Form K-120-Bklt Corporate Income Tax Instructions - 2012

Learning Quest 529 Education Savings Program Amount of any nonqualified withdrawal from Learning Quest taxable (e g under Public Law 86 272) (Any corporation filing using the combined income method with more than one entity doing business in Kansas may (b) the exclusion of one or more of the factors; (c) the inclusion of one or more additional factors; or (d) the employment of any other method to effect an equitable allocation and apportionment of the taxpayer s income A copy of the letter from KDOR granting the use of an alternative method must be enclosed with the return when filed Enter the amount determined on your separate schedule on line 20 Form K 120 All corporations filing a combined return (single or multiple) or authorized to file using the alternative or separate accounting method must complete lines 1 through 19 using the total combined income column from Schedule K 121 (Explain Below)identification numbers (Rev 7/12) (Tax credits for the additions that follow may be claimed on Part I of Form K 120 schedules required ) 2 Wages salaries commissions and other compensation of 3 Sales (Gross receipts less returns and allowances) 3A 3B 4A 4B 5A 4 Total Percent: Corporation A (Add lines 1A 2A & 3A) 5 Total Percent: Corporation A (Add lines 1A & 3A) A corporation not previously doing business in Kansas that intends to make this election for its initial year of business must file Form K 120EL within 60 days after filing the articles of incorporation or application for authority to engage in business with the Kansas Secretary of State A Kansas Corporate Income Tax return must be filed by all corporations doing business within or deriving income A qualifying taxpayer may elect to multiply business income by a fraction the numerator of which is the property factor plus the sales factor and the denominator of which is two A qualifying taxpayer is any taxpayer whose payroll factor for a taxable year exceeds 200% of the average of the property factor and the sales factor For additional information relating to this method and to determine if you are qualified you may review K S A 79 3279 If you qualify to use this method you are required to complete for the first year the payroll information on Form K 120AS Part VI line B or Form K 121 Part II Section 2 A schedule must be submitted with the return showing: 1) the gross income from each class of income being specifically allocated 2) the amount of each class of related expenses together with an explanation or computations showing how amounts were arrived at 3) the total amount of the related expense for each income class and 4) the net income for each income class The schedules should provide appropriate columns as set forth above for items specifically assigned to Kansas and for nonbusiness items specifically assigned outside Kansas An explanation must also be enclosed to explain specifically why each item of income arose from unusual and infrequent transactions outside of the regular course of the corporation s trade or business Accounting The taxable year for Kansas is the same as the taxable year for federal income tax purposes If your taxable year changes or the method of your accounting is changed for federal income tax purposes then the taxable year and Activity Wholly Within Kansas Consolidated: If two or more corporations file a federal income tax return on a consolidated basis and if each of such corporations derive all of their income and expenses from sources within Kansas they must file a consolidated return for Kansas income tax purposes Activity Wholly Within Kansas Single Entity: If a particular trade or business is carried on exclusively within Kansas or if the activities outside of Kansas are such that federal Public Law 86 272 prohibits another state from imposing a tax then the entire net income is subject to the Kansas income tax All applicable lines on Form K 120 and Form K 120AS must be completed Be certain to complete all boxes in the Taxpayer Information section of the return All corporations filing a combined return (single or multiple) or authorized to file using the alternative or separate accounting method must complete lines 1 through 19 using the total combined income column from Schedule K 121 All corporations must answer all of the questions in Part II All corporations must answer all questions All corporations must complete this section and indicate which of the affiliated corporations have property or payroll or sales in either the total company factors or the within Kansas factors of the apportionment formula on Part VI of the return Alternative Accounting Method: If the uniform allocation and apportionment provisions do not fairly represent the extent of the taxpayer s business activity in this state the taxpayer may petition for or the Secretary of Revenue may require in respect to all or any part of the taxpayer s business activity if reasonable: (a) Separate accounting; Amended Federal Return: If you are filing an amended federal income tax return for the same taxable year as your Kansas amended return you must enclose a complete copy of the amended federal return and full explanations Amending Amending Your Return (continued) Amortization Energy Credits Amount of amortization deduction allowed relating to Schedule K 73 K 77 K 79 K 82 or K 83 and amount of amortization deduction allowed for carbon dioxide capture sequestration or utilization machinery and equipment or waste heat utilization system property (55% of the amortization costs may be subtracted in the first year and 5% may be subtracted for each of the succeeding 9 years ) Amortization Energy Credits Amount of any amortization deduction claimed to the extent the same is claimed on the federal income tax form for deduction with regard to Credit Schedule K 73 K 77 K 79 K 82 or K 83 and any amount claimed in determining federal adjusted gross income on carbon dioxide recapture sequestration or utilization machinery and equipment or waste heat utilization system property Amount to Kansas (Line 14 Corp A & B multiplied by line 13 combined income) An extension of time to file is not an extension to pay Any corporation which files a consolidated return for federal purposes and a combined report for Kansas purposes must submit a copy of the consolidated federal Form 1120 and all other schedules and statements necessary to support the taxable income reported on the Kansas return Schedule K 121 must be used to determine income of the corporation Schedule K 121 single entity Kansas taxable income is then shown on line 20 Form K 120 The single entity tax from Schedule K 121 is entered on line 24 Form K 120 All corporations filing a combined return (single or multiple) must complete lines 1 through 19 of Form K 120 using the total combined income column from Schedule K 121 Any taxpayer that claims nonbusiness income on the Kansas return is required to clearly demonstrate that the transaction or activity which gave rise to the income was unusual in nature and infrequent in occurrence and tangible or intangible property or assets were not used in the operations of the taxpayer s regular trade or business The taxpayer must also submit a schedule as required below If the taxpayer does not demonstrate that the income is nonbusiness and does not submit required schedule(s) the income will be considered to be business income by KDOR and the department will apportion it as business income Apportionable business income (Subtract line 12 from line 11) APPORTIONMENT and ALLOCATION Assistance BALANCE DUE Beg of Year Beginning and Ending Dates: Enter the beginning and ending dates of the corporation s tax year even if it is a calendar year Board of Regents Bonds for Kansas Colleges & Universities Business A taxpayer may elect to have all income derived from the acquisition management use or disposition of tangible and intangible property treated as business income The election is effective and irrevocable for the taxable year of the BUSINESS IN KANSAS Business Income: For tax years commencing after