Session of 2000
SENATE BILL No. 408
By Committee on Assessment and Taxation
1-12
9 AN ACT
relating to confidentiality requirements concerning income tax
10 returns; amending
K.S.A. 1999 Supp. 79-3234 and repealing the ex-
11 isting section.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section
1. K.S.A. 1999 Supp. 79-3234 is hereby amended to read as
15 follows: 79-3234. (a) All reports and
returns required by this act shall be
16 preserved for three years and thereafter
until the director orders them
17 to be destroyed.
18 (b) Except in
accordance with proper judicial order, or as provided
19 in subsection (c) or in K.S.A. 17-7511,
subsection (g) of K.S.A. 46-1106,
20 K.S.A. 46-1114, or K.S.A. 79-32,153a, and
amendments thereto, it shall
21 be unlawful for the director, any deputy,
agent, clerk or other officer,
22 employee or former employee of the
department of revenue or any other
23 state officer or employee or former state
officer or employee to divulge,
24 or to make known in any way, the amount of
income or any particulars
25 set forth or disclosed in any report,
return, federal return or federal return
26 information required under this act; and it
shall be unlawful for the di-
27 rector, any deputy, agent, clerk or other
officer or employee engaged in
28 the administration of this act to engage in
the business or profession of
29 tax accounting or to accept employment,
with or without consideration,
30 from any person, firm or corporation for
the purpose, directly or indi-
31 rectly, of preparing tax returns or reports
required by the laws of the state
32 of Kansas, by any other state or by the
United States government, or to
33 accept any employment for the purpose of
advising, preparing material
34 or data, or the auditing of books or
records to be used in an effort to
35 defeat or cancel any tax or part thereof
that has been assessed by the
36 state of Kansas, any other state or by the
United States government.
37 (c) Nothing in
this section shall be construed to prohibit the publi-
38 cation of statistics, so classified as to
prevent the identification of partic-
39 ular reports or returns and the items
thereof, or the inspection of returns
40 by the attorney general or other legal
representatives of the state. Nothing
41 in this section shall prohibit the post
auditor from access to all income
42 tax reports or returns in accordance with
and subject to the provisions of
43 subsection (g) of K.S.A. 46-1106 or K.S.A.
46-1114, and amendments
2
1 thereto. Nothing in this section
shall be construed to prohibit the disclo-
2 sure of taxpayer information from
income tax returns to persons or en-
3 tities contracting with the secretary
of revenue where the secretary has
4 determined disclosure of such
information is essential for completion of
5 the contract and has taken
appropriate steps to preserve confidentiality.
6 Nothing in this section shall be
construed to prohibit the disclosure of
7 job creation and investment
information derived from tax schedules re-
8 quired to be filed under the Kansas
income tax act to the secretary of
9 commerce. Nothing in this section
shall be construed to prohibit the dis-
10 closure of income tax returns to the
state gaming agency to be used solely
11 for the purpose of determining
qualifications of licensees of and applicants
12 for licensure in tribal gaming. Any
information received by the state gam-
13 ing agency shall be confidential and
shall not be disclosed except to the
14 executive director, employees of the
state gaming agency and members
15 and employees of the tribal gaming
commission. Nothing in this section
16 shall be construed to prohibit the
disclosure of the taxpayer's name, last
17 known address and residency status to the
department of wildlife and
18 parks to be used solely in its license
fraud investigations. Nothing in this
19 section shall prohibit the disclosure of
the name, residence address, em-
20 ployer or Kansas adjusted gross income of a
taxpayer who may have a
21 duty of support in a title IV-D case to the
secretary of the Kansas de-
22 partment of social and rehabilitation
services for use solely in administra-
23 tive or judicial proceedings to establish,
modify or enforce such support
24 obligation in a title IV-D case. In
addition to any other limits on use, such
25 use shall be allowed only where subject to
a protective order which pro-
26 hibits disclosure outside of the title IV-D
proceeding. As used in this
27 section, "title IV-D case" means a case
being administered pursuant to
28 part D of title IV of the federal social
security act (42 U.S.C. § 651 et
29 seq.) and amendments thereto. Any
person receiving any information un-
30 der the provisions of this subsection shall
be subject to the confidentiality
31 provisions of subsection (b) and to the
penalty provisions of subsection
32 (d).
33 (d) Any violation
of subsection (b) or (c) is a class B nonperson mis-
34 demeanor and, if the offender is an officer
or employee of the state, such
35 officer or employee shall be dismissed from
office.
36
(e) Notwithstanding the provisions of this section, the
secretary of
37 revenue may permit the commissioner of
internal revenue of the United
38 States, or the proper official of any state
imposing an income tax, or the
39 authorized representative of either, to
inspect the income tax returns
40 made under this act and the secretary of
revenue may make available or
41 furnish to the taxing officials of any
other state or the commissioner of
42 internal revenue of the United States or
other taxing officials of the fed-
43 eral government, or their authorized
representatives, information con-
3
1 tained in income tax reports or
returns or any audit thereof or the report
2 of any investigation made with
respect thereto, filed pursuant to the in-
3 come tax laws, as the secretary may
consider proper, but such information
4 shall not be used for any other
purpose than that of the administration
5 of tax laws of such state, the state
of Kansas or of the United States.
6
(f) Notwithstanding the provisions of this section, the
secretary of
7 revenue may:
8
(1) Communicate to the executive director of the Kansas
lottery in-
9 formation as to whether a person,
partnership or corporation is current
10 in the filing of all applicable tax returns
and in the payment of all taxes,
11 interest and penalties to the state of
Kansas, excluding items under formal
12 appeal, for the purpose of determining
whether such person, partnership
13 or corporation is eligible to be selected
as a lottery retailer;
14 (2) communicate
to the executive director of the Kansas racing com-
15 mission as to whether a person, partnership
or corporation has failed to
16 meet any tax obligation to the state of
Kansas for the purpose of deter-
17 mining whether such person, partnership or
corporation is eligible for a
18 facility owner license or facility manager
license pursuant to the Kansas
19 parimutuel racing act; and
20 (3) provide such
information to the president of Kansas, Inc. as re-
21 quired by K.S.A. 1999 Supp. 74-8017, and
amendments thereto. The
22 president and any employees or former
employees of Kansas, Inc. re-
23 ceiving any such information shall be
subject to the confidentiality pro-
24 visions of subsection (b) and to the
penalty provisions of subsection (d).
25 (g) Nothing in
this section shall be construed to allow disclosure of
26 the amount of income or any particulars set
forth or disclosed in any
27 report, return, federal return or federal
return information, where such
28 disclosure is prohibited by the federal
internal revenue code as in effect
29 on September 1, 1996, and amendments
thereto, related federal internal
30 revenue rules or regulations, or other
federal law.
31 Sec. 2. K.S.A. 1999 Supp.
79-3234 is hereby repealed.
32 Sec. 3. This act shall
take effect and be in force from and after its
33 publication in the statute book.