Form ST-21 "Kansas Sales and Use Tax Refund Application" - Kansas

What Is Form ST-21?

This is a legal form that was released by the Kansas Department of Revenue - a government authority operating within Kansas. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on June 1, 2020;
  • The latest edition provided by the Kansas Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form ST-21 by clicking the link below or browse more documents and templates provided by the Kansas Department of Revenue.

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Download Form ST-21 "Kansas Sales and Use Tax Refund Application" - Kansas

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ales &
se
T
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ax
efund
The Kansas Department of Revenue
provides refunds for individuals or businesses
that paid sales or use tax directly to the
Kansas Department of Revenue in error.
This publication provides answers to some
common questions about receiving a refund.
It also contains the applicable forms, along
with the line-by-line instructions needed to
complete them.
If you would like information about how
Kansas sales and use tax applies to your
business operations, obtain a copy of
Publication KS-1510, Kansas Sales and
Compensating Use Tax.
ksrevenue.org
Pub KS-1220
Rev. 6-20
S
U
ales &
se
T
R
ax
efund
The Kansas Department of Revenue
provides refunds for individuals or businesses
that paid sales or use tax directly to the
Kansas Department of Revenue in error.
This publication provides answers to some
common questions about receiving a refund.
It also contains the applicable forms, along
with the line-by-line instructions needed to
complete them.
If you would like information about how
Kansas sales and use tax applies to your
business operations, obtain a copy of
Publication KS-1510, Kansas Sales and
Compensating Use Tax.
ksrevenue.org
Pub KS-1220
Rev. 6-20
TABLE OF CONTENTS
Ingredient or Component Part
Frequently Asked Questions (FAQS) ........................ 2-3
Business or Retail Business Project
Hospital, School, Political Subdivision Project
Completing the Sales
Use Tax Application, ST-21 3-4
and
U.S. Government Project
Utility Exemption
Penalties .......................................................................
4
Project Exemption Certificate (PEC) Entity
Motor Vehicles, Boat, Mobile Home, Aircraft
Required Documentation ............................................ 4-7
Amended Returns
Sales and Use Tax Refund Application, ST-21
(PARTS A through D) .................................................. 8-9
Bad Debt
Exemption Claims Based on Statutes
Assignment of Right to Refund (PART E) ................. 10
Manufacturing Machinery and Equipment
Claimant/Consumer Affidavit (PART F) ..................... 11
Consumed In Production
is needed beyond what is requested, the Department of Revenue
FREQUENTLY ASKED
will contact you in writing.
QUESTIONS
Will an Assignment of Right to Refund relieve me of
providing proof of tax paid to the retailer?
No. You must still provide proof of tax paid to your vendor, such
Who can apply for this refund?
as a copy of a canceled check or an electronic copy of your accounts
Any individual or business that paid sales or use tax directly to
payable showing tax paid to vendor.
the Kansas Department of Revenue (KDOR) that was not owed and
How long to process my refund request?
was paid in error, may apply to the Department for a refund. If the
tax was paid to a retailer, the refund should be requested from that
The Department of Revenue will begin processing your refund
request after the application and all of the necessary documentation
retailer. Certain exceptions allow the Department of Revenue to
issue a refund directly to an individual or business that paid tax to a
is received. Processing the information may take up to 120 days.
retailer (see Part E of Form ST-21, Assignment of Right to Refund).
How can I find out the status of my refund application?
An individual or business that paid a tax that is administered by the
Secretary of Revenue to a county treasurer may apply directly to the
You can check on the status of your refund by calling Audit
Department of Revenue for a refund of that tax.
Services at 785-296-7108 or email at KDOR_Audit.Funds@ks.gov.
Be prepared to provide the following information: your Social Security
Is there a time limit to request a refund?
Number, your federal Employer Identification Number (EIN), the
tax type, the exact amount of refund requested, and the date you
Yes. You must file a complete sales and use tax refund claim
mailed the request.
within three years from the date the tax was due from the retailer to
the Department of Revenue. There is a unique statute of limitations
Will I be entitled to interest on my refund?
for refunds of bad debts. See page 4.