December 31 2007 business income means: 1) Income arising from transactions and activity in the regular course of the taxpayer s trade or business; 2) income arising from transactions and activity involving tangible and intangible property or assets used in the operation of the taxpayer s trade or business; or 3) income of the taxpayer that may be apportioned to this state under the provisions of the Constitution of the United States and laws thereof except that a taxpayer may elect that all income constitutes business income BUSINESS MACHINERY & EQUIPMENT CREDIT (K 64) The credit for property tax paid on machinery and equipment is no longer available By multiplying the investment funds service corporation s qualifying business income from administration distribution and management services provided to each investment company by a fraction the numerator of which shall be the average of the number of shares owned by the investment company s fund shareholders residenced in this state at the beginning of and at the end of the investment company s taxable year that ends with or within the investment funds service corporation s taxable year and the denominator of which shall be the average of the number of shares owned by the investment company s fund shareholders everywhere at the beginning of and at the end of the investment company s taxable year that ends with or within the investment funds service corporation s taxable year Calendar Year: If your return is based on a calendar year it must be filed by April 15 2013 Combined Income Method Multiple Corporation Filing: This method is the same as Combined Income Method Single Corporation Filing except that any corporation filing using the combined income method with more than one entity doing business in Kansas may file one Kansas return reporting the total combined income on that return and computing and paying the tax due on that return Schedule K 121 must be used to determine the Kansas taxable income of each separate corporation Schedule K 121 combined Kansas taxable income is then entered on line 20 Form K 120 The tax rate is then applied to the Kansas taxable income of each corporation with one surtax exemption allowed for each corporate taxpayer The total tax due for all corporations is then shown on line 24 Form K 120 All corporations filing a combined return (single or multiple) must complete lines 1 through 19 of Form K 120 using the total combined income column from Schedule K 121 COMBINED INCOME METHOD OF REPORTING Combined Income Method Single Corporate Filing: When a group of corporations conduct a unitary business both within and outside of Kansas the source of income shall be determined by the combined income approach The combined income approach is the computation by formula apportionment of the business income of a unitary trade or business properly reportable to Kansas by members of a unitary group The property payroll or sales factor for each member of a unitary business shall be determined by dividing the property payroll or sales figure for Kansas by the total property payroll or sales figure of the entire group The average is multiplied by the income of the unitary group to determine the income of the company derived from sources in Kansas Combined report income (Subtract line 19 from line 18 Enter the result on line 20 page 1 Form K 120) Common Carrier Method: All business income of railroads and interstate motor carriers of persons or property for hire shall be apportioned to this state on the basis of mileage For railroads multiply the business income by a fraction the numerator of which is the freight car miles in this state and the denominator of which is the freight car miles everywhere For interstate motor carriers multiply the business income by a fraction the numerator of which is the total number of miles operated in this state and the denominator of which is the total number of miles operated everywhere Community Service Contribution Credit Amount of any charitable contribution claimed on your federal return used to compute the Community Service Contribution Credit on Schedule K 60 Completing Your Return confidence by law KDOR the IRS (Internal Revenue Service) the Multi state Tax Commission and several other Confidential Consistency in Reporting Corporate Income Tax Corporation A Corporation A Within Kansas Corporation B (Add lines 1B & 3B) If qualified and utilizing two factor formula Corporation B (Add lines 1B 2B & 3B) If utilizing three factor formula Corporation B (To Line 14 Part I Page 1) Average percent of line 4 or 5 whichever is applicable 6 Average Percent: Corporation A (To Line 14 Part I Page 1) 6B Corporation B Eliminations Combined Income Credit Card payments for your Kansas tax can be made on line or by phone through third party vendors Services and fees vary but all vendors accept major credit cards Visit our web site for a list of vendors authorized to accept payments for Kansas day of the fourth month following the end of your tax year File Conformity to Federal Due Dates: Kansas returns are due one (1) month after the federal due date If the original federal due date is not the 15th day of the third month after the close of a taxable year the corporation is required to complete item I in the taxpayer information section of Form K 120 and enclose a letter indicating the authorizing federal statute Do not enter your extended due date Amended Returns: If the amended return will result in a refund then it must be filed within three (3) years from the date the original return was due including any extensions allowed pursuant to law or two (2) years from the date the tax claimed to be refunded or against which the credit claimed was paid whichever of such periods expires later Mail your Corporate Income Tax return and any payment due to the following address: KANSAS CORPORATE TAX KANSAS DEPARTMENT OF REVENUE 915 SW HARRISON ST TOPEKA KS 66699 4000 Definitions Definitions (continued) Descriptions of each of the factors in the three factor formula follow The laws applicable to these factors are contained in K S A 79 3280 through K S A 79 3287 The applicable regulations are contained in K A R 92 12 84 through K A R 92 12 103 all of which can be found in our Policy Information Library at: ksrevenue org Direct Payment can be made through our on line business center KS WebTax using Electronic Funds Transfer (EFT) or through IRS e File software Direct payments can also be made by telephone To use the telephone service go to our web site and complete Form EF 101 Authorization for Electronic Funds Transfer After you receive confirmation that the EF 101 has been processed make your payment by calling the EFT Payment System at 1 877 600 5640 Disabled Access Credit Amount of depreciation deduction or business expense deduction claimed on your federal return that was used to determine the disabled access credit on your Schedule K 37 Dividends DO NOT include interest income or obligations of the state of Kansas or any Kansas political subdivision issued after December 31 1987 or the following bonds exempted by Kansas law: Docking State Office Building 1st floor FAX: (785) 291 3614 915 SW Harrison Street Topeka KS 66625 2007 HOURS: 8:00 a m to 4:45 p m (M F) election and the following nine taxable years The election is binding on all members of a unitary group of corporations Election To make this election a corporation must file Form K 120EL with KDOR within the time limits established by law Electrical Generation Revenue Bonds Electrical Generation Revenue Bonds Gain from the sale of Electrical Generation Revenue Bonds that was included in your federal taxable income Electronic Electronic Options 20 employees related to business income included in return Employer Identification Number (EIN) ENCLOSE A COPY OF FEDERAL FORM 851 WITH THIS SCHEDULE Enclose a schedule showing the name of each U S Government obligation interest deduction claimed End of Year 1a Value of owned real and tangible personal property used in the business at original cost Inventory Depreciable Assets Land Other Tangible Assets (Enclose