A Kansas voluntary disclosure agreement (VDA) is a written arrangement with the Kansas Department of Revenue (KDOR) that lets an eligible business disclose past Kansas tax obligations, file the required returns, and pay the tax due. KDOR’s program provides a limited three-year look-back and does not impose late-filing and late-payment penalties; statutory interest remains due.
Businesses may contact KDOR anonymously to explore a disclosure. To qualify, the taxpayer must not already have been contacted by KDOR or the Multistate Tax Commission about the tax being disclosed, must not be under audit for that tax, and must not have failed to file because of fraud or gross negligence. The details and proposed terms are reviewed on the facts of each case.
Kansas deserves particular attention for ecommerce sellers because local jurisdictions add their own rates to the state rate, producing one of the country’s highest combined state-and-local rates in some locations. Kansas is not a home-rule state for local sales tax administration: KDOR administers collection and reporting of state and local sales taxes through a combined system.
What a Kansas voluntary disclosure agreement does
A VDA is a way to come forward about past tax obligations before KDOR or the Multistate Tax Commission contacts you about the tax at issue. The business describes its Kansas activities and proposed disclosure in writing. KDOR reviews the facts and may approve the request, reject it, or propose different terms. If approved, the department provides a draft agreement for review.
The agreement is not a blanket release from every Kansas tax or every period. It applies to the tax types and periods covered by the agreed disclosure, and the business must meet the agreement’s filing and payment requirements. KDOR’s published program describes a limited three-year look-back, no late-filing or late-payment penalties, and interest at the statutory rate on tax due.
Who qualifies for Kansas’s voluntary disclosure program?
KDOR says the program is available to domestic and foreign taxpayers subject to a tax administered by its Division of Taxation. The department evaluates each request on its own facts. A business that has an unfiled Kansas sales or use tax obligation may be a candidate, but eligibility is not automatic.
The published criteria require that the taxpayer has not been contacted by KDOR or the Multistate Tax Commission about the tax for which disclosure is requested, is not under audit for that tax, and did not fail to file because of fraud or gross negligence. The written request also asks about prior filing and payment history, other outstanding Kansas tax liabilities, whether Kansas tax was collected, and why returns were not filed. Confirm eligibility with KDOR before disclosing identifying information.
What can create sales tax nexus in Kansas?
Nexus is the connection that can require a business to register, collect, and remit tax. For an ecommerce seller, relevant Kansas activities can include having property or inventory in the state, employees or sales representatives working there, and third parties installing or repairing property sold to Kansas customers. KDOR’s VDA application asks businesses to describe these activities, deliveries into Kansas, and how often the business or its representatives conduct business in the state.
Remote sellers can also have economic nexus. KDOR’s current guidance describes a gross-sales threshold for remote sellers and explains that collection obligations begin when the threshold is met. Because the threshold’s application depends on the seller’s facts and current rules, check KDOR’s current remote-seller guidance rather than relying on an old calculation. Marketplace sales, direct sales, inventory, and other in-state activities should be reviewed together.
Which Kansas taxes can a VDA cover?
KDOR’s voluntary disclosure program applies to any tax administered by its Division of Taxation, not only sales tax. For an ecommerce or cross-border seller, the relevant disclosure may involve Kansas retailers’ sales tax, retailers’ compensating use tax, or another Kansas-administered tax if the business’s activities create that obligation. The tax types and periods must be identified in the written proposal and accepted in the agreement.
Sales and use tax compliance includes the state and applicable local components. Kansas combines state and local sales taxes for reporting and remittance, so a seller should not treat local tax exposure as a separate local VDA process. Whether a particular product, service, transaction, or exemption belongs in the disclosure depends on Kansas tax rules and the transaction facts; have the sales data reviewed before estimating the liability.
Can you apply anonymously?
Yes. KDOR expressly allows taxpayers to contact the department anonymously to seek resolution of liabilities arising from past Kansas activities. The taxpayer remains anonymous while the request is being considered and until the signed agreement is returned to KDOR.
KDOR accepts telephone inquiries, but a formal request must be in writing and include a full disclosure of pertinent facts. A representative can make an initial anonymous inquiry, but the business should not assume that anonymity continues after it returns the signed agreement or provides the registration, returns, schedules, and payment required by the agreement.