Not necessarily. After the Department of Revenue receives the
Is there a dollar limit on a refund request?
application and ALL supporting documentation, a refund will be
issued within 120 days. If the refund process take more than 120
Yes. Refund applications submitted by a retailer to the Department
days, interest will be computed from the date that the Department
of Revenue must be for taxes that total $5 or more. Refund
of Revenue received the final documentation that completes the
applications submitted directly to the Department by a consumer
application. Kansas law deems the date of receipt to be the postmark
or purchaser must be for taxes that total $50 or more. Refund
date on the package that contains the documentation or the date of
applications that do not meet these statutory threshold amounts will
mailing as certified by a private delivery company.
not be reviewed by the Department of Revenue.
What should I do if my application is returned to me as
What if I’ve never filed a tax return in Kansas?
incomplete?
In order to receive a refund, you will need to complete IRS Form
Incomplete applications will not be reviewed by the Kansas
W-9, and submit it with your refund request. The W-9 form is available
www.irs.gov
Department of Revenue. The Department of Revenue will notify you
at:
in writing and list the additional documentation you must provide to
As a retailer may I take a credit on my return instead of
complete your refund application. You will have 60 days from the
requesting a refund?
date of the written notice to submit the requested documentation. If
your refund application is still incomplete after you submit additional
A retailer should not take a deduction or credit on his/her tax
documentation or for more than 60 days from the date of the notice,
return, except for taxes refunded on returned goods. Instead, the
the Department will return your incomplete refund application. If this
retailer is required to submit a written refund application to the
happens, you will be required to file a new refund application for the
Department of Revenue.
refund in question and the statute of limitations will continue to run
Should I send documentation with the application?
until it is submitted with complete documentation.
Yes. In almost every case, documentation is required. Refer to
However, if you believe that your refund application was complete,
the specific line instructions for Form ST-21, that begin on page 3.
you may request an informal conference to review the Department of
Revenue’s determination. The letter you receive from the Department
These instructions provide the most common reasons for requesting
a refund and list the documentation required. If additional information
will explain how to request an informal conference.
2
May my CPA, attorney or consultant handle the refund
PART B – CLAIMANT (CONSUMER)
request?
Enter all requested information for the claimant in Part B.
Yes. However, you must complete and submit a
Power of
Fields marked with an asterisk require an entry in order to
Attorney form
(DO-10), that gives the Kansas Department of
process the application.
Revenue the authority to discuss confidential tax matters with your
chosen representative. If a Power of Attorney form is not included
KDOR requires authorization from the Claimant/Consumer
with your refund request, all correspondence will be sent to you. The
to allow a KDOR associate to discuss the refund request with
ksrevenue.org
Power of Attorney form is available on our website at:
any employee of the company and not only the contact person
listed on the refund application. Mark the proper box to allow
What if I owe KDOR money?
or disallow the authorization.
The Kansas Department of Revenue reserves the right to apply
A Power of Attorney form is still required documentation if
refunds to any existing debts owed to the Department, regardless
the request is prepared/filed by a 3rd party. ONLY an owner,
of the tax type.
partner, company officer or 3rd party with a Power of Attorney
accompanying the request may sign the refund application.
Where do I get additional copies of the forms?
The forms discussed in this publication, along with many other
PART C – REFUND INFORMATION
tax forms are available on our website at:
ksrevenue.org
Enter the amount of your refund request and mark the box
Where do I send my refund application?
that applies to the refund type. You must provide the applicable
Mail your completed sales tax refund application (Form ST-21),
exemption certificates with this application.
along with all required documentation to:
Kansas Department of Revenue
PART D – REFUND REQUEST SCHEDULE
Audit Services Bureau / Sales Tax Refund
PO Box 3506
Complete Part D with the information on an electronic
Topeka, KS 66601-3506
schedule, using Excel formatting, if available. Part D must
include the following:
KDOR_Audit.Funds@ks.gov
You may also email to:
– Invoice Date. Enter the month, day, and year in chronological
order.
