Missouri Statute | Act | Code |Taxation And Revenue| US Code - US Statute

Sections 143.181 and 143.471 shall apply to taxable years
beginning after December 31, 1982. (L. 1983 H.B. 849 § B)

Sections 143.011 to 143.996 shall become effective on January 1,
1973; but it shall apply only with respect to taxable periods beginning
on or after January 1, 1973. The repeal of the provisions of chapter 143
shall become effective January 1, 1973, but it shall not affect any
taxable periods beginning before January 1, 1973, in any respect,
including, but not limited to, the determination of tax, interest,
penalties, procedures, and periods of limitations. Notwithstanding the
first and second sentences of this section, section 143.471, relating to
electing small business corporations, shall apply to such corporations
and their shareholders with regard to taxable periods of such
corporations ending on or after January 1, 1973. The preceding sentence
shall not apply with regard to taxable periods of electing small business
corporations beginning before January 1, 1973, if such corporation and
all of its shareholders elect to that effect with the director of revenue
on or before January 1, 1973. Notwithstanding the first four sentences of
this section, a taxpayer who has a fiscal period which includes parts of
each of the years 1972 and 1973 may determine his tax and taxable income
pursuant to the provisions of sections 143.011 to 143.996 if he files an
election to that effect with the director of revenue on or before the due
date (including extensions of time) of his return for the taxable period.
(L. 1972 S.B. 549)

Effective 1-1-73

A tax is hereby imposed for every taxable year on the Missouri
taxable income of every resident. The tax shall be determined by applying
the tax table or the rate provided in section 143.021, which is based
upon the following rates:

If the Missouri taxable income is: The tax is:

Not over $1,000.00 ...................... 1 1/2% of the Missouri

taxable income

Over $1,000 but not over $2,000 ......... $15 plus 2% of excess over
$1,000

Over $2,000 but not over $3,000 ......... $35 plus 2 1/2% of excess over
$2,000

Over $3,000 but not over $4,000 ......... $60 plus 3% of excess over
$3,000

Over $4,000 but not over $5,000 ......... $90 plus 3 1/2% of excess over
$4,000

Over $5,000 but not over $6,000 ......... $125 plus 4% of excess over
$5,000

Over $6,000 but not over $7,000 ......... $165 plus 4 1/2% of excess over
$6,000

Over $7,000 but not over $8,000 ......... $210 plus 5% of excess over
$7,000

Over $8,000 but not over $9,000 ......... $260 plus 5 1/2% of excess over
$8,000

Over $9,000 ............................. $315 plus 6% of excess over
$9,000 (L. 1972 S.B. 549)

Effective 1-1-73

Every resident having a taxable income of less than nine
thousand dollars shall determine his tax from a tax table prescribed by
the director of revenue and based upon the rates provided in section
143.011. The tax table shall be on the basis of one hundred dollar
increments of taxable income below nine thousand dollars. The tax
provided in the table shall be the amount rounded to the nearest whole
dollar by applying the rates in section 143.011 to the taxable income at
the midpoint of each increment, except there shall be no tax on a taxable
income of less than one hundred dollars. Every resident having a taxable
income of nine thousand dollars or more shall determine his tax from the
rate provided in section 143.011. (L. 1972 S.B. 549)

Effective 1-1-73

1. A husband and wife who file a joint federal income tax return
shall file a combined return. A husband and wife who do not file a joint
federal income tax return shall not file a combined return.

2. The Missouri combined taxable income on a combined return shall
include all of the income and deductions of the husband and wife. The
Missouri taxable income of each spouse shall be an amount that is the
same proportion of their Missouri combined taxable income as the Missouri
adjusted gross income of that spouse bears to their Missouri combined
adjusted gross income.

3. The tax of each spouse shall be determined by the application of
either section 143.021 or section 143.041 depending upon whether such
spouse is a resident or nonresident. Their Missouri combined tax shall be
the sum of the tax applicable to each spouse. (L. 1972 S.B. 549)

Effective 1-1-73

A tax is hereby imposed for every taxable year on the income of
every nonresident individual which is derived from sources within this
state. The tax shall be that amount which bears the same ratio to the tax
applicable to the individual if he would have been a resident as (A) his
Missouri nonresident adjusted gross income as determined under section
143.181 (Missouri adjusted gross income derived from sources within this
state) bears to (B) his Missouri adjusted gross income derived from all
sources. (L. 1972 S.B. 549)

Effective 1-1-73

1. An individual who is a resident for only part of his taxable
period shall be treated as a nonresident for purposes of sections 143.011
to 143.996. His Missouri nonresident adjusted gross income (Missouri
adjusted gross income from sources within this state) shall consist of

(1) All items that would have determined his Missouri adjusted gross
income if he had a taxable period as a resident consisting solely of the
time he was a resident, and

(2) All items that would have determined his Missouri nonresident
adjusted gross income if he had a taxable period as a nonresident
consisting solely of the time he was not a resident.

2. An individual described in subsection 1 may determine his tax as if he
were a resident for the entire taxable period. (L. 1972 S.B. 549)

Effective 1-1-73

A tax is hereby imposed upon the Missouri taxable income of
fiduciaries at the same rates as applicable to resident individuals. (L.
1972 S.B. 549)

Effective 1-1-73

1. For all tax years beginning before September 1, 1993, a tax
is hereby imposed upon the Missouri taxable income of corporations in an
amount equal to five percent of Missouri taxable income.

2. For all tax years beginning on or after September 1, 1993, a tax is
hereby imposed upon the Missouri taxable income of corporations in an
amount equal to six and one-fourth percent of Missouri taxable income.
(L. 1972 S.B. 549, A.L. 1993 S.B. 380)

(2000) Member institutions of the Farm Credit System, which are federal
instrumentalities, are exempt from state income taxation; silence of the
federal statute does not constitute express congressional consent to tax.
Production Credit Ass'n. v. Director of Revenue, 10 S.W.3d 142 (Mo.banc),
certiorari granted 120 S.Ct. 2716, 68 USLW 3725.

1. For all tax years beginning on or after January 1, 1990, but
none after December 31, 1991, the income tax rate for corporations
provided in section 143.071 shall not apply to the Missouri taxable
income of corporations. For all tax years beginning on or after January
1, 1990, but none after December 31, 1991, a tax is imposed upon the
Missouri taxable income of corporations in an amount equal to the
following percentages of Missouri taxable income.

Taxable income: Tax Not over $100,000 5% Over $100,000 but not over
$335,000 6% Over $335,000 6 1/2%

2. All provisions of this chapter relative to the levy, collection and
administration of corporation income taxes shall apply to the tax imposed
by this section, however, the amount of any tax imposed by this section
above the amount prescribed by section 143.071 shall not be an allowable
credit pursuant to section 148.030, RSMo. (L. 1989 1st Ex. Sess. S.B. 2 §
2)

Effective 7-11-89

1. A resident individual, resident estate, and resident trust
shall be allowed a credit against the tax otherwise due pursuant to
sections 143.005 to 143.998 for the amount of any income tax imposed for
the taxable year by another state of the United States (or a political
subdivision thereof) or the District of Columbia on income derived from
sources therein and which is also subject to tax pursuant to sections
143.005 to 143.998. For purposes of this subsection, the phrase "income
tax imposed" shall be that amount of tax before any income tax credit
allowed by such other state or the District of Columbia if the other
state or the District of Columbia authorizes a reciprocal benefit for
residents of this state.

2. The credit provided pursuant to this section shall not exceed an
amount which bears the same ratio to the tax otherwise due pursuant to
sections 143.005 to 143.998 as the amount of the taxpayer's Missouri
adjusted gross income derived from sources in the other taxing
jurisdiction bears to the taxpayer's Missouri adjusted gross income
derived from all sources. In applying the limitation of the previous
sentence to an estate or trust, Missouri taxable income shall be
substituted for Missouri adjusted gross income. If the tax of more than
one other taxing jurisdiction is imposed on the same item of income, the
credit shall not exceed the limitation that would result if the taxes of
all the other jurisdictions applicable to the item were deemed to be of a
single jurisdiction.

3. For the purposes of this section, in the case of an S corporation,
each resident S shareholder shall be considered to have paid a tax
imposed on the shareholder in an amount equal to the shareholder's pro
rata share of any net income tax paid by the S corporation to a state
which does not measure the income of shareholders on an S corporation by
reference to the income of the S corporation or where a composite return
and composite payments are made in such state on behalf of the S
shareholders by the S corporation.

4. For purposes of subsection 3 of this section, in the case of an S
corporation that is a bank chartered by a state, the Office of Thrift
Supervision*, or the comptroller of currency, each Missouri resident S
shareholder of such out-of-state bank shall qualify for the shareholder's
pro rata share of any net tax paid, including a bank franchise tax based
on the income of the bank, by such S corporation where bank payment of
taxes are made in such state on behalf of the S shareholders by the S
bank to the extent of the tax paid. (L. 1972 S.B. 549, A.L. 1993 S.B. 66
& 20, A.L. 1999 H.B. 701, A.L. 2002 S.B. 895, A.L. 2004 S.B. 1394)

Effective 1-1-05

*Office of Thrift Supervision, U.S. Department of the Treasury

(2001) Credit does not apply to shareholders of subchapter S corporation
which elects to pay other state's taxes as a subchapter C corporation.
Hermann v. Director of Revenue, 47 S.W.3d 362 (Mo.banc).

Any term used in sections 143.011 to 143.996 shall have the same
meaning as when used in a comparable context in the laws of the United
States relating to federal income taxes, unless a different meaning is
clearly required by the provisions of sections 143.011 to 143.996. Any
reference in sections 143.011 to 143.996 to the laws of the United States
shall mean the provisions of the Internal Revenue Code of 1986, and
amendments thereto, and other provisions of the laws of the United States
relating to federal income taxes, as the same may be or become effective,
at any time or from time to time, for the taxable year. (L. 1972 S.B.
549, A.L. 1989 H.B. 35, et al.)

Effective 1-1-90

1. "Resident" means an individual who is domiciled in this
state, unless he (1) maintains no permanent place of abode in this state,
(2) does maintain a permanent place of abode elsewhere, and (3) spends in
the aggregate not more than thirty days of the taxable year in this
state; or who is not domiciled in this state but maintains a permanent
place of abode in this state and spends in the aggregate more than one
hundred eighty-three days of the taxable year in this state.

2. "Nonresident" means an individual who is not a resident of this state.
(L. 1972 S.B. 549)

Effective 1-1-73

Notwithstanding the provisions of section 143.071, to the
contrary, a tax is hereby imposed upon the Missouri taxable income of
corporations in an amount equal to five percent of Missouri taxable
income. (L. 1993 S.B. 380 §§ B, 1)

*Contingent expiration date. See section 143.107.

(1996) Contingent referendum provision was an unconstitutional delegation
of legislative authority thereby making this section void. Akin v.
Director of Revenue, 934 S.W.2d 295 (Mo.banc).

1. Notwithstanding the provisions of section 143.171, to the
contrary, a taxpayer shall be allowed a deduction for his federal income
tax liability under chapter 1 of the Internal Revenue Code for the same
taxable year for which the Missouri return is being filed after reduction
for all credits thereon, except the credit for payments of federal
estimated tax, the credit for the overpayment of any federal tax, and the
credits allowed by the Internal Revenue Code by section 31 (tax withheld
on wages), section 27 (tax of foreign country and United States
possessions), and section 34 (tax on certain uses of gasoline, special
fuels, and lubricating oils).

2. If a federal income tax liability for a tax year prior to the
applicability of sections 143.011 to 143.996 for which he was not
previously entitled to a Missouri deduction is later paid or accrued, he
may deduct the federal tax in the later year to the extent it would have
been deductible if paid or accrued in the prior year. (L. 1993 S.B. 380
§§ B, 2)

*Contingent expiration date. See section 143.107.

(1996) Contingent referendum provision was an unconstitutional delegation
of legislative authority thereby making this section void. Akin v.
Director of Revenue, 934 S.W.2d 295 (Mo.banc).

1. Sections 143.105 and 143.106 shall become effective only if
the question prescribed in subsection 2 of this section is submitted to a
statewide vote and a majority of the qualified voters voting on the issue
approve such question, and not otherwise.

2. If* the supreme court of Missouri does not affirm in whole or in part
the decision in the case of COMMITTEE FOR EDUCATION EQUALITY, et al., v.
STATE OF MISSOURI, et al., No. CV 190-1371CC, and LEE'S SUMMIT SCHOOL
DISTRICT R-VII, et al., v. STATE OF MISSOURI, et al., No. CV 190-510CC, a
statewide election shall be held on the first regularly scheduled
statewide election date after such a ruling at which an election can be
held pursuant to chapter 115, RSMo. At such election the qualified voters
of this state shall vote on the question of whether the taxes prescribed
in sections 143.105 and 143.106 shall be applied to all taxable years
beginning on or after the date of such election and not otherwise. If the
voters approve such question, sections 160.500 to 160.538, sections
160.545 and 160.550, sections 161.099 and 161.610, RSMo, sections 162.203
and 162.1010, RSMo, section 163.023, RSMo, sections 166.275 and 166.300,
RSMo, section 170.254, RSMo, section 173.750, RSMo, and sections 178.585
and 178.698, RSMo, shall expire thirty days after certification of the
results of the election.

(L. 1993 S.B. 380 §§ C, D)

*Word "in" appears in original rolls.

(1996) Contingent referendum provision was an unconstitutional delegation
of legislative authority thereby making this section void. Akin v.
Director of Revenue, 934 S.W.2d 295 (Mo.banc).

The Missouri taxable income of a resident shall be such
resident's Missouri adjusted gross income less:

(1) Either the Missouri standard deduction or the Missouri itemized
deduction;

(2) The Missouri deduction for personal exemptions;

(3) The Missouri deduction for dependency exemptions;

(4) The deduction for federal income taxes provided in section 143.171;
and

(5) The deduction for a self-employed individual's health insurance costs
provided in section 143.113. (L. 1972 S.B. 549, A.L. 1999 H.B. 516)

1. For all taxable years beginning on or after January 1, 2000,
an individual taxpayer who is an employee within the meaning of Section
401(c)(1) of the Internal Revenue Code of 1986, as amended, shall be
allowed to subtract from the taxpayer's Missouri adjusted gross income to
determine Missouri taxable income an amount equal to the amount which the
taxpayer has paid during the taxable year for insurance which constitutes
medical care for the taxpayer, the taxpayer's spouse, and dependents to
the extent that such amounts qualify as deductible pursuant to Section
162(l) of the Internal Revenue Code of 1986, as amended, for the same
taxable year, and shall only be deductible to the extent that such
amounts are not deducted on the taxpayer's federal income tax return for
that taxable year.

2. The director of the department of revenue shall promulgate rules and
regulations to administer the provisions of this section. No rule or
portion of a rule promulgated pursuant to the authority of this section
shall become effective unless it has been promulgated pursuant to the
provisions of chapter 536, RSMo. (L. 1999 H.B. 516)

1. The Missouri adjusted gross income of a resident individual
shall be the taxpayer's federal adjusted gross income subject to the
modifications in this section.

2. There shall be added to the taxpayer's federal adjusted gross income:

(a) The amount of any federal income tax refund received for a prior year
which resulted in a Missouri income tax benefit;

(b) Interest on certain governmental obligations excluded from federal
gross income by Section 103 of the Internal Revenue Code. The previous
sentence shall not apply to interest on obligations of the state of
Missouri or any of its political subdivisions or authorities and shall
not apply to the interest described in subdivision (a) of subsection 3 of
this section. The amount added pursuant to this paragraph shall be
reduced by the amounts applicable to such interest that would have been
deductible in computing the taxable income of the taxpayer except only
for the application of Section 265 of the Internal Revenue Code. The
reduction shall only be made if it is at least five hundred dollars;

(c) The amount of any deduction that is included in the computation of
federal taxable income pursuant to Section 168 of the Internal Revenue
Code as amended by the Job Creation and Worker Assistance Act of 2002 to
the extent the amount deducted relates to property purchased on or after
July 1, 2002, but before July 1, 2003, and to the extent the amount
deducted exceeds the amount that would have been deductible pursuant to
Section 168 of the Internal Revenue Code of 1986 as in effect on January
1, 2002; and

(d) The amount of any deduction that is included in the computation of
federal taxable income for net operating loss allowed by Section 172 of
the Internal Revenue Code of 1986, as amended, other than the deduction
allowed by Section 172(b)(1)(G) and Section 172(i) of the Internal
Revenue Code of 1986, as amended, for a net operating loss the taxpayer
claims in the tax year in which the net operating loss occurred or
carries forward for a period of more than twenty years and carries
backward for more than two years. Any amount of net operating loss taken
against federal income taxes but disallowed against Missouri income taxes
pursuant to this paragraph since July 1, 2002, may be carried forward and
taken against any loss on the Missouri income tax return for a period of
not more than twenty years from the year of the initial loss.

3. There shall be subtracted from the taxpayer's federal adjusted gross
income the following amounts to the extent included in federal adjusted
gross income:

(a) Interest or dividends on obligations of the United States and its
territories and possessions or of any authority, commission or
instrumentality of the United States to the extent exempt from Missouri
income taxes pursuant to the laws of the United States. The amount
subtracted pursuant to this paragraph shall be reduced by any interest on
indebtedness incurred to carry the described obligations or securities
and by any expenses incurred in the production of interest or dividend
income described in this paragraph. The reduction in the previous
sentence shall only apply to the extent that such expenses including
amortizable bond premiums are deducted in determining the taxpayer's
federal adjusted gross income or included in the taxpayer's Missouri
itemized deduction. The reduction shall only be made if the expenses
total at least five hundred dollars;

(b) The portion of any gain, from the sale or other disposition of
property having a higher adjusted basis to the taxpayer for Missouri
income tax purposes than for federal income tax purposes on December 31,
1972, that does not exceed such difference in basis. If a gain is
considered a long-term capital gain for federal income tax purposes, the
modification shall be limited to one-half of such portion of the gain;

(c) The amount necessary to prevent the taxation pursuant to this chapter
of any annuity or other amount of income or gain which was properly
included in income or gain and was taxed pursuant to the laws of Missouri
for a taxable year prior to January 1, 1973, to the taxpayer, or to a
decedent by reason of whose death the taxpayer acquired the right to
receive the income or gain, or to a trust or estate from which the
taxpayer received the income or gain;

(d) Accumulation distributions received by a taxpayer as a beneficiary of
a trust to the extent that the same are included in federal adjusted
gross income;

(e) The amount of any state income tax refund for a prior year which was
included in the federal adjusted gross income;

(f) The portion of capital gain specified in section 135.357, RSMo, that
would otherwise be included in federal adjusted gross income;

(g) The amount that would have been deducted in the computation of
federal taxable income pursuant to Section 168 of the Internal Revenue
Code as in effect on January 1, 2002, to the extent that amount relates
to property purchased on or after July 1, 2002, but before July 1, 2003,
and to the extent that amount exceeds the amount actually deducted
pursuant to Section 168 of the Internal Revenue Code as amended by the
Job Creation and Worker Assistance Act of 2002; and

(h) For all tax years beginning on or after January 1, 2005, the amount
of any income received for military service while the taxpayer serves in
a combat zone which is included in federal adjusted gross income and not
otherwise excluded therefrom. As used in this section, "combat zone"
means any area which the President of the United States by Executive
Order designates as an area in which armed forces of the United States
are or have engaged in combat. Service is performed in a combat zone only
if performed on or after the date designated by the President by
Executive Order as the date of the commencing of combat activities in
such zone, and on or before the date designated by the President by
Executive Order as the date of the termination of combatant activities in
such zone.

4. There shall be added to or subtracted from the taxpayer's federal
adjusted gross income the taxpayer's share of the Missouri fiduciary
adjustment provided in section 143.351.

5. There shall be added to or subtracted from the taxpayer's federal
adjusted gross income the modifications provided in section 143.411. (L.
1972 S.B. 549, A.L. 1977 S.B. 46, A.L. 1986 S.B. 669, et al., A.L. 1989
H.B. 35, et al., A.L. 1990 H.B. 960, A.L. 2002 S.B. 1248, A.L. 2003 S.B.
11, A.L. 2004 S.B. 1394, A.L. 2005 S.B. 252)

Effective 5-11-05

In fiscal year 2003, the commissioner of administration shall
estimate the amount of any additional state revenue received pursuant to
section 143.121 and shall transfer an amount equal to twenty-seven
million dollars of general revenue to the schools of the future fund
created in section 163.005, RSMo. (L. 2002 S.B. 1248)

Effective 6-19-02

Any six thousand dollar subtraction provided by law for
annuities, pensions, and retirement allowances in total per taxpayer, as
hereafter provided by subsequent law, shall be implemented in a maximum
amount of six thousand dollars per year, or three thousand dollars for a
six-month period. (L. 1989 H.B. 610 § 1)

Effective 6-14-89

1. Other provisions of law to the contrary notwithstanding, the
total amount of all annuities, pensions, or retirement allowances above
the amount of six thousand dollars annually provided by any law of this
state, the United States, or any other state to any person except as
provided in subsection 4 of this section, shall be subject to tax
pursuant to the provisions of this chapter, in the same manner, to the
same extent and under the same conditions as any other taxable income
received by the person receiving it. For purposes of this section,
annuity, pension, or retirement allowance shall be defined as an annuity,
pension or retirement allowance provided by the United States, this
state, any other state or any political subdivision or agency or
institution of this or any other state. For all tax years beginning on or
after January 1, 1998, for purposes of this section, annuity, pension or
retirement allowance shall be defined to include 401(k) plans, deferred
compensation plans, self-employed retirement plans, also known as Keogh
plans, annuities from a defined pension plan and individual retirement
arrangements, also known as IRAs, as described in the Internal Revenue
Code, but not including Roth IRAs, as well as an annuity, pension or
retirement allowance provided by the United States, this state, any other
state or any political subdivision or agency or institution of this or
any other state. An individual taxpayer shall only be allowed a maximum
deduction of six thousand dollars pursuant to this section. Taxpayers
filing combined returns shall only be allowed a maximum deduction of six
thousand dollars for each taxpayer on the combined return.

