Kansas Unfiled Sales Tax Returns Checklist
Introduction
The Kansas Department of Revenue eventually identifies Kansas businesses that do not file required sales tax returns through registration records and compliance systems. Sales tax is a transaction-based tax that must be collected from customers and reported through a tax return for each filing period. When returns are missing, the state cannot verify whether sales tax was reported correctly or paid.
Unfiled sales tax returns create a compliance gap that often leads to state contact and enforcement pressure. Understanding how Kansas handles unfiled sales tax returns helps reduce uncertainty and allows businesses to address the issue before penalties and collection actions increase.
What This Issue Means
An unfiled sales tax return means a required Kansas sales tax return was not submitted for a specific reporting period. The Kansas Department of Revenue has a record that the return was due but not received by the filing deadline.
This issue relates to a missing filing obligation rather than a confirmed tax bill. The tax return may still need to be filed even if no sales occurred during the period, including situations that require a zero filing return.
Why The State Issued This Or Requires This
Kansas tracks sales tax returns through its registration and filing systems, including Kansas
WebFile and other filing portals. When a business holds a Kansas sales tax permit, the state expects a sales tax return to be filed for every assigned filing period.
If a return is not filed, the system flags the account as noncompliant. Notices are issued because unfiled sales tax returns prevent the Department of Revenue from confirming gross receipts, exemption certificates, or whether sales tax was remitted correctly.
What Happens If This Is Ignored
If unfiled sales tax returns remain unresolved, Kansas typically escalates enforcement efforts.
This can include additional notices, estimated assessments, penalties, and interest based on assumed sales amounts.
Continued noncompliance may result in collection actions such as a tax lien, wage garnishment, or suspension of a Kansas sales tax permit. The more extended returns remain unfiled, the more difficult it becomes to resolve the account cleanly.
What This Does Not Mean
An unfiled return notice does not mean the state has already assessed the final amount owed. It also does not automatically imply that assets have been seized or that licenses have been revoked.
This issue is generally handled as a civil tax compliance matter rather than a criminal issue.
Filing the missing sales tax returns voluntarily is still possible and often reduces the severity of enforcement.
Checklist: What To Do After Receiving This Or Identifying
This Issue
Step 1: Review notices from the Kansas Department of Revenue
The business should gather and read all notices related to unfiled sales tax returns. Each notice typically lists the filing period, response deadline, and reference number tied to the account.
Step 2: Identify which filing periods are unfiled
Sales tax records should be reviewed to determine which months, quarters, or years are missing returns. If there is uncertainty, the Kansas Department of Revenue can confirm unfiled periods through the Customer Service Center.
Step 3: Collect sales and tax records for each period
The business should gather accounting records, gross receipts data, point-of-sale reports, and sales tax collection records for each unfiled period. When records are incomplete, available documentation should still be organized by filing period.
Step 4: Calculate sales tax for each unfiled return
Sales amounts and applicable Kansas sales tax rates should be calculated for each period. The calculation method should be documented in case questions arise during processing.
Step 5: Review prior payments made to Kansas
Any payments made without a corresponding tax return should be identified. Bank statements, canceled checks, or payment confirmations can help ensure payments are properly credited.
Step 6: Contact the Kansas Department of Revenue
The business should contact the Kansas Department of Revenue to confirm filing requirements and next steps. Providing the notice reference number helps clarify whether estimated assessments already exist.
Step 7: Prepare the unfiled sales tax returns
Unfiled periods should be completed using Form ST-36, the Kansas sales tax return required for reporting sales across single or multiple jurisdictions. Returns should reflect accurate sales amounts or zero activity if applicable.
Step 8: Submit the completed returns
Returns should be filed through Kansas WebFile or by mail, following the Department of
Revenue's instructions. Copies of all submitted returns should be retained.
Step 9: Address payment for any tax due
If filed returns show tax due, payment should be arranged promptly. When full payment is not possible, the business should ask about payment plan options before making partial payments.
Step 10: Respond to follow-up communication
Any additional requests or notices from the state should be answered quickly. Timely responses help prevent further enforcement action.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 11: Establish future filing compliance
A system should be put in place to ensure all future sales tax returns are filed on time. Calendar reminders or automated filing tools can help maintain compliance.
What Happens After This Is Completed
Once unfiled sales tax returns are submitted, the Kansas Department of Revenue processes them into the tax account. The state may issue confirmation notices or request clarification if discrepancies exist.
Penalties and interest may be assessed depending on how long the returns were unfiled. When returns are current and future filings remain timely, the account moves back toward compliant status.
Common Mistakes To Avoid
Failing to respond to notices or missing response deadlines often leads to estimated assessments and collection actions. Filing incomplete returns can also delay resolution and increase scrutiny.
Another common mistake is assuming unfiled sales tax returns will resolve themselves. Kansas continues to pursue compliance until all required returns are filed.
Frequently Asked Questions
How can a business tell if sales tax returns are unfiled?
Notices from the Kansas Department of Revenue usually identify missing filing periods. The filing status can also be confirmed through Kansas WebFile or by contacting the Department directly.
Can unfiled sales tax returns be filed without a tax professional?
Yes, many businesses file unfiled sales tax returns themselves using Form ST-36. Professional help may be helpful when multiple years or missing records are involved.
What if records are incomplete for an unfiled period?
The business should file using the best available information and explain any gaps if requested.
Missing records do not prevent filing but may require clarification.
Does filing unfiled returns stop penalties?
Filing the return does not stop penalties or interest on unpaid tax. However, filing is required before penalties can be calculated appropriately or addressed.
How long does Kansas take to process unfiled returns?
Processing time varies, but returns are often processed within several weeks. Complex cases or multiple periods may take longer.
Can filed returns be amended later?
Yes, amended returns can be filed if errors are discovered. The Kansas Department of Revenue provides procedures for amending sales tax returns.
What if the business disagrees with the state’s assessment?
The business can request a review or dispute the assessment by providing documentation.
Kansas offers administrative appeal procedures for tax disagreements.
Does filing unfiled returns increase audit risk?
Filing unfiled returns does not automatically trigger an audit. Maintaining consistent compliance going forward is the most critical factor.
Closing
Unfiled sales tax returns represent a manageable compliance issue when addressed promptly.
By identifying missing filing periods, submitting accurate returns, and communicating with the
Kansas Department of Revenue, businesses can reduce penalties and enforcement risk.
Ignoring unfiled sales tax returns only increases cost and complexity. Taking organized, timely action is the most effective way to restore compliance and move forward.
Facing State Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
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