schedule) Less: Construction in Progress Total Property to be Averaged Average Owned Property (Beg + End 2) 1 b Net annual rental property Multiplied by 8 TOTAL PROPERTY Enter separate corporate names and federal Enter the amount determined on your separate schedule on line 20 Form K 120 All corporations filing a combined return (single or multiple) or are authorized to file using the alternative or separate accounting method must complete lines 1 through 19 using the total combined income column from Schedule K 121 Estimated estimated tax and no underpayment of estimated tax penalty will be imposed for this initial year NOTE: Current year estimated payments cannot be used to off set prior year tax liabilities See K A R 92 11 22(c) Every corporation must complete the information required in this section for every affiliated corporation doing business in Kansas If additional space is needed enclose a separate schedule Every corporation must complete this section if they are claiming a modification for interest income on United States obligations on line 7 page 1 of Form K 120 Every corporation must complete this section so KDOR can verify the amount of taxes to be added back on line 3 of the return If taxes are included elsewhere in the federal return you must complete a schedule and enclose it with the Kansas return Every corporation must complete this section when claiming a Kansas tax credit If you are eligible to claim any tax credits complete the appropriate schedule and enclose it with your Kansas Corporate Income Tax return Credit schedules are available on our web site Every corporation shall pay estimated tax for the taxable year if its Kansas income tax liability can reasonably be Exempt Organizations: Any corporation exempt from federal income tax under the provisions of the IRC and who files Form 990 or Form 990EZ is exempt for Kansas income tax purposes in each year in which such corporation satisfies the IRC requirement for exemption However a corporation that is subject to the tax on unrelated business income by the IRC who files a Form 990T is also subject to the tax on unrelated business income for Kansas purposes and must file on Kansas Form K 120 expected to exceed $500 Any corporation which began business in Kansas during this tax year is not required to pay Expenditures Energy Credits Amount of any expenditures claimed to the extent the same is claimed as the basis for any credit allowed on Credit Schedule K 73 K 77 K 79 K 81 K 82 or K 83 EXPLANATION OF ELIMINATIONS: Extension of Time to File Extension of Time to File: Interest is due on any delinquent tax balance even if you have been granted an extension of time If 90% of your tax is paid on or before the original due date of your return an automatic extension is applied and no penalty is assessed Federal Audit: Any taxpayer whose income has been adjusted by the IRS must file an amended return with Kansas and include a copy of the Revenue Agent s Report or adjustment letter showing and explaining the adjustments These adjustments must be submitted within 180 days of the date the federal adjustments are paid agreed to or become final whichever is earlier Failure by the taxpayer to notify KDOR within the 180 day period shall not bar KDOR from assessing additional taxes or proceeding in court to collect such taxes Failure by the taxpayer to comply with the requirements for filing returns shall toll the periods of limitation for KDOR to assess or collect taxes Federal Forms 851 1118 and 5471 as applicable Federal Home Loan Mortgage Corporation (FHLMC) Federal National Mortgage Association (FNMA) Federal net operating loss deduction Federal schedules to support any Kansas modifications claimed on Form K 120 Federal taxable income Federal You must enclose with Form K 120 a copy of the following federal return pages as filed with the IRS Do not enclose copies of proforma returns KDOR reserves the right to request additional information as necessary File a file one Kansas return reporting the total Kansas combined income and tax on that return ) File your business taxes electronically! Our electronic filing methods are simple safe and convenient and the quickest way to receive a refund See back cover for details File& Pay Final Return: If a final return is being filed and the corporation is being liquidated enter the discontinuation date in box D and enclose a copy of the federal form that states the federal code section the corporation was liquidated under Fiscal Year: If your return is based on a tax year other than a calendar year it must be filed no later than the 15th For all taxable years beginning after December 31 2007 in the case of sales of intangible business assets only the net gains from the sale shall be included in the sales factor For corporations currently doing business in Kansas the election must be filed on or before the last day of For the taxable year beginning 20 ending 20 For your convenience Kansas offers simple electronic payment solutions for your estimate tax that are available 24 hours a day 7 days a week! There are many advantages to paying electronically no check to write or voucher to complete and mail; and you get immediate acknowledgment that your payment was received Additionally reducing paper consumption is both cost effective and environmentally friendly Visit our web site at webtax org to choose a paperless payment option Form K 120 7 Form K 120AS 11 Form K 121 18 Forms If you choose to file paper FILE the ORIGINAL form from this booklet not a copy; or a form from an approved software package Visit our web site for a list of approved software vendors To obtain a KDOR printed form call the Taxpayer Assistance Center from sources within Kansas who are required to file a federal income tax return whether or not a tax is due From the items of income directly allocated there shall be deducted the expenses related thereto The term expenses related thereto as used in this paragraph means any allowable deduction or portion thereof attributable to such income and a ratable part of any other allowable deductions which cannot definitely be allocated to some item or class of income Gains/losses from intangible asset sales General Information General Information 2 Government National Mortgage Association (GNMA) Gross proceeds from tangible asset sales Gross receipts are attributed to Kansas if with respect to a single item of income the income producing activity is performed within and without Kansas but the greater proportion of the income producing activity is performed in Kansas based on costs of performance In cases where services are performed partly within and partly without Kansas the services performed in each state will usually constitute a separate income producing activity; in such case the gross receipts for the performance of services attributable to Kansas shall be measured by the ratio which the time spent in performing such services in this state bears to the total time spent in performing such services everywhere Time spent in performing services includes the amount of time expended in the performance Gross receipts from sales of tangible personal property (except sales to the United States Government) are in this state if: If a taxpayer whose salesman operates from an office located in this state makes a sale to a purchaser in another state in which the taxpayer is not taxable and the property is shipped directly by a third party to the purchaser the following rules apply: If a unitary group of corporations consists of one or more corporations engaged in railroad or interstate motor carrier operations including the interstate transport of persons or property for hire by rail or motor carrier and one or more corporations not engaged in railroad or interstate motor carrier operations the following method shall be used to determine the apportionable income of the group members engaged in railroad or interstate motor carrier operations (a) A three factor formula consisting of property payroll and sales shall be used to divide the apportionable business income of the unitary