Petition for Abatement Forms

Petition for Abatement
The Kansas Department of Revenue (KDOR) may consider settlements of tax debts when there is doubt of collectability or doubt as to the validity of the debt. A petition for abatement (PFA) allows you to reduce your tax debt for less than the full amount you owe or when you dispute the amount of the debt. We consider your unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses;
  • Asset equity; or
  • Validity of the debt.

A petition for abatement (for collectability) is generally approved when the payment offer represents the most we can expect to collect within a reasonable period of time. Validity of debt petitions are accepted when missing documentation or information is received and allows the department to adjust a final debt assessment.

Ensure that you are eligible
Before we can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are involved in an open bankruptcy proceeding.

Submit your petition and payment offer
You will find additional information, step-by-step instructions and all the forms for submitting a petition for abatement on KDOR's website at:  http://ksrevenue.org/pfa.html
Your completed petition package will include:

  • $50 application fee (non-refundable);
  • Petition for Abatement (Collectability or Validity of Debt);
  • Individual Income and/or Business Financial Statement (for collectability petitions);
  • Individual Income or Business Tax Waiver of Confidentiality (for abatements of $5,000 or more);
  • Power of Attorney Form (if  taxpayer is represented by another person); and
  • Initial payment of 20% of the total offer (non-refundable).

While your offer is being considered:

  • Collection activities may continue;
  • A state tax warrant may be filed;
  • Your non-refundable payment will be applied to the tax liability; and
  • If you're found to be completely insolvent, your application fee may be waived or refunded.

What is a Petition for Abatement?
Any taxpayer, such taxpayer's heirs, or legal representative may petition the Kansas Department of Revenue (KDOR)   to abate all or part of any final tax liability of the taxpayer. The petition for abatement process allows eligible taxpayers an option of paying off their debt and resolving pending collection and legal actions. The goal is to reach an agreement that is in the best interest of both the taxpayer and the KDOR.

Submitting a petition for abatement does not guarantee the Kansas Department of Revenue Revenue will accept your offer. It is a process of evaluation and verification by the department and takes into consideration any special circumstances that might affect your ability to pay. The department will generally not accept an offer if you can pay your tax debt in full through a payment plan or a lump sum.

The following information advises you of how to calculate an appropriate offer based on your assets, income, expenses, and future earning potential. Submitting a petition for abatement requires you to describe your financial situation in detail, so make sure you have the necessary information and documentation.

Are you eligible?
Before you submit your petition, you must (1) file all tax returns you are legally required to file, and (2) make all estimated tax payments for the current year.

Bankruptcy
If you or your business is currently involved in an open bankruptcy proceeding, you are not eligible to submit a petition for abatement. Resolution of your outstanding tax debts generally must take place within the context of your bankruptcy proceeding.

Circumstances impacting collectability of the debt

  • The statute of limitations bars collection;
  • Lack of Kansas Department of Revenue jurisdiction to collect debt;
  • The domicile of the taxpayer and all the taxpayers assets are located outside of Kansas
  • Insolvency of the taxpayer;
  • The taxpayer is receiving social security benefits or social welfare payments and has insufficient assets upon which to levy;
  • The taxpayer is mentally ill or physically incapacitated and circumstances indicate the taxpayer will not be economically productive in the foreseeable future.

Circumstances impacting validity of the debt

  • Serious doubt exists as to the accuracy of the final tax liability and the abatement is in the best interest of the state. This authority shall be exercised to effect the collection of taxes with the least possible loss or cost to the state and with fairness to the taxpayer;
  • Serious doubt as to liability means the doubt that exists when a reasonable person, viewing the controlling circumstances objectively, would conclude that it is probable that the final tax liability previously established by the department is greater than the actual tax liability imposed by the Kansas tax imposition statutes.

Additional information regarding the PFA process

  • No taxpayer shall have a right to the abatement of any tax liability;
  • A petition for the abatement of a final liability shall not be submitted to suspend collection activities;
  • Penalties and interest continue to accrue during the evaluation process;
  • The department's finding is discretionary and may only be made upon finding there is serious doubt as to the collectability of the tax due or the taxpayer's liability;
  • Determinations are final and conclusive and not subject to review;
  • The department may require the petitioner to appear and testify under oath concerning the abatement;
  • The department must annually report all petitions for abatement in which the resulting abatements of liability exceed $5,000.00.  The report is submitted to the Secretary of State, Legislative Post Audit and the Attorney General;
  • State tax liens are not released until your offer is accepted and all terms of the agreement are satisfied;
  • The Kansas Department of Revenue may retain any proceeds from a levy served prior to you submitting a petition. The department may levy your assets up to the time that your offer is accepted;
  • If your offer is accepted, you must continue to timely file and pay your tax obligations. If you fail to file and pay your required tax returns before your offer is paid in full, the offer will be rescinded;
  • If at any time within four years following the entry of such a finding, the Kansas Department of Revenue finds that the petition is fraudulent, the matter may be reopened by the department and the taxpayer shall be subject to the tax liability to the same extent as if such abatement had not been made.