COMPLETING THE SALES
– Invoice Number.
TAX REFUND APPLICATION
– Vendor Name.
– Description of Item(s). Provide a complete, detailed description
of the invoiced item.
Follow the instructions in this section to complete an accurate
– Retail Price.
application for a sales or use tax refund.
– Tax Paid.
Complete the application (Form ST-21) and provide the
appropriate documentation to the retailer from whom you made
– Account Code. This is the fixed asset or expense account to
the purchase.
which the item purchased is being coded in your business chart
of accounts.
The consumer may file the refund request directly with the
– Reason for Exemption. Provide a complete, detailed explanation
Kansas Department of Revenue if the retailer is no longer in
for why the item is exempt and reference the statute number
business, insolvent, moved or is unable to act. Complete Part
that supports that reason. Additional information is needed if the
F of Form ST-21 to verify the retailer’s status.
exemption is based on any of the following reasons:
If you paid the tax directly to the Department of Revenue,
• Materials consumed in production. Describe how the
then you may submit the application without going through
materials are consumed.
the retailer. Include copies of your returns and supporting
• Machinery and equipment. Describe how the equipment is
documentation when mailing Form ST-21.
used in the manufacturing process and list the fixed asset or
PART A – RETAILER (VENDOR)
expense account code with account descriptions.
• Ingredient or component part. Describe how the item
Enter all requested information for the retailer in Part A.
becomes an ingredient or component part.
Fields marked with an asterisk require an entry in order to
process the application.
PART E – ASSIGNMENT OF RIGHT TO REFUND
Mark the box that applies to your refund source and indicate
The retailer completes Part E if the retailer elects not to
whether the consumer received a refund or credit by marking
participate in the sales or use tax refund process.
the “yes” or “no” box.
KDOR requires authorization from the Retailer/Vendor to
PART F – CLAIMANT/CONSUMER AFFIDAVIT
allow a KDOR associate to discuss the refund request with
any employee of the company and not only the contact person
Complete Part F if the retailer refuses to participate in the
listed on the refund application. Mark the proper box to allow
refund process and does not respond or cannot be located.
or disallow the authorization.
Pursuant to K.A.R. 92-19-49c, you must enclose a copy of certi-
fied mail receipt(s). The certified mail receipt(s) must contain
A Power of Attorney form is still required documentation if
the retailer’s current business address. NOTE: Please ensure
the request is prepared/filed by a 3rd party. ONLY an owner,
good faith requirements are met as indicated in the Claimant/
partner, company officer or 3rd party with a Power of Attorney
accompanying the request may sign the refund application.
Consumer Affidavit, Part F.
3
• Tax paid on the invoiced item.
Required Documentation:
PENALTIES
1) Detailed explanation for the error or overpayment.
2) Explanation of how the refund amount is computed.
3) Copy of the original return(s) with backup detail to those returns
Pursuant to K.S.A. 79-3615(j), a person applying to the
such as electronic copy of the sales tax payable account to verify
department for a refund of any tax imposed under the Kansas
the tax was paid to Kansas. If filing ST-36, include Part III.
retailers’ sales tax act that was not previously collected by the
4) Copy of original source documents such as invoices, leases,
retailer, or that the retailer has already refunded to such person,
contracts, etc.
shall be subject to a penalty of 50% of the amount of any such
5) Copy of the customer payment history.
tax sought to be refunded. No such penalty shall be imposed
6) Copy of company policy for writing off bad debts and supporting
against such person if the retailer collected the tax but did not
schedules showing how the bad debts are written off.
remit such tax to the Department of Revenue.
7) Copy of federal income tax return the bad debts were claimed
on with the schedule of bad debts written off on the federal
income tax return.
REQUIRED DOCUMENTATION
EXEMPTION CLAIMS BASED ON STATUTES
l. Manufacturing Machinery and Equipment
The following instructions list the most common reasons for
[K.S.A. 79-3606(kk)]
requesting a sales or use tax refund. Select your reason from
Complete Parts A, B, C and D of Form ST-21. Part D contains
one of the listed categories. Each category lists the information
the following information and, if available, it must be submitted
and documentation that is needed to process the sales or use
tax refund request you are submitting on Form ST-21. Provide
in an electronic format.
as much of the documentation as possible. The documentation
• Invoice date (month, day and year in chronological order).