group between each corporation engaged in railroad or interstate motor carrier operations and all other members of the unitary group The apportionment factor numerators shall consist of the property payroll and sales of each corporation engaged in railroad or interstate motor carrier operations The apportionment factor denominators shall consist of the property payroll and sales of the entire unitary group For purposes of this subsection the property payroll and sales factors shall be as defined in the uniform division of income for tax purposes act K S A 79 3271 et seq and amendments thereto and the regulations promulgated under this act (b) The apportionable business income of each corporation engaged in railroad or interstate motor carrier operations shall be determined by multiplying the apportionable business income of the unitary group by the fraction computed according to subsection (a) (c) The apportionable business income of each corporation engaged in railroad or interstate motor carrier operations as determined according to subsection (b) shall then be apportioned to this state by using the single factor mileage formula set forth in K S A 79 3279(a) and amendments thereto (d) The apportionable business income of each corporation in the unitary group that is not engaged in railroad or interstate motor carrier operations shall be determined by subtracting the amount determined in subsection (b) from the apportionable business income of the unitary group (e) The apportionable business income of each corporation in the unitary group that is not engaged in railroad or interstate motor carrier operations as determined in subsection (d) shall be apportioned to this state by using the applicable apportionment formula specified in K S A 79 3279(b) and amendments thereto K A R 92 12 114 If all three requirements are not satisfied the taxpayer shall determine Kansas taxable income by use of the apportionment formula If any due date falls on a Saturday Sunday or legal holiday substitute the next regular workday If any Taxpayer Information has changed from the last original return you filed please check the change box J If filing Form K 121 skip lines 22 and 23 and proceed to line 24 If the amount on line 34 is not paid by the due date or if a balance due return is filed after the due date penalty and interest are added according to the rules outlined in lines 35 and 36 if the taxpayer is not taxable in the state from which the property is shipped then the sale is in this state if the taxpayer is taxable in the state from which the third party ships the property then the sale is in such state; If you are a shareholder in a mutual fund that invests in both exempt and taxable federal obligations only that portion of the distribution attributable to the exempt federal obligations may be subtracted here If you are unable to complete your K 120 by the filing deadline you may request an extension of time to file If you filed federal Form 7004 with the IRS for an extension enclose a copy of that form with your completed K 120 return to automatically receive a six month extension to file your Kansas return Kansas does not have a separate extension request form If you are entitled to a refund an extension is not required to file the return after the original due date If you did not file a Kansas return when you filed your original federal return and the federal return has since been amended or adjusted use the information on the amended or adjusted federal return to complete your original Kansas return A copy of both the original and amended federal returns should be enclosed with the Kansas return along with an explanation of the changes In addition to the corporations exempt from federal income tax there shall also be exempt for Kansas income tax purposes insurance companies banks trust companies savings and loan associations and any other organizations specifically exempt under the laws of the State of Kansas (National bank associations banks trust companies and savings and loan associations are required to file a Privilege Tax return Form K 130 Insurance companies are subject to a Premium Tax ) In completing Form K 120 K 120AS and K 121 if with respect to prior tax years and to filing other states tax returns the taxpayer departs from or modifies the manner in which income has been classified as business income from nonbusiness income in valuing property or of excluding or including property in the property factor in the treatment of compensation paid in the payroll factor or in excluding or including gross receipts in the sales factor the taxpayer shall disclose by separate enclosed schedule the nature and extent of the variance or modification Only inconsistencies in the denominators of the property payroll and sales factors which materially affect the amount of business income apportioned to Kansas need to be disclosed Inconsistencies in the determination of nonbusiness income and in the denominators of the factors due to a difference in state laws or regulations must be identified by that state s statute or regulation section number and shown on the separate schedule The amount of each inconsistency by state is to be shown in Kansas (the word incidental means any service which is temporary or transitory in nature or which is rendered in connection with an isolated transaction); (c) If the employee s services are performed both inside and outside of Kansas the employee s compensation will be attributed to Kansas if: (1) the employee s base of operations is in Kansas; or (2) there is no base of operations in any state in which some part of the service is performed but the place from which the service is directed or controlled is in Kansas; or (3) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed but the employee s residence is in Kansas The term base of operation is the place from where employees begin work and to which they customarily return in order to receive instructions from the taxpayer or communications from his customers or other persons or to replenish stock or other materials repair equipment or perform any other functions necessary to the exercise of their trade or profession at some other point or points In the case of a taxpayer engaged in manufacturing and selling or purchasing and reselling goods or products sales includes all gross receipts from the sales of such goods or products (or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the income year) held by the taxpayer primarily for sale to customers in the ordinary course of its trade or business Gross receipts for this purpose means gross sales less returns and allowances and includes all interest income service charges carrying charges or time price differential charges incidental to such sales Federal and state excise taxes (including sales taxes) shall be included as part of such receipts if such taxes are passed on to the buyer or included as part of the selling price of the product In the case of a taxpayer engaged in providing services such as the operation of an advertising agency or the performance of equipment service contracts or research and development contracts sales includes the gross receipts from the performance of such services including fees commissions and similar items In the case of a taxpayer engaged in renting real or tangible property sales includes the gross receipts from the rental lease or licensing the use of the property In the case of a taxpayer engaged in the disposition of non inventory assets and property used or purchased in the regular course of business sales includes the capital gain or ordinary gain realized from such disposition The term sales does not include the return of capital or recovery of basis with respect to non inventory capital assets In the case of cost plus fixed fee contracts such as the operation of a government owned plant for a fee sale includes the entire reimbursed cost plus the fee In This Booklet Income Income tax information disclosed to KDOR either on returns or through department investigation is held in strict income taxes Individual