How to Apply
The application process involves sending:

  • $50 application fee (this application fee must be submitted before the petition will even be considered)
  • Petition for Abatement (Collectability, CE-5) or Petition for Abatement (Validity, CE-4)
  • Completed Individual Income Financial Statement, CE-3 for individual taxpayers submitting a collectability petition
  • Completed Business Financial Statement, CE-4 for active businesses submitting a collectability petition
  • Waiver of Confidentiality (CE-6, Business; CE-7, Individual) , for abatements of $5,000 or more
  • Completed Power of Attorney, DO-10, if represented by a third party

Completing a collectability petition for abatement

  • Step 1 – Gather your information
    To calculate an offer amount, you'll need to gather information regarding your financial situation, including cash, investments, available credit, assets, income, and debt. You must include information about your average gross monthly household income and expenses. The entire household includes spouse, significant other, children, and others that reside in the home. This is necessary for the Kansas Department of Revenue to accurately evaluate your offer. The Kansas Department of Revenue generally does not accept expenses for tuition for private schools, college expenses, charitable contributions, credit card payments, and other unsecured debt payments as part of the expenses calculation.

  • Step 2 – Fill out the Collectability Petition for Abatement
    Collectability Petition for Abatement, CE-5 (when requesting a reduction of any business or income tax based on a valid inability to pay). The petition must state the reasons why the tax should be abated and include the facts supporting the abatement. It must be notarized and signed under penalties of perjury.

  • Step 3 – Fill out the Individual Income or Business Financial Statement
    Individual Income Financial Statement, CE-3(when an individual taxpayer is requesting a reduction of a tax liability for which they are liable due to an inability to pay – this can be for income or business taxes); or
    Business Taxes Financial Statement, CE-2 (when an active business is requesting a reduction of a tax liability due to an inability to pay).

  • Step 4 – Attach required documentation
    You must attach supporting documentation with the financial statement. A list of the required documents can be found at the end of the financial statement. Include copies of the required attachments – DO NOT send original documents.

  • Step 5 – Complete the Waiver of Confidentiality (if required)
    Individual Income Tax Waiver of Confidentiality, CE-7 (when requesting the department abate (reduce) a final individual income tax liability of $5,000 or more);
    or
    Business Taxes Waiver of Confidentiality, CE-6 (when requesting the department abate (reduce) a final business tax liability of $5,000 or more).

  • Step 6 – Complete the Power of Attorney Form (if necessary)
    Power of Attorney Form, DO-10 (when a taxpayer is represented by an attorney, accountant, or other person, this form is required to allow the department to exchange confidential tax information with the taxpayer's representative.

  • Step 7 – Mail, fax or electronically send the PFA packet
    Make a copy of your PFA packet and supporting documentation for your records. The mailing address, fax number, and email address are listed below.

Completing a validity of debt petition for abatement

  • Step 1 – Gather your information
    In order for the Kansas Department of Revenue to adjust a final tax assessment, you must submit original returns with supporting documentation (for non-filer assessments), or specific information previously requested and not submitted that resulted in the assessment (such as a Schedule S, another state's tax return, etc.).

  • Step 2 – Fill out the Validity of Debt Petition for Abatement
    Validity of Debt Petition for Abatement (when requesting the department accept original or income tax returns in lieu of final assessments or to accept additional information after the department adjusted their return and the appeal period has expired in which to respond and submit specific documentation).

  • Step 3 – Complete the Waiver of Confidentiality (if required)
    Individual Income Tax Waiver of Confidentiality (when requesting the department abate (reduce) a final individual income tax liability of $5,000 or more);
    or
    Business Taxes Waiver of Confidentiality (when requesting the department abate (reduce) a final business tax liability of $5,000 or more).

  • Step 4 – Complete the Power of Attorney Form (if necessary)
    Power of Attorney form (when a taxpayer is represented by an attorney, accountant, or other person, this form is required to allow the department to exchange confidential tax information with the taxpayer's representative).

  • Step 5 – Mail, fax or electronically mail the PFA packet
    Make a copy of your PFA packet and supporting documentation for your records. The mailing address, fax number, and email address are listed below.

Paying for your offer
All offers require a $50 application fee. Submitting an offer requires the selection of a payment option as well as sending an initial payment with your petition. The amount of the initial payment and subsequent payments will depend on the total amount of your offer and which of the following payment options you choose:

  • Payment Option 1 – This option requires 20% of the total offer amount to be paid with the offer and remaining balance paid in five or fewer payments.
  • Payment Option 2 – This option requires the first payment with the offer and the remaining balance paid in accordance with your proposed offer terms. The length of the payment option may affect the amount of the accepted offer.

NOTE: If you must establish a payment plan that extends beyond 90 days, a pay plan administration fee of $25 will be charged.

If you do not have sufficient cash to pay for your offer, you may need to consider obtaining a loan from a bank, family or friends. Other options may include borrowing against or selling other assets.

If your offer is not accepted, the application fee and any required payment(s) made with the offer and thereafter will not be refunded.


CONTACT INFORMATION

Mailing Address:
Kansas Department of Revenue
Problem Resolution Team
P.O. Box 12005
Topeka, KS 66601-3005

Fax Number:
785-296-0820

Electronic Mail Address:
Please call 785-296-6124, option 2 to obtain secure electronic mail address

Problem Resolution Team Phone Number:
785-296-6124, option 2