Kansas Administrative Regulations

Regulation Number:92-2-82
Agency Title: KANSAS DEPARTMENT OF REVENUE
Article Title: Inheritance Taxes
Tax Type:Inheritance Tax
Brief Description:Filing of return; payment of tax; liens; interest; computations by
director.
Keywords:


Body:

92-2-82 Filing of return; payment of tax; liens; interest; computations by director. (a) A complete return shall be filed within nine months after the date of the decedent's death to avoid the accrual of interest. When the filing of the return is delayed beyond nine months after the death of the decedent, and the director finds that such delay was due to the inability of the personal representative to determine that distributive shares of an estate or its proper recipients, or to litigation, interest shall commence at the time the problem resulting in the delay is resolved. A return shall be deemed to have been filed upon delivery to the inheritance tax section of the Kansas department of revenue. Returns mailed to the department shall be deemed to have been filed as of the postmark date.
(b) (1) A return shall disclose all information and be accompanied by any supplemental documents necessary for the determination of the tax liability. The following documents shall be submitted where applicable: (A) A certified copy of the will and codicils;
(B) a certified family settlement agreement;
(C) trust instruments and their amendments;
(D) ante nuptial or post nuptial agreements;
(E) an affidavit for proof of relationship of a stepchild or stepparent or an adopted child;
(F) the following proof of contribution, where available: (i) Copies of cancelled checks from an identifiable account;
(ii) an affidavit from a disinterested third party having knowledge of the decedent's and surviving joint tenant's financial affairs and who can trace the source of funds;
(iii) an affidavit from the seller of real estate to the decedent if the seller knows the source of funds used to acquire the real estate;
(iv) an affidavit from a banker knowing how funds in certain accounts were acquired; and
(v) copies of the decedent's and surviving joint tenant's income tax returns;
(F) a schedule of the computation and method used if the election is made to use a qualified real property exclusion;
(G) a schedule of the computation and method used when necessary to explain the values listed on any schedule;
(H) an explanation of any loss incurred during the settlement of the estate arising from fires, storms, shipwrecks or other casualties, or from theft, not compensated by insurance. The property on which the loss was incurred is required to be identified;
(I) a separate schedule showing the computation of the net non-Kansas property and the net non-Kansas shares;
(J) a certified copy of any disclaimer filed;
(K) an explanation or the statutory citation creating an exemption applicable to assets of the estate;
(L) appropriate fees for waivers, copies, etc; and
(M) a copy of the return filed in the state of domicile if the decedent was a nonresident of Kansas and owned real property situated in Kansas or tangible personal property with a Kansas situs, or both.
(2) In all estates in which a federal estate tax return shall be made or required, the representative of the estate shall furnish the director of taxation, in addition to all other information required to be filed, true copies of the entire federal estate tax return showing recapitulation of assets and computation of the taxes. If only a portion of the federal estate tax return is required to be filed, and the schedules are not prepared, information necessary to identify the individual assets and expenses of the decedent's estate which are normally contained in the schedules shall be submitted to the inheritance tax section. Where an election is made to have the director compute the tax, failure to supply all information necessary for the determination of the tax liability shall result in the accrual of interest from the due date of the return.
(3) Within 90 days of the conclusion of litigation, the representative of the estate shall submit to the director of taxation true copies of any court order affecting the composition or distribution of the estate. Failure to comply shall result in the accrual of interest.
(4) If tax is paid with a return which does not disclose all information necessary for the determination of the tax liability, and subsequent receipt of this information results in additional tax liability, interest shall accrue upon the additional liability from the due date of the return.
(c) All property of which a decedent dies seized or possessed, in any form of investment, shall be charged with a general lien for all taxes and interest thereon which are or may become due on such property. The personal representative shall have a right to proceed against the property or interests passing to a distributee or against property or interests held by the distributee in the distributee's own right, in the following cases:
(1) If the personal representative has received an approved stay of payment of the balance of the taxes from the director, the personal representative shall have a right to proceed against each individual distributee receiving a share not within the custody or control of the personal representative. To enforce this right to proceed, the personal representative shall perfect a lien.
(2) If the personal representative pays the taxes due on shares not within the personal representative's custody and control, the personal representative shall have a right to proceed against the one or more individual distributees receiving such shares. To enforce this right, a lien shall be perfected. The right to proceed against an individual distributee arises only after issuance of a receipt for taxes. All associated forms and notices shall be prepared and issued by the inheritance tax section following a review of the specific situation.
(d) When it appears the filing of a return cannot be completed within nine months of the decedent's death, the personal representative of the estate, prior to the due date of the return, may request an extension of time to file the return. A request for an extension of time to file shall be made in writing, set forth the fact situation which makes timely filing impossible or unreasonably difficult, state the grounds upon which the extension should be allowed, and specify the time of extension or the extended due date requested.
(e) At the election of the personal representative, the taxes imposed may be determined by the director. The election shall be made by filing a return disclosing all information necessary for the determination of the taxes imposed. Upon receipt of all necessary information, the director shall determine the taxes due and owing and shall notify the personal representative of the tax liability by registered or certified mail. Notwithstanding any election made pursuant to this section, the taxes shall be due and payable at the same time and in the same manner as if the taxes had been determined by the personal representative. (Authorized by K.S.A. 79-1583; implementing K.S.A. 79-
1564; effective May 1, 1986.)