Development Account (IDA) Credit Amount of the contribution claimed to the extent the same is the basis for claiming the IDA Credit on Schedule K 68 Industrial Revenue Bonds Information Information Requested in Boxes A through J: Complete all requested information For item A refer to page 5 For Item B enter the NAICS code For items E and F use the standard two letter state abbreviation INSTRUCTIONS FOR FORM K 120AS Interest Interest from the following are taxable to Kansas and may NOT be entered on this line: Interest on U S government obligations INTEREST RATE CHANGE For calendar year 2013 interest will be assessed at 4% per annum ( 333% per month or fraction thereof ) Penalty for late payment of income tax remains at 1% per month or fraction thereof Interstate motor carriers will multiply business income by a fraction the numerator of which is the total number of miles operated in this state and the denominator of which is the total number of miles operated everywhere IRC Section 78 and 80% of foreign dividends (Enclose schedule) IRS e File is a fast accurate and safe way to file a federal and Kansas tax return Ask your preparer about e File or visit our web site for a list of authorized e File providers and software products Jobs and WIN Tax Credit Amount of federal targeted jobs and WIN credit K 121 KANSAS KANSAS DEPT Kansas expensing deduction (See instructions for K 120EX) KANSAS EXPENSING DEDUCTION This new deduction is available to all Kansas businesses for certain qualifying machinery and equipment as well as canned computer software placed into service in Kansas starting in tax year 2012 The deduction is allowed for machinery and equipment purchased in the year that it is placed in service in Kansas and must qualify with the IRS under IRC Section 168: Modified accelerated cost recovery system (MACRS) For details see instructions for Schedule K 120EX Kansas Highway Bonds Kansas net income (Add lines 15 & 16 then subtract line 17) Kansas net operating loss deduction (Enclose schedule) Kansas Turnpike Authority Bonds Kansas Venture Capital Inc Dividends Dividend income received as a result of investing in stock issued by Kansas Venture Capital Inc KS WebTax is an on line business center and a convenient secure and easy way to manage your business accounts Businesses can make electronic payments file sales use and withholding tax returns and view on line activity KS WebTax simplifies your accounting process by having everything available in one easy to access location ksrevenue org Learning Quest Education Savings Program Amount of contributions deposited in the Learning Quest Education Savings Program or from a qualified 529 tuition program established by another state to a maximum of $3 000 per student (beneficiary) LINE 1 FEDERAL TAXABLE INCOME Enter federal taxable income after net operating loss and special deductions All corporations filing a combined return (single or multiple) or are authorized to file using the alternative or separate accounting method must complete lines 1 through 19 Combined income filers must use the total combined income column from Schedule K 121 A copy of certain pages of the federal return must be enclosed in all cases See instructions on page 3 LINE 10 TOTAL SUBTRACTIONS FROM FEDERAL TAXABLE INCOME Add lines 7 through 9 and enter the result on line 10 LINE 11 NET INCOME BEFORE APPORTIONMENT Add lines 1 through 6 and subtract line 10 LINE 12 NONBUSINESS INCOME TOTAL COMPANY Enter total amount of nonbusiness net income everywhere that is to be directly allocated LINE 13 APPORTIONABLE BUSINESS INCOME Subtract line 12 from line 11 Enter the result on line 13 LINE 14 AVERAGE PERCENT TO KANSAS Enter applicable percentages in spaces A B & C If qualified and utilizing the elective two factor formula do not enter a percentage in space B Enter on line 14 the average percent from Form K 120AS Part VI line E or K 121 Part II line 5 Round percentage to the fourth decimal point only If your business is wholly within Kansas enter 100 0000 LINE 15 AMOUNT TO KANSAS Multiply line 13 by line 14 Enter the result on line 15 LINE 16 NONBUSINESS INCOME KANSAS Enter total amount of nonbusiness net income directly allocated to Kansas Enclose a schedule to support the amount shown LINE 17 KANSAS EXPENSING DEDUCTION: Enter the amount of your Kansas expensing deduction from Schedule K 120EX and enclose a copy of your completed K 120EX and federal Form(s) 4562 Also enclose any schedule necessary to enable KDOR to reconcile the federal Form 4562 amounts to the expensing claimed on the K 120EX Important The deduction must qualify under IRC Section 168: Modified accelerated cost recovery system (MACRS) LINE 18 KANSAS NET INCOME BEFORE NOL DEDUCTION Add lines 15 and 16 then subtract line 17 Enter the result on line 18 LINE 19 KANSAS NET OPERATING LOSS (NOL) DEDUCTION Enter amount of any Kansas net operating loss carry forward to which you are entitled This amount cannot exceed amount on line 18 Submit a separate schedule to support the amount shown and any remaining carry over available LINE 2 TOTAL STATE AND MUNICIPAL INTEREST Enter interest income received credited or earned by you during the taxable year from any state or municipal obligations such as bonds and mutual funds Reduce the income amount by any related expenses (such as management or trustee fees) directly incurred in purchasing these state or political subdivision obligations LINE 20 COMBINED REPORT OR ALTERNATIVE/SEPARATE ACCOUNTING INCOME If you are filing a combined report (Schedule K 121) or are authorized to file using the alternative or separate accounting method enter on line 20 the Kansas taxable income from: line 20 of Schedule K 121; OR a separate schedule prepared by you (Separate/Alternative Method of Reporting) LINE 21 KANSAS TAXABLE INCOME Subtract line 19 from line 18 or enter the amount from line 20 whichever is applicable If the result is a negative figure enter zero LINE 22 NORMAL TAX Multiply the amount shown on line 21 by 4% and enter the result LINE 23 SURTAX Multiply the amount shown on line 21 in excess of $50 000 by 3% and enter the result LINE 24 TOTAL TAX Add lines 22 and 23 and enter result If Schedule K 121 was used to determine income enter the tax computed on Schedule K 121 line 23 LINE 25 TOTAL NONREFUNDABLE CREDITS Enter total nonrefundable credits from line 27 Part I of the Nonrefundable Credits section (cannot exceed the amount on line 24 of K 120) LINE 26 BALANCE Subtract line 25 from line 24 and enter result This amount cannot be less than zero LINE 27 ESTIMATED TAX PAID AND AMOUNT CREDITED FORWARD Enter total of all 2012 estimated tax payments you made plus any 2011 overpayment you had credited forward to 2012 LINE 27 TOTAL NONREFUNDABLE CREDITS Add lines 1 through 26 and enter the total on line 27 and on line 25 of Form K 120 This amount cannot exceed your total tax on line 24 of the Form K 120 Important If filing a combined return (K 121) the amount of nonrefundable credits for each separate entity cannot exceed that entity s tax liability LINE 28 OTHER TAX PAYMENTS Enter any withholding amounts reported on Form K 19 Enclose Form(s) K 19 LINE 29 AMOUNT PAID WITH KANSAS EXTENSION Enter amount paid with your request for an extension of time to file LINE 3 TAXES ON OR MEASURED BY INCOME OR FEES OR PAYMENTS IN LIEU OF INCOME TAXES Enter the taxes on or measured by income or fees or payments in lieu of income taxes which you deducted on your federal return in arriving at your federal taxable income Federal environmental tax must be added back to federal taxable income to the extent it is used as a deduction in arriving at federal taxable income You must complete Part IV Schedule of Taxes LINE 30 TOTAL OF OTHER REFUNDABLE CREDITS Enter total of all other refundable credits from line 37 Part I of the Refundable Credits section LINE 31 PAYMENT REMITTED ON ORIGINAL RETURN Use this line if you are filing an amended Corporate Income Tax return for the 2012 tax year Enter amount of money you remitted to KDOR with your original 2012 return or any payment remitted with a previously filed 