The Kansas Department of Revenue can put a lot of pressure on you in a stressful tax situation by charging you penalties and pursuing collection actions on unpaid tax debt. Many people don't realize that Kansas has a formal process — the Petition for Abatement — that may allow eligible taxpayers to resolve their tax liability for less than the full amount owed or to dispute the validity of what they owe.
This guide walks you through the Kansas Petition for Abatement (PFA) process, including who qualifies, which forms apply to your situation, and how to prepare and submit a complete petition package. It also covers what to expect during the review period and how to protect yourself from further collection actions while your petition is being evaluated.
If you understand how the PFA process works, you can take a more informed approach to resolving your Kansas tax debt — whether the issue involves personal income tax, business taxes, or both.
The Kansas Department of Revenue may consider settlements of tax debts when there is doubt as to the collectability of the amount owed or doubt as to the validity of the debt itself. The Petition for Abatement allows eligible taxpayers to request a reduction of their final tax liability below the full amount due, or to formally contest what they believe is an incorrect or disputed tax obligation.
KDOR evaluates each petition based on the taxpayer's unique facts and circumstances, including ability to pay, income, monthly expenses, and asset equity. Submitting a petition does not guarantee acceptance. The department will generally not accept an offer if you can fully pay your tax debt through a lump sum or a standard payment plan.
Not every taxpayer qualifies for the PFA process. Before KDOR will consider your petition, you must meet all of the following baseline requirements.
You must file all tax returns you are legally required to file and make all estimated tax payments for the current year before submitting your petition. You are not eligible if you or your business is currently involved in an open bankruptcy proceeding. When a bankruptcy is active, resolution of outstanding tax debts generally must occur within that proceeding.
KDOR also considers special circumstances that may affect your ability to pay. Factors that may support a collectability petition include being insolvent, receiving only Social Security or social welfare payments with insufficient assets available for levy, being mentally ill or physically incapacitated in a way that indicates you will not be economically productive in the foreseeable future, or having all assets located outside of Kansas.
Kansas offers two distinct petition tracks under the PFA process. Choosing the right one depends on whether you are seeking relief because you cannot pay or because you dispute the amount owed.
This track is for taxpayers who acknowledge the debt but cannot pay the full amount due to genuine financial hardship. To complete a collectability petition, you must describe your financial situation in detail, including cash, investments, available credit, assets, income, and debts. Your petition must be notarized and signed under penalties of perjury.
KDOR reviews your average gross monthly household income and all household expenses. Note that the department generally does not accept certain expenses — including private school tuition, college expenses, charitable contributions, credit card payments, and other unsecured debt payments — when calculating your allowable expenses.
This track is for taxpayers who dispute their tax liability, in whole or in part. Common situations that fall under this petition type include cases where the taxpayer cannot locate records to verify what was filed, disputes over liability for a business debt, disagreement with a balance resulting from a field audit, or issues involving special credit adjustments on income tax returns.
Filing a petition for abatement does not suspend collection activities. While your petition is under review, collection actions may continue, a state tax warrant may be filed, and penalties and interest will continue to accrue during the evaluation process. Your non-refundable application fee payment will be applied to your tax liability. If you are found to be completely insolvent, the application fee may be waived or refunded.
State tax liens are not released until your offer is accepted and all terms of the agreement are satisfied. KDOR may also retain any proceeds from a levy served before you submitted your petition and may continue to levy your assets up to the time your offer is accepted.
Because the collection does not pause, it is advisable to continue making payments where possible to reduce the accruing balance while your petition is evaluated.
Kansas requires a structured petition package. The steps below apply to collectability petitions. Validity of debt petitions follows a shorter process using Form CE-4 and the same waiver and power-of-attorney forms, where applicable.
Collect documentation covering your full financial picture, including cash and bank account balances, investments, available credit lines, real and personal property, monthly household income from all sources, and monthly expenses. KDOR requires a complete household income and expense profile, which includes a spouse, significant other, children, and anyone else residing in the home.
Select the form that matches your situation. Form CE-5 is for collectability petitions and must state the reasons why the tax should be abated, include the supporting facts, and be notarized. Form CE-4 is for disputes over the validity of the debt.
For a collectability petition, you must also include either Form CE-3 (Individual Income Financial Statement) for individual taxpayers or Form CE-2 (Business Financial Statement) for active businesses.
Attach copies of all required supporting documents as listed at the end of the financial statement. Do not send originals — KDOR does not return them.
If the abatement you are requesting is $5,000 or more, you must include a Waiver of Confidentiality. Use Form CE-7 for individual income tax abatements and Form CE-6 for business tax abatements.
If a tax professional, attorney, accountant, or other representative is handling your petition on your behalf, include Form DO-10 to authorize KDOR to share confidential tax information with that representative.
All petitions require a non-refundable $50 application fee, which must be submitted before the petition will be considered. In addition to the fee, you must select one of two payment options and include an initial payment with your petition.