2. For the period beginning July 1, 1989, and ending December 31, 1989,
there shall be subtracted from Missouri adjusted gross income for that
period, determined pursuant to section 143.121, the first three thousand
dollars of retirement benefits received by each taxpayer:

(1) If the taxpayer's filing status is single, head of household or
qualifying widow(er) and the taxpayer's Missouri adjusted gross income is
less than twelve thousand five hundred dollars; or

(2) If the taxpayer's filing status is married filing combined and their
combined Missouri adjusted gross income is less than sixteen thousand
dollars; or

(3) If the taxpayer's filing status is married filing separately and the
taxpayer's Missouri adjusted gross income is less than eight thousand
dollars.

3. For the tax years beginning on or after January 1, 1990, there shall
be subtracted from Missouri adjusted gross income, determined pursuant to
section 143.121, a maximum of the first six thousand dollars of
retirement benefits received by each taxpayer from sources other than
privately funded sources, and for tax years beginning on or after January
1, 1998, there shall be subtracted from Missouri adjusted gross income,
determined pursuant to section 143.121, a maximum of the first one
thousand dollars of any retirement allowance received from any privately
funded source for tax years beginning on or after January 1, 1998, but
before January 1, 1999, and a maximum of the first three thousand dollars
of any retirement allowance received from any privately funded source for
tax years beginning on or after January 1, 1999, but before January 1,
2000, and a maximum of the first four thousand dollars of any retirement
allowance received from any privately funded source for tax years
beginning on or after January 1, 2000, but before January 1, 2001, and a
maximum of the first five thousand dollars of any retirement allowance
received from any privately funded source for tax years beginning on or
after January 1, 2001, but before January 1, 2002, and a maximum of the
first six thousand dollars of any retirement allowance received from any
privately funded sources for tax years beginning on or after January 1,
2002. A taxpayer shall be entitled to the maximum exemption provided by
this subsection:

(1) If the taxpayer's filing status is single, head of household or
qualifying widow(er) and the taxpayer's Missouri adjusted gross income is
less than twenty-five thousand dollars; or

(2) If the taxpayer's filing status is married filing combined and their
combined Missouri adjusted gross income is less than thirty-two thousand
dollars; or

(3) If the taxpayer's filing status is married filing separately and the
taxpayer's Missouri adjusted gross income is less than sixteen thousand
dollars.

4. If a taxpayer's adjusted gross income exceeds the adjusted gross
income ceiling for such taxpayer's filing status, as provided in
subdivisions (1), (2) and (3) of subsection 3 of this section, such
taxpayer shall be entitled to an exemption equal to the greater of zero
or the maximum exemption provided in subsection 3 of this section reduced
by one dollar for every dollar such taxpayer's income exceeds the ceiling
for his or her filing status.

5. For purposes of this section, any Social Security benefits otherwise
included in Missouri adjusted gross income shall be subtracted; but
Social Security benefits shall not be subtracted for purposes of other
computations pursuant to this chapter, and are not to be considered as
retirement benefits for purposes of this section.

6. The provisions of subdivisions (1) and (2) of subsection 3 of this
section shall apply during all tax years in which the federal Internal
Revenue Code provides exemption levels for calculation of the taxability
of Social Security benefits that are the same as the levels in
subdivisions (1) and (2) of subsection 3 of this section. If the
exemption levels for the calculation of the taxability of Social Security
benefits are adjusted by applicable federal law or regulation, the
exemption levels in subdivisions (1) and (2) of subsection 3 of this
section shall be accordingly adjusted to the same exemption levels.

7. The portion of a taxpayer's lump sum distribution from an annuity or
other retirement plan not otherwise included in Missouri adjusted gross
income as calculated pursuant to this chapter but subject to taxation
under Internal Revenue Code Section 402 shall be taxed in an amount equal
to ten percent of the taxpayer's federal liability on such distribution
for the same tax year.

8. For purposes of this section, retirement benefits received shall not
include any withdrawals from qualified retirement plans which are
subsequently rolled over into another retirement plan.

9. The exemptions provided for in this section shall not affect the
calculation of the income to be used to determine the property tax credit
provided in sections 135.010 to 135.035, RSMo.

10. The exemptions provided for in this section shall apply to any
annuity, pension, or retirement allowance as defined in subsection 1 of
this section to the extent that such amounts are included in the
taxpayer's federal adjusted gross income and not otherwise deducted from
the taxpayer's federal adjusted gross income in the calculation of
Missouri taxable income. This subsection shall not apply to any
individual who qualifies under federal guidelines to be one hundred
percent disabled. (L. 1989 H.B. 674 § 1, A.L. 1997 H.B. 491, A.L. 1999
H.B. 516, A.L. 2003 H.B. 600)

Effective 7-1-03

CROSS REFERENCE: Exemptions for retirement benefits, RSMo 104.250

1. For all tax years beginning on or after January 1, 2000, the
following amounts received by an individual or returns and payments to an
individual shall be subtracted from such individual's federal adjusted
gross income, to the extent such amounts, returns or payments are
included in such individual's federal adjusted gross income:

(1) Amounts received as reparations or restitution for the loss of
liberty or life or damage to health by the victims of National Socialist
(Nazi) persecution;

(2) Returns of tangible or intangible property seized, misappropriated or
lost as a result of National Socialist (Nazi) actions or policies and any
cash values in replacement of such property;

(3) Payments of insurance policies purchased prior to December 31, 1945,
by the victims of National Socialist (Nazi) persecution; and

(4) Any accumulated or accrued interest on such amounts, returns or
payments.

2. The subtraction of the amounts, returns or payments from an
individual's Missouri adjusted gross income shall only apply if such
individual was a victim of National Socialist (Nazi) persecution, actions
or policies or is the spouse or descendant of a victim of National
Socialist (Nazi) persecution, actions or policies, and such individual or
family member is the first recipient of such amounts, returns or payments.

3. As used in this section, "National Socialist (Nazi) persecution,
actions and policies" means persecution, actions or policies taken by
Germany and other countries, or by organizations, institutions and
companies within those countries, against the victims of the Nazi
Holocaust. (L. 2000 H.B. 1452)

1. The Missouri standard deduction may be deducted in
determining Missouri taxable income of a resident individual unless the
taxpayer or his spouse has elected to itemize his deduction as provided
in section 143.141.

2. The Missouri standard deduction shall be the allowable federal
standard deduction. (L. 1972 S.B. 549, A.L. 1977 S.B. 451, A.L. 1989 H.B.
35, et al.)

Effective 1-1-90

If federal taxable income of a resident individual is determined
by itemizing deductions from his federal adjusted gross income, he may
elect to deduct his Missouri itemized deduction in lieu of his Missouri
standard deduction. The Missouri itemized deduction of a resident
individual means the allowable federal itemized deductions which consist
of allowable federal deductions other than those allowable in arriving at
federal adjusted gross income and other than the federal deductions for
personal and dependency exemptions, with the following modifications:

(1) Reduced by the proportional amount thereof representing the tax
imposed by sections 143.011 to 143.998;

(2) Reduced by the proportional amount thereof representing any income
taxes imposed by another state of the United States or a political
subdivision thereof or the District of Columbia;

(3) Increased by the fair market value of a literary, musical, scholarly,
or artistic composition contributed to any tax exempt agency or
institution which is operated on a not-for-profit basis by any taxpayer
whose personal efforts created such composition less the amount deducted
from federal adjusted gross income attributable to such contribution. The
fair market value of such literary, musical, scholarly or artistic
composition shall be determined by written appraisal of the property by a
person qualified to make such an appraisal other than the taxpayer, the
donee, or any "related taxpayer" within the meaning of such term as
defined by sections 267(b) and 1313(c) of the Internal Revenue Code, as
amended. The appraisal shall be made within one year of the date of the
donation and attached to the taxpayer's income tax return;

(4) Increased to the extent not otherwise deductible, by the taxes for
the same taxable year for which the return is being filed that are
imposed by the following provisions of the Internal Revenue Code:

(a) Section 3101, relating to the tax on employees under the Federal
Insurance Contributions Act;

(b) Sections 3201 and 3211, relating to the taxes on railroad employees
and railroad employee representatives under the Railroad Retirement Tax
Act;

(c) Section 1401, relating to tax on self-employment income, to the
extent that such taxes were not deducted in the computation of the
taxpayer's federal adjusted gross income under the Internal Revenue Code
of 1986, as amended. (L. 1972 S.B. 549, A.L. 1977 S.B. 451, A.L. 1984
H.B. 1112, A.L. 1989 H.B. 35, et al., A.L. 1992 H.B. 1155)

Effective 1-1-93

The provisions of sections 143.131 to 143.143 shall apply with
respect to all taxable years beginning after December 31, 1976. (L. 1977
S.B. 451 § A)

For all taxable years beginning before January 1, 1999, a
resident shall be allowed a deduction of one thousand two hundred dollars
for himself or herself and one thousand two hundred dollars for his or
her spouse if he or she is entitled to a deduction for such personal
exemptions for federal income tax purposes. For all taxable years
beginning on or after January 1, 1999, a resident shall be allowed a
deduction of two thousand one hundred dollars for himself or herself and
two thousand one hundred dollars for his or her spouse if he or she is
entitled to a deduction for such personal exemptions for federal income
tax purposes. (L. 1972 S.B. 549, A.L. 1999 H.B. 516)

1. For all taxable years beginning after December 31, 1997, a
resident may deduct one thousand two hundred dollars for each dependent
for whom such resident is entitled to a dependency exemption deduction
for federal income tax purposes. In the case of a dependent who has
attained sixty-five years of age on or before the last day of the taxable
year, if such dependent resides in the taxpayer's home or the dependent's
own home or if such dependent does not receive Medicaid or state funding
while residing in a facility licensed pursuant to chapter 198, RSMo, the
taxpayer may deduct an additional one thousand dollars.

2. For all taxable years beginning before January 1, 1999, a resident who
qualifies as an unmarried head of household or as a surviving spouse for
federal income tax purposes may deduct an additional eight hundred
dollars. For all taxable years beginning on or after January 1, 1999, a
resident who qualifies as an unmarried head of household or as a
surviving spouse for federal income tax purposes may deduct an additional
one thousand four hundred dollars. (L. 1972 S.B. 549, A.L. 1998 S.B. 675,
et al., A.L. 1999 H.B. 516)

1. For all tax years beginning before January 1, 1994, for an
individual taxpayer and for all tax years beginning before September 1,
1993, for a corporate taxpayer, the taxpayer shall be allowed a deduction
for his federal income tax liability under chapter 1 of the Internal
Revenue Code for the same taxable year for which the Missouri return is
being filed after reduction for all credits thereon, except the credit
for payments of federal estimated tax, the credit for the overpayment of
any federal tax, and the credits allowed by the Internal Revenue Code by
section 31 (tax withheld on wages), section 27 (tax of foreign country
and United States possessions), and section 34 (tax on certain uses of
gasoline, special fuels, and lubricating oils).

2. For all tax years beginning on or after January 1, 1994, an individual
taxpayer shall be allowed a deduction for his federal income tax
liability under chapter 1 of the Internal Revenue Code for the same
taxable year for which the Missouri return is being filed, not to exceed
five thousand dollars on a single taxpayer's return or ten thousand
dollars on a combined return, after reduction for all credits thereon,
except the credit for payments of federal estimated tax, the credit for
the overpayment of any federal tax, and the credits allowed by the
Internal Revenue Code by section 31 (tax withheld on wages), section 27
(tax of foreign country and United States possessions), and section 34
(tax on certain uses of gasoline, special fuels, and lubricating oils).

3. For all tax years beginning on or after September 1, 1993, a corporate
taxpayer shall be allowed a deduction for fifty percent of its federal
income tax liability under chapter 1 of the Internal Revenue Code for the
same taxable year for which the Missouri return is being filed after
reduction for all credits thereon, except the credit for payments of
federal estimated tax, the credit for the overpayment of any federal tax,
and the credits allowed by the Internal Revenue Code by section 31 (tax
withheld on wages), section 27 (tax of foreign country and United States
possessions), and section 34 (tax on certain uses of gasoline, special
fuels and lubricating oils).

4. If a federal income tax liability for a tax year prior to the
applicability of sections 143.011 to 143.996 for which he was not
previously entitled to a Missouri deduction is later paid or accrued, he
may deduct the federal tax in the later year to the extent it would have
been deductible if paid or accrued in the prior year. (L. 1972 S.B. 549,
A.L. 1989 H.B. 35, et al., A.L. 1993 S.B. 380)

In addition to any deduction for federal income taxes allowed
pursuant to section 143.171 for the taxpayer's first tax year beginning
on or after January 1, 2001, and on or before December 31, 2001, an
individual taxpayer shall be allowed a deduction for any federal credit
allowed pursuant to Section 6428 of the Internal Revenue Code for the
accelerated ten percent income tax rate bracket for tax year 2001,
including any advance refund of the credit allowed to the taxpayer
pursuant to Section 6428(e) of the Internal Revenue Code, only to the
extent such federal credit or advance refund of the credit would
otherwise increase the Missouri taxable income of the taxpayer. The sum
of the deduction allowed to the taxpayer pursuant to subsection 2 of
section 143.171 and the deduction allowed pursuant to this section shall
not exceed the applicable dollar limit imposed pursuant to subsection 2
of section 143.171. (L. 2001 1st Ex. Sess. H.B. 5, et al. § 1 merged with
S.B. 3, et al. § 1)

Effective 10-9-01

1. The Missouri nonresident adjusted gross income shall be that
part of the nonresident individual's federal adjusted gross income
derived from sources within Missouri, as modified in the same manner as
set forth in section 143.121 with respect to resident individuals. It
shall be the sum of:

(1) The net amount of items of income, gain, loss, and deduction entering
into his or her federal adjusted gross income which are derived from or
connected with sources in this state including:

(a) The individual's distributive share of partnership income and
deductions determined under section 143.421; and

(b) The individual's share of estate or trust income and deductions
determined under section 143.391; and

(c) The individual's pro rata share of S corporation income and
deductions determined under subsection 3 of section 143.471; and

(2) The portion of the modifications described in section 143.121 which
relate to income derived from sources in this state, including any
modifications attributable to him or her as a partner.

2. Items of income, gain, loss, and deduction derived from or connected
with sources within this state are those items attributable to:

(1) The ownership or disposition of any interest in real or tangible
personal property in this state;

(2) A business, trade, profession, or occupation carried on in this state;

(3) Winnings from a wager placed in a lottery conducted by the state
lottery commission, if the proceeds from such wager are required,
pursuant to the Internal Revenue Code of 1986, as amended, or regulations
adopted thereunder, to be reported by the state lottery commission to the
Internal Revenue Service; and

(4) Winnings from any other wager placed in this state or from any
wagering transaction, gaming activity, or gambling activity in this
state, if the proceeds from such wager, wagering transaction, gaming
activity, or gambling activity are required, pursuant to the Internal
Revenue Code of 1986, as amended, or regulations adopted thereunder, to
be reported by the payer to the Internal Revenue Service.

3. Income from intangible personal property, including annuities,
dividends, interest, and gains from the disposition of intangible
personal property, shall constitute income derived from sources within
this state only to the extent that such income is from:

(1) Property employed in a business, trade, profession, or occupation
carried on in this state;

(2) Winnings from a wager placed in a lottery conducted by the state
lottery commission, if the proceeds from such wager are required,
pursuant to the Internal Revenue Code of 1986, as amended, or regulations
adopted thereunder, to be reported by the state lottery commission to the
Internal Revenue Service; and

(3) Winnings from any other wager placed in this state or from any
wagering transaction, gaming activity, or gambling activity in this
state, if the proceeds from such wager, wagering transaction, gaming
activity, or gambling activity are required, pursuant to the Internal
Revenue Code of 1986, as amended, or regulations adopted thereunder, to
be reported by the payer to the Internal Revenue Service.

4. Deductions with respect to capital losses, net long-term capital
gains, and net operation losses shall be based solely on income, gains,
losses, and deductions derived from sources within this state in the same
manner as the corresponding federal deductions under regulations to be
prescribed by the director of revenue.

5. If a business, trade, profession, or occupation is carried on partly
within and partly without this state, the items of income and deduction
derived from or connected with sources within this state shall be
determined by apportionment and allocation under regulations to be
prescribed by the director of revenue.

6. Compensation paid by the United States for service in the armed forces
of the United States performed by a nonresident shall not constitute
income derived from sources within this state. (L. 1972 S.B. 549, A.L.
1983 H.B. 849, A.L. 2003 H.B. 600 merged with S.B. 11)

Effective 7-01-03 (H.B. 600)

8-28-03 (S.B. 11)

CROSS REFERENCE: This section applies to all taxable years beginning with
1983, RSMo 143.005

1. As used in this section, the following terms mean:

(1) "Nonresident entertainer", a person residing or registered as a
corporation outside this state who, for compensation, performs any vocal,
instrumental, musical, comedy, dramatic, dance or other performance in
this state before a live audience and any other person traveling with and
performing services on behalf of a nonresident entertainer, including a
nonresident entertainer who is paid compensation for providing
entertainment as an independent contractor, a partnership that is paid
compensation for entertainment provided by nonresident entertainers, a
corporation that is paid compensation for entertainment provided by
nonresident entertainers, or any other entity that is paid compensation
for entertainment provided by nonresident entertainers;

(2) "Nonresident member of a professional athletic team", a professional
athletic team member who resides outside this state, including any active
player, any player on the disabled list if such player is in uniform on
the day of the game at the site of the game, and any other person
traveling with and performing services on behalf of a professional
athletic team;

(3) "Personal service income" includes exhibition and regular season
salaries and wages, guaranteed payments, strike benefits, deferred
payments, severance pay, bonuses, and any other type of compensation paid
to the nonresident entertainer or nonresident member of a professional
athletic team, but does not include prizes, bonuses or incentive money
received from competition in a livestock, equine or rodeo performance,
exhibition or show;

(4) "Professional athletic team" includes, but is not limited to, any
professional baseball, basketball, football, soccer and hockey team.

2. Any person, venue, or entity who pays compensation to a nonresident
entertainer shall deduct and withhold from such compensation as a
prepayment of tax an amount equal to two percent of the total
compensation if the amount of compensation is in excess of three hundred
dollars paid to the nonresident entertainer.

3. Any person, venue, or entity required to deduct and withhold tax
pursuant to subsection 2 of this section shall, for each calendar
quarter, on or before the last day of the month following the close of
such calendar quarter, remit the taxes withheld in such form or return as
prescribed by the director of revenue and pay over to the director of
revenue or to a depository designated by the director of revenue the
taxes so required to be deducted and withheld.

4. Any person, venue, or entity subject to this section shall be
considered an employer for purposes of section 143.191, and shall be
subject to all penalties, interest, and additions to tax provided in this
chapter for failure to comply with this section.

5. Notwithstanding other provisions of this chapter to the contrary, the
commissioner of administration, for all taxable years beginning on or
after January 1, 1999, but none after December 31, 2015, shall annually
estimate the amount of state income tax revenues collected pursuant to
this chapter which are received from nonresident members of professional
athletic teams and nonresident entertainers. For fiscal year 2000, and
for each subsequent fiscal year for a period of sixteen years, sixty
percent of the annual estimate of taxes generated from the nonresident
entertainer and professional athletic team income tax shall be allocated
annually to the Missouri arts council trust fund, and shall be
transferred from the general revenue fund to the Missouri arts council
trust fund established in section 185.100, RSMo, and any amount
transferred shall be in addition to such agency's budget base for each
fiscal year. Notwithstanding other provisions of this section, the
Missouri arts council shall not be appropriated more than ten million
dollars in any fiscal year. The director shall by rule establish the
method of determining the portion of personal service income of such
persons that is allocable to Missouri.

6. Notwithstanding the provisions of sections 186.050 to 186.067, RSMo,
to the contrary, the commissioner of administration, for all taxable
years beginning on or after January 1, 1999, but for none after December
31, 2015, shall estimate annually the amount of state income tax revenues
collected pursuant to this chapter which are received from nonresident
members of professional athletic teams and nonresident entertainers. For
fiscal year 2000, and for each subsequent fiscal year for a period of
sixteen years, ten percent of the annual estimate of taxes generated from
the nonresident entertainer and professional athletic team income tax
shall be allocated annually to the Missouri humanities council trust
fund, and shall be transferred from the general revenue fund to the
Missouri humanities council trust fund established in section 186.055,
RSMo, and any amount transferred shall be in addition to such agency's
budget base for each fiscal year.

