Missouri and Colorado extended the due date for the 1st quarter 2020 estimated tax payments from April 15 to July 15, but the State of Kansas still wants those payments in April. For Kansas taxpayers who do business in multiple states, that means they still have to go through the process of preparing estimated 2020 income statements for their multi-state businesses in order to determine their Kansas allocations.
The Kansas Department of Revenue declined to explain their rationale for not delaying the due date but Public Information Officer Zach Fletcher emailed the following statement.
“The feds have extended their April 15th estimated due date to July 15th. Kansas has not changed. In fact, most Kansas estimated filers only make 2-3 estimated payments a year. Kansas does not charge interest or penalty on estimated payments. The only time underestimate penalties are assessed in Kansas is when the K-40 return is filed, the balance due exceeds $500, and the taxpayer has not met the prepayment threshold of 90% of current year liability or 100% of the previous year’s liability. The underestimate penalty applies in those cases to taxpayers that have withholding, make estimated payments or no payments. Current statutes, KSA 79-32,107(g), allow the department to waive underpayment penalties that would be assessed when a taxpayer files their K-40.”
KDOR has not responded to our request for clarification on how taxpayers will be treated if they don’t make payments by April 15, but we’ll update this story if they eventually respond.