SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 47
As Amended by House Committee of the Whole

Brief*
SB 47, as amended, would enact the Kansas Taxpayer
Protection Act (Act), requiring, on and after January 1, 2022,
paid tax return preparers to sign any income tax return
prepared by or substantially prepared by the preparer and to
include the preparer’s federal preparer tax identification
number on any such return. Any failure to do so would subject
the preparer to a civil penalty of $50 per return with a
maximum of $25,000 in civil penalties per preparer per year.
Any civil penalties assessed could be appealed pursuant to
the Kansas Administrative Procedure Act. Any penalties
collected would be deposited in the State General Fund.
The bill would authorize the Secretary of Revenue
(Secretary) to enjoin any person from acting as a paid tax
preparer by seeking a temporary or permanent order from a
court of competent jurisdiction enjoining such conduct. Under
the bill, an injunction could be issued by a court if the
preparer has engaged in any of the following conduct:
● Prepared a return that understates the taxpayer’s
liability due to an “unreasonable position,” as that
term is defined in the Internal Revenue Code;
● Prepared a return that understates the taxpayer’s
liability due to “willful or reckless conduct,” as that
term is defined in the Internal Revenue Code;
● Fails to, when required, furnish a signed copy of
the return including the preparer’s federal preparer
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 tax identification number, retain a copy of the
return, or be diligent in determining eligibility for tax
benefits;
● Negotiates a check issued to the taxpayer by the
Kansas Department of Revenue without the
permission of the taxpayer;
● Engages in any conduct subject to any criminal
penalty provided for in Chapter 79 of the Kansas
Statutes Annotated or amendments thereto;
● Misrepresents the preparer’s education,
experience, or eligibility to practice tax preparation;
● Guarantees the payment of any tax refund or the
allowance of any tax credit; or
● Engages in any other fraudulent or deceptive
conduct that substantially interferes with proper
administration of Kansas tax laws.
The bill would allow the Secretary to seek the assistance
of the Attorney General or the Attorney General’s designee in
pursuing such injunctions, and the Secretary would be
required to publish an annual report concerning such
injunctions on the website of the Kansas Department of
Revenue.
Further, the bill would provide that any person, whether
or not a resident of Kansas, submits to the jurisdiction of the
courts of the State of Kansas for purposes of such injunctions
by engaging in any conduct that could give rise to a cause of
action under the Act. The bill would provide that legal actions
brought under the Act would be brought in the district court of
Shawnee County. The Secretary would be permitted to enter
into consent judgments with respect to violations of the Act in
lieu of actions seeking injunctions.


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 Finally, the bill would authorize the Secretary to
promulgate rules and regulations necessary to carry out the
provisions of the Act.

Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of a representative
of H&R Block.

Senate Committee on Assessment and Taxation
In the Senate Committee hearing on January 26, 2021,
a representative of H&R Block testified as a proponent on
the bill, stating the provisions of the bill would protect
Kansans from the actions of fraudulent income tax return
preparers.
The Senate Committee recommended the bill be placed
on the Consent Calendar.

House Committee of the Whole
The House Committee of the Whole adopted a technical
amendment regarding the effective date of the bill.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the bill has the potential
to increase state revenues by an indeterminate amount. The
Office of Judicial Administration and the Office of the Attorney
General indicate the provisions of the bill have the potential to
increase costs for the court system and litigation costs, but
are unable to provide an estimate of the exact amount of
such costs.
Taxation; tax preparers; fraud

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Statutes affected:
Enrolled: 74-50, 79-3221, 79-32