7. Notwithstanding other provisions of section 182.812, RSMo, to the
contrary, the commissioner of administration, for all taxable years
beginning on or after January 1, 1999, but for none after December 31,
2015, shall estimate annually the amount of state income tax revenues
collected pursuant to this chapter which are received from nonresident
members of professional athletic teams and nonresident entertainers. For
fiscal year 2000, and for each subsequent fiscal year for a period of
sixteen years, ten percent of the annual estimate of taxes generated from
the nonresident entertainer and professional athletic team income tax
shall be allocated annually to the Missouri state library networking
fund, and shall be transferred from the general revenue fund to the
secretary of state for distribution to public libraries for acquisition
of library materials as established in section 182.812, RSMo, and any
amount transferred shall be in addition to such agency's budget base for
each fiscal year.

8. Notwithstanding other provisions of section 37.200, RSMo, to the
contrary, the commissioner of administration, for all taxable years
beginning on or after January 1, 1999, but for none after December 31,
2015, shall estimate annually the amount of state income tax revenues
collected pursuant to this chapter which are received from nonresident
members of professional athletic teams and nonresident entertainers. For
fiscal year 2000, and for each subsequent fiscal year for a period of
sixteen years, ten percent of the annual estimate of taxes generated from
the nonresident entertainer and professional athletic team income tax
shall be allocated annually to the Missouri public television
broadcasting corporation special fund, and shall be transferred from the
general revenue fund to the Missouri public television broadcasting
corporation special fund established in section 37.200, RSMo, and any
amount transferred shall be in addition to such agency's budget base for
each fiscal year; provided, however, that twenty-five percent of such
allocation shall be used for grants to public radio stations which were
qualified by the corporation for public broadcasting as of November 1,
1996. Such grants shall be distributed to each of such public radio
stations in this state after receipt of the station's certification of
operating and programming expenses for the prior fiscal year.
Certification shall consist of the most recent fiscal year financial
statement submitted by a station to the corporation for public
broadcasting. The grants shall be divided into two categories, an annual
basic service grant and an operating grant. The basic service grant shall
be equal to thirty-five percent of the total amount and shall be divided
equally among the public radio stations receiving grants. The remaining
amount shall be distributed as an operating grant to the stations on the
basis of the proportion that the total operating expenses of the
individual station in the prior fiscal year bears to the aggregate total
of operating expenses for the same fiscal year for all Missouri public
radio stations which are receiving grants.

9. Notwithstanding other provisions of section 253.402, RSMo, to the
contrary, the commissioner of administration, for all taxable years
beginning on or after January 1, 1999, but for none after December 31,
2015, shall estimate annually the amount of state income tax revenues
collected pursuant to this chapter which are received from nonresident
members of professional athletic teams and nonresident entertainers. For
fiscal year 2000, and for each subsequent fiscal year for a period of
sixteen years, ten percent of the annual estimate of taxes generated from
the nonresident entertainer and professional athletic team income tax
shall be allocated annually to the Missouri department of natural
resources Missouri historic preservation revolving fund, and shall be
transferred from the general revenue fund to the Missouri department of
natural resources Missouri historic preservation revolving fund
established in section 253.402, RSMo, and any amount transferred shall be
in addition to such agency's budget base for each fiscal year. As
authorized pursuant to subsection 2 of section 30.953, RSMo, it is the
intention and desire of the general assembly that the state treasurer
convey, to the Missouri investment trust on January 1, 1999, up to one
hundred percent of the balances of the Missouri arts council trust fund
established pursuant to section 185.100, RSMo, and the Missouri
humanities council trust fund established pursuant to section 186.055,
RSMo. The funds shall be reconveyed to the state treasurer by the
investment trust as follows: the Missouri arts council trust fund, no
earlier than January 2, 2009; and the Missouri humanities council trust
fund, no earlier than January 2, 2009. (L. 1994 S.B. 477, et al., A.L.
1998 S.B. 724, A.L. 2003 S.B. 52)

1. Every employer maintaining an office or transacting any
business within this state and making payment of any wages taxable under
sections 143.011 to 143.998 to a resident or nonresident individual shall
deduct and withhold from such wages for each payroll period the amount
provided in subsection 3 of this section.

2. The term "wages" referred to in subsection 1 of this section means
wages as defined by section 3401(a) of the Internal Revenue Code of 1986,
as amended. The term "employer" means any person, firm, corporation,
association, fiduciary of any kind, or other type of organization for
whom an individual performs service as an employee, except that if the
person or organization for whom the individual performs service does not
have control of the payment of compensation for such service, the term
"employer" means the person having control of the payment of the
compensation. The term includes the United States, this state, other
states, and all agencies, instrumentalities, and subdivisions of any of
them.

3. The method of determining the amount to be withheld shall be
prescribed by regulations of the director of revenue. The prescribed
table, percentages, or other method shall result, so far as practicable,
in withholding from the employee's wages during each calendar year an
amount substantially equivalent to the tax reasonably estimated to be due
from the employee under sections 143.011 to 143.998 with respect to the
amount of such wages included in his Missouri adjusted gross income
during the calendar year.

4. For purposes of this section an employee shall be entitled to the same
number of personal and dependency withholding exemptions as the number of
exemptions to which he is entitled for federal income tax withholding
purposes. An employer may rely upon the number of federal withholding
exemptions claimed by the employee, except where the employee provides
the employer with a form claiming a different number of withholding
exemptions in this state.

5. The director of revenue may enter into agreements with the tax
departments of other states (which require income tax to be withheld from
the payment of wages) so as to govern the amounts to be withheld from the
wages of residents of such states under this section. Such agreements may
provide for recognition of anticipated tax credits in determining the
amounts to be withheld and, under regulations prescribed by the director
of revenue, may relieve employers in this state from withholding income
tax on wages paid to nonresident employees. The agreements authorized by
this subsection are subject to the condition that the tax department of
such other states grant similar treatment to residents of this state.

6. The director of revenue shall enter into agreements with the Secretary
of the Treasury of the United States or with the appropriate secretaries
of the respective branches of the armed forces of the United States for
the withholding, as required by subsections 1 and 2 of this section, of
income taxes due the state of Missouri on wages or other payments for
service in the armed services of the United States or on payments
received as retirement or retainer pay of any member or former member of
the armed forces entitled to such pay.

7. Subject to appropriations for the purpose of implementing this
section, the director of revenue shall comply with provisions of the laws
of the United States as amended and the regulations promulgated thereto
in order that all residents of this state receiving monthly retirement
income as a civil service annuitant from the federal government taxable
by this state may have withheld monthly from any such moneys, whether
pension, annuities or otherwise, an amount for payment of state income
taxes as required by state law, but such withholding shall not be less
than twenty-five dollars per quarter. (L. 1972 S.B. 549, A.L. 1988 H.B.
1054, et al., A.L. 1990 H.B. 952, A.L. 1992 H.B. 915, A.L. 1994 S.B. 477,
et al.)

Effective 12-31-94, and shall apply to all tax periods beginning on or
after 1-1-95 (S.B. 477 § C, 1994)

CROSS REFERENCE: Duties of employers and employees, withholding forms,
RSMo 285.300

Every employer required to deduct and withhold tax under
sections 143.011 to 143.996 from the wages of an employee shall furnish
to each employee in respect to the wages paid by such employer to such
employee during the calendar year on or before January thirty-first of
the succeeding year, or, if his employment is terminated before the close
of such calendar year, within thirty days from the date on which the last
payment of wages is made, a written statement in a form prescribed by the
director of revenue showing the amount of wages paid by the employer to
the employee, the amount if any deducted and withheld as tax, and such
other information as the director of revenue shall prescribe. (L. 1972
S.B. 549)

Effective 1-1-73

Any amount of tax actually deducted and withheld under sections
143.011 to 143.996 in any calendar year shall be deemed to have been paid
to the director of revenue on behalf of the person from whom withheld.
Such person shall be credited with having paid that amount for his
taxable year beginning in such calendar year. (L. 1972 S.B. 549)

Effective 1-1-73

1. Every employer required to deduct and withhold tax under
sections 143.011 to 143.996 shall, for each calendar quarter, on or
before the last day of the month following the close of such calendar
quarter, file a withholding return as prescribed by the director of
revenue and pay over to the director of revenue or to a depository
designated by the director of revenue the taxes so required to be
deducted and withheld.

2. Where the aggregate amount required to be deducted and withheld by any
employer exceeds fifty dollars for at least two of the preceding twelve
months, the director, by regulation, may require a monthly return. The
due dates of the monthly return and the monthly payment or deposit for
the first two months of each quarter shall be by the fifteenth day of the
succeeding month. The due dates of the monthly return and the monthly
payment or deposit for the last month of each quarter shall be by the
last day of the succeeding month. The director may increase the amount
required for making a monthly employer withholding payment and return to
more than fifty dollars or decrease such required amount, however, the
decreased amount shall not be less than fifty dollars.

3. Where the aggregate amount required to be deducted and withheld by any
employer is less than twenty dollars in each of the four preceding
quarters, the employer shall file a withholding return for a calendar
year. The director, by regulation, may also allow other employers to file
annual returns. The return shall be filed and the taxes if any paid on or
before January thirty-first of the succeeding year. The director may
increase the amount required for making an annual employer withholding
payment and return to more than twenty dollars or decrease such required
amount, however, the decreased amount shall not be less than twenty
dollars.

4. If the director of revenue finds that the collection of taxes required
to be deducted and withheld by an employer may be jeopardized by delay,
he may require the employer to pay over the tax or make a return at any
time. A lien outstanding with regard to any tax administered by the
director shall be a sufficient basis for this action. (L. 1972 S.B. 549,
A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1985 H.B. 202, A.L. 1998 H.B. 1301)

1. The director of revenue, by regulation, may require an
employer to timely remit the unpaid amount required to be deducted and
withheld by section 143.191 at the end of any quarter-monthly period,
only if the employer was required to deduct and withhold six thousand
dollars or more in each of at least two months during the prior twelve
months.

2. The director may increase the monthly requirement to more than six
thousand dollars or otherwise narrow the application of the
quarter-monthly remittance system authorized by this section. The
director may not require the remittance of withheld taxes more often than
monthly unless authorized by this section.

3. A remittance shall be timely if mailed as provided in section 143.851
within three banking days after the end of the quarter-monthly period or
if received by the director or deposited in a depository designated by
the director within four banking days after the end of the
quarter-monthly period.

4. The unpaid amount shall be after a reduction for the compensation
provided by section 143.261. The unpaid amount at the end of a
quarter-monthly period shall not include unpaid amounts for any prior
quarter-monthly period.

5. For purposes of this section, "quarter-monthly period" means:

(1) The first seven days of a calendar month;

(2) The eighth to fifteenth day of a calendar month;

(3) The sixteenth to twenty-second day of a calendar month; and

(4) The portion following the twenty-second day of a calendar month.

6. (1) In the case of an underpayment of any amount required to be paid
pursuant to this section, an employer shall be liable for a penalty in
lieu of all other penalties, interest or additions to tax imposed by this
chapter for violating this section. The penalty shall be five percent of
the amount of the underpayment determined under subdivision (2) of this
subsection.

(2) The amount of the underpayment shall be the excess of:

(a) Ninety percent of the unpaid amount at the end of a quarter-monthly
period; over

(b) The amount, if any, of the timely remittance for the quarter-monthly
period.

7. (1) The penalty with respect to any quarter-monthly period shall not
be imposed if the employer's timely remittance for the quarter-monthly
period equals or exceeds one-fourth of the average monthly withholding
tax liability of the employer for the preceding calendar year. The month
of highest liability and the month of lowest liability shall be excluded
in computing the average. This subdivision shall apply only to an
employer who had a withholding tax liability for at least six months of
the previous calendar year.

(2) The penalty shall not be imposed if the employer establishes that the
failure to make a timely remittance of at least ninety percent was due to
reasonable cause, and not due to willful neglect.

(3) The penalty shall not be imposed against any employer for the first
two months the employer is obligated to make quarter-monthly remittance
of withholding taxes.

8. Tax amounts remitted under this section shall be treated as payments
on the employer's monthly return required by subsection 2 of section
143.221. Tax amounts remitted under this section shall be deemed to have
been paid on the last day prescribed for filing the return. The preceding
sentence shall apply in computing compensation under section 143.261,
interest, penalties and additions to tax and for purposes of all sections
of chapter 143, except this section.

9. The director of revenue may prescribe the use of an electronic funds
payment system for the payment of withholding taxes by any employer
subject to the requirement of quarter-monthly remittance as provided in
this section. (L. 1983 1st Ex. Sess. H.B. 10, A.L. 2003 H.B. 600)

Effective 7-1-03

1. Every employer required to deduct and withhold tax under
sections 143.011 to 143.996 is hereby made liable for such tax. For
purposes of assessment and collection, any amount required to be withheld
and paid over to the director of revenue, and any penalties, interest,
and additions to tax with respect thereto, shall be considered the tax of
the employer. Any amount of tax actually deducted and withheld under
sections 143.011 to 143.996 shall be a special fund in trust for the
director of revenue. No employee shall have any right of action against
his employer in respect to any money deducted and withheld from his wages
and paid over to the director of revenue in compliance or in good faith
compliance with sections 143.011 to 143.996.

2. Any officer, director, or statutory trustee of any corporation,
including administratively dissolved corporations, or foreign
corporations that have had their certificate of authority revoked,
subject to the provisions of sections 143.191 to 143.265, who has the
direct control, supervision or responsibility for filing returns and
making payment of the amount of tax imposed in accordance with sections
143.191 to 143.265, and who fails to file or pay such return with the
director of revenue shall be personally assessed for such amounts,
including interest, additions to tax and penalties thereon. This
assessment shall be imposed only in the event that the assessment on the
corporation is final, and such corporation fails to pay such amounts to
the director of revenue. Notice shall be given of the director of
revenue's intent to make the assessment against such officers, directors,
statutory trustees or employees. The personal liability of such officers,
directors, statutory trustees or employees as provided in this section
shall survive the administrative dissolution of the corporation or, if a
foreign corporation, the revocation of the corporation's certificate of
authority.

3. If any employer required to withhold and remit tax under sections
143.191 to 143.265 or his successors shall sell all or substantially all
of his or their business or shall quit the business, such employer or
successor shall file a final return within fifteen days after the date of
selling or quitting business.

4. If any employer required to withhold and remit tax under sections
143.191 to 143.265 or his successors shall contract to sell all or
substantially all of his or their business, the seller shall request from
the director of revenue a statement or certificate as provided in
subsection 6 of this section. The seller shall present such statement or
certificate to the purchaser prior to consummation of the sale and secure
the purchaser's signature thereon as validation of receipt. Failure to
comply with this provision shall result in the seller being liable for an
additional penalty equal to twenty-five percent of the seller's
delinquency at the time of the sale. The provisions of this section to
the contrary notwithstanding, this additional penalty shall be the sole
liability of the seller and shall not be a liability of the purchaser.

5. Except as provided in subsections 6, 7, and 8 of this section, all
successors, if any, shall be required to withhold an amount of the
purchase money sufficient to cover the taxes, interest, additions to tax
or penalties due and unpaid until such time as the former owner or
predecessor, whether immediate or not, shall produce a receipt from the
director of revenue showing that the taxes have been paid, or a
certificate stating that no taxes are due. If the purchaser of a business
shall fail to withhold the purchase money as required by this section and
remit at the time of purchase all amounts so withheld to the director to
pay all unpaid taxes, interest, additions to tax and penalties due from
the former owner or predecessor, the purchaser shall be personally liable
for the payment of the taxes, interest, additions to tax and penalties
accrued and unpaid by the former owner of the business.

6. The director of revenue shall, notwithstanding the provisions of
section 32.057, RSMo, upon written request, furnish within fifteen days
from the receipt of such a request by certified mail, return receipt
requested, or such other methods as may be mutually agreed upon, to any
owner, successor, secured creditor, purchaser, or in the case of a
proposed purchaser, if joined in writing by the owner, a statement
showing the amount of taxes, interest, additions to tax or penalties due
and owing or a certificate showing that no taxes, interest, additions to
tax or penalties are due under this chapter, including the date for the
last payment for such taxes, interest, additions to tax or penalties as
shown by the records of the director of revenue.

7. A secured creditor who shall enforce a lien against a business subject
to the provisions of this chapter shall be entitled to obtain from the
director of revenue a statement of employer withholding tax due and the
status of the employer withholding tax payments from the director of
revenue in accordance with subsection 6 of this section. If the director
of revenue does not respond within fifteen days from the date of receipt
of such request by the secured creditor seeking to enforce its lien, it
shall be conclusively presumed that all such employer withholding tax has
been paid as to the secured creditor or any successor of the secured
creditor, whether such successor be immediate or not. Nothing in this
section shall eliminate the liability of the owner of the business owing
employer withholding tax from the liability to pay such employer
withholding tax. Any purchaser who acquires the business as a result of
an enforcement action by a creditor shall be exempt from the liability
set forth in subsection 5 of this section, whether such purchaser be
immediate or subsequent thereto.

8. Any such creditor who shall enforce a lien against a business subject
to the provisions of this section shall be entitled to be paid the
principal sums due, all accrued interest to the date of the payment, and
the expenses of enforcing the lien of the secured creditor including
attorney's fees. The balance, if any, shall be paid to the creditors
having a priority interest thereto under the laws of the state of
Missouri or the United States of America. Any balance then remaining, up
to the amount of the tax, interest, additions to tax and penalties then
due, shall be remitted to the director of revenue as provided by this
section. Nothing in this section shall affect the priority of any lien
filed by the director of revenue against the former owner or predecessor.

9. Mailing of notices or requests, by first class mail, postage prepaid,
certified with return receipt requested, or such other methods as may be
mutually agreed upon, shall be prima facie evidence that the party to
whom it is addressed received the correspondence, notice or request. (L.
1972 S.B. 549, A.L. 1990 H.B. 960, A.L. 1991 H.B. 219, A.L. 1994 S.B.
477, et al., A.L. 2004 S.B. 1394)

Effective 12-31-94, and shall apply to all tax periods beginning on or
after 1-1-95 (S.B. 477 § C, 1994)

If an employer fails to deduct and withhold tax as required, and
thereafter the tax against which such tax may be credited is paid, the
tax so required to be deducted and withheld shall not be collected from
the employer. The employer shall not be relieved thereby from liability
for any penalties, interest, or additions to tax otherwise applicable in
respect to such failure to deduct and withhold. (L. 1972 S.B. 549)

Effective 1-1-73

For every remittance to the director of revenue made on or
before the date the remittance becomes due, the employer, other than the
United States and its agencies, the state of Missouri and political
subdivisions thereof, may deduct and retain the following percentages of
the total amount of tax withheld and paid in each calendar year:

(1) Two percent of five thousand dollars or less;

(2) One percent of amount collected in excess of five thousand dollars
and up to and including ten thousand dollars;

(3) One-half percent of amount collected in excess of ten thousand
dollars. (L. 1972 S.B. 549)

Effective 1-1-73

Every resident receiving retirement income from an entity in
this state and provided that such income is taxable by this state may
have an amount withheld from such income as a payment of state income tax
as required by state law. The entity administering such pension or
retirement fund or program shall, upon written application from the
recipient of such payments, deduct and withhold from such payments for
each payment period an amount designated by the recipient, but such
withholding shall not be less than ten dollars per month, and shall
forward this amount to the director of revenue as prescribed by section
143.221. (L. 1988 H.B. 1054, et al. § 1)

Effective 1-1-89

1. For purposes of taxes imposed by sections 143.011 to 143.996,
a taxpayer's taxable year shall be the same as his taxable year for
federal income tax purposes.

2. If a taxpayer's taxable year is changed for federal income tax
purposes, his taxable year for purposes of the tax imposed by sections
143.011 to 143.996 shall be similarly changed. If a change in taxable
year results in a taxable period of less than twelve months, the
deductions allowed by sections 143.011 to 143.996 shall be prorated under
regulations prescribed by the director of revenue. (L. 1972 S.B. 549)

Effective 1-1-73

1. For purposes of taxes imposed by sections 143.011 to 143.996,
a taxpayer's method of accounting shall be the same as his method of
accounting for federal income tax purposes. If no method of accounting
has been regularly used by the taxpayer, taxable income for purposes of
sections 143.011 to 143.996 shall be computed under such method that in
the opinion of the director of revenue fairly reflects income.