KDOR_Audit.
may be submitted via electronic media to
• Invoice number.
Funds@ks.gov. If more information is needed, the Department
• Vendor name.
of Revenue will contact you in writing.
• A complete description of the invoiced item.
IMPORTANT: The more detailed information that you can
• Retail price of the invoiced item.
provide, the more quickly we can process your request for
• Tax paid on the invoiced item.
refund.
• A complete explanation for why the item is exempt and the
supporting statute number. Also list the fixed asset or expense
AMENDED RETURNS
account code with account descriptions.
• If the purchase is for the repair of manufacturing equipment
Complete Parts A, B, C and D of Form ST-21.
explain how the piece of equipment being repaired is used in
Required Documentation:
the manufacturing process.
1) Detailed explanation for the error or overpayment.
• If the purchase is for manufacturing equipment explain
2) Copy of original invoices or other relevant documents
how the piece of equipment being purchased is used in the
verifying the transaction(s).
manufacturing process.
3) Copy of the original return(s). If filing Form ST-36, include
CAUTION: A statement of usage that only references Kansas
Part III with backup detail to those returns such as an
statutes, Kansas administrative regulations, or only provide
electronic copy of the sales tax payable account to verify
a generic description such as “repair parts” shall be deemed
the tax was paid to Kansas.
an insufficient explanation for the basis of a refund.
4) Copy of the amended return(s). If filing Form ST-36, include
Required Documentation:
Part III.
1) Copy of manufacturing machinery and equipment exemption
5) Explanation of how the refund amount is computed.
certificate.
6) Proof the sales tax was refunded to the customer, such as
2) Copy of the invoices.
one of the following:
3) Proof that tax was submitted to Kansas such as detail
a) Copy of front and back of canceled check refunding
schedules supporting the original return or an electronic
customer‘s payment; or,
copy of the sales tax payable account to verify the tax was
b) copy of irrevocable credit memo that was issued to
paid to Kansas (if request is submitted by vendor).
customer.
4) Assignment of Rights (if tax was paid to the vendor and
BAD DEBT
consumer is seeking a refund directly from Kansas).
5) Proof tax was paid (if request is submitted by consumer):
When filing a refund request for bad debt, please follow the
a) Copy of front and back of canceled check to vendor or,
guidelines as written in K.A.R. 92-19-3b.
b) electronic copy of accounts payable showing tax paid to
Complete Parts A, B, C and D of Form ST-21. Part D contains
vendor and,
the following information and, if available, it must be submitted
c) Self-assessed tax – Proof that tax was remitted to the
in an electronic format.
State, such as tax accrual schedules supporting the
taxpayer’s return. Provide accrual detail from the tax
• Invoice date (month, day and year in chronological order).
account period where the tax was originally reported
• Invoice number.
up to the refund request submission date to the Kansas
• Vendor name.
Department of Revenue. This should include accrual
• Retail price of the invoiced item.
detail for each period within the refund request up to
4
and including present accruals (electronic copy must be
III. Ingredient or Component Part
[K.S.A. 79-3606(m)]
provided, if available).
Complete Parts A, B, C and D of Form ST-21. Part D contains
6) Proof the tax was refunded to the customer (if request is
the following information and, if available, it must be submitted
submitted by vendor) such as one of the following:
in an electronic format.
a) Copy of front and back of canceled check refunding
• Invoice date (month, day and year in chronological order).
customer‘s payment; or,
• Invoice number.
b) copy of irrevocable credit memo that was issued to
• Vendor name.
customer.
• A complete description of the invoiced item.
The more detailed information that you can provide, the more
• Retail price of the invoiced item.
quickly we can process your request for refund.
• Tax paid on the invoiced item.