How far back can Kansas assess unpaid taxes?
KDOR’s voluntary disclosure page states that the program offers a limited three-year look-back period. That is the program’s stated disclosure benefit; it should not be read as a universal limit on how far Kansas can assess tax in every situation. The applicable assessment period can depend on filing history, the tax involved, and the facts of the case.
For planning purposes, gather records for the full period of Kansas activity, not just the period you expect the agreement to cover. KDOR will review the proposed periods and facts, and the final agreement controls the disclosure terms. If the business has filed returns, collected tax, or has unusual record gaps, ask KDOR or a qualified tax professional how those facts affect the applicable period.
Are penalties and interest waived?
KDOR’s published VDA benefits state that no penalties are imposed for late filing and payment under the voluntary disclosure process. This is a program benefit for an accepted disclosure, not a guarantee that every charge or issue outside the agreement will be waived. The agreement’s scope and the taxpayer’s compliance with its terms matter.
Interest is not waived under the published program terms. KDOR states that interest is due at the statutory rate on all tax due and will issue a bill for interest after receiving the signed agreement, requested registration, returns, schedules, and tax payment. The amount depends on the liability and applicable statutory rate; confirm the calculation with KDOR.
How the Kansas VDA application process works
Start by assessing the business’s Kansas activities and identifying the taxes and periods that may be involved. KDOR’s written request calls for a business description; the nature and extent of Kansas activities; property owned or leased in Kansas; employee, representative, installation, or repair activity; inventory; delivery patterns; and the frequency of business visits. It also asks for the time in business and in Kansas, filing and payment history, contact or audit status, other outstanding Kansas liabilities, whether tax was collected, and why returns were not filed.
The request must propose the tax types and periods to report and estimate the Kansas tax due. KDOR reviews the complete written disclosure and may approve, reject, or counter-propose. If approved, the department sends a draft agreement for review. KDOR’s published instructions give the taxpayer 60 days to return the signed agreement, provide the requested registration, returns, and schedules, and pay the tax. KDOR then bills for statutory interest.
Register, file returns, and pay what you owe
Once the agreement is ready for execution, complete the registration and filing steps it requires. Kansas businesses register through the Kansas Customer Service Center, KDOR’s online registration and account system. The VDA instructions call for the requested registration, returns, and schedules to be submitted with the signed agreement and tax payment within the stated period.
Kansas sales tax combines the state rate with applicable local rates, and the correct local rate depends on the transaction’s sourcing rules and destination. KDOR publishes current local rates and rate changes; check the rate applicable to each location and period rather than applying one statewide combined rate to all orders. After the disclosure, file ongoing returns and remit tax according to the filing frequency KDOR assigns to the account.
What if Kansas has already contacted or audited you?
If KDOR or the Multistate Tax Commission has contacted you about the tax you want to disclose, or you are under audit for that tax, you do not meet the published VDA eligibility criteria for that tax. Do not assume that an anonymous inquiry can undo a prior contact or audit. The contact’s subject and scope matter, so preserve the notice and confirm your position directly with KDOR or a tax professional.
A contact or audit concerning one tax does not, by itself, answer whether a different tax can be disclosed; KDOR’s criteria refer to the tax for which voluntary disclosure is requested. Explain the full situation before proceeding. If the VDA route is unavailable, respond to the notice or audit within its stated requirements and ask KDOR about the appropriate way to address the liability.
Stay compliant after your Kansas VDA
A VDA resolves the agreed past liability; it does not replace ongoing compliance. Keep the Kansas Customer Service Center account current, file each assigned return, report the correct state and local tax, and pay by the applicable due date. Reconcile marketplace and direct-channel sales so that transactions, exemptions, returns, and payments are supported by consistent records.
Review nexus when your business changes—for example, when inventory, staff, representatives, fulfillment arrangements, or sales activity in Kansas changes. Local rates can change, so use KDOR’s current rate information for the relevant destination and period. Sales Tax Compliance USA is a people-led, done-for-you service that can help sellers review exposure, prepare a disclosure, register, and manage ongoing filings; the right approach depends on your facts and the agreement KDOR accepts.