2. If a taxpayer's method of accounting is changed for federal income tax
purposes, his method of accounting for purposes of sections 143.011 to
143.996 shall similarly be changed. (L. 1972 S.B. 549)

Effective 1-1-73

In computing a taxpayer's taxable income for any taxable year
under a method of accounting different from the method under which the
taxpayer's taxable income for the previous year was computed, there shall
be taken into account those adjustments which are determined, under
regulations prescribed by the director of revenue, to be necessary solely
by reason of the change in order to prevent amounts from being duplicated
or omitted. (L. 1972 S.B. 549)

Effective 1-1-73

The director of revenue shall prescribe regulations dealing with
situations in which the application of sections 143.011 to 143.996 to a
taxpayer produces a computation of taxable income under a method of
accounting different from the method under which the taxpayer's taxable
income for the previous year was computed for Missouri income taxation.
The regulations shall provide change of accounting method adjustments
over a period not to exceed five years where the adjustments are
necessary to prevent substantial amounts from being duplicated or
omitted. (L. 1972 S.B. 549)

Effective 1-1-73

The Missouri taxable income of an estate or trust shall be
computed in the same manner as in the case of an individual except as
otherwise provided in sections 143.321 to 143.391. The tax shall be
computed on such taxable income at the rates provided in section 143.061
and shall be paid by the fiduciary. (L. 1972 S.B. 549)

Effective 1-1-73

A trust or other unincorporated organization which by reason of
its purposes and activities is exempt from federal income tax shall be
exempt from the tax imposed by sections 143.011 to 143.996. The preceding
sentence shall not apply to unrelated business taxable income and other
income on which Chapter 1 of the Internal Revenue Code imposes the
federal income tax or any other tax measured by income. (L. 1972 S.B. 549)

Effective 1-1-73

A "resident estate or trust" means:

(1) The estate of a decedent who at his or her death was domiciled in
this state;

(2) A trust that:

(a) Was created by will of a decedent who at his or her death was
domiciled in this state; and

(b) Has at least one income beneficiary who, on the last day of the
taxable year, was a resident of this state; or

(3) A trust that:

(a) Was created by, or consisting of property of, a person domiciled in
this state on the date the trust or portion of the trust became
irrevocable; and

(b) Has at least one income beneficiary who, on the last day of the
taxable year, was a resident of this state. (L. 1972 S.B. 549, A.L. 2000
S.B. 896)

1. An adjustment shall be made in determining the Missouri
taxable income of a resident estate or trust under section 143.341, or
the Missouri adjusted gross income of a resident beneficiary of any
estate or trust under section 143.121, subsection 4, in the amount of the
share of each in the Missouri fiduciary adjustment as determined in this
section.

2. The Missouri fiduciary adjustment shall be the net amount of the
modifications described in subsections 2, 3, and 4 of section 143.121 (if
the estate or trust is a beneficiary of another estate or trust),
subsection 5 of section 143.121, section 143.141, and section 143.171.
The net amount of such modification shall not include any modification to
the extent such items are not determinants of the federal distributable
net income of the estate or trust.

3. (1) The respective shares of an estate or trust and its beneficiaries
(including, solely for the purpose of this allocation, nonresident and
charitable beneficiaries) in the fiduciary adjustment shall be in
proportion to their respective shares of the sum of federal distributable
net income of the estate or trust and the amount paid or required to be
paid to a charitable organization to the extent such amount is
attributable to income for the current year.

(2) If the estate or trust has no federal distributable net income for
the taxable year, the share of each beneficiary in the fiduciary
adjustment shall be in proportion to his share of the estate or trust
income for such year, under the applicable law or the government
instrument, which is required to be distributed currently and any other
amounts of such income distributed in such year. Any balance of the
fiduciary adjustment shall be allocated to the estate or trust.

(3) The director of revenue may, by regulation, establish such other
method or methods of determining to whom the items comprising the
fiduciary adjustment shall be attributed, as may be appropriate and
equitable. Such method may be used by the fiduciary in his discretion
whenever the allocation of the fiduciary adjustment, pursuant to
subdivision (1) or (2) of this subsection would result in an inequity
which is substantial both in amount and in relation to the amount of the
fiduciary adjustment. (L. 1972 S.B. 549)

Effective 1-1-73

A resident estate or trust shall be allowed the credit provided
in section 143.081 (relating to an income tax imposed by another state).
(L. 1972 S.B. 549)

Effective 1-1-73

A "nonresident estate or trust" means an estate or trust which
is not a resident estate or trust as defined in section 143.331. (L. 1972
S.B. 549)

Effective 1-1-73

1. The Missouri taxable income of a nonresident estate or trust
consists of:

(1) Its share under section 143.391 of items of income, gain, loss, and
deduction from sources within Missouri which enter into the federal
definition of distributable net income;

(2) Increased or reduced by the amount of any items of income, gain,
loss, or deduction from sources within Missouri which are recognized for
federal income tax purposes but excluded from the federal definition of
distributable net income of the estate or trust;

(3) To the extent relating to items within subdivision (2) of this
subsection 1, there shall be added or subtracted, as the case may be, the
modifications described in sections 143.121 and 143.141, and there shall
be subtracted the federal income tax deduction provided in section
143.171. These additions and subtractions shall only apply to the extent
that they are not determinants of the federal distributable net income of
the estate or trust.

(4) There shall be subtracted a fractional share of the federal personal
exemption deduction to which such nonresident estate or trust is entitled
the numerator of which shall be the federal distributable net income
derived from Missouri sources and the denominator of which shall be the
federal distributable net income.

2. The sources of items of income, gain, loss, or deduction shall be
determined under regulations prescribed by the director of revenue in
accordance with the general rules in section 143.181 as if the estate or
trust were a nonresident individual. (L. 1972 S.B. 549)

Effective 1-1-73

1. The share of a nonresident estate or trust under subdivision
(1) of subsection 1 of section 143.381 and the share of a nonresident
beneficiary of any estate or trust under subsection 1 of section 143.181
in estate or trust income, gain, loss, and deduction, from sources within
Missouri shall be determined as follows:

(1) There shall be determined the items of income, gain, loss, deduction,
and credit derived from sources within Missouri which enter into the
definition of federal distributable net income of the estate or trust for
the taxable year (including such items from another estate or trust of
which the first estate or trust is a beneficiary). Such determination of
source shall be made under regulations prescribed by the director of
revenue in accordance with the applicable rules of section 143.181 as in
the case of a nonresident individual.

(2) There shall be added or subtracted, as the case may be, the
modifications described in sections 143.121 and 143.141, and there shall
be subtracted the federal income tax deduction provided in section
143.171. These additions and subtractions shall only apply to the extent
relating to items of income, gain, loss, and deduction derived from
sources within Missouri, which enter into the definition of federal
distributable net income (including such items from another estate or
trust of which the first estate or trust is a beneficiary). No
modification shall be made under this subdivision (2) which has the
effect of duplicating an item already reflected in federal distributable
net income.

(3) (a) The sum of the amounts determined under subdivisions (1) and (2)
of subsection 1 of this section shall be allocated among the estate or
trust and its beneficiaries (including, solely for the purpose of this
allocation, resident and charitable beneficiaries) in proportion to their
respective shares of the sum of federal distributable net income of the
estate or trust and the amount paid or required to be paid to a
charitable organization to the extent such amount is attributable to
income for the current year.

(b) The amounts so allocated shall have the same character under this
section as for federal income tax purposes. Where an item entering into
the computation of such amounts is not characterized for federal income
tax purposes, it shall have the same character as if realized directly
from the source from which realized by the estate or trust, or incurred
in the same manner as incurred by the estate or trust.

2. (1) If the estate or trust has no federal distributable net income for
the taxable year, the share of each beneficiary (including, solely for
the purpose of this allocation, resident beneficiaries) in the net
amount, determined under subdivisions (1) and (2) of subsection 1 of this
section, shall be in proportion to his share of the estate or trust
income for such year, under the applicable law or the governing
instrument, which is required to be distributed currently and any other
amounts of such income distributed in such year. Any balance of such net
amount shall be allocated to the estate or trust.

(2) The director of revenue may, by regulation, establish such other
method or methods of determining the respective shares of the
beneficiaries and of the estate or trust in its income derived from
sources within Missouri and in the modifications related thereto as may
be appropriate and equitable. Such method may be used by the fiduciary in
his discretion whenever the allocation of such respective shares under
subsection 1 or subdivision (1) of subsection 2 of this section would
result in an inequity which is substantial both in amount and in relation
to the total amount of the amount of the modifications referred to in
subdivision (2) of subsection 1 of this section. (L. 1972 S.B. 549)

Effective 1-1-73

A partnership shall not be subject to tax under sections 143.011
to 143.996. Persons carrying on business as partners shall be liable for
the tax under sections 143.011 to 143.996 only in their separate
capacities. The provisions of the Internal Revenue Code relating to
partners and partnerships shall apply in determining Missouri taxable
income of each partner except, however, for the modifications provided in
sections 143.411 and 143.421. (L. 1972 S.B. 549)

Effective 1-1-73

1. Any modification described in sections 143.121 and 143.141
which relates to an item of partnership income, gain, loss, or deduction
shall be made in accordance with the partner's distributive share, for
federal income tax purposes, of the item to which the modification
relates. Where a partner's distributive share of any such item is not
required to be taken into account separately for federal income tax
purposes, the partner's distributive share of such item shall be
determined in accordance with his distributive share, for federal income
tax purposes, of partnership taxable income or loss generally.

2. Each item of partnership income, gain, loss, or deduction shall have
the same character for a partner under sections 143.005 to 143.998 as it
has for federal income tax purposes. Where an item is not characterized
for federal income tax purposes, it shall have the same character for a
partner as if realized directly from the source from which realized by
the partnership or incurred in the same manner as incurred by the
partnership.

3. Where a partner's distributive share of an item of partnership income,
gain, loss, or deduction is determined for federal income tax purposes by
a special provision in the partnership agreement with respect to such
item, and the principal purpose of such provision is the avoidance of tax
under sections 143.005 to 143.998, the partner's distributive share of
such item and any modification required with respect thereto shall be
determined in accordance with his distributive share of the taxable
income or loss of the partnership generally (that is, exclusive of those
items requiring separate computation under the provisions of Section 702
of the Internal Revenue Code).

4. The director of revenue shall permit partnerships to file composite
returns and to make composite payments of tax on behalf of its
nonresident partners not otherwise required to file a return. If the
nonresident partner's filing requirements result* solely from one or more
interests in any other partnerships or subchapter S corporations, that
nonresident partner may be included in the composite return.

5. If a partnership pays or credits amounts to any of its nonresident
individual partners on account of their distributive share of the
partnership income for a taxable year of the partnership, the partnership
shall either timely file with the department of revenue an agreement as
provided in subsection 6 of this section or withhold Missouri income tax
as provided in subsection 7 of this section. A partnership that timely
files an agreement as provided in subsection 6 of this section with
respect to a nonresident partner for a taxable year shall be considered
to have timely filed such an agreement for each subsequent taxable year.
A partnership that does not timely file such an agreement for a taxable
year shall not be precluded from timely filing such an agreement for
subsequent taxable years. A partnership is not required to deduct and
withhold Missouri income tax for a nonresident partner if:

(1) The nonresident partner not otherwise required to file a return
agrees to have the Missouri income tax due paid as part of the
partnership's composite return;

(2) The nonresident partner not otherwise required to file a return had
Missouri assignable federal adjusted gross income from the partnership of
less than twelve hundred dollars;

(3) The partnership is liquidated or terminated;

(4) Income was generated by a transaction related to termination or
liquidation; or

(5) No cash or other property was distributed in the current and prior
taxable year.

6. The agreement referred to in subdivision (1) of subsection 5 of this
section is an agreement by a nonresident partner of the partnership to:

(1) File a return in accordance with the provisions of section 143.481
and to make timely payment of all taxes imposed on the partner by this
state with respect to income of the partnership; and

(2) Be subject to personal jurisdiction in this state for purposes of the
collection of income taxes, together with related interest and penalties,
imposed on the partner by this state with respect to the income of the
partnership.

The agreement will be considered timely filed for a taxable year, and for
all subsequent taxable years, if it is filed at or before the time the
annual return for such taxable year is required to be filed pursuant to
section 143.511.

7. The amount of Missouri income tax to be withheld is determined by
multiplying the partner's distributive share allocable to Missouri that
is paid or credited to a nonresident partner during the taxable year by
the highest rate used to determine a Missouri income tax liability for an
individual, except that the amount of the tax withheld may be determined
based on withholding tables provided by the director of revenue if the
partner submits a Missouri withholding allowance certificate.

8. A partnership shall be entitled to recover for a partner on whose
behalf a tax payment was made pursuant to this section, if such partner
has no tax liability. (L. 1972 S.B. 549, A.L. 1993 S.B. 66 & 20, A.L.
1997 H.B. 655 merged with S.B. 170)

Effective 6-24-97 (H.B. 655) 5-20-97 (S.B. 170)

*Word "results" appears in original rolls.

1. In determining the adjusted gross income of a nonresident
partner of any partnership, there shall be included only that part
derived from or connected with sources in this state of the partner's
distributive share of items of partnership income, gain, loss, and
deduction entering into his federal adjusted gross income, as such part
is determined under regulations prescribed by the director of revenue in
accordance with the general rules in section 143.181.

2. In determining the source of a nonresident partner's adjusted gross
income, no effect shall be given to a provision in the partnership
agreement which:

(1) Characterizes payments to the partner as being for services or for
the use of capital, or allocated to the partner, as income or gain from
sources outside this state, a greater proportion of his distributive
share of partnership income or gain than the ratio of partnership income
or gain from sources outside this state to partnership income or gain
from all sources, except as authorized in subsection 4; or

(2) Allocates to the partner a greater proportion of a partnership item
of loss or deduction connected with sources in this state than his
proportionate share, for federal income tax purposes, of partnership loss
or deduction generally, except as authorized in subsection 5.

3. Any modifications described in subsections 2 and 3 of section 143.121,
and in section 143.141, which relates to an item of partnership income,
gain, loss, or deduction, shall be made in accordance with the partner's
distributive share, for federal income tax purposes, of the item to which
the modification relates, but limited to the portion of such item derived
from or connected with sources in this state.

4. The director of revenue may, on application, authorize the use of such
other methods of determining a nonresident partner's portion of
partnership items derived from or connected with sources in this state,
and the modifications related thereto, as may be appropriate and
equitable, on such terms and conditions as he may require.

5. A nonresident partner's distributive share of items of income, gain,
loss, or deduction shall be determined under subsection 1 of section
143.411. The character of partnership items for a nonresident partner
shall be determined under subsection 2 of section 143.411. The effect of
a special provision in a partnership agreement, other than a provision
referred to in subsection 2 of this section, having as a principal
purpose the avoidance of tax under sections 143.011 to 143.996, shall be
determined under subsection 3 of section 143.411. (L. 1972 S.B. 549)

Effective 1-1-73

1. The Missouri taxable income of a corporation taxable under
sections 143.011 to 143.996 shall be so much of its federal taxable
income for the taxable year, with the modifications specified in
subsections 2 to 4 of this section, as is derived from sources within
Missouri as provided in section 143.451. The tax of a corporation shall
be computed on its Missouri taxable income at the rates provided in
section 143.071.

2. There shall be added to or subtracted from federal taxable income the
modifications to adjusted gross income provided in section 143.121 and
the applicable modifications to itemized deductions provided in section
143.141. There shall be subtracted the federal income tax deduction
provided in section 143.171. There shall be subtracted, to the extent
included in federal taxable income, corporate dividends from sources
within Missouri.

3. (1) If an affiliated group of corporations files a consolidated income
tax return for the taxable year for federal income tax purposes and fifty
percent or more of its income is derived from sources within this state
as determined in accordance with section 143.451, then it may elect to
file a Missouri consolidated income tax return. The federal consolidated
taxable income of the electing affiliated group for the taxable year
shall be its federal taxable income.

(2) So long as a federal consolidated income tax return is filed, an
election made by an affiliated group of corporations to file a Missouri
consolidated income tax return may be withdrawn or revoked only upon
substantial change in the law or regulations adversely changing tax
liability under this chapter, or with permission of the director of
revenue upon the showing of good cause for such action. After such a
withdrawal or revocation with respect to an affiliated group, it may not
file a Missouri consolidated income tax return for five years thereafter,
except with the approval of the director of revenue, and subject to such
terms and conditions as he may prescribe.

(3) No corporation which is part of an affiliated group of corporations
filing a Missouri consolidated income tax return shall be required to
file a separate Missouri corporate income tax return for the taxable year.

(4) For each taxable year an affiliated group of corporations filing a
federal consolidated income tax return does not file a Missouri
consolidated income tax return, for purposes of computing the Missouri
income tax, the federal taxable income of each member of the affiliated
group shall be determined as if a separate federal income tax return had
been filed by each such member.

(5) The director of revenue may prescribe such regulations not
inconsistent with the provisions of this chapter as he may deem necessary
in order that the tax liability of any affiliated group of corporations
making a Missouri consolidated income tax return, and of each corporation
in the group, before, during, and after the period of affiliation, may be
returned, determined, computed, assessed, collected, and adjusted, in
such manner as clearly to reflect the Missouri taxable income derived
from sources within this state and in order to prevent avoidance of such
tax liability.

4. If a net operating loss deduction is allowed for the taxable year,
there shall be added to federal taxable income the amount of the net
operating loss modification for each loss year as to which a portion of
the net operating loss deduction is attributable. As used in this
subsection, the following terms mean:

(1) "Loss year", the taxable year in which there occurs a federal net
operating loss that is carried back or carried forward in whole or in
part to another taxable year;

(2) "Net addition modification", for any taxable year, the amount by
which the sum of all required additions to federal taxable income
provided in this chapter, except for the net operating loss modification,
exceeds the combined sum of the amount of all required subtractions from
federal taxable income provided in this chapter;

(3) "Net operating loss deduction", a net operating loss deduction
allowed for federal income tax purposes under Section 172 of the Internal
Revenue Code of 1986, as amended, or a net operating loss deduction
allowed for Missouri income tax purposes under paragraph (d) of
subsection 2 of section 143.121, but not including any net operating loss
deduction that is allowed for federal income tax purposes but disallowed
for Missouri income tax purposes under paragraph (d) of subsection 2 of
section 143.121;

(4) "Net operating loss modification", an amount equal to the lesser of
the amount of the net operating loss deduction attributable to that loss
year or the amount by which the total net operating loss in the loss year
is less than the sum of:

(a) The net addition modification for that loss year; and

(b) The cumulative net operating loss deductions attributable to that
loss year allowed for the taxable year and all prior taxable years.

5. For all tax years ending on or after July 1, 2002, federal taxable
income may be a positive or negative amount. Subsection 4 of this section
shall be effective for all tax years with a net operating loss deduction
attributable to a loss year ending on or after July 1, 2002, and the net
operating loss modification shall only apply to loss years ending on or
after July 1, 2002. (L. 1972 S.B. 549, A.L. 2004 S.B. 1394)

(1998) Director may revoke affiliated group status only when the
consolidated returns do not clearly reflect the Missouri taxable income
derived from sources within this state. Suburban Newspapers of Greater
St. Louis, Inc. v. Director of Revenue, 975 S.W.2d 107 (Mo.banc).

(1998) The fifty percent threshold requirement of subdivision (1) of
subsection 3 of this section is unconstitutional because it discriminates
against interstate commerce. General Motors Corp. v. Director of Revenue,
981 S.W.2d 561 (Mo.banc).

(2002) Payments between corporate taxpayers and related companies
resulting from exclusive licensing agreements and patents executed
outside state did not constitute Missouri source income. Acme Royalty
Company v. Director of Revenue, 96 S.W.3d 72 (Mo.banc).

1. The term "corporation" means every corporation, association,
joint stock company and joint stock association organized, authorized or
existing under the laws of this state and includes:

(1) Every corporation, association, joint stock company, and joint stock
association organized, authorized, or existing under the laws of this
state, and every corporation, association, joint stock company, and joint
stock association, licensed to do business in this state, or doing
business in this state, and not organized, authorized, or existing under
the laws of this state, or by any receiver in charge of the property of
any such corporation, association, joint stock company or joint stock
association;

(2) Every railroad corporation or receiver in charge of the property
thereof which operates over rails owned or leased by it and every
corporation operating any buslines, trucklines, airlines, or other forms
of transportation operating over fixed routes owned, leased, or used by
it extending from this state to another state or states;

(3) Every corporation, or receiver in charge of the property thereof,
which owns or operates a bridge between this and any other state; and

(4) Every corporation, or receiver in charge of the property thereof,
which operates a telephone line or lines extending from this state to
another state or states or a telegraph line or lines extending from this
state to another state or states.

2. The tax on corporations provided in subsection 1 of section 143.431
and section 143.071 shall not apply to:

(1) A corporation which by reason of its purposes and activities is
exempt from federal income tax. The preceding sentence shall not apply to
unrelated business taxable income and other income on which chapter 1 of
the Internal Revenue Code imposes the federal income tax or any other tax
measured by income;

(2) An express company which pays an annual tax on its gross receipts in
this state;

(3) An insurance company which pays an annual tax on its gross premium
receipts in this state;

(4) A Missouri mutual or an extended Missouri mutual insurance company
organized under chapter 380, RSMo; and

(5) Any other corporation that is exempt from Missouri income taxation
under the laws of Missouri or the laws of the United States. (L. 1972
S.B. 549, A.L. 1989 S.B. 228)

Effective 1-1-90

1. Missouri taxable income of a corporation shall include all
income derived from sources within this state.

2. A corporation described in subdivision (1) of subsection 1 of section
143.441 shall include in its Missouri taxable income all income from
sources within this state, including that from the transaction of
business in this state and that from the transaction of business partly
done in this state and partly done in another state or states. However:

(1) Where income results from a transaction partially in this state and
partially in another state or states, and income and deductions of the
portion in the state cannot be segregated, then such portions of income
and deductions shall be allocated in this state and the other state or
states as will distribute to this state a portion based upon the portion
of the transaction in this state and the portion in such other state or
states.

(2) The taxpayer may elect to compute the portion of income from all
sources in this state in the following manner:

(a) The income from all sources shall be determined as provided,
excluding therefrom the figures for the operation of any bridge
connecting this state with another state.