• A complete explanation for why the item is exempt and the
II. Consumed in Production
[K.S.A. 79-3606(n)]
supporting statute number. Also list the fixed asset or expense
Complete Parts A, B, C and D of Form ST-21. Part D contains
account code with account descriptions.
the following information and, if available, it must be submitted
• For items becoming an ingredient or component part, you
in an electronic format.
must provide a description of the item purchased and a
• Invoice date (month, day and year in chronological order).
factual description of how the item is becoming an ingredient
• Invoice number.
or component part.
• Vendor name.
CAUTION: A statement of usage that only references Kansas
• A complete description of the invoiced item.
statutes, Kansas administrative regulations, or only provide
• Retail price of the invoiced item.
a generic description such as “ingredient or component part”
• Tax paid on the invoiced item.
shall be deemed an insufficient explanation for the basis of a refund.
• A complete explanation for why the item is exempt and the
Required Documentation:
supporting statute number. Also list the fixed asset or expense
1) Copy of ingredient or component part exemption certificate.
account code with account descriptions.
2) Copy of the invoices.
• For items being consumed in the production process, you
3) Proof that tax was paid to Kansas such as detail schedules
must provide a description of the item purchased and a factual
supporting the original return or an electronic copy of the
description of how the item is consumed in the production
sales tax payable account to verify the tax was paid to
process.
Kansas (if request is submitted by vendor).
CAUTION: A statement of usage that only references Kansas
4) Assignment of Rights (if tax was paid to the vendor and the
statutes, Kansas administrative regulations, or only provide
consumer is seeking a refund directly from Kansas).
a generic description such as “supplies consumed in
5) Proof tax was paid (if request is submitted by consumer):
production” shall be deemed an insufficient explanation for the basis
a) Copy of front and back of canceled check to vendor or,
of a refund.
b) electronic copy of accounts payable showing tax paid to
Required Documentation:
vendor and,
1) Copy of consumed in production exemption certificate.
c) Self-assessed tax – Proof that tax was remitted to the
2) Copy of the invoices.
State, such as tax accrual schedules supporting the
3) Proof that tax was paid to Kansas such as detail schedules
taxpayer’s return. Provide accrual detail from the tax
supporting the original return or an electronic copy of the
account period where the tax was originally reported
sales tax payable account to verify the tax was paid to
up to the refund request submission date to the Kansas
Kansas (if request is submitted by vendor).
Department of Revenue. This should include accrual
4) Assignment of Rights (if tax was paid to the vendor and the
detail for each period within the refund request up to
consumer is seeking a refund directly from Kansas).
and including present accruals (electronic copy must be
5) Proof tax was paid (if request is submitted by consumer):
provided, if available).
a) Copy of front and back of canceled check to vendor or,
6) Proof the tax was refunded to the customer (if request is
b) electronic copy of accounts payable showing tax paid to
submitted by vendor) such as one of the following:
vendor and,
a) Copy of front and back of canceled check refunding
c) Self-assessed tax – Proof that tax was remitted to the
customer‘s payment; or,
State, such as tax accrual schedules supporting the
b) copy of irrevocable credit memo that was issued to
taxpayer’s return. Provide accrual detail from the tax
customer.
account period where the tax was originally reported
IV. Business or Retail Business Project
up to the refund request submission date to the Kansas
[K.S.A. 79-3606(cc) or K.S.A. 79-3606(hhhh)]
Department of Revenue. This should include accrual
detail for each period within the refund request up to
Complete Parts A, B, C and D of Form ST-21. Part D
and including present accruals (electronic copy must be
contains the following information and, if available, it must be
provided, if available).
submitted in an electronic format.
6) Proof the tax was refunded to the customer (if request is
• Invoice date (month, day and year in chronological order).
submitted by vendor) such as one of the following:
• Invoice number.
a) Copy of front and back of canceled check refunding
• Vendor name.
customer‘s payment; or,
• A complete description of the invoiced item.
b) copy of irrevocable credit memo that was issued to
• Retail price of the invoiced item.
customer.
• Tax paid on the invoiced item.
The more detailed information that you can provide, the more
• A complete explanation for why the item is exempt and the
quickly we can process your request for refund.
supporting statute number.
5
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