Payment Option 1 — requires 20% of the total offer amount to be paid with the petition, with the remaining balance paid in 5 or fewer payments.
Payment Option 2 — requires the first payment with the petition, with the remaining balance paid in accordance with your proposed offer terms. Note that the length of the payment period may affect the total offer amount that KDOR will accept.
If your payment plan extends beyond 90 days, an additional $25 plan administration fee applies. If you do not have sufficient cash available, options may include obtaining a loan, borrowing against, or liquidating other assets.
Submit your completed petition package to the Kansas Department of Revenue Problem Resolution Team by mail at P.O. Box 12005, Topeka, KS 66601-2005, by fax at 785-296-0820, or by secure email — call 785-296-6124, option 4, to obtain the secure email address before sending electronically.
Several important rules apply to all petitions for abatement in Kansas. No taxpayer has a right to have a tax liability abated; the process is discretionary. KDOR's determinations are final and conclusive and are not subject to further review. The department may require a petitioner to appear and testify under oath about the petition.
If your offer is accepted, you must continue to timely file and pay all future tax obligations. If you fail to file or pay required returns before your offer is paid in full, the offer will be rescinded. Additionally, if KDOR finds at any time within four years of the abatement finding that the petition was fraudulent, the matter may be reopened and the full original tax liability reinstated.
KDOR is also required to report annually to the Secretary of State, Legislative Post Audit, and the Attorney General all petitions in which the resulting abatements exceed $5,000.
Review this checklist before mailing or faxing your documents to make sure your package is complete and accurate.
All required tax returns have been filed, and all current-year estimated tax payments have been made. You have confirmed you are not in an active bankruptcy proceeding. The correct petition form has been completed — CE-5 for collectability or CE-4 for validity of debt. For collectability petitions, Form CE-3 or CE-2 has been completed and included. All required supporting documentation is attached as copies — no originals. If the abatement requested is $5,000 or more, Form CE-6 or CE-7 has been included. If represented by a professional, Form DO-10 has been completed and included. The $50 non-refundable application fee is enclosed. A payment option has been selected, and the required initial payment is included. You have made a copy of the complete package for your own records. All forms are signed and notarized where required.
A complete and accurate package improves your chances of approval and reduces back-and-forth communication with KDOR during the review period.
The Kansas Petition for Abatement is a formal process through which eligible taxpayers may request that KDOR reduce their final tax liability below the full amount owed or dispute the validity of the debt. To qualify, you must have filed all required tax returns, made all current-year estimated tax payments, and not be in an active bankruptcy proceeding. KDOR evaluates each petition on its individual merits, including your ability to pay, income, expenses, and available assets.
Form CE-5 is used for collectability petitions, meaning you acknowledge the debt but cannot pay it in full due to financial hardship. Form CE-4 is used when you are disputing the validity or amount of the debt itself — for example, if you disagree with the results of a field audit or are contesting liability for a business tax balance. Choosing the correct form determines what documentation KDOR requires and how your petition is evaluated.
No. Submitting a petition for abatement does not suspend collection activities in Kansas. KDOR may continue to pursue collection, file a state tax warrant, and levy assets while your petition is under review. Penalties and interest also continue to accrue during the evaluation period. It is important to continue making payments where possible to minimize your growing balance while the petition is being considered.
Payment Option 1 requires you to submit 20% of the total offer amount with the petition and pay the remaining balance in five or fewer installments. Payment Option 2 allows you to submit the first payment with the petition and pay the balance according to your proposed terms. Under Payment Option 2, the length of your proposed payment period may affect the total offer amount that KDOR is willing to accept.
The $50 application fee is non-refundable in most cases. If your offer is not accepted, neither the application fee nor any payments made with or after the submission of the offer will be returned. The only exception is if KDOR determines you are completely insolvent, in which case the fee may be waived or refunded.
A Waiver of Confidentiality is required whenever the abatement you are requesting exceeds $5,000. Use Form CE-7 for individual income tax abatements and Form CE-6 for business tax abatements. This requirement exists because KDOR is obligated to report all abatements exceeding that threshold to the Secretary of State, Legislative Post Audit, and the Attorney General.
If KDOR accepts your offer, you must continue to file and pay all future tax obligations on time throughout the period your offer is being paid. If you fail to meet those ongoing obligations before the offer is fully paid, KDOR will rescind the agreement. State tax liens also remain in place until the offer is accepted and all terms are satisfied. Additionally, if KDOR discovers within four years that the petition contained fraudulent information, the abatement may be reversed and the full original liability reinstated.
Yes, and working with a licensed tax professional is often advisable given the complexity of the PFA process. If you are represented by an attorney, accountant, or other authorized representative, you must complete and include Form DO-10 (Power of Attorney) so that KDOR can legally share confidential tax information with that person on your behalf.
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