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Archive for Monday, January 4, 2010

Department of Revenue resolves tax disputes leading to $40 million in revenue

January 4, 2010

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State recovers millions

State coffers are getting millions of dollars in unexpected money. The state recovered about $40 million from tax bills disputed by taxpayers. Enlarge video

— The Kansas treasury will receive approximately $40 million as part of negotiations in disputed tax cases, Kansas Department of Revenue Secretary Joan Wagnon said Monday.

“I think we got the best deal for the taxpayers,” Wagnon said. “We did not have a fire sale.”

The news comes as state agencies struggle to deal with budget cuts amid dwindling tax revenues.

Auditors and attorneys for the Revenue Department helped clear disputed corporate income tax, sales tax and privilege tax cases, Wagnon said.

These were cases that had been in dispute for several years with legitimate claims on both sides, Wagnon said.

The collection of taxes made December corporate income tax look better than expected.

Still the Legislature faces an approximately $300 million budget shortfall when it starts the 2010 session on Monday.

In 2003, Wagnon oversaw a tax amnesty program that brought in about $25 million in unpaid taxes.

Comments

wastewatcher 4 years, 6 months ago

Naturally the Secretary wouldn't admit to a fire sale, why not tell us the amount of taxes that were forgiven to get the 40 million. A good reporter would uncover this amount and print it so the public can decide if there was a fire sale or not. Is the reporter protecting the Secretary and fronting for her?

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finance 4 years, 6 months ago

Quite the busybody, aren't you? Or do you prefer to be known as an urban skeptic? Either way, howwww sophisticated of you; I'm amazed and ohhh so impressed. Nice that you're protecting me; sorry I don't really appreciate it. Clever screen name too.

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leedavid 4 years, 6 months ago

So Finance......uh what did you think about the article?

When I read it I also wondered... we got 40 million out of how much money that was owed. Seemed like a fair and reasonable question and that anyone doing complete research would have the answer.

What is the message here? If you owe taxes, don't pay, wait and settle for less. That is what I read.

P.S. my clever screen name is my name....clever huh?

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KsTwister 4 years, 6 months ago

Kansas legislature should be ashamed to have an article pronounce that `they' failed to oversee accounts to get it that high to begin. Now tell me about something better managed in 2008 and 2009 so I can decide who stays and who goes.

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ralphralph 4 years, 6 months ago

It clearly is a fire sale.
But whatever gets you through the current fiscal year is always most important, isn't it? Weren't you paying attention when former Gov Chatty Kathy was cooking the books to get by? The tail never comes back around and whips you next year, does it?

As to names ... Wastewatcher ... is it clockwise or counterclockwise? Never can keep that straight...

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conqdad 4 years, 6 months ago

The Kansas legislature did not fail to oversee anything. Like all taxpayers, corporations file their return and when they are audited any amount the state says they owe above the amount they paid on their return becomes in dispute. Avoiding a protracted court battle by negoitiating a settlement is a win for both sides.

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mdfraz 4 years, 6 months ago

conqdad, don't you know better than to use reason and logic on these boards?

Settlements often times will end up dropping penalties and interest, or at least a portion of it, and the tax owed is many times paid in full. Not always, but many times the "settlement" comes in the form of dropping the amount of penalties. Would it be better to drag the cases out for another year, not knowing what the outcome will be (another reason for settlement.......certainty), while schools are being underfunded, people are being laid off, and the state scrounges to just find enough money to pay their employees? Yeah, that's a better idea. If DOR WASN'T bringing in these monies, people would whine about that too, especially in such a budget crunch.

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