2012 amended return including penalty and interest LINE 32 OVERPAYMENT FROM ORIGINAL RETURN Use this line ONLY if you are filing an amended income tax return for the 2012 tax year Enter amount of overpayment shown on your original return Since you were refunded the overpayment or it was credited forward the amount is a subtraction entry LINE 33 TOTAL PREPAID CREDITS Add lines 27 through 31 and subtract line 32 Enter the result on line 33 LINE 34 BALANCE DUE If line 26 is greater than line 33 subtract line 33 from line 26 and enter the result on line 34 LINE 35 INTEREST If you paid your Kansas tax after the original due date compute interest at the rate of 333% per month (or fraction thereof) on the balance due and enter the result on line 35 LINE 36 PENALTY If you paid your Kansas tax after the original due date compute the penalty at 1% for each month (or portion thereof) the return is late or the tax is unpaid on the balance due amount up to a maximum of 24% Enter this amount on line 36 LINE 37 ESTIMATED TAX PENALTY If underpayment of estimated tax penalty is due enter the amount from your Schedule K 220 on line 37 and enclose Schedule K 220 with the return If you are annualizing to compute the penalty check the box on line 37 Any corporation which began business in Kansas during this period is not required to file a declaration and no underpayment of estimate tax penalty will be imposed LINE 37 TOTAL REFUNDABLE CREDITS Add amounts on lines 28 through 36 and enter total on line 37 and line 30 of Form K 120 LINE 38 TOTAL TAX INTEREST & PENALTY DUE Add the amounts on lines 34 through 37 and enter result If amount due is more than $5 00 complete Form K 120V Corporate Payment Voucher Make check or money order payable to Kansas Corporate Tax Do not staple or attach anything to your return LINE 39 OVERPAYMENT If line 33 is greater than the sum of line 26 and line 37 subtract the sum of line 26 and line 37 from line 33 and enter the result on line 39 LINE 4 FEDERAL NET OPERATING LOSS DEDUCTION Enter the federal net operating loss deduction that was claimed on the Federal Income Tax return for the taxable year LINE 40 REFUND Enter on line 40 that part of line 39 you wish to be refunded No refunds issued on amounts less than $5 00 LINE 41 CREDIT FORWARD Enter the portion of line 39 you wish to have applied to your 2013 Kansas estimated tax (must be $1 or more) If the amount on line 39 is less than $5 00 you may carry it forward to 2013 as an additional credit even if you don t make estimated tax payments The amount on this line cannot exceed the total of lines 27 28 and 29 LINE 5 OTHER ADDITIONS TO FEDERAL TAXABLE INCOME Enter on line 5 any of the following which are additions to your federal taxable income: LINE 6 TOTAL ADDITIONS TO FEDERAL TAXABLE INCOME Add lines 2 through 5 and enter the result on line 6 LINE 7 INTEREST ON U S GOVERNMENT OBLIGATION Enter any interest or dividend income received from obligations or securities of any authority commission or instrumentality of the United States and its possessions that was included in your federal taxable income This includes U S Savings Bonds U S Treasury Bills and the Federal Land Bank You must reduce the interest amount by any related expenses (such as management or trustee fees) directly incurred in the purchase of these securities LINE 8 IRC SECTION 78 AND 80% OF FOREIGN DIVIDENDS Enter the amount included in federal taxable income pursuant to the provisions of Section 78 of the Internal Revenue Code and 80% of dividends from corporations incorporated outside of the United States or the District of Columbia which are included in federal taxable income Enclose a schedule to support the amount shown LINE 9 OTHER SUBTRACTIONS FROM FEDERAL TAXABLE INCOME Enter on line 9 a total of the following subtractions from your federal taxable income (schedule required): LINE A Property Factor The property factor shall include all real and tangible personal property owned or rented and used during the income year to produce business income Property used in connection with the production of nonbusiness income shall be excluded from the factor Property shall be included in the property factor if it is actually used or is available for or capable of being used during the income year for the production of business income Property used in the production of business income shall remain in the property factor until its permanent withdrawal is established by an identifiable event such as its sale or conversion to the production of nonbusiness income LINE B Payroll Factor The payroll factor shall include the total amount paid by the taxpayer for compensation during the tax period The total amount paid to the employees is determined upon the basis of the taxpayer s accounting method If the taxpayer has adopted the accrual method of accounting all compensation properly accrued shall be deemed to have been paid Notwithstanding the taxpayer s method of accounting at the election of the taxpayer compensation paid to employees may be included in the payroll factor by use of the cash method if the taxpayer is required to report such compensation under such method for unemployment compensation purposes The term compensation means wages salaries commissions and any other form of remuneration paid to employees for personal services Payments made to an independent contractor or any other person not properly classifiable as an employee are excluded Only amounts paid directly to employees are included in the payroll factor The compensation of any employee on account of activities which are connected with the production of nonbusiness income shall be excluded from the factor The denominator of the payroll factor is the total compensation paid everywhere during the income year LINE C Sales Factor For purposes of the sales factor of the apportionment formula the term sales means all gross receipts derived by the taxpayer from transactions and activity in the regular course of such trade or business The following are rules for determining sales in various situations: LINE D(1) TOTAL PERCENT If you are utilizing the three factor formula to apportion income to Kansas add lines A B and C LINE D(2) TOTAL PERCENT If you are qualified and are utilizing the elective two factor formula to apportion income to Kansas add lines A and C LINE E AVERAGE PERCENT Divide line D(1) or D(2) whichever is applicable by the number of factors used in the formula For instance if you are using the three factor formula and the corporation does not have payroll anywhere divide by 2 Line Instructions for Form K 120 6 LINE INSTRUCTIONS FOR FORM K 120 PAGES 1 AND 2 LINE INSTRUCTIONS FOR FORM K 120 PARTS I THROUGH V Line Instructions for Form K 120AS 15 LINES 1 THROUGH 26 Enter on lines 1 through 26 any non refundable tax credits for which you are eligible You must complete and enclose with Form K 120 the applicable credit schedule(s) LINES 28 THROUGH 36 Enter on lines 28 through 36 any refundable tax credits for which you are eligible You must complete and enclose with your K 120 the applicable credit schedule(s) method of accounting shall be similarly changed for Kansas income tax purposes Most corporations will multiply business income by a fraction the numerator of which is the property factor plus the payroll factor plus the sales factor and the denominator of which is three Name and Address: PRINT or TYPE the corporate name and address in the spaces provided Name As Shown on Form K 120 NET INCOME and TAXABLE INCOME Net income before apportionment (Subtract line 10 from line 6) Nonbusiness Income Claimed: Any taxpayer that claims nonbusiness income on the Kansas return is required to clearly demonstrate that the transaction or activity which gave rise to the income was unusual in nature and infrequent in occurrence or that the income was earned in the course of activities unrelated to the taxpayer s regular business operations in Kansas The taxpayer must also submit a schedule as required by line 12 of the Specific Line Instructions for Form K 120 If the taxpayer does not demonstrate that the