The Kansas Department of Revenue (KDOR) may apply a refund set-off when a taxpayer owes a qualifying delinquent debt to the State of Kansas or another participating agency. Under the Kansas Setoff Program, eligible refunds or payments may be intercepted and applied toward outstanding debts submitted for collection by authorized state agencies, municipalities, or county treasurers.
Eligibility for Set-Off
A refund may be subject to set-off when:
- The taxpayer has a qualifying delinquent debt owed to a participating state agency, municipality, or county treasurer.
- The debt has been submitted to the Kansas Setoff Program by an authorized agency or entity.
- The taxpayer is entitled to a Kansas refund or other eligible payment.
When a valid match occurs, the Kansas Department of Revenue may reduce or withhold all or part of the refund amount and apply it toward the delinquent debt as allowed by Kansas law.
Refunds Subject to Set-Off
A Kansas refund or payment may be subject to set-off, including refunds claimed through Kansas income tax filings or other state-administered refund programs, when the taxpayer has an eligible delinquent obligation.
The amount withheld may be limited to the outstanding balance of the debt, including any applicable collection amounts allowed under Kansas law.
Important Considerations
- Taxpayers who are subject to a refund set-off will generally receive notification explaining the amount applied and the agency or entity that submitted the debt.
- Questions regarding the debt itself should be directed to the agency that submitted the debt for collection.
- Taxpayers should respond promptly to any correspondence received regarding a refund set-off to address disputes or obtain additional information.
- The Kansas Setoff Program applies only to eligible debts submitted by authorized participating agencies or entities.
Source:
FORM K-40
Disclaimer: Always verify details with the official Kansas Department of Revenue forms and instructions. For complex situations, consult a tax professional or attorney.