Kansas sales tax distinctions that affect ecommerce reporting; confirm current rates and transaction treatment with KDOR.
| Issue | Kansas treatment | Practical implication |
|---|---|---|
| State and local rates | The state rate is combined with applicable city, county, and special-jurisdiction rates; local rates vary by destination. | Do not use one combined rate for every Kansas order. Check the destination-specific rate for the transaction period. |
| Delivered goods | For delivered sales, the combined rate is generally based on where the customer takes delivery. | Retain ship-to information and map each taxable sale to the correct jurisdiction. |
| Taxable services | Kansas taxes enumerated services; local sourcing for taxable services is based on where the buyer first uses the service. | Classify the service and determine its first-use location rather than assuming all services are taxable or exempt. |
| Separately stated delivery charges | KDOR says separately stated delivery charges meeting its stated invoice conditions are not included in the taxable sales price. | Keep invoices showing how delivery charges are presented; confirm the transaction meets the rule. |
| Food and food ingredients | KDOR states the state sales tax rate on food and food ingredients is 0%, while applicable local sales taxes remain in effect. | Do not assume the state treatment eliminates local tax; verify the item and destination. |
| Remote seller nexus | KDOR guidance describes an economic-nexus gross-sales threshold and collection obligations once it is met. | Review Kansas sales and other nexus activity against current KDOR guidance; do not rely on an outdated threshold calculation. |
Frequently asked questions
What is a Kansas voluntary disclosure agreement?
It is a written arrangement with the Kansas Department of Revenue for an eligible taxpayer to disclose specified past Kansas tax obligations, file required returns, and pay tax due. KDOR’s program provides a limited three-year look-back and no late-filing or late-payment penalties, but statutory interest remains due.
Who qualifies for Kansas’s voluntary disclosure program?
KDOR says the taxpayer must not have been contacted by KDOR or the Multistate Tax Commission about the tax being disclosed, must not be under audit for that tax, and must not have failed to file because of fraud or gross negligence. The department reviews each request on its facts, so meeting these criteria does not itself guarantee acceptance.
Can I apply for a Kansas VDA anonymously?
Yes. KDOR allows anonymous contact to explore resolution of past Kansas liabilities, and the taxpayer remains anonymous until the signed agreement is returned. A formal request must be written and disclose the pertinent facts.
How far back does Kansas’s voluntary disclosure program look?
KDOR describes the VDA benefit as a limited three-year look-back. This is the program’s stated period, not a universal assessment limitation for every tax situation; confirm the periods that apply to your filing history and facts.
Are penalties waived under a Kansas VDA?
KDOR states that no penalties are imposed for late filing and payment under its voluntary disclosure process. The benefit applies to an accepted disclosure and its agreed scope; it is not a guarantee about matters outside the agreement.
Is interest waived under a Kansas VDA?
No. KDOR states that statutory interest is due on all tax due and bills the taxpayer for interest after receiving the signed agreement, requested registration, returns, schedules, and tax payment.
What taxes can be included in a Kansas voluntary disclosure?
The program applies to any tax administered by KDOR’s Division of Taxation. For sellers, that may include retailers’ sales tax or retailers’ compensating use tax, depending on the facts; the written request must identify the proposed tax types and periods, and KDOR must accept the terms.
What happens if Kansas has already contacted or audited me?
If KDOR or the Multistate Tax Commission contacted you about the tax you want to disclose, or you are under audit for that tax, you do not meet KDOR’s published eligibility criteria for that tax. The scope of the contact matters, so review the notice and confirm your options with KDOR or a tax professional rather than assuming a VDA remains available.
How we handle this for you
The mechanics in Kansas are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the Kansas Department of Revenue, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Kansas.
Official sources
- https://www.ksrevenue.gov/voluntary.html
- https://www.ksrevenue.gov/kcscenter.html
- https://www.ksrevenue.gov/pub1510.html
- https://www.ksrevenue.gov/faqs-taxsales.html
- https://www.ksrevenue.gov/faqs-salestax.html
- https://www.ksrevenue.gov/pub1525.html
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.