income is nonbusiness and does not submit the required schedules the income will be considered to be business income by KDOR and the department will apportion that income as business income Nonbusiness income Kansas (Enclose schedule) Nonbusiness income Total company (Enclose schedule) Normal tax (4% of line 20) of a contract or other obligation which gives rise to such gross receipts Personal service not directly connected with the performance of the contract or other obligation such as time expended in negotiating the contract is excluded from the computation of all changes made on your amended Kansas return If your amended federal return is adjusted or disallowed you must provide KDOR with a copy of the adjustment or denial letter OF REVENUE Options Other additions to federal taxable income (Enclose schedule) Other income (Attach schedule) Other subtractions from federal taxable income (Enclose schedule) OVERPAYMENT Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 2 Page 3 Page 4 Page 5 Page 6 Pages 1 through 5 of the federal return or consolidated federal return whichever is applicable If a consolidated return you must enclose a company by company spreadsheet of income and expense to total the consolidated federal taxable income and a company by company spreadsheet of the consolidated balance sheet including Schedules M 1 and M 2 PART I KANSAS COMBINED NET INCOME PART I NONREFUNDABLE and REFUNDABLE CREDITS PART II ADDITIONAL INFORMATION PART III AFFILIATED CORPORATIONS DOING PART IV SCHEDULE OF TAXES PART V SCHEDULE OF INTEREST INCOME PART VI APPORTIONMENT FORMULA Part VI is to be used by corporations which derive income from sources both within and without Kansas for the purpose of allocating and apportioning income All business income is apportionable to Kansas by one of the following methods: PART VII ADDITIONAL INFORMATION PART VIII AFFILIATED CORPORATION INFORMATION Pay the full amount of tax and interest due on an amended return and no penalty will be assessed Consult the department s web site for annual interest rates Percent to Kansas (From line 6 Part II) Percentage: Corporation A (Divide Corp A by Total Co ) Percentage: Corporation A (Divide Corp A by Total Co ) Percentage: Corporation B (Divide Corp B by Total Co ) Percentage: Corporation B (Divide Crop B by Total Co ) Period Property is delivered or shipped to a purchaser within this state if the shipment terminates in this state even though the property is subsequently transferred by the purchaser to another state Property shall be deemed to be delivered or shipped to a purchaser within this state if the recipient is located in this state even though the property is ordered from outside this state PRSRT STD Purchasers in a state where the taxpayer would not be Qualified Elective Two Factor Method: This method may be used by any taxpayer who qualifies and elects to utilize the two factor formula of property and sales A qualified taxpayer is any taxpayer whose payroll factor for a taxable year exceeds 200% of the average of the property factor and the sales factor An election must be made by including a statement with the original tax return indicating that the taxpayer elects to utilize this apportionment method The election will be effective and irrevocable for the taxable year of the election and the following nine taxable years The election will be binding on all members of a unitary group of corporations Qualified Long Term Care Insurance Contracts Amount not exceeding $1000 per contract per taxpayer of the premium costs paid for qualified long term care insurance contracts as defined by Public Law 104 191 section 7702B paragraph (b) Railroads will multiply business income by a fraction the numerator of which is the freight car miles in this state and the denominator of which is the freight car miles everywhere Refunds or Credits Any refund or credit for overpayment of taxes on or measured by income or fees or payments in lieu of income taxes imposed by this state or any taxing jurisdiction to the extent included in federal taxable income Regional Foundation Contribution Credit Amount of any charitable contribution claimed on your federal return used to compute the Regional Foundation Credit on Schedule K 32 Rents Return Returned checks: A fee of $30 00 plus costs for a registered letter (currently $10 30) is charged on all returned checks Royalties Sale of Kansas Turnpike Bonds Gain from the sale of Kansas Turnpike Bonds that was included in your federal taxable income Sale of Tangible Personal Property in this State: Sales delivered or shipped to purchasers in Kansas: Sales Other Than Sales of Tangible Personal Property: K S A 79 3287 provides for the inclusion in the numerator of the sales factor of gross receipts from transactions other than sales of tangible personal property (including transactions with the United States Government) Under this section gross receipts are attributed to Kansas if the income producing activity which gave rise to the receipts is performed within Kansas or if property producing the receipts is located within Kansas Sales shipped from Kansas to: Sales to the United States Government: Gross receipts from the sales of tangible personal property to the United States Government are to be included in Kansas if the property is shipped from an office store warehouse factory or other place of storage in this state Only sales for which the United States Government makes direct payment to the seller pursuant to the terms of its contract constitute sales to the United States Government Thus as a general rule sales by a subcontractor to the prime contractor the party to the contract with the United States Government does not constitute sales to the United States Government SCHEDULE OF NONREFUNDABLE CREDITS SCHEDULE OF REFUNDABLE CREDITS Separate Accounting Method: The separate method of reporting income to Kansas is allowable only in unusual circumstances and with the permission of KDOR where the use of the three factor formula does not fairly represent the taxpayer s business activity Before a taxpayer engaged in a multistate business may use the separate accounting method the following requirements must be satisfied: Shipped from outside Kansas Shipped from within Kansas SIGNATURE and VERIFICATION Single Entity Apportionment Method: Any taxpayer having income from business activity which is taxable both within and without this state other than activity as a financial organization or the rendering of purely personal services by an individual shall allocate and apportion net income as provided in the Uniform Division of Income for Tax Purposes Act Single Factor Apportionment all years beginning after 12/31/01 and at the election of the taxpayer made at the time of filing of the original return the qualifying business income of any investment funds service corporation organized as a corporation or S corporation which maintains its primary headquarters and operations or is a branch facility that employs at least 100 individuals on a full time equivalent basis in this state and has any investment company fund shareholders residenced in this state shall be apportioned to this state as provided in this subsection as follows: Small Employer Healthcare Credit Reduce the amount of expense deduction that is included in federal taxable income by the dollar amount of the credit claimed Complete Schedule K 57 and enclose it with your return State of Kansas Department of Revenue Docking State Office Building 915 SW Harrison St Topeka KS 66612 1588 states have an agreement under which some tax information is exchanged This is to verify the accuracy and consistency of information reported on federal and Kansas tax returns Surtax (3% of amount on line 20 in excess of $50 000) Swine Facility Improvement Credit Amount of any costs claimed on your federal return and used as the basis for this credit on Schedule K 38 Tax Assistance 20 Tax Assistance Center PHONE: (785) 368 8222 Taxes on or measured by income or fees or payments in lieu of Taxpayer Filing For assistance in completing your Kansas Corporate