K-120EL: Business Income Election (Revision 2019-10)
Kansas · Kansas DOR · Used for tax years 2024, 2025, 2026
Kansas Form K-120EL lets a corporation elect to treat all income from the acquisition, management, use or disposal of tangible and intangible property as business income. The election is irrevocable for the selected tax year and the following nine tax years and binds all members
Who files this form
K-120EL is for taxpayers choosing the Kansas business income election. It is an optional election, not a requirement for every business.
The election treats all income from acquiring, managing, using or disposing of tangible and intangible property as business income. It also binds all members of a unitary group of corporations.
When it's due
- First year doing business in Kansas: To make the election for that initial tax year, file K-120EL within 60 days after filing the articles of incorporation or application for authority to engage in business with the Kansas Secretary of State.
- Already doing business in Kansas: File on or before the last day of the tax year immediately before the tax year for which you are making the election.
What you'll need
Have the following information ready:
- Business name, principal office address and employer identification number (EIN).
- The ending date of the tax year when the election will first take effect.
- Whether the business is currently doing business in Kansas.
- If applicable, the date the articles of incorporation or application for authority were filed with the Kansas Secretary of State.
- Whether the corporation is included in a combined report of unitary corporations. If yes, provide each corporation’s name and EIN. Attach a separate sheet if needed.
An officer of the business must sign the form and provide their title and the date.
How to file
- Type or print all requested information and answer both questions.
- Enter the corporation’s name in the election statement.
- Have an officer of the business sign and date the election and enter their title.
- Send the election separately from the income tax return, within the applicable filing time limit.
To ensure receipt, the form directs you to use certified mail. Send it to:
Kansas Corporate Income Tax
PO Box 750260
Topeka, KS 66699-0260
Common mistakes
- Sending the election with the income tax return. It must be sent separately.
- Missing the filing time limit. The deadline depends on whether the business is already doing business in Kansas or is entering Kansas for the first time.
- Leaving questions unanswered or omitting the officer’s signature. The instructions require both questions to be answered and an officer to sign.
- Assuming the election can be revoked. It is irrevocable for the election year and the following nine taxable years, and it binds all members of a unitary group.
Questions people ask
What income does this election cover?
It covers all income derived from acquiring, managing, using or disposing of tangible and intangible property, treating that income as business income.
How long does the election last?
It is effective and irrevocable for the tax year of the election and the following nine taxable years.
Does the election apply to other corporations in a unitary group?
Yes. It is binding on all members of the unitary group.
Who must sign K-120EL?
An officer of the business listed at the top of the form must sign it.
Where can I ask questions about the form?
Contact the Kansas Department of Revenue at 785-368-8222, or write to Kansas Corporate Income Tax, PO Box 750260, Topeka, KS 66699-0260.