.S.A. 79-3226(b).

8.4. Settlement Authority. ☐ Taxpayer requests that a settlement officer with binding authority attend the conference.

9. VERIFICATION AND SIGNATURE

I declare under penalty of perjury under the laws of the State of Kansas that the foregoing protest is true and correct to the best of my knowledge, information, and belief, and that I am authorized to file it on behalf of the Taxpayer.

Date: [__/__/____]

[________________________________]

[TAXPAYER / OFFICER NAME]

Title (if entity): [TITLE]

If represented:

[________________________________]

[ATTORNEY / CPA NAME]

KS Bar No. / CPA No.: [NUMBER]

[FIRM NAME]

[ADDRESS]

Telephone: [NUMBER] | Email: [EMAIL]

10. BOTA NOTICE OF APPEAL (POST-FINAL DETERMINATION)

BEFORE THE BOARD OF TAX APPEALS — STATE OF KANSAS

Docket No.: [TO BE ASSIGNED]

NOTICE OF APPEAL

Pursuant to K.S.A. 79-1609 and K.A.R. 94-5-8, Appellant [TAXPAYER NAME] hereby appeals the Kansas Department of Revenue's Final Determination dated [__/__/____] (copy attached as Exhibit A) and states:

1. Type of tax: Kansas [Individual / Corporate / Privilege] Income Tax.

2. Tax periods: [YEAR(S)].

3. Amount in controversy: $[AMOUNT] (tax, penalty, and interest).

4. Division requested: ☐ Regular Division / ☐ Small Claims and Expedited Hearings Division (if eligible under K.S.A. 74-2433f).

5. Grounds for appeal: Appellant incorporates by reference the Statement of Facts, Issues Presented, and Legal Argument set forth in the underlying informal-conference protest, and further states that the Final Determination is contrary to law in the respects set forth in the attached Memorandum.

6. Hearing location request: [Topeka / nearest regional location].

7. Filing fee: $[___] tendered herewith.

Date: [__/__/____]

[________________________________]

[ATTORNEY / TAXPAYER NAME]

KS Bar No.: [NUMBER]

11. CERTIFICATE OF SERVICE

I hereby certify that on [__/__/____], I served a true and correct copy of the foregoing [PROTEST / NOTICE OF APPEAL] upon the parties listed below by certified U.S. mail, return receipt requested, and by email where indicated:

• Office of Administrative Appeals, Kansas Department of Revenue, PO Box 3506, Topeka, KS 66625-3506 — [email protected]
• Kansas Board of Tax Appeals, Eisenhower State Office Building, 700 SW Harrison St., Suite 1022, Topeka, KS 66603 — [email protected]
• [ANY OTHER REQUIRED RECIPIENT]

[________________________________]

[NAME]

12. KANSAS PRACTICE NOTES

• Two clocks, two forums. Income-tax disputes follow a two-step administrative track: (1) informal conference with the Secretary of Revenue (60-day deadline to request; 270-day deadline for the Secretary to issue a final determination, K.S.A. 79-3226), and (2) appeal to BOTA (30-day deadline from the final determination, K.S.A. 79-1609). Both deadlines are jurisdictional; missing either forfeits the administrative remedy.
• No payment required to protest. Unlike the federal refund-suit framework, a Kansas income-tax protest under K.S.A. 79-3226 does not require payment of the disputed tax. However, interest continues to accrue, and a taxpayer may stop the running of interest by paying under protest.
• Rules of evidence do not apply at the informal conference. K.S.A. 79-3226(b). Use this stage to develop a complete factual record; BOTA practice is more formal under K.A.R. 94-5-8 and the Kansas Administrative Procedure Act.
• BOTA divisions. Regular Division (full evidentiary hearing) and Small Claims and Expedited Hearings Division (K.S.A. 74-2433f). Small Claims is generally available for residential property and limited de minimis matters; most income-tax appeals proceed in the Regular Division.
• Reconsideration before judicial review. Within 15 days after a BOTA order, either party may file a petition for reconsideration under K.S.A. 77-529 — and must do so to preserve issues for judicial review under the Kansas Judicial Review Act, K.S.A. 77-601 et seq.
• Judicial review. A petition for judicial review of a BOTA order is filed in the Kansas Court of Appeals (or, for certain matters, the district court of the county where the taxpayer resides) within 30 days of the BOTA order on reconsideration. K.S.A. 74-2426; K.S.A. 77-613.
• Federal RAR adjustments. Kansas requires reporting of federal partnership audit adjustments and other federal changes within 180 days; failure to do so extends the Kansas statute of limitations indefinitely as to those items. K.S.A. 79-3230(c).
• Attorney's fees. Under K.S.A. 79-3268(f), prevailing taxpayers may recover reasonable attorney's fees and costs if KDOR's position was "without a reasonable basis in law or fact" — but only after exhaustion of administrative remedies.
• Power of attorney. File KDOR Form DO-10 to authorize an attorney or CPA to act for the taxpayer; BOTA proceedings may require a separate appearance entry.

13. SOURCES AND REFERENCES

• K.S.A. 79-3226 (informal conference; final determination) — https://ksrevisor.gov/statutes/chapters/ch79/079_032_0026.html
• K.S.A. 79-3268 (Taxpayer Bill of Rights and Privileges) — https://www.kslegislature.gov/li/b2025_26/statute/079_000_0000_chapter/079_032_0000_article/079_032_0068_section/079_032_0068_k/
• K.S.A. 79-1609 (appeals to BOTA) — https://ksrevisor.gov/statutes/ksa_ch79.html
• K.S.A. 79-3230 (statute of limitations on assessment) — https://ksrevisor.gov/statutes/chapters/ch79/079_032_0030.html
• K.S.A. 74-2426 (BOTA orders; judicial review) — https://ksrevisor.gov/statutes/ksa_ch74.html
• K.S.A. 77-601 et seq. (Kansas Judicial Review Act) — https://ksrevisor.gov/statutes/ksa_ch77.html
• Kansas Department of Revenue, Appeals Page — https://www.ksrevenue.gov/appeals.html
• Kansas Department of Revenue, Field Audit Brochure — https://www.ksrevenue.gov/pdf/audit.pdf
• Kansas Board of Tax Appeals, Forms and Filing Guidance — https://bota.kansas.gov/forms/
• BOTA Rules of Practice & Procedure — https://bota.kansas.gov/appeals/rules-of-practice-procedure/
• K.A.R. Title 94 (BOTA regulations) — https://www.sos.ks.gov/publications/kar.html

Disclaimer: This template is provided for informational purposes only and does not constitute legal or tax advice. Kansas tax controversies are time-sensitive; missing the 60-day informal-conference deadline (K.S.A. 79-3226) or the 30-day BOTA appeal deadline (K.S.A. 79-1609) forfeits administrative remedies. Have this template reviewed by a Kansas-licensed attorney or CPA before use.