SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2106
As Amended by Senate Committee of the Whole

Brief*
HB 2106, as amended, would amend income tax law
related to fraudulently obtained income, income tax return
filings, income tax withholding, and retirement and social
security income.
The bill would be in effect upon publication in the
Kansas Register.

Fraudulent Compensation
The bill would clarify that victims of identify theft would
not owe Kansas individual income tax on any compensation
that was fraudulently obtained by another individual and
would require the Department of Revenue to provide a
method for any taxpayer to report whether the taxpayer was a
victim of fraud and the amount of fraudulent income for the
taxpayer reported to the Internal Revenue Service.

Income Tax Returns
The bill would extend the deadline for the filing of
Kansas corporation income tax returns to one month after the
due date established under federal law. The bill would also
provide that no late-filing penalty could be assessed on
taxpayers filing state corporation income tax returns when the
return is filed within 30 days after having received extensions
to file federal returns by the Internal Revenue Service.
____________________
*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
 For all taxpayer returns other than corporate returns, the
bill would provide for filing deadlines to be the due date
established by the federal Internal Revenue Code, including
any applicable extensions granted by the Internal Revenue
Service.
The provisions of the bill would be applicable to returns
for tax year 2020 and all future years.

Income Tax Withholding
The bill would provide that for tax year 2021, for wages
paid to employees temporarily teleworking in a state other
than their primary work location, employers would have the
option to withhold income taxes based on the state of each
employee’s primary work location instead of the state where
the employee in which the employee is teleworking.

Social Security and Retirement Income
The bill would, beginning in tax year 2021, exempt social
security benefits and amounts received by retired individuals
under all retirement plans from the Kansas income tax to the
extent such income is included in federal adjusted gross
income.

Background
The bill was introduced by the House Committee on
Taxation at the request of a representative of the Kansas
Chamber of Commerce.

House Committee on Taxation
In the House Committee hearing on January 27, 2021, a
representative of the Kansas Chamber of Commerce testified
as a proponent of the bill, stating the bill would resolve a
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conflict between state and federal filing deadlines in a way
that would make state filings more practical for taxpayers.
Written-only proponent testimony was provided by a
representative of the Council on State Taxation.
No other testimony was provided.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, a representative of
the Kansas Chamber of Commerce testified as a proponent
of the bill, stating the bill would resolve a conflict between
state and federal filing deadlines in a way that would make
state filings more practical for taxpayers.
Written-only proponent testimony was provided by a
representative of the Council on State Taxation.
No other testimony was provided.
The Senate Committee amended the bill to conform the
individual income tax return filing deadline to the federal
deadline and to insert the provisions related to fraudulently
obtained compensation and retirement income.
Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
provide employers with withholding flexibility for certain
employees and exempt social security benefits from Kansas
income tax.
Fiscal Information
A fiscal note on the amended bill was not immediately
available.
Taxation; income tax; fraudulent compensation; retirement income; social security
benefits

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Statutes affected:
As introduced: 79-3221
As Amended by Senate Committee: 79-3221, 79-32
{As Amended by Senate Committee of the Whole}: 79-3296, 79-3221, 79-32
Enrolled: 12-189a, 13-13a39, 79-32, 79-3602, 79-3603, 79-3620, 79-3703, 79-3710