Income Tax return contact our Taxpayer Assistance Center TAXPAYER INFORMATION The books and records are kept by recognized accounting standards to reflect accurately the amount of income of the multistate business which was realized in Kansas during the taxable period; The business operations within Kansas are separate and distinct and do not contribute to or depend upon the overall operations of the company and there are no interstate intercompany or interdivisional purchases sales or transfers during the taxable period the information provided by your fund administrator to determine the amount of taxable (non Kansas) bond interest to enter here The Kansas Corporate Tax return filed on the combined income approach must include Schedule K 121 The management functions of the business operations within Kansas are separate and distinct so that in conducting the Kansas business operations the management within Kansas did not utilize or incur centralized management services consisting of operational supervision advertising accounting insurance financing personnel physical facilities technical and research sales and servicing or purchasing during the taxable period; The numerator of the payroll factor is the total amount paid in Kansas during the income year by the taxpayer for compensation Compensation is paid in Kansas if any one of the following tests applied consecutively are met: (a) The employee s service is performed entirely within Kansas; (b) The employee s service is performed both inside and outside of Kansas but the service performed without this State is incidental to the employee s service The numerator of the property factor shall include the average value of the taxpayer s real and tangible personal property owned and used in Kansas during the income year for the production of income plus the value of rented real and tangible personal property so used Property owned by the taxpayer in transit between locations of the taxpayer shall be considered to be at the destination for purposes of the property factor Property in transit between a buyer and seller which is included by a taxpayer in the denominator of its property factor in accordance with its regular accounting practices shall be included in the numerator according to the state of destination The value of mobile or movable property such as construction equipment trucks and/or leased electronic equipment which are located within and without Kansas during the income year shall be determined for purposes of the numerator of the factor on the basis of total time within Kansas during the income year Property owned by the taxpayer shall be valued at its original cost As a general rule original cost is deemed to be the basis of the property for federal income tax purposes at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial disposition thereof by reason of sale exchange abandonment etc Property rented by the taxpayer is valued at eight times the net annual rental rate As a general rule the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the income year However the Director of Taxation may require or allow averaging by monthly values if such method of averaging is required to properly reflect the average value of the taxpayer s property for the income year The numerator of the sales factor shall include gross receipts attributable to Kansas and derived by the taxpayer from transactions and activity in the regular course of its trade or business All interest income service charges carrying charges or time priced differential charges incidental to such gross receipts shall be included regardless of the place where the accounting records are maintained or the location of the contract or other evidence of indebtedness the property is delivered or shipped to a purchaser within this state regardless of the f o b point or other conditions of sale; the property is shipped from an office store warehouse factory or other place of storage in this state and the taxpayer is not taxable in the state of the purchaser The return must be signed and sworn to by the president vice president or other principal officer If the return is prepared by a firm or corporation sign the return in the name of the firm or corporation Any person or persons who prepares the return for compensation must sign the return and provide their EIN or SSN the tax year immediately preceding the tax year for which the election is made Form K 120EL must be sent separately from the Corporate Income Tax return The term purchaser within this state shall include the ultimate recipient of the property if the taxpayer in this state at the designation of the purchaser delivers to or has the property shipped to the ultimate recipient within this state The United States Government To pay the balance due for an extension use the Kansas Corporate Payment Voucher (K 120V) and mark the box indicating an extension payment If you do not pay the tax due (may be estimated) by the original due date you will owe interest and may also be charged a penalty on any balance due Total (Add lines 1 through 5) TOTAL PAYROLL TOTAL SALES Total state and municipal interest Total subtractions (Add lines 7 8 & 9) Total tax (Add lines 21 & 22 enter on line 24 page 2 Form K 120) U S POSTAGE Unitary Business; A multistate business is unitary when the operations conducted in one state benefit or are benefited by the operations conducted in another state or states The essential test to be applied is whether or not the operation of the portion of the business within the state is dependent upon or contributory to the operation of the business outside the state If there is such a relationship the business is unitary Stated another way the test is whether a business various parts are interdependent and of mutual benefit so as to form one business rather than several business entities and not whether the operating experience of the parts are the same at all places Unitary Groups (for taxable years after December 31 1990): If any member of a unitary group has activity inReturn Kansas exceeding that protected by 15 U S C Section 381 all unitary group members having Kansas property payroll or sales must file Kansas returns and pay the tax due Corporations which elect under subchapter S of the IRC (Internal Revenue Code) not to be taxed as a corporation must file a Kansas Partnership or S Corporation return Form K 120S All other corporations must file on Form K 120 Urban Renewal Bonds If you are a shareholder in a fund that invests in both Kansas and other states bonds only the Kansas bonds are exempt Use webtax org What s New What s New 2 When a taxpayer makes sales of tangible personal property which are shipped from Kansas and assigned to a state in which the taxpayer does not file a return or report the taxpayer shall identify the state to which the property is shipped report the total amount of sales assigned to such state and furnish the facts upon which the taxpayer relies as establishing jurisdiction to tax by such state When and When property being shipped by a seller from the state of origin to a consignee in another state is diverted while enroute to a purchaser in this state the sales are in this state Where to Who Must You must complete and enclose Parts VI VII & VIII of Form K 120AS with your K 120 if the corporation is doing business within and outside of Kansas and utilizing the apportionment formula to determine Kansas income You must file an amended Kansas return when: 1) an error was made on your Kansas return 2) there is a change (error or adjustment) on another state s return 3) there is a change (error or adjustment) on your federal return Check the AMENDED box in the Taxpayer Information section of Form K 120 if you are amending your 2012 Kansas return Be sure to enclose any applicable supporting documents such as a copy of the other state s amended return or a copy of the IRS amended return or Revenue Agent s Report or adjustment letter showing and explaining the adjustments If additional tax is due complete and enclose Form K 120V marking an X in the Amended Payment box Your Return