(b) The amount of sales which are transactions wholly in this state shall
be added to one-half of the amount of sales which are transactions partly
within this state and partly without this state, and the amount thus
obtained shall be divided by the total sales or in cases where sales do
not express the volume of business, the amount of business transacted
wholly in this state shall be added to one-half of the amount of business
transacted partly in this state and partly outside this state and the
amount thus obtained shall be divided by the total amount of business
transacted, and the net income shall be multiplied by the fraction thus
obtained, to determine the proportion of income to be used to arrive at
the amount of Missouri taxable income. The investment or reinvestment of
its own funds, or sale of any such investment or reinvestment, shall not
be considered as sales or other business transacted for the determination
of said fraction.

(3) For the purposes of this section, a transaction involving the sale of
tangible property is:

(a) "Wholly in this state" if both the seller's shipping point and the
purchaser's destination point are in this state;

(b) "Partly within this state and partly without this state" if the
seller's shipping point is in this state and the purchaser's destination
point is outside this state, or the seller's shipping point is outside
this state and the purchaser's destination point is in this state;

(c) Not "wholly in this state" or not "partly within this state and
partly without this state" only if both the seller's shipping point and
the purchaser's destination point are outside this state;

(d) For purposes of this subdivision the purchaser's destination point
shall be determined without regard to the FOB point or other conditions
of the sale, and the seller's shipping point is determined without regard
to the location of the seller's principle office or place of business.

(4) For purposes of this subsection, the following words shall, unless
the context otherwise requires, have the following meaning:

(a) "Administration services" include, but are not limited to, clerical,
fund or shareholder accounting, participant record keeping, transfer
agency, bookkeeping, data processing, custodial, internal auditing, legal
and tax services performed for an investment company;

(b) "Affiliate", the meaning as set forth in 15 U.S.C. Section
80a-2(a)(3)(C), as may be amended from time to time;

(c) "Distribution services" include, but are not limited to, the services
of advertising, servicing, marketing, underwriting or selling shares of
an investment company, but, in the case of advertising, servicing or
marketing shares, only where such service is performed by a person who
is, or in the case of a closed end company, was, either engaged in the
services of underwriting or selling investment company shares or
affiliated with a person that is engaged in the service of underwriting
or selling investment company shares. In the case of an open end company,
such service of underwriting or selling shares must be performed pursuant
to a contract entered into pursuant to 15 U.S.C. Section 80a-15(b), as
from time to time amended;

(d) "Investment company", any person registered under the federal
Investment Company Act of 1940, as amended from time to time, (the act)
or a company which would be required to register as an investment company
under the act except that such person is exempt to such registration
pursuant to Section 80a-3(c)(1) of the act;

(e) "Investment funds service corporation" includes any corporation or S
corporation doing business in the state which derives more than fifty
percent of its gross income in the ordinary course of business from the
provision directly or indirectly of management, distribution or
administration services to or on behalf of an investment company or from
trustees, sponsors and participants of employee benefit plans which have
accounts in an investment company. An investment funds service
corporation shall include any corporation or S corporation providing
management services as an investment advisory firm registered under
Section 203 of the Investment Advisors Act of 1940, as amended from time
to time, regardless of the percentage of gross revenues consisting of
fees from management services provided to or on behalf of an investment
company;

(f) "Management services" include but are not limited to, the rendering
of investment advice directly or indirectly to an investment company
making determinations as to when sales and purchases of securities are to
be made on behalf of the investment company, or the selling or purchasing
of securities constituting assets of an investment company, and related
activities, but only where such activity or activities are performed:

a. Pursuant to a contract with the investment company entered into
pursuant to 15 U.S.C. Section 80a-15(a), as from time to time amended;

b. For a person that has entered into such contract with the investment
company; or

c. For a person that is affiliated with a person that has entered into
such contract with an investment company;

(g) "Qualifying sales", gross income derived from the provision directly
or indirectly of management, distribution or administration services to
or on behalf of an investment company or from trustees, sponsors and
participants of employee benefit plans which have accounts in an
investment company. For purposes of this section, gross income is defined
as that amount of income earned from qualifying sources without deduction
of expenses related to the generation of such income;

(h) "Residence", presumptively the fund shareholder's mailing address on
the records of the investment company. If, however, the investment
company or the investment funds service corporation has actual knowledge
that the fund shareholder's primary residence or principal place of
business is different than the fund shareholder's mailing address such
presumption shall not control. To the extent an investment funds service
corporation does not have access to the records of the investment
company, the investment funds service corporation may employ reasonable
methods to determine the investment company fund shareholder's residence.

(5) Notwithstanding other provisions of law to the contrary, qualifying
sales of an investment funds service corporation, or S corporation, shall
be considered wholly in this state only to the extent that the fund
shareholders of the investment companies, to which the investment funds
service corporation, or S corporation, provide services, are residenced
in this state. Wholly in this state qualifying sales of an investment
funds service corporation, or S corporation, shall be determined as
follows:

(a) By multiplying the investment funds service corporation's total
dollar amount of qualifying sales from services provided to each
investment company by a fraction, the numerator of which shall be the
average of the number of shares owned by the investment company's fund
shareholders residenced in this state at the beginning of and at the end
of the investment company's taxable year that ends with or within the
investment funds service corporation's taxable year, and the denominator
of which shall be the average of the number of shares owned by the
investment company's fund shareholders everywhere at the beginning of and
at the end of the investment company's taxable year that ends with or
within the investment funds service corporation's taxable year;

(b) A separate computation shall be made to determine the wholly in this
state qualifying sales from each investment company. The qualifying sales
for each investment company shall be multiplied by the respective
percentage of each fund, as calculated pursuant to paragraph (a) of this
subdivision. The product of this equation shall result in the wholly in
this state qualifying sales. The qualifying sales for each investment
company which are not wholly in this state will be considered wholly
without this state;

(c) To the extent an investment funds service corporation has sales which
are not qualifying sales, those nonqualified sales shall be apportioned
to this state based on the methodology utilized by the investment funds
service corporation without regard to this subdivision.

3. Any corporation described in subdivision (1) of subsection 1 of
section 143.441 organized in this state or granted a permit to operate in
this state for the transportation or care of passengers shall report its
gross earnings within the state on intrastate business and shall also
report its gross earnings on all interstate business done in this state
which report shall be subject to inquiry for the purpose of determining
the amount of income to be included in Missouri taxable income. The
previous sentence shall not apply to a railroad.

4. A corporation described in subdivision (2) of subsection 1 of section
143.441 shall include in its Missouri taxable income all income arising
from all sources in this state and all income from each transportation
service wholly within this state, from each service where the only lines
of such corporation used are those in this state, and such proportion of
revenue from each service where the facilities of such corporation in
this state and in another state or states are used, as the mileage used
over the lines of such corporation in the state shall bear to the total
mileage used over the lines of such corporation. The taxpayer may elect
to compute the portion of income from all sources within this state in
the following manner:

(1) The income from all sources shall be determined as provided;

(2) The amount of investment of such corporation on December thirty-first
of each year in this state in fixed transportation facilities, real
estate and improvements, plus the value on December thirty-first of each
year of any fixed transportation facilities, real estate and improvements
in this state leased from any other railroad shall be divided by the sum
of the total amount of investment of such corporation on December
thirty-first of each year in fixed transportation facilities, real estate
and improvements, plus the value on December thirty-first of each year,
of any fixed transportation facilities, real estate and improvements
leased from any other railroad. Where any fixed transportation
facilities, real estate or improvements are leased by more than one
railroad, such portion of the value shall be used by each railroad as the
rental paid by each shall bear to the rental paid by all lessees. The
income shall be multiplied by the fraction thus obtained to determine the
proportion to be used to arrive at the amount of Missouri taxable income.

5. A corporation described in subdivision (3) of subsection 1 of section
143.441 shall include in its Missouri taxable income one-half of the net
income from the operation of a bridge between this and another state. If
any such bridge is owned or operated by a railroad corporation or
corporations, or by a corporation owning a railroad corporation using
such bridge, then the figures for operation of such bridge may be
included in the return of such railroad or railroads; or if such bridge
is owned or operated by any other corporation which may now or hereafter
be required to file an income tax return, one-half of the income or loss
to such corporation from such bridge may be included in such return by
adding or subtracting same to or from another net income or loss shown by
the return.

6. A corporation described in subdivision (4) of subsection 1 of section
143.441 shall include in its Missouri taxable income all income arising
from all sources within this state. Income shall include revenue from
each telephonic or telegraphic service rendered wholly within this state;
from each service rendered for which the only facilities of such
corporation used are those in this state; and from each service rendered
over the facilities of such corporation in this state and in other state
or states, such proportion of such revenue as the mileage involved in
this state shall bear to the total mileage involved over the lines of
said company in all states. The taxpayer may elect to compute the portion
of income from all sources within this state in the following manner:

(1) The income from all sources shall be determined as provided;

(2) The amount of investment of such corporation on December thirty-first
of each year in this state in telephonic or telegraphic facilities, real
estate and improvements thereon, shall be divided by the amount of the
total investment of such corporation on December thirty-first of each
year in telephonic or telegraphic facilities, real estate and
improvements. The income of the taxpayer shall be multiplied by fraction
thus obtained to determine the proportion to be used to arrive at the
amount of Missouri taxable income.

7. From the income determined in subsections 2, 3, 4, 5 and 6 of this
section to be from all sources within this state shall be deducted such
of the deductions for expenses in determining Missouri taxable income as
were incurred in this state to produce such income and all losses
actually sustained in this state in the business of the corporation.

8. If a corporation derives only part of its income from sources within
Missouri, its Missouri taxable income shall only reflect the effect of
the following listed deductions to the extent applicable to Missouri. The
deductions are: (a) its deduction for federal income taxes pursuant to
section 143.171, and (b) the effect on Missouri taxable income of the
deduction for net operating loss allowed by Section 172 of the Internal
Revenue Code. The extent applicable to Missouri shall be determined by
multiplying the amount that would otherwise affect Missouri taxable
income by the ratio for the year of the Missouri taxable income of the
corporation for the year divided by the Missouri taxable income for the
year as though the corporation had derived all of its income from sources
within Missouri. For the purpose of the preceding sentence, Missouri
taxable income shall not reflect the listed deductions.

9. Any investment funds service corporation organized as a corporation or
S corporation which has any shareholders residenced in this state shall
be subject to Missouri income tax as provided in this chapter. (L. 1972
S.B. 549, A.L. 1988 H.B. 1335, A.L. 1996 H.B. 1098, A.L. 1997 2d Ex.
Sess. S.B. 1)

Effective 1-1-98

(1988) Income from sales in which both the shipping point and the
destination are outside the state is excluded from the numerator of the
single factor formula in determining income apportionment of income for
state income tax purposes. Wolff Shoe Co. v. Director of Revenue, 762
S.W.2d 29 (Mo. en banc).

1. A corporation shall elect to determine income applicable to
this state by multiplying the total income from all sources by the
fraction determined in the manner in section 143.451; first, by filing
written notice with the director of revenue on or before the due date of
the return (including extensions of time) of the taxpayer's election, or,
second, by failing to keep its books and records in such manner as to
show the income applicable to this state, including gross income and
deductions applicable thereto.

2. If the corporation shall keep its books and records so as to show by
any other method of allocation between this state and other states
involved of income from transactions partially within and partially
without this state, including gross income and deductions applicable
thereto, and such method shows the income applicable to this state,
including gross income and deductions applicable thereto, then it may, on
or before sixty days before the end of any taxable year, petition the
director of revenue, in writing, to be permitted in its return required
to be filed to apportion to this state according to the method shown by
such books or records. If the director of revenue finds that such method
does show the income applicable to this state including gross income and
the deductions applicable thereto, he shall notify the corporation, at
least thirty days prior to the last day on which such corporation's
return for that taxable year is to be filed, that it may use that method
as long as such method shows the income applicable to this state,
including gross income and deductions applicable thereto.

3. The corporation shall cease using such method whenever the director of
revenue finds and notifies such corporation on or before ninety days
before the end of the taxable year, that such method does not so show.
Upon and after such revocation the corporation shall be permitted to
petition to use another method of allocation that will show such income
including gross income and deductions applicable thereto as though no
petition had ever been filed.

4. Failure, after a method has been revoked by the director of revenue,
to submit a method which the director of revenue finds will show such
income applicable to this state including gross income and deductions
applicable thereto, on or before sixty days before the end of any taxable
year, or failure to make a return on the basis, which has been approved
by the director of revenue on petition of the corporation and which
stands unrevoked, shall constitute an election to accept the
determination of income applicable to this state by multiplying the total
income from all sources by the fraction determined in the manner set
forth in section 143.451. (L. 1972 S.B. 549)

Effective 1-1-73

1. An S corporation, as defined by Section 1361 (a)(1) of the
Internal Revenue Code, shall not be subject to the taxes imposed by
section 143.071, or other sections imposing income tax on corporations.

2. A shareholder of an S corporation shall determine such shareholder's S
corporation modification and pro rata share, including its character, by
applying the following:

(1) Any modification described in sections 143.121 and 143.141 which
relates to an item of S corporation income, gain, loss, or deduction
shall be made in accordance with the shareholder's pro rata share, for
federal income tax purposes, of the item to which the modification
relates. Where a shareholder's pro rata share of any such item is not
required to be taken into account separately for federal income tax
purposes, the shareholder's pro rata share of such item shall be
determined in accordance with his pro rata share, for federal income tax
purposes, of S corporation taxable income or loss generally;

(2) Each item of S corporation income, gain, loss, or deduction shall
have the same character for a shareholder pursuant to sections 143.005 to
143.998 as it has for federal income tax purposes. Where an item is not
characterized for federal income tax purposes, it shall have the same
character for a shareholder as if realized directly from the source from
which realized by the S corporation or incurred in the same manner as
incurred by the S corporation.

3. A nonresident shareholder of an S corporation shall determine such
shareholder's Missouri nonresident adjusted gross income and his or her
nonresident shareholder modification by applying the provisions of this
subsection. Items shall be determined to be from sources within this
state pursuant to regulations of the director of revenue in a manner
consistent with the division of income provisions of section 143.451,
section 143.461, or section 32.200, RSMo (Multistate Tax Compact). In
determining the adjusted gross income of a nonresident shareholder of any
S corporation, there shall be included only that part derived from or
connected with sources in this state of the shareholder's pro rata share
of items of S corporation income, gain, loss or deduction entering into
shareholder's federal adjusted gross income, as such part is determined
pursuant to regulations prescribed by the director of revenue in
accordance with the general rules in section 143.181. Any modification
described in subsections 2 and 3 of section 143.121 and in section
143.141, which relates to an item of S corporation income, gain, loss, or
deduction shall be made in accordance with the shareholder's pro rata
share, for federal income tax purposes, of the item to which the
modification relates, but limited to the portion of such item derived
from or connected with sources in this state.

4. The director of revenue shall permit S corporations to file composite
returns and to make composite payments of tax on behalf of its
nonresident shareholders not otherwise required to file a return. If the
nonresident shareholder's filing requirements result solely from one or
more interests in any other partnerships or subchapter S corporations,
that nonresident shareholder may be included in the composite return.

5. If an S corporation pays or credits amounts to any of its nonresident
individual shareholders as dividends or as their share of the S
corporation's undistributed taxable income for the taxable year, the S
corporation shall either timely file with the department of revenue an
agreement as provided in subsection 6 of this section or withhold
Missouri income tax as provided in subsection 7 of this section. An S
corporation that timely files an agreement as provided in subsection 6 of
this section with respect to a nonresident shareholder for a taxable year
shall be considered to have timely filed such an agreement for each
subsequent taxable year. An S corporation that does not timely file such
an agreement for a taxable year shall not be precluded from timely filing
such an agreement for subsequent taxable years. An S corporation is not
required to deduct and withhold Missouri income tax for a nonresident
shareholder if:

(1) The nonresident shareholder not otherwise required to file a return
agrees to have the Missouri income tax due paid as part of the S
corporation's composite return;

(2) The nonresident shareholder not otherwise required to file a return
had Missouri assignable federal adjusted gross income from the S
corporation of less than twelve hundred dollars;

(3) The S corporation is liquidated or terminated;

(4) Income was generated by a transaction related to termination or
liquidation; or

(5) No cash or other property was distributed in the current and prior
taxable year.

6. The agreement referred to in subdivision (1) of subsection 5 of this
section is an agreement of a nonresident shareholder of the S corporation
to:

(1) File a return in accordance with the provisions of section 143.481
and to make timely payment of all taxes imposed on the shareholder by
this state with respect to income of the S corporation; and

(2) Be subject to personal jurisdiction in this state for purposes of the
collection of income taxes, together with related interest and penalties,
imposed on the shareholder by this state with respect to the income of
the S corporation.

The agreement will be considered timely filed for a taxable year, and for
all subsequent taxable years, if it is filed at or before the time the
annual return for such taxable year is required to be filed pursuant to
section 143.511.

7. The amount of Missouri income tax to be withheld is determined by
multiplying the amount of dividends or undistributed income allocable to
Missouri that is paid or credited to a nonresident shareholder during the
taxable year by the highest rate used to determine a Missouri income tax
liability for an individual, except that the amount of the tax withheld
may be determined based on withholding tables provided by the director of
revenue if the shareholder submits a Missouri withholding allowance
certificate.

8. An S corporation shall be entitled to recover for a shareholder on
whose behalf a tax payment was made pursuant to this section, if such
shareholder has no tax liability.

9. With respect to S corporations that are banks or bank holding
companies, a pro rata share of the tax credit for the tax payable
pursuant to chapter 148, RSMo, shall be allowed against each S
corporation shareholders' state income tax as follows, provided the bank
otherwise complies with section 148.112:

(1) The credit allowed by this subsection shall be equal to the bank tax
calculated pursuant to chapter 148, RSMo, based on bank income in 1999
and after, on a bank that makes an election pursuant to 26 U.S.C. Section
1362, and such credit shall be allocated to the qualifying shareholder
according to stock ownership, determined by multiplying a fraction, where
the numerator is the shareholder's stock, and the denominator is the
total stock issued by such bank or bank holding company;

(2) The tax credit authorized in this subsection shall be permitted only
to the shareholders that qualify as S corporation shareholders, provided
the stock at all times during the taxable period qualifies as S
corporation stock as defined in 26 U.S.C. Section 1361, and such stock is
held by the shareholder during the taxable period. The credit created by
this section on a yearly basis is available to each qualifying
shareholder, including shareholders filing joint returns. A bank holding
company is not allowed this credit, except that, such credit shall flow
through to such bank holding company's qualified shareholders, and be
allocated to such shareholders under the same conditions; and

(3) In the event such shareholder cannot use all or part of the tax
credit in the taxable period of receipt, such shareholder may carry
forward such tax credit for a period of the lesser of five years or until
used, provided such credits are used as soon as the taxpayer has Missouri
taxable income. (L. 1972 S.B. 549, A.L. 1983 H.B. 849, A.L. 1989 H.B. 35,
et al., A.L. 1993 S.B. 66 & 20, A.L. 1997 H.B. 655 merged with S.B. 170,
A.L. 1999 S.B. 386)

(1990) Apportionment factor for corporate taxpayers for sale totally or
partially outside state is not available to resident shareholders of S
corporations. Corporation voluntarily elects to assume S corporations
status, therefore failure to permit Missouri resident shareholders of S
corporation to reduce income on tax return on account of sales totally or
partially outside state does not violate commerce clause, due process, or
equal protection. Wolff v. Director of Revenue, 791 S.W.2d 390 (Mo. en
banc).

An income tax return with respect to the tax imposed by sections
143.011 to 143.996 shall be made by the following:

(1) Every resident individual who has a Missouri adjusted gross income of
one thousand two hundred dollars or more, or a greater amount as
prescribed by the director of revenue and who is required to file a
federal income tax return;

(2) Every nonresident individual who has a Missouri nonresident adjusted
gross income (Missouri adjusted gross income derived from sources within
this state) of six hundred dollars or more, or a greater amount as
prescribed by the director of revenue and who is required to file a
federal income tax return;

(3) Every resident estate or trust which is required to file a federal
income tax return;

(4) Every nonresident estate which has gross income of six hundred
dollars or more for the taxable year from sources within this state;

(5) Every nonresident trust which for the taxable year has from sources
within this state, either:

(a) Any taxable income; or

(b) Gross income of six hundred dollars or more regardless of the amount
of taxable income;

(6) Every corporation which:

(a) Is not an exempt corporation described in subsection 2 of section
143.441;

(b) Is required to file a federal income tax return; and

(c) Has gross income from sources within this state of one hundred
dollars or more. (L. 1972 S.B. 549, A.L. 2003 S.B. 293)

1. A combined return shall be filed by a husband and wife who
file a joint federal return even though one of them has neither income
nor deductions. The tax liability of the two taxpayers shall be separate
and not joint and several.

2. Separate returns shall be filed by a husband and wife who do not file
a joint federal return. (L. 1972 S.B. 549)

Effective 1-1-73

1. An income tax return for any deceased individual shall be
made and filed by his executor, administrator, or other person charged
with the care of his property. A final return of a decedent shall be due
when it would have been due if the decedent had not died.

2. An income tax return for an individual who is unable to make a return
by reason of minority or other disability shall be made and filed by his
duly authorized agent, his guardian or other person charged with the care
of his person or property.

