Description of Program
The Voluntary Disclosure Program is designed to promote compliance with taxes administered by the Revenue Division of the City of Kansas City, Missouri. Taxpayers who have failed to file returns and pay any taxes due to the City may qualify. All taxes administered by the Division and any type of taxpayer are eligible. A taxpayer who files a return but underreports the tax due on the return is not eligible.
To be eligible, a taxpayer must contact the Division without any prior contact from the Division concerning the filing of a return and the payment of a tax. The contact may be made by a representative and the taxpayer may remain anonymous until the terms of the agreement are final.
Qualifying for Voluntary Disclosure
A voluntary disclosure must meet all of the following criteria:
- The Revenue Division has not contacted the taxpayer with respect to any tax for which the taxpayer is requesting voluntary disclosure.
- The taxpayer is not under audit for any tax.
- Taxpayer must not have previously filed a tax return with underreported tax.
- The taxpayer must pay the tax due plus accrued interest.
- Upon request, the taxpayer must make records available for audit to verify the amount of the taxpayer’s liability and the accuracy of the representations made by the taxpayer.
- Subsequent to the disclosure, the taxpayer must remain in compliance for all tax types.
Benefits of Voluntary Disclosure
A taxpayer whose application for a voluntary disclosure is approved will receive:
- A waiver of penalties.
- The Division will not pursue criminal penalties.
- Sixty (60) days to determine the liability and prepare the returns.
- A requirement to pay only the tax and interest due for the years included in the voluntary disclosure. Generally, five years for earnings and profits taxes and three years for business license taxes (including convention and tourism, arena fees and utility taxes).
- The Division will keep the agreement completely confidential and will not discuss the taxpayer’s taxes or any of the terms and conditions in the agreement with any tax authorities of any state or governmental authority, or with any person or party except in response to a lawful subpoena, court order, or as may be required by exchange of information agreements in effect on or before the date of the agreement.
In addition to the above, taxpayers will benefit from the voluntary disclosure process by not having to be concerned with discovery through the City’s normal investigative or audit procedures.
How to Apply
The Revenue Division will accept telephone inquiries about the program. However, formal requests to participate in the program must be in writing and must contain the following information:
- If the taxpayer is a business, a description of the taxpayer’s business.
- The nature and extent of the taxpayer’s business activities in Kansas City, Missouri.
- The length of time the taxpayer has been in business and the period of time it has conducted activities in Kansas City, Missouri.
- The taxpayer’s previous filing or payment history with the Division.
- Whether the taxpayer has been contacted by the Division regarding its liability.
- Whether the taxpayer has any outstanding liabilities for any tax administered by the Division.
- An explanation of why returns have not been filed and taxes have not been paid.
- Terms proposed by the taxpayer for the voluntary disclosure, including the type of tax and periods to be reported in the disclosure.
- An estimate of the amount of taxes due.
A request for a voluntary disclosure may be submitted to:
City of Kansas City, Missouri
Revenue Division/ Voluntary Disclosure Program
2nd Floor – East
414 E. 12th St.
Kansas City, Missouri 64106
You may also upload your request electronically. List ‘Voluntary Disclosure’ for both ‘Company Name’ and ‘Auditor’s Name’ fields. These fields MUST be completed in order for your submission to be received.
Review and Approval of Voluntary Disclosure Requests
An application will not be considered until a full written disclosure has been made setting out all pertinent facts and circumstances concerning the information required by the Revenue Division. The Division will review the facts presented, offer an agreement if appropriate, and send it to the taxpayer or representative of the taxpayer for proper signatures.
If the Division determines that the taxpayer or its representative misrepresented the information upon which the agreement is based, the agreement is void and the Division can take action to identify and recover any tax obligations as if the agreement did not exist.
Please contact the Revenue Division at 816-513-1279, or email firstname.lastname@example.org.