Notice Number:13-04
Tax Type:Privilege
Brief Description:Kansas Privilege Tax - Losses.
Approval Date:05/10/2013


Notice 13-04
(May 2013)

Kansas Privilege Tax - Losses

During the 2012 Legislative Session HB 2117 was passed and signed into law. Section 12 of the Bill amended K.S.A. 79-32,117, which deals with addition and subtraction modifications, to add a new addition modification. The new modification, which was codified as K.S.A. 2012 Supp. 79-32,117(b)(xix), provided for the addition of:
During the 2013 Legislative Session in House Substitute for Senate Bill 83. Section 3 of the Bill amended K.S.A. 2012 Supp. 79-32,117(b)(xix) to provide:
As a result of this amendment S corporations with wholly owned subsidiaries subject to Kansas privilege tax will not be subject to the K.S.A. 2012 Supp. 79-32,117(b)(xix) requirement to add back losses reported from Schedule E and on Line 17 of the taxpayer’s federal Form 1040 income tax return.

House Sub for SB 83 indicates it is effective upon publication in the Kansas Register. The Department of Revenue is interpreting the amended provisions of K.S.A. 79-32,117(b)(xix) to be effective for tax years 2013 and after.

Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site, If you have questions about privilege tax, please contact:
Taxpayer Assistance Center
Kansas Department of Revenue
915 SW Harrison St., 1st Floor
Topeka, KS 66612-1588
Phone: 785-368-8222
Hearing Impaired TTY: 785-296-6461
Fax: 785-291-3614

Date Composed: 05/10/2013 Date Modified: 05/10/2013