3. The income tax return of an estate or trust shall be made and filed by
the fiduciary thereof.

4. If two or more fiduciaries are acting jointly, the return may be made
by any one of them.

5. An income tax return for a partnership shall be filed in accordance
with the provisions of section 143.581. (L. 1972 S.B. 549)

Effective 1-1-73

Income tax returns required by sections 143.011 to 143.996 shall
be filed on or before the fifteenth day of the fourth month following the
close of the taxpayer's taxable year except where the taxpayer is an
exempt organization. Exempt organizations shall have the same due date as
set by the Internal Revenue Code of 1986, as amended. A person required
to make and file a return under sections 143.011 to 143.996 shall,
without assessment, notice, or demand, pay any tax due thereon to the
director of revenue on or before the date fixed for filing such return
(determined without regard to any extension of time for filing the
return). The director of revenue shall prescribe by regulation the place
for filing any return, declaration, statement, or other document required
pursuant to this chapter and for the payment of any tax. (L. 1972 S.B.
549, A.L. 1994 S.B. 477, et al.)

Effective 12-31-94, and shall apply to all tax periods beginning on or
after 1-1-95 (S.B. 477 § C, 1994)

1. Every resident and nonresident individual shall make a
declaration of estimated tax for the taxable year, in such form as the
director of revenue may prescribe if the Missouri estimated tax can
reasonably be expected to be at least one hundred dollars. The director
may increase the amount required for making a declaration of estimated
tax to more than one hundred dollars or decrease such required amount,
however, the decreased amount shall not be less than one hundred dollars.

2. Every corporation doing business in this state shall make a
declaration of its estimated tax for the taxable year, in such form as
the director of revenue may prescribe, if its Missouri estimated tax can
reasonably be expected to be at least two hundred fifty dollars. The
director may increase the amount required for making a declaration of
estimated tax to more than two hundred fifty dollars or decrease such
required amount, however, the decreased amount shall not be less than two
hundred fifty dollars.

3. The term "Missouri estimated tax" means the amount which the taxpayer
estimates to be the income tax under sections 143.011 to 143.996 for the
taxable year less the amount which the taxpayer estimates to be the sum
of any credits allowable, including tax withheld.

4. If they are eligible to file a joint declaration for federal tax
purposes, a husband and wife may make a combined declaration of estimated
tax as if they were one taxpayer, in which case the liability with
respect to the estimated tax shall be joint and several. If a combined
declaration is made, the estimated tax for such year may be treated as
the estimated tax of either husband or wife, or may be divided between
them, as they may elect on a combined return or on their separate returns.

5. An individual or corporation may amend a declaration under regulations
prescribed by the director of revenue.

6. If on or before January thirty-first (on or before March first in the
case of a farmer referred to in subsection 2 of section 143.531) of the
succeeding taxable year an individual files a return for the taxable year
for which the declaration is required, and pays in full the amount shown
on the return as payable, such return:

(1) Shall be considered as his declaration if no declaration was required
to be filed during the taxable year, but is otherwise required to be
filed on or before January fifteenth; or

(2) Shall be considered as the amendment permitted by subsection 5 to be
filed on or before January fifteenth if the tax shown on the return is
greater than the estimated tax shown in a declaration previously made.

7. An individual or corporation having a taxable year of less than twelve
months shall make a declaration in accordance with regulations of the
director of revenue.

8. The declaration of estimated tax for an individual under a disability
shall be made and filed in the manner provided in section 143.501 for an
income tax return. (L. 1972 S.B. 549, A.L. 1988 H.B. 1054, et al., A.L.
1998 H.B. 1301)

1. A declaration of estimated tax, other than by a farmer, shall
be filed on or before April fifteenth of the taxable year, except that if
the requirements of section 143.521 are first met:

(1) After April first and before June second of the taxable year, the
declaration shall be filed on or before June fifteenth, or

(2) After June first and before September second of the taxable year, the
declaration shall be filed on or before September fifteenth, or

(3) After September first of the taxable year, the declaration shall be
filed on or before January fifteenth of the succeeding year by an
individual or shall be filed on or before December fifteenth of the
taxable year by a corporation.

2. A declaration of estimated tax required by section 143.521 from an
individual having an estimated Missouri gross income from farming for the
taxable year which is at least two-thirds of his total estimated Missouri
gross income taxable in this state for the taxable year, may be filed at
any time on or before January fifteenth of the succeeding taxable year,
in lieu of the time otherwise prescribed. (L. 1972 S.B. 549, A.L. 1989
H.B. 35, et al.)

Effective 1-1-90

1. The estimated tax with respect to which a declaration is
required under sections 143.011 to 143.996 shall be paid as follows:

(1) If the declaration is filed on or before April fifteenth of the
taxable year, the estimated tax shall be paid in four equal installments.
The first installment shall be paid at the time of the filing of the
declaration, the second and third on June fifteenth and September
fifteenth, respectively, of the taxable year, and the fourth on January
fifteenth of the succeeding taxable year.

(2) If the declaration is filed after April fifteenth and not after June
fifteenth of the taxable year, and is not required to be filed on or
before April fifteenth of the taxable year, the estimated tax shall be
paid in three equal installments. The first installment shall be paid at
the time of the filing of the declaration, the second on September
fifteenth, of the taxable year, and the third on January fifteenth of the
succeeding taxable year.

(3) If the declaration is filed after June fifteenth and not after
September fifteenth of the taxable year, and is not required to be filed
on or before June fifteenth of the taxable year, the estimated tax shall
be paid in two equal installments. The first installment shall be paid at
the time of the filing of the declaration, and the second on January
fifteenth of the succeeding taxable year.

(4) If the declaration is filed after September fifteenth of the taxable
year and is not required to be filed on or before September fifteenth of
the taxable year, the estimated tax shall be paid in full at the time of
the filing of the declaration.

(5) If the declaration is filed after the time prescribed in section
143.531 (including cases in which an extension of time for filing the
declaration has been granted), subdivisions (2), (3), and (4) of this
subsection shall not apply, and there shall be paid at the time of such
filing all installments of estimated tax which would have been payable on
or before such time if the declaration had been filed within the time
prescribed in section 143.531, and the remaining installments shall be
paid at the time at which and in the amounts in which they would have
been payable if the declaration had been so filed.

(6) In applying subdivisions (1), (2), and (3) of this subsection to a
corporation, installments indicated as being due on January fifteenth of
the succeeding year shall be paid on or before December fifteenth of the
taxable year.

2. If an individual referred to in subsection 2 of section 143.531
(relating to income from farming) makes a declaration of estimated tax
after September fifteenth of the taxable year and on or before January
fifteenth of the succeeding taxable year, the estimated tax shall be paid
in full at the time of the filing of the declaration.

3. If any amendment of a declaration is filed, the remaining
installments, if any, shall be ratably increased or decreased, as the
case may be, to reflect the increase or decrease in the estimated tax by
reason of such amendment, and if any amendment is made after September
fifteenth of the taxable year, any increase in the estimated tax by
reason thereof shall be paid at the time of making such amendment.

4. The application of this section to taxable years of less than twelve
months shall be in accordance with regulations prescribed by the director
of revenue.

5. In the application of this section, section 143.521 and section
143.531 to the case of a taxable year beginning on any date other than
January first, there shall be substituted, for the months specified in
this section, the months which correspond thereto.

6. At the election of the individual, any installment of the estimated
tax may be paid prior to the date prescribed for its payment.

7. Payment of the estimated income tax, or any installment thereof, shall
be considered payment on account of the income tax imposed under sections
143.011 to 143.996 for the taxable year. (L. 1972 S.B. 549)

Effective 1-1-73

1. The director of revenue may grant a reasonable extension of
time for payment of tax or estimated tax or any installment thereof, or
for filing any return, declaration, statement, or other document required
in sections 143.011 to 143.996 on such terms and conditions as he may
require. Except for a taxpayer who is outside the United States, no such
extension for filing any return, declaration, statement, or document,
shall exceed six months.

2. If a taxpayer has been granted an extension of time for filing his or
its federal income tax return, the filing of a copy of the extension or
the form relating to an automatic extension with the director of revenue
shall automatically extend the due date of the income tax return required
by sections 143.011 to 143.996.

3. If a taxpayer has been granted an extension of time for paying his or
its federal income tax, the filing of a copy of the extension with the
director of revenue shall automatically extend the time for the payment
of the tax required by sections 143.011 to 143.996.

4. If the time for filing a return is extended under subsection 2, but
the time for payment is not extended under subsection 3, the taxpayer
shall pay, on or before the date prescribed for the filing of the return
(determined without regard to any extensions of time for such filing),
the amount properly estimated as his or its tax for the taxable year. (L.
1972 S.B. 549)

Effective 1-1-73

1. Any return, declaration, statement, or other document
required to be made pursuant to sections 143.011 to 143.966 shall be
signed in accordance with regulations or instructions prescribed by the
director of revenue. The fact that an individual's name is signed to a
return, declaration, statement or other document shall be prima facie
evidence that the return, declaration, statement, or other document was
signed by him.

2. The making or filing of any return, declaration, statement or other
document or copy thereof required to be made or filed pursuant to
sections 143.011 to 143.996, including a copy of a federal return, shall
constitute a certification by the person making or filing such return,
declaration, statement or other document or copy thereof that the
statements contained therein are true and that any copy filed is a true
copy.

3. The director of revenue may by regulations require that a person
preparing a return or other document for another person indicate thereon
whether it is based on all information of which he has knowledge. (L.
1972 S.B. 549)

Effective 1-1-73

The director of revenue may prescribe regulations as to the
keeping of records, the content and form of returns and statements, and
the filing of copies of federal income returns and determinations. The
director of revenue may require any person, by regulation or notice
served on such person, to make such returns, render such statements, or
keep such records as the director of revenue may deem sufficient to show
whether or not such person is liable under sections 143.011 to 143.996
for tax or for the collection of tax. (L. 1972 S.B. 549)

Effective 1-1-73

Every partnership having a resident partner or having any income
derived from sources in this state, determined in accordance with the
applicable rules of section 143.181 as in the case of a nonresident
individual, shall make a return for the taxable year setting forth all
items of income, gain, loss, and deduction, and the names and addresses
of the individuals whether residents or nonresidents who would be
entitled to share in the net income if distributed and the amount of the
distributed share of each individual and such other pertinent information
as the director of revenue may prescribe by regulations and instructions.
Such return shall be filed on or before the fifteenth day of the fourth
month following the close of each taxable year. For purposes of this
section, "taxable year" means a year or period which would be a taxable
year of the partnership if it were subject to tax under sections 143.011
to 143.996. (L. 1972 S.B. 549)

Effective 1-1-73

The director of revenue may prescribe regulations and
instructions requiring returns of information to be made and filed on or
before February twenty-eighth of each year by any person making payment
or crediting in any calendar year the amounts of one thousand two hundred
dollars or more (one hundred dollars or more in the case of interest or
dividends) to any person who may be subject to the tax imposed under
sections 143.011 to 143.996. Such returns may be required of any person,
including lessees or mortgagors of real or personal property,
fiduciaries, employers, and all officers and employees of this state, or
of any municipal corporation or political subdivision of this state,
having the control, receipt, custody, disposal or payment of dividends,
interest, rents, salaries, wages, premiums, annuities, compensations,
remunerations, emoluments or other fixed or determinable gains, profits,
or income, except interest coupons payable to bearer. A duplicate of the
statement as to tax withheld on wages, required to be furnished by an
employer to an employee, shall constitute the return of information
required to be made under this section with respect to such wages. Such
return shall not be required unless the person is required to file a
return or report containing the same or similar information to the United
States Internal Revenue Service. (L. 1972 S.B. 549)

Effective 1-1-73

If the amount of a taxpayer's federal taxable income reported on
his federal income tax return for any taxable year is changed or
corrected by the United States Internal Revenue Service or other
competent authority, or as the result of a renegotiation of a contract or
subcontract with the United States, the taxpayer shall report such change
or correction in federal taxable income within ninety days after the
final determination of such change, correction, or renegotiation, or as
otherwise required by the director of revenue. Each such report shall
state whether and wherein the determination is believed to be erroneous.
Any taxpayer filing an amended federal income tax return shall also file
within ninety days thereafter an amended return under sections 143.011 to
143.996, and shall give such information as the director of revenue may
require. If a taxpayer does not file a federal income tax return under
sections 143.011 to 143.996, then

(1) For purposes of the first sentence of this section, he shall be
deemed to have filed a return indicating no taxable income, and

(2) For purposes of the third sentence of this section, his initial
federal income tax return shall be deemed to be an amended return. The
director of revenue may by regulation prescribe such exceptions to the
requirements of this section as he deems appropriate. (L. 1972 S.B. 549)

Effective 1-1-73

1. As soon as practical after the return is filed, the director
of revenue shall examine it to determine the correct amount of tax. If
the director of revenue finds that the amount of tax shown on the return
is less than the correct amount, he shall notify the taxpayer of the
amount of the deficiency proposed to be assessed. If the director of
revenue finds that the tax paid is more than the correct amount, he shall
credit the overpayment against any taxes due under sections 143.011 to
143.996 from the taxpayer and refund the difference. No deficiency shall
be proposed and no refund shall be made pursuant to this or any section
of sections 143.011 to 143.996 unless the amount exceeds one dollar.

2. If the taxpayer fails to file an income tax return, the director of
revenue shall estimate the taxpayer's taxable income and the tax thereon
from any available information and notify the taxpayer of the amount
proposed to be assessed as in the case of a deficiency.

3. The notice required by subsections 1 and 2 of this section, hereafter
referred to as a notice of deficiency, shall set forth the reason for the
proposed assessment. The notice of deficiency shall be mailed by
certified or registered mail to the taxpayer at his last known address.
In the case of a combined return, the notice of deficiency may be a
single combined notice except that if the director of revenue is notified
by either spouse that separate residences have been established he shall
mail notices to each spouse. If the taxpayer is deceased, is under a
legal disability, or, in the case of a corporation, has terminated its
existence, a notice of deficiency may be mailed to his last known address
unless the director of revenue has received notice of the existence and
address of a person to receive notices with respect to such taxpayer. (L.
1972 S.B. 549)

Effective 1-1-73

Sixty days after the date on which it was mailed (one hundred
fifty days if the taxpayer is outside the United States), a notice of
deficiency shall constitute a final assessment of the amount of tax
specified together with interest, additions to tax, and penalties except
only for such amounts as to which the taxpayer has filed a protest with
the director of revenue. (L. 1972 S.B. 549, A.L. 1983 1st Ex. Sess. H.B.
10)

Effective 1-1-84

1. Within sixty days (one hundred fifty days if the taxpayer is
outside the United States) after the mailing of a notice of deficiency,
the taxpayer may file with the director of revenue a written protest
against the proposed assessment in which he shall set forth the grounds
on which the protest is based. If a protest is filed, the director of
revenue shall reconsider the proposed deficiency.

2. A taxpayer's protest may include a request for an informal hearing
with the director. If such a request is made, an informal hearing shall
be heard. The informal hearing shall be a forum for discussion of the
merits of the proposed assessment. The parties shall also consider the
possibility of negotiating a settlement of the contested tax liability.

3. If a taxpayer has filed a timely protest under subsection 1 of this
section, the taxpayer may, at any time before an assessment has become
final, make a deposit with the director of revenue of any part or all of
the tax, interest, additions to tax or penalties proposed in the notice
of deficiency. The deposit shall be accompanied by a written statement
setting forth:

(1) The identification of the tax and the tax period to which the deposit
applies;

(2) The amount of tax, interest, additions to tax or penalties to which
the deposit is to be applied by the director; and

(3) Such other identifying information as the director of revenue may by
regulation provide.

4. Upon receipt of a timely deposit under subsection 2 of this section,
the director of revenue shall issue a receipt to the taxpayer
acknowledging receipt of the deposit, and confirming the amount of tax,
interest, additions to tax and penalty to which the deposit has been
applied. All such deposits shall be deposited in the general revenue fund
of the state as payments of tax, interest, additions to tax and penalty,
as the case may be. The director of revenue shall refuse the tender of
any deposit which does not satisfy the requirements of this section, and
shall return such payment to the taxpayer.

5. A taxpayer which had made a deposit under this section which has been
accepted by the director of revenue may at any time before an assessment
has become final or an action has been filed in the circuit court of Cole
County under subsection 5 of section 143.841, request in writing that the
director of revenue return the deposit to the taxpayer. The director of
revenue shall return such deposit without interest if a written request
is made. The taxpayer's request for return of a deposit shall not be
treated under this chapter as a claim for refund for purposes of section
143.821.

6. The payment under protest provision provided by this section shall
only apply to taxes imposed by this chapter and shall not be incorporated
by reference to apply to taxes imposed by other chapters. (L. 1972 S.B.
549, A.L. 1978 S.B. 661, A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1988 H.B.
1335, A.L. 1996 H.B. 1098)

Notice of the director of revenue's determination shall be
mailed to the taxpayer by certified or registered mail and such notice
shall set forth briefly the director of revenue's findings of fact and
the basis of decision in each case decided in whole or in part adversely
to the taxpayer. (L. 1972 S.B. 549)

Effective 1-1-73

The action of the director of revenue on the taxpayer's protest
is final upon the expiration of thirty days from the date when he mails
notice of his action to the taxpayer unless within this period the
taxpayer seeks review of the director of revenue's determination by the
administrative hearing commission. (L. 1972 S.B. 549, A.L. 1978 S.B. 661)

In any proceeding before the director of revenue or on appeal
under sections 143.011 to 143.996 the burden of proof shall be on the
taxpayer except for the following issues, as to which the burden of proof
shall be on the director of revenue:

(1) Whether the taxpayer has been guilty of fraud with attempt to evade
tax;

(2) Whether the petitioner is liable as the transferee of property of a
taxpayer (but not to show that the taxpayer was liable for the tax); and

(3) Whether the taxpayer is liable for any increase in a deficiency where
such increase is asserted initially after the notice of deficiency was
mailed and a protest under section 143.631 filed, unless such increase in
deficiency is the result of a change or correction of federal taxable
income required to be reported under section 143.601, and of which change
or correction the director of revenue had no notice or knowledge at the
time he mailed the notice of deficiency. (L. 1972 S.B. 549, A.L. 1978
S.B. 661)

Evidence of a federal determination relating to issues raised in
a proceeding under section 143.631 shall be admissible, under rules
established by the administrative hearing commission. (L. 1972 S.B. 549,
A.L. 1978 S.B. 661)

In the event that the amount of tax is understated on the
taxpayer's return due to a mathematical error, the director of revenue
shall notify the taxpayer that an amount of tax in excess of that shown
on the return is due and has been assessed. Such a notice of additional
tax due shall not be considered a notice of deficiency nor shall the
taxpayer have any right to file a protest under section 143.631. (L. 1972
S.B. 549)

Effective 1-1-73

The taxpayer at any time, whether or not a notice of deficiency
has been issued, shall have the right to waive the restrictions on
assessment and collection of the whole or any part of the deficiency.
This waiver may only be made by a signed notice that refers to the right
to file a protest and is filed with the director of revenue. (L. 1972
S.B. 549)

Effective 1-1-73

1. The amount of tax which is shown to be due on the return
(including revisions for mathematical errors) shall be deemed to be
assessed on the date of filing of the return including any amended
returns showing an increase of tax. In the case of a return properly
filed without the computation of the tax, the tax computed by the
director of revenue shall be deemed to be assessed on the date when
payment is due. If a notice of deficiency has been mailed, the amount of
the deficiency shall be deemed to be assessed on the date provided in
section 143.621 if no protest is filed; or, if a protest is filed, then
upon the date when the determination of the administrative hearing
commission becomes final. If an amended return or report filed pursuant
to section 143.601 concedes the accuracy of a federal change or
correction, any deficiency in tax under sections 143.011 to 143.996
resulting therefrom shall be deemed to be assessed on the date of filing
such report or amended return and such assessment shall be timely
notwithstanding any other provisions of sections 143.011 to 143.996. Any
amount paid as a tax or in respect of a tax, other than amounts withheld
at the source or paid as estimated income tax, shall be deemed to be
assessed upon the date of receipt of payment, notwithstanding any other
provision of sections 143.011 to 143.996.

2. If the mode or time for the assessment of any tax under sections
143.011 to 143.996, including interest, additions to tax, and penalties
is not otherwise provided for, the director of revenue may establish the
same by regulation.

3. The director of revenue may, at any time within the period prescribed
for assessment, make a supplemental assessment, subject to the provisions
of section 143.611 where applicable, whenever it is found that any
assessment is imperfect or incomplete in any material aspect. (L. 1972
S.B. 549, A.L. 1978 S.B. 661)

1. Except as otherwise provided in this section and section
143.721, a notice of deficiency shall be mailed to the taxpayer within
three years after the return was filed. No deficiency shall be assessed
or collected with respect to the year for which the return was filed
unless the notice is mailed within the three-year period or the period
otherwise fixed.

2. If a taxpayer other than a corporation omits from his return an amount
of income that is properly includable in his Missouri adjusted gross
income and which is in excess of twenty-five percent of the amount of the
Missouri adjusted gross income stated in his return, a notice of
deficiency may be mailed to the taxpayer within six years after the
return was filed. If a taxpayer corporation omits from its return an
amount of income that is properly includable in its gross income from all
sources within this state which is in excess of twenty-five percent of
the amount of gross income stated in its return from all sources within
this state, a notice of deficiency may be mailed to the taxpayer within
six years after the return was filed. For purposes of this subsection, in
determining the amount omitted there shall not be taken into account any
amount which is omitted in the return if such amount is disclosed in the
return, or in a statement attached to the return, in a manner adequate to
apprise the director of revenue of the nature and amount of such item.

