Tax Fraud

Last updated: March 29, 2016

Tax Fraud Enforement

Noncompliance with tax laws places an unfair burden on you, the honest taxpayer.

Part of living in a free and civilized society involves the payment of taxes. This allows the government to provide an infrastructure. Infrastructure ensures citizens have a fair opportunity to prosper. The government relies on its citizens and businesses to voluntarily pay a part of their income and sales to fund

  • Education,

  • Roads and highways,

  • Social programs,

  • Criminal justice, and

  • Other services.

There are some business owners who do not fulfill Kansas tax obligations. This gives them an unjust and illegal competitive advantage over their honest competitors.

The Kansas Department of Revenue strives to uphold the integrity of Kansas tax laws. The Kansas Legislature has provided the department statutory tools to preserve a level playing field. These tools include wage garnishments, bank account levies and seizure of assets. Criminal sanctions also exist for the department to use when needed.

The Revenue Department employs a dedicated team of investigators and research analysts’.  They work to end elaborate tax schemes. These schemes include, but are not limited to,

  • Failure to file;

  • Over-stating exemptions, deductions and expenses;

  • Under-reporting taxable income and/or sales;

  • The use of fictitious information to fraudulently get a refund the taxpayer is not legally entitled to.

Revenue investigators also work closely with the Kansas Department of Labor in misclassification investigations. Misclassification is when an employee is wrongly identified as an independent contractor.

Business owners must properly determine whether individuals providing services are employees or independent contractors. The employer must

  • Withhold income taxes,

  • Withhold and pay Social Security and Medicare taxes, and

  • Pay unemployment tax on wages paid to employees.

The Departments of Revenue and Labor ensure that these unfair advantages don't happen.

To report a case of misclassification, or learn more about what misclassification of employment is, please see the information detailed here: https://www.kdor.org/misclass/.