3. If no return is filed or a false and fraudulent return is filed with
intent to evade the tax imposed by sections 143.011 to 143.996, a notice
of deficiency may be mailed to the taxpayer at any time.

4. If a taxpayer fails to comply with the requirement of section 143.601
by not reporting a change or correction increasing his federal taxable
income or by not filing an amended return, a notice of deficiency may be
mailed to the taxpayer within one year after the director of revenue
shall become aware of such determination. A notice under this subsection
shall be limited to the effects on Missouri taxable income of:

(1) The issues on which the federal determination is based, and

(2) Any change in the amount of his federal income tax deduction under
the provisions of subsection 1 of section 143.171.

5. If the taxpayer shall pursuant to section 143.601 report a change or
correction or file an amended return increasing his federal taxable
income or report a change or correction which is treated in the same
manner as if it were a deficiency for federal income tax purposes, the
assessment (if not deemed to have been made upon the filing of the report
or amended return) may be made at any time within one year after such
report or amended return was filed. A notice under this subsection shall
be limited in the manner provided in subsection 4 of this section.

6. Where, before the expiration of the time prescribed in this section
for the assessment of a deficiency, both the director of revenue and the
taxpayer shall have consented in writing to its assessment after such
time, the deficiency may be assessed at any time prior to the expiration
of period agreed upon. The period so agreed may be extended by subsequent
agreement in writing made before the expiration of the period previously
agreed upon.

7. For purposes of this section a return filed before the last day
prescribed by law or by regulation promulgated pursuant to law for the
filing thereof shall be deemed to be filed on such last day. If a return
for any period ending with or within a calendar year is filed before
April fifteenth of the succeeding calendar year, such return shall be
deemed to be filed on April fifteenth of such succeeding calendar year.
(L. 1972 S.B. 549)

Effective 1-1-73

An erroneous refund shall be considered an underpayment of tax
on the date made, and an assessment of a deficiency arising out of an
erroneous refund may be made at any time within two years from the making
of the refund, except that the assessment may be made within five years
from the making of the refund if any part of the refund was induced by
fraud or the misrepresentation of a material fact. (L. 1972 S.B. 549)

Effective 1-1-73

1. If any amount of tax imposed by sections 143.011 to 143.996,
including tax withheld by an employer, is not paid on or before the last
date prescribed for payment, interest on such amount at the rate
determined by section 32.065, RSMo, shall be paid for the period from
such last date to date paid. No interest shall be imposed if the amount
due is less than one dollar nor shall this section apply to any failure
to pay estimated income tax under section 143.541.

2. For purposes of this section, the last date prescribed for the payment
of tax shall be determined without regard to any extension of time.

3. If the taxpayer has filed a waiver of restrictions on the assessment
of a deficiency and if notice and demand by the director of revenue for
payment of such deficiency is not made within thirty days after the
filing of such waiver, interest shall not be imposed on such deficiency
for the period beginning immediately after such thirtieth day and ending
with the date of notice and demand.

4. Interest prescribed under this section on any tax, including tax
withheld by an employer, shall be paid on notice and demand and shall be
assessed, collected, and paid in the same manner as taxes. Any reference
in sections 143.011 to 143.996 to the tax imposed by sections 143.011 to
143.996 shall be deemed also to refer to interest imposed by this section
on such tax.

5. Interest shall be imposed under this section in respect to any penalty
or addition to tax only if such penalty or addition to tax is not paid
within ten days of the notice and demand therefor, and in such case
interest shall be imposed only for the period from the date of the notice
and demand to the date of payment.

6. If notice and demand is made for the payment of any amount due under
sections 143.011 to 143.996 and if such amount is paid within ten days
after the date of such notice and demand, interest under this section on
the amount so paid shall not be imposed for the period after the date of
such notice and demand.

7. If any portion of a tax is satisfied by credit of an overpayment, then
no interest shall be imposed under this section on the portion of the tax
so satisfied for any period during which, if the credit had not been
made, interest would have been allowable with respect to such overpayment.

8. If any portion of a tax finally determined to be due is satisfied by a
deposit under subsection 2 of section 143.631, then no interest shall be
imposed under this section on the portion of the tax so satisfied for the
period from the date the director of revenue received and accepted the
deposit.

9. Any portion of the tax imposed by sections 143.011 to 143.996 or any
interest, penalty, or addition to tax which has been erroneously refunded
and which is recoverable by the director of revenue shall bear interest
at the rate determined by section 32.065, RSMo, from the date of payment
of the refund.

10. Interest prescribed under this section may be assessed and collected
at any time during the period within which the tax, penalty, or addition
to tax to which such interest relates may be assessed and collected
respectively. (L. 1972 S.B. 549, A.L. 1982 H.B. 1351, et al., A.L. 1988
H.B. 1335)

1. In case of failure to file any return required under sections
143.011 to 143.996 on the date prescribed therefor (determined with
regard to any extension of time for filing), unless it is shown that such
failure is due to reasonable cause and not due to willful neglect, there
shall be added to the amount required to be shown as tax on such return
five percent of the amount of such tax if the failure is not for more
than one month, with an additional five percent for each additional month
or fraction thereof during which such failure continues, not exceeding
twenty-five percent in the aggregate. For purposes of this section, the
amount of tax required to be shown on the return shall be reduced by the
amount of any part of the tax which is paid on or before the date
prescribed for payment of the tax and by the amount of any credit against
the tax which may be claimed upon the return.

2. In case of each failure to file a statement of payment to another
person required under the authority of sections 143.011 to 143.996
including the duplicate statement of tax withheld on wages on the date
prescribed therefor (determined with regard to any extension of time for
filing), unless it is shown that such failure is due to reasonable cause
and not to willful neglect, there shall be paid upon notice and demand by
the director of revenue and in same manner as tax, by the person so
failing to file a statement, a penalty of two dollars for each statement
not so filed, but the total amount imposed on the delinquent person for
all such failures during any calendar year shall not exceed one thousand
dollars. (L. 1972 S.B. 549)

Effective 1-1-73

1. If any part of a deficiency is due to negligence or
intentional disregard of rules and regulations (but without intent to
defraud) there shall be added to the tax an amount equal to five percent
of the deficiency. The director shall apprise the taxpayer of the factual
basis for the finding of negligence, or the specific rules or regulations
disregarded, at the time the director issues a proposed assessment. Rules
and regulations which have been determined to be inconsistent with the
laws of this state, by either the courts of this state or the
administrative hearing commission, may not be cited as the basis for an
addition to tax under this section.

2. If any part of a deficiency is due to fraud, there shall be added to
the tax an amount equal to fifty percent of the deficiency. This amount
shall be in lieu of any amount determined under subsection 1 of this
section.

3. If any employer, without intent to evade or defeat any tax imposed by
sections 143.011 to 143.996 or the payment thereof, shall fail to make a
return and pay a tax withheld by him at the time required by or under the
provisions of sections 143.011 to 143.996, such employer shall be liable
for such taxes and shall pay the same together with interest thereon and
the addition to tax provided in subsection 1 of this section, and such
interest and addition to tax shall not be charged to or collected from
the employee by the employer. The director of revenue shall have the same
rights and powers for the collection of such tax, interest, and addition
to tax against such employer as are now prescribed by sections 143.011 to
143.996 for the collection of tax against an individual taxpayer.

4. Any person required to collect, truthfully account for, and pay over
the tax imposed by sections 143.011 to 143.996 who willfully fails to
collect such tax or truthfully account for and pay over such tax or
willfully attempts in any manner to evade or defeat the tax or the
payment thereof, shall, in addition to other penalties provided by law,
be liable to a penalty equal to the total amount of the tax evaded, or
not collected, or not accounted for and paid over. No addition to tax
under subsections 1 and 2 of this section shall be imposed for any
offense to which this subsection applies.

5. Any person who with fraudulent intent shall fail to pay, or to deduct
or withhold and pay, any tax, or to make, render, sign, or certify any
return, or to supply any information within the time required by or under
sections 143.011 to 143.996, shall be liable to a penalty of not more
than one thousand dollars, in addition to any other amounts required
under sections 143.011 to 143.996, to be imposed, assessed and collected
by the director of revenue.

6. For purposes of subsections 4 and 5 of this section, the term
"persons" includes an individual, corporation, or partnership, or an
officer or employee of any corporation (including a dissolved
corporation), or a member or employee of any partnership, who, as such
officer, employee, or member, is under a duty to perform the act in
respect of which the violation occurs. (L. 1972 S.B. 549, A.L. 1998 H.B.
1301)

(1980) Section providing that failure by employer to timely make return
and pay tax withheld renders employer liable for such taxes with interest
and addition to tax as provided in separate subsection of same statute
authorizes imposition of addition to tax only if part of deficiency is
due to negligence or intentional disregard of rules and regulations.
Goldberg v. Administrative Hearing Commission (Mo.), 609 S.W.2d 140.

1. In the case of any underpayment of estimated tax by an
individual or a corporation, except as provided in subsection 4 of this
section, there shall be added to the tax for the taxable year an amount
determined at the rate determined by section 32.065, RSMo, upon the
amount of the underpayment (determined under subsection 2 of this
section) for the period of the underpayment (determined under subsection
3 of this section).

2. For purposes of subsection 1 of this section, the amount of the
underpayment shall be the excess of:

(1) The amount of the installment which would be required to be paid if
the estimated tax were equal to ninety percent in the case of a
corporation or of an individual (sixty-six and two-thirds percent in the
case of a farmer described in subsection 2 of section 143.531) of the tax
shown on the return for the taxable year, or, if no return was filed, of
the tax for such year; over

(2) The amount, if any, of the installment paid on or before the last
date prescribed for such payment.

3. The period of the underpayment shall run from the date the installment
was required to be paid to whichever of the following dates is the
earlier:

(1) The fifteenth day of the fourth month following the close of the
taxable year; or

(2) With respect to any portion of the underpayment, the date on which
such portion is paid. For purposes of this subdivision, a payment of
estimated tax on any installment date shall be considered a payment of
any previous underpayment only to the extent such payment exceeds the
amount of the installment determined under subdivision (1) of subsection
2 of this section for such installment date.

4. Notwithstanding the provisions of the preceding subsections, the
addition to the tax with respect to any underpayment of any installment
shall not be imposed if the total amount of all payments of estimated tax
made on or before the last date prescribed for the payment of such
installment equals or exceeds the amount which would have been required
to be paid on or before such date if the estimated tax were whichever of
the following is the least:

(1) The tax shown on the return of the individual or corporation for the
preceding taxable year, if a return showing a liability for tax was filed
for the preceding year and such preceding year was a taxable year of
twelve months;

(2) An amount equal to ninety percent (sixty-six and two-thirds percent
in the case of a farmer described in subsection 2 of section 143.531) of
the tax of an individual or of a corporation for the taxable year
computed by placing on an annualized basis the taxable income for the
months in the taxable year ending before the month in which the
installment is required to be paid;

(3) An amount equal to ninety percent of the tax of an individual or
corporation computed, at the rates applicable to the taxable year, on the
basis of the actual taxable income for the months in the taxable year
ending before the month in which the installment is required to be paid
as if such months constituted the taxable year;

(4) An amount equal to the tax of an individual or corporation computed,
at the rates applicable to the taxable year, on the basis of the
taxpayer's status with respect to the Missouri deductions for personal
and dependency exemptions for the taxable year, but otherwise on the
basis of the facts shown on his return for, and the law applicable to,
the preceding taxable year;

(5) For corporations, an amount equal to ninety percent of the tax for
the taxable year computed by placing on an annualized basis the taxable
income:

(a) For the first three months of the taxable year, in the case of an
installment required to be paid in the fourth month;

(b) For the first three months or for the first five months of the
taxable year, in the case of the installment required to be paid in the
sixth month;

(c) For the first six months or for the first eight months of the taxable
year, in the case of the installment required to be paid in the ninth
month; and

(d) For the first nine months or for the first eleven months of the
taxable year, in the case of the installment required to be paid in the
twelfth month of the taxable year.

For purposes of this subdivision, the taxable income shall be placed on
an annualized basis by multiplying by twelve the taxable income referred
to and dividing the resulting amount by the number of months in the
taxable year (3, 5, 6, 8, 9 or 11, as the case may be).

5. For purposes of applying this section:

(1) The estimated tax shall be computed without any reduction for the
amount which the individual estimates as his credit under section 143.211
for tax withheld; and

(2) The amount of the credit allowed under section 143.211 for the
taxable year shall be deemed a payment of estimated tax, and an equal
part of such amount shall be deemed paid on each installment date for
such taxable year, unless the taxpayer establishes the dates on which all
amounts were actually withheld, in which case the amounts so withheld
shall be deemed payments of estimated tax on the dates on which such
amounts were actually withheld.

6. Subdivisions (1) and (4) of subsection 4 of this section shall not
apply to a large corporation. "Large corporation" means that the
corporation (or any predecessor corporation) in any of the three
preceding taxable years had a federal taxable income of at least one
million dollars and had a Missouri taxable income of at least one hundred
thousand dollars. (L. 1972 S.B. 549, A.L. 1982 H.B. 1351, et al., A.L.
1983 1st Ex. Sess. H.B. 10, A.L. 1988 H.B. 1054, et al.)

Effective 1-1-89

The additions to tax and penalties provided by sections 143.011
to 143.996 shall be paid upon notice and demand and shall be assessed,
collected, and paid in the same manner as taxes and any reference in
sections 143.011 to 143.996 to income tax or the tax imposed by sections
143.011 to 143.996 shall be deemed also to refer to additions to the tax,
and penalties provided by this section. For purposes of the deficiency
procedures provided in section 143.611, this subsection shall not apply
to:

(1) Any addition to tax under subsection 1 of section 143.741 except as
to that portion attributable to a deficiency;

(2) Any addition to tax for failure to pay estimated tax as provided in
section 143.761;

(3) Any additional penalty under subsection 5 of section 143.751. (L.
1972 S.B. 549)

Effective 1-1-73

1. A penalty of not more than five hundred dollars shall be
imposed on any individual who files what purports to be an income tax
return of the tax imposed under sections 143.011 to 143.996, but which:

(1) Does not contain information on which the substantial correctness of
the self-assessment may be judged; or

(2) Contains information that on its face indicates that the
self-assessment is substantially incorrect; and

(3) The conduct referred to in subdivision (1) or (2) is intentional and
due to a position which is frivolous or a desire (which appears on the
purported return) to delay or impede the administration of Missouri tax
laws; and

(4) The individual has not filed a proper tax return within ninety days
(one hundred fifty days if taxpayer is outside the United States) after
the date on which notice that the individual's original return otherwise
violated subdivisions (1) or (2) and (3) of this subsection was mailed by
the director of revenue.

2. The penalty imposed by subsection 1 shall be in addition to any other
penalty provided by law.

3. The director of revenue shall, upon expiration of the time period
specified in subdivision (4) of subsection 1, notify the taxpayer by
certified mail of the assessment of penalty under the provisions of this
section. The imposition of the penalty is final upon the expiration of
thirty days from the date when the director of revenue mails notice to
the taxpayer unless within this period the taxpayer seeks review of the
assessment by the administrative hearing commission. The notice of
assessment shall inform the taxpayer of his right of review. The
provisions of section 143.661, to the contrary notwithstanding, in any
proceeding before the administrative hearing commission or on appeal for
a review of the assessment of the penalty imposed pursuant to this
section, the burden of proof shall be on the director of revenue. Notice
of the penalty provisions of this section shall be printed upon all
Missouri state income tax return forms in a prominent place beginning
January 1, 1985. (L. 1984 H.B. 1229 § 1)

1. The director of revenue within the applicable period of
limitations may credit an overpayment of income tax and interest on such
overpayment against any liability in respect of any tax imposed by the
tax laws of this state on the person who made the overpayment, and the
balance shall be refunded if it exceeds one dollar. Overpayments shall be
determined by taking into account any deposit made by a taxpayer under
section 143.631, except a deposit which has been returned to a taxpayer
pursuant to a written request. Unless directed otherwise by a taxpayer,
the director of revenue may credit all or part of the overpayment of a
taxpayer on a joint or combined return against the amount of tax due from
his spouse.

2. If the amount allowable as a credit for tax withheld from the taxpayer
exceeds his tax to which the credit relates, the excess shall be
considered an overpayment.

3. If there has been an overpayment of tax required to be deducted and
withheld under section 143.191, refund shall be made to the employer only
to the extent that the amount of the overpayment was not deducted and
withheld by the employer.

4. The director of revenue may prescribe regulations providing for the
crediting against the estimated income tax for any taxable year of the
amount determined to be an overpayment of the income tax for a preceding
taxable year.

5. If any amount of income tax is assessed or collected after the
expiration of the period of limitations properly applicable thereto, such
amount shall be considered an overpayment.

6. The provisions of sections 143.781 to 143.841 to the contrary
notwithstanding, a refund, or any portion thereof, shall be transferred
to the state agency to set off a debt due and owing to the state agency
as provided in sections 143.782 to 143.788. When any action is taken
pursuant to sections 143.782 to 143.788, the provisions of sections
143.782 to 143.788 shall govern all aspects of any rights and entitlement
to refunds covered by such action. If there is a final determination that
the taxpayer is entitled to receive all or part of the setoff pursuant to
the provisions of sections 143.782 to 143.788, the amount to which the
taxpayer is entitled shall bear interest as provided in section 143.811,
beginning sixty days after such setoff. (L. 1972 S.B. 549, A.L. 1982 H.B.
946, A.L. 1984 H.B. 1275, A.L. 1988 H.B. 1335, A.L. 1993 H.B. 874)

Effective 7-1-93

As used in sections 143.782 to 143.788, unless the context
clearly requires otherwise, the following terms shall mean and include:

(1) "Court", the supreme court, court of appeals, or any circuit court of
the state;

(2) "Debt", any sum due and legally owed to any state agency which has
accrued through contract, subrogation, tort, or operation of law
regardless of whether there is an outstanding judgment for that sum,
court costs as defined in section 488.010, RSMo, fines and fees owed, or
any support obligation which is being enforced by the division of family
services on behalf of a person who is receiving support enforcement
services pursuant to section 454.425, RSMo;

(3) "Debtor", any individual, sole proprietorship, partnership,
corporation or other legal entity owing a debt;

(4) "Department", the department of revenue of the state of Missouri;

(5) "Refund", the Missouri income tax refund which the department
determines to be due any taxpayer pursuant to the provisions of this
chapter. The amount of a refund shall not include any senior citizens
property tax credit provided by sections 135.010 to 135.035, RSMo, unless
such refund is being offset for a delinquency or debt relating to
individual income tax or a property tax credit; and

(6) "State agency", any department, division, board, commission, office,
or other agency of the state of Missouri, including public community
college district. (L. 1982 H.B. 946 § 1, A.L. 1984 H.B. 1275, A.L. 1996
H.B. 1237, A.L. 2003 H.B. 600, A.L. 2004 S.B. 1394)

1. Any state agency may submit to the department any debt in
excess of twenty-five dollars for collection through setoff, under the
procedure established by sections 143.782 to 143.788, except in cases
where such collection would result in a loss of federal funds or federal
assistance.

2. Upon request of any state agency, the department shall set off any
refund, as defined in section 143.782, against the sum certified by that
state agency as provided in sections 143.782 to 143.788 provided that the
department shall not be required to set off any refund if the cost of the
determination of the refund exceeds the amount of the refund.

3. The department has priority, pursuant to section 143.781, over every
other state agency for collection by setoff under sections 143.782 to
143.788.

4. The collection remedy authorized by sections 143.782 to 143.788 is in
addition to and not in substitution for any other remedy available by
law. (L. 1982 H.B. 946 §§ 2, 3, 7, A.L. 1984 H.B. 1275)

CROSS REFERENCE: Child support, income tax setoff, Chap. 454, RSMo

1. Within the time frame specified by the department, a state
agency seeking to collect a debt through setoff shall supply the
information necessary to identify each debtor whose refund is sought to
be set off and certify the amount of the debt or debts owed by each such
debtor.

2. If a debtor identified by a state agency is determined by the
department to be entitled to a refund of at least twenty-five dollars,
the department shall notify the state agency that a refund has been set
off on behalf of the agency and shall certify the amount of such setoff,
which shall not exceed the amount of the claimed debt certified. When the
refund owed exceeds the claimed debt, the department shall send the
excess amount to the debtor within a reasonable time after such excess is
determined.

3. The department shall notify by certified mail the taxpayer whose
refund is sought to be set off that such setoff will be made. Such notice
shall clearly set forth the name of the debtor, the manner in which the
debt arose, the amount of the claimed debt and the intention to set off
the refund against the debt, the amount of the refund in excess of the
claimed debt, the taxpayer's opportunity to give written application for
a hearing to contest the setoff within thirty days of the date of receipt
of the notice, the name and mailing address of the state agency to which
the application for a hearing must be sent, the fact that the application
for hearing must state any defense which the debtor claims to the setoff,
and the fact that failure to apply for such a hearing, in writing, within
the thirty-day period will be deemed a waiver of the opportunity to
contest the setoff and will cause the setoff to be applied toward the
debt. If the application for hearing alleges a defense to the nature or
amount of the claim upon which the setoff is based which requires an
evidentiary hearing, the state agency shall promptly conduct such hearing
in accordance with the provisions of chapter 536, RSMo. Failure of the
debtor to make application for a hearing shall cause the setoff to be
applied toward the debt. If the debt is based on a court or
administrative order, the debtor shall be entitled to assert only those
defenses which arose subsequent to such court or administrative order,
and no issue may be raised at the hearing which has previously been
litigated. In the case of a joint or combined return, the notice shall
also state the name of the nonobligated taxpayer named in the return, if
any, against whom no debt is claimed, the fact that a debt is not claimed
against such taxpayer, the fact that such taxpayer is entitled to receive
a refund if it is due him regardless of the debt asserted against his
spouse. In order to obtain a refund due him such taxpayer must apply, in
writing, for an apportionment of the refund with the state agency named
in the notice within thirty days of the date of receipt of the notice,
unless, in anticipation of the setoff of his spouse's refund, such
nonobligated taxpayer provided the department of revenue with a request
for apportionment of the anticipated refund which was filed at the same
time the original tax return was filed, in which case the department of
revenue shall determine the apportionment of the refund and forward the
determination of apportionment and the nonobligated taxpayer's portion of
the refund to the nonobligated taxpayer within fifteen working days of
the transfer of the obligated taxpayer's portion of the refund to the
agency requesting such setoff. Unless a request for apportionment of the
anticipated refund was provided to the department of revenue as provided
in this section, within ninety days after the filing of such taxpayer's
application for apportionment of the refund with the state agency named
in the notice a determination of apportionment shall be mailed to the
nonobligated taxpayer by the appropriate state agency. The apportionment
of the refund shall be final upon the expiration of thirty days from the
date on which the determination of apportionment is mailed to the
nonobligated taxpayer unless, within such thirty-day period, the
nonobligated taxpayer applies in writing for a hearing with the state
agency named in the determination of apportionment.

4. Upon receipt of funds transferred from the department pursuant to
subsection 2 of this section, the state agency shall deposit such funds
in the state treasury, to be held in an escrow account, which is hereby
established, until a final determination of the validity of the debt.
Interest earned on those funds shall be credited to the escrow account.

5. The provisions of sections 143.781 to 143.841 and any other provisions
of law to the contrary notwithstanding, the director of revenue shall
have the authority to promulgate rules to enter into reciprocal
agreements with any other state which extends a like comity to this
state, to set off any refund, as defined in section 143.782, due to any
individual taxpayer by this state or any other state which extends a like
comity to this state, and who upon final determination is identified as a
debtor, as defined in section 143.782, by a state agency of this state or
any other state extending a like comity. (L. 1982 H.B. 946 § 4, A.L. 1984
H.B. 1275, A.L. 1993 H.B. 874, A.L. 1994 S.B. 494)

1. If the state agency receives written application for a
hearing contesting the setoff or the claim upon which the setoff is
based, which application raises a factual issue which has not previously
been litigated, the state agency shall grant a hearing to the taxpayer on
the issues raised by the application, according to the procedures
established under the provisions of chapter 536, RSMo. If the sum
asserted as due and owing is not correct, an adjustment to the claimed
sum shall be made.

2. The hearing required by subsection 1 of this section shall be in lieu
of a hearing before the department of revenue, and the department shall
not grant a hearing to determine the validity of the claimed sum or the
propriety of the setoff.

3. If no factual issue has been raised by an application for a hearing
contesting a setoff or the claim upon which the setoff is based, or the
only issues raised have been previously litigated, the state agency may
enter its order without there being an evidentiary hearing, and such
order shall be a final decision entitled to judicial review as provided
in sections 536.100 to 536.140, RSMo.

4. Appeals from actions taken at the hearing allowed under this section
shall be in accordance with the provisions of chapter 536, RSMo. (L. 1982
H.B. 946 § 5, A.L. 1984 H.B. 1275)

1. Upon final determination of the amount of the debt due and
owing by means provided by section 143.785 or by the taxpayer's default
through failure to comply with section 143.784 mandating timely request
for review, the state agency shall credit the debtor's account, and shall
notify the debtor and the state treasurer in writing of the finalization
of the setoff. Such notice shall include a final accounting of the refund
which was set off, including the amount of the refund to which the debtor
was entitled prior to setoff, the amount of the debt due and owing, the
amount of the refund in excess of the debt which has been returned to the
debtor by the department pursuant to section 143.784, and the amount of
the setoff pursuant to section 143.784 in excess of the debt determined
to be due and owing at a hearing held pursuant to section 143.785, if
such a hearing was held. At such time, the state agency shall refund to
the debtor the amount of the claimed debt originally certified and set
off by the department in excess of the amount of debt finally found to be
due and owing, including interest thereon as provided in section 143.781,
and the state agency shall transfer the remaining balance to the
appropriate fund or funds. All interest accumulated in the escrow account
in excess of the maximum amount that could be required for debtor refunds
shall be transferred monthly to the general revenue fund.

2. When the setoff authorized by sections 143.782 to 143.788 is
exercised, the refund against which such setoff is applied shall be
deemed granted. (L. 1982 H.B. 946 §§ 6, 10, A.L. 1984 H.B. 1275, A.L.
1993 H.B. 874)

Effective 7-1-93

The director of revenue may prescribe the form and contents of
any forms or other documents required by sections 143.782 to 143.788. The
director of revenue shall have the authority to promulgate rules pursuant
to this section and chapter 536, RSMo, in order to carry out the
provisions of sections 143.782 to 143.788. No rule or portion of a rule
promulgated under the authority of sections 143.782 to 143.788 shall
become effective unless it has been promulgated pursuant to the
provisions of section 536.024, RSMo. (L. 1982 H.B. 946 § 8, A.L. 1993
S.B. 52, A.L. 1995 S.B. 3)

1. The provisions of section 32.057, RSMo, and any other
confidentiality statute of this state to the contrary notwithstanding,
the department may provide any state agency submitting a claim for setoff
and collection under sections 143.782 to 143.788 all information
necessary to accomplish and carry out the provisions of sections 143.782
to 143.788, but shall not provide any state agency with any information
whose disclosure is prohibited by Section 6103(d) of the Internal Revenue
Code.

2. The information obtained by a state agency from the department of
revenue in accordance with the provisions of sections 143.782 to 143.788
shall retain its confidentiality and shall only be used by another state
agency in the pursuit of its debt collection duties and practices; and
any employee or prior employee of any state agency who unlawfully
discloses any such information for any other purpose, except as otherwise
specifically authorized by law, shall be subject to the same penalties
specified by section 32.057, RSMo, for unauthorized disclosure of
confidential information by an agent or employee of the department of
revenue. (L. 1982 H.B. 946 § 9)

Effective 3-16-82

The director of revenue is authorized to abate the unpaid
portion of the assessment of any tax or any liability in respect thereof,
which

(1) Is excessive in amount, or

(2) Is assessed after the expiration of the period of limitations
properly applicable thereto, or

(3) Is erroneously or illegally assessed. (L. 1972 S.B. 549)

Effective 1-1-73

1. A claim for credit or refund of an overpayment of any tax
imposed by sections 143.011 to 143.996 shall be filed by the taxpayer
within three years from the time the return was filed or two years from
the time the tax was paid, whichever of such periods expires the later;
or if no return was filed by the taxpayer, within two years from the time
the tax was paid. No credit or refund shall be allowed or made after the
expiration of the period of limitation prescribed in this subsection for
the filing of a claim for credit or refund, unless a claim for credit or
refund is filed by the taxpayer within such period.

2. If the claim is filed by the taxpayer during the three-year period
prescribed in subsection 1, the amount of the credit or refund shall not
exceed the portion of the tax paid within the three years immediately
preceding the filing of the claim plus the period of any extension of
time for filing the return. If the claim is not filed within such
three-year period, but is filed within the two-year period, the amount of
the credit or refund shall not exceed the portion of the tax paid during
the two years immediately preceding the filing of the claim. If no claim
is filed, the credit or refund shall not exceed the amount which would be
allowable under either of the preceding sentences, as the case may be, if
a claim was filed on the date the credit or refund is allowed.

3. If pursuant to subsection 6 of section 143.711 an agreement for an
extension of the period for assessment of income taxes is made within the
period prescribed in subsection 1 of this section for the filing of a
claim for credit or refund, the period for filing a claim for credit or
for making a credit or refund if no claim is filed, shall not expire
prior to six months after the expiration of the period within which an
assessment may be made pursuant to the agreement or any extension
thereof. The amount of such credit or refund shall not exceed the portion
of the tax paid after the execution of the agreement and before the
filing of the claim or the making of the credit or refund, as the case
may be, plus the portion of the tax paid within the period which would be
applicable under subsection 1 of this section if a claim had been filed
on the date the agreement was executed.

4. If a taxpayer is required by section 143.601 to report a change or
correction in federal taxable income reported on his federal income tax
return, or to report a change or correction which is treated in the same
manner as if it were an overpayment for federal income tax purposes, an
amended return or a claim for credit or refund of any resulting
overpayment of tax shall be filed by the taxpayer within one year from
the time the notice of such change or correction or such amended return
was required to be filed with the director of revenue. If the report or
amended return required by section 143.601 is not filed within the
ninety-day period therein specified, interest on any resulting refund or
credit shall cease to accrue after such ninetieth day. The amount of such
credit or refund shall not exceed the amount of the reduction in tax
attributable to:

(1) The issues on which such federal change or correction or the items
amended on the taxpayer's amended federal income tax return are based, and

(2) Any change in the amount of his federal income tax deduction under
the provisions of subsection 1 of section 143.171. No effect shall be
given in the preceding sentence to any federal change or correction or to
any item on an amended return unless it is timely under the applicable
federal period of limitations. The time and amount provisions of this
subsection shall be in lieu of any other provisions of this section. This
subsection shall not affect the time within which or the amount for which
a claim for credit or refund may be filed apart from this subsection.

5. If the claim for credit or refund relates to an overpayment of tax on
account of the deductibility by the taxpayer of a debt as a debt which
became worthless or a loss from worthlessness of a security or the effect
that the deductibility of a debt or of a loss has on the application to
the taxpayer of a carryover, the claim may be made, under regulations
prescribed by the director of revenue within seven years from the date
prescribed by law for filing the return for the year with respect to
which the claim is made.

6. If the claim for credit or refund relates to an overpayment
attributable to a net operating loss carryback or a capital loss
carryback, in lieu of the three-year period of limitations prescribed in
subsection 1 of this section, the period shall be that period which ends
with the expiration of the fifteenth day of the fortieth month (or the
thirty-ninth month, in the case of a corporation) following the end of
the taxable year of the net operating loss or net capital loss which
results in such carryback, or the period prescribed in subsection 3 of
this section in respect of such taxable year, whichever expires later. In
the case of such a claim, the amount of the credit or refund may exceed
the portion of the tax paid within the period provided in subsections 2,
3 and 4 of this section, whichever is applicable, to the extent of the
amount of the overpayment attributable to such carryback. (L. 1972 S.B.
549)

Effective 1-1-73

(1989) Missouri's income tax scheme violates principles of
intergovernmental tax immunity. Taxpayers who paid state income tax for
federal military retirement benefits are entitled to a refund to the
extent that such refund is permitted by this section. (Mo banc) Hackman
v. Director of Revenue, 771 S.W.2d 77.

(1989) Date taxes are due starts the running of the limitation period for
a claim for refund, even though the return may have been received earlier
by the Department of Revenue. Claim for refund was not barred by the
three-year limitation period when tax was due April 15, 1986, but
received by the Department of Revenue on April 4, 1986, and claim for
refund was filed April 14, 1989. (Mo. banc) Hamacher v. Director of
Revenue 779 S.W.2d 565.

1. Under regulations prescribed by the director of revenue,
interest shall be allowed and paid at the rate determined by section
32.065, RSMo, on any overpayment in respect of the tax imposed by
sections 143.011 to 143.996; except that, where the overpayment resulted
from the filing of an amendment of the tax by the taxpayer after the last
day prescribed for the filing of the return, interest shall be allowed
and paid at the rate of six percent per annum. With respect to the part
of an overpayment attributable to a deposit made pursuant to subsection 2
of section 143.631, interest shall be paid thereon at the rate in section
32.065, RSMo, from the date of the deposit to the date of refund. No
interest shall be allowed or paid if the amount thereof is less than one
dollar.

2. For purposes of this section:

(1) Any return filed before the last day prescribed for the filing
thereof shall be considered as filed on such last day determined without
regard to any extension of time granted the taxpayer;

(2) Any tax paid by the taxpayer before the last day prescribed for its
payment, any income tax withheld from the taxpayer during any calendar
year, and any amount paid by the taxpayer as estimated income tax for a
taxable year shall be deemed to have been paid by him on the fifteenth
day of the fourth month following the close of his taxable year to which
such amount constitutes a credit or payment.

3. For purposes of this section with respect to any withholding tax:

(1) If a return for any period ending with or within a calendar year is
filed before April fifteenth of the succeeding calendar year, such return
shall be considered filed April fifteenth of such succeeding calendar
year; and

(2) If a tax with respect to remuneration paid during any period ending
with or within a calendar year is paid before April fifteenth of the
succeeding calendar year, such tax shall be considered paid on April
fifteenth of such succeeding calendar year.

4. If any overpayment of tax imposed by sections 143.011 to 143.996 is
refunded within four months after the last date prescribed (or permitted
by extension of time) for filing the return of such tax or within four
months after the return was filed, whichever is later, no interest shall
be allowed under this section on overpayment.

5. Any overpayment resulting from a carryback, including a net operating
loss and a corporate capital loss, shall be deemed not to have been made
prior to the close of the taxable year in which the loss arises.

6. Any overpayment resulting from a carryback of a tax credit, including
but not limited to the tax credits provided in sections 253.557 and
348.432, RSMo, shall be deemed not to have been made prior to the close
of the taxable year in which the tax credit was authorized. In fiscal
year 2003, the commissioner of administration shall estimate the amount
of any additional state revenue received pursuant to the provisions of
this subsection and shall transfer an equivalent amount of general
revenue to the schools of the future fund created in section 163.005,
RSMo. (L. 1972 S.B. 549, A.L. 1982 H.B. 1351, et al., A.L. 1988 H.B.
1335, A.L. 2002 S.B. 1248)

Effective 6-19-02

Every claim for refund shall be filed with the director of
revenue in writing and shall state the specific grounds upon which it is
founded. A taxpayer which has made a deposit under subsection 2 of
section 143.631 and has received a determination of the director of
revenue pursuant to section 143.641 shall be deemed for purposes of this
chapter to have filed a claim for refund of an amount not greater than
the deposit, on such grounds as were set forth in the taxpayer's protest
filed under subsection 1 of section 143.631. (L. 1972 S.B. 549, A.L. 1978
S.B. 661, A.L. 1988 H.B. 1335)

The director of revenue shall mail notice of his action on the
claim for refund within one hundred twenty days of the mailing of such
claim. The action denying a claim for refund is final upon the expiration
of sixty days from the date when he mails notice of his action to the
taxpayer, except only for such amounts as to which the taxpayer has filed
a protest with the director of revenue. (L. 1972 S.B. 549, A.L. 1978 S.B.
661, A.L. 1983 1st Ex. Sess. H.B. 10)

Effective 1-1-84

1. Within sixty days after denial of the claim, the taxpayer may
file with the director of revenue a written protest against such denial
setting forth the grounds on which the protest is based. If a protest is
filed, the director of revenue shall reconsider the denial.

2. Within ninety days after the filing of a protest, notice of the
director of revenue's determination shall be mailed to the taxpayer by
certified or registered mail and such notice shall set forth briefly the
director of revenue's findings of fact and the basis of decision in each
case decided in whole or in part adversely to the taxpayer.

3. The action of the director of revenue on the taxpayer's protest is
final upon the expiration of thirty days from the date when he mails
notice of his action to the taxpayer unless within this period the
taxpayer seeks review of the director of revenue's determination by the
administrative hearing commission.

4. The administrative hearing commission shall hold all hearings under
this section in the county in which the taxpayer resides, or if a
corporation, in the county of its principal place of business in this
state.

5. A taxpayer which has made a deposit with the director of revenue under
subsection 2 of section 143.631, in lieu of seeking review by the
administrative hearing commission of a determination by the director of
revenue under section 143.641 or subsection 2 of section 143.841, may,
within the time permitted for filing an action in the administrative
hearing commission seeking review of such action of the director of
revenue, bring an action against the director of revenue by filing a
petition for recovery of an overpayment in the circuit court of Cole
County. Trial of the action in the circuit court shall be in the manner
prescribed for nonjury civil proceedings, and, after determination of the
issues, the court shall make such orders as may be just and equitable to
refund to the taxpayer all or any part of the taxes paid for the tax
periods at issue, with interest as prescribed in section 143.811. The
director of revenue may be represented by legal counsel from the
department of revenue in such proceedings. Either party to the
proceedings may appeal the determination of the circuit court. (L. 1972
S.B. 549, A.L. 1978 S.B. 661, A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1988
H.B. 1335)

If any return, claim, statement, notice, petition, or other
document required to be filed within a prescribed period or on or before
a prescribed date under the authority of any provisions of sections
143.011 to 143.996 is, after such period or such date, delivered by
United States mail to the director of revenue, or the officer or person
therein with which or with whom such document is required to be filed,
the date of the United States postmark stamped on the envelope shall be
deemed to be the date of delivery. This section shall apply only if the
postmark date falls within the prescribed period or on or before the
prescribed date for the filing of such document, determined with regard
to any extension granted for such filing, and only if such document was
deposited in the mail postage prepaid, properly addressed to the office,
officer, or person with which or with whom the document is required to be
filed. If any document is sent by United States registered mail, such
registration shall be prima facie evidence that such document was
delivered to the person to which or to whom it is addressed. To the
extent that the director of revenue shall prescribe by regulation,
certified mail may be used in lieu of registered mail under this section.
This section shall apply in the case of postmarks not made by the United
States post office only if and to the extent provided by regulations of
the director of revenue. When the last day prescribed under the authority
of sections 143.011 to 143.996, including any extension of time, for
performing any act falls on a Saturday, a Sunday, or a legal holiday in
this state, the performance of such act shall be considered timely if it
is performed on the next succeeding day which is not a Saturday, Sunday,
or legal holiday. The provisions of this section applicable to the timely
filing of a document shall also apply to any payment required to be made
under any provisions of sections 143.011 to 143.996. (L. 1972 S.B. 549)

Effective 1-1-73

1. The tax imposed by sections 143.011 to 143.996 shall be
collected by the director of revenue, and he may establish the mode or
time for the collection of any amount due under sections 143.011 to
143.996 if not otherwise specified. The director of revenue shall, on
request, give a receipt for any amount collected under sections 143.011
to 143.996. The director of revenue may authorize banks or trust
companies to receive and give a receipt for any tax imposed under
sections 143.011 to 143.996, in such manner, at such times, and under
such conditions as he may prescribe; provided, all banks and trust
companies authorized to receive and receipt for deposits of federal
withholding of income tax shall be authorized by the director of revenue
to receive and receipt for any tax under sections 143.011 to 143.996. The
director of revenue shall prescribe the manner, times, and conditions
under which the receipt of tax by such banks and trust companies is to be
treated as a payment of tax.

2. The director of revenue shall as soon as practicable give notice to
each person liable for any amount of tax, addition to tax, additional
amount, penalty, or interest, which has been assessed but remains unpaid,
stating the amount and demanding within ten days of the date of the
notice and demand payment thereof. Such notice shall be left at the
dwelling place or usual place of business of such person or shall be sent
by mail to such person's last known address.

3. If the amount stated in the notice provided in subsection 2 of this
section remains unpaid, the director of revenue shall certify the name of
any person from whom any tax under sections 143.011 to 143.996 shall be
due to the attorney general. Suit shall be instituted in any court of
competent jurisdiction by the attorney general, or by the prosecuting
attorney of the county at the direction of the attorney general, in the
name of the state, to recover such tax and enforce the lien therefor in
the same manner as provided by law in civil actions. In such action, the
certificate of the director of revenue showing the amount due shall be
prima facie, but not conclusive, evidence of the amount due and the
compliance with all provisions of sections 143.011 to 143.996 relating to
the assessment of the tax. (L. 1972 S.B. 549)

Effective 1-1-73

1. The courts of this state shall recognize and enforce
liabilities for income taxes lawfully imposed by any other state which
extends a like comity to this state, and the duly authorized officer of
any such state may sue for the collection of such a tax in the courts of
this state. A certificate by the secretary of state of such other state
that an officer suing for the collection of such a tax is duly authorized
to collect the tax shall be conclusive proof of such authority. For the
purposes of this section, the word "taxes" shall include additions to
tax, interest, and penalties, and liability for such taxes, additions to
tax, interest, and penalties shall be recognized and enforced by the
courts of this state to the same extent that the laws of such other
states permit the enforcement in its courts of liability for such taxes,
additions to tax, interest, and penalties due to this state under
sections 143.011 to 143.996.

2. For the purposes of this section, the term "any other state" shall
mean only another state of the United States or a political subdivision
thereof or the District of Columbia. The courts of this state shall not
entertain any action for the enforcement or collection of income taxes
imposed by any foreign sovereign state or political subdivision thereof.
(L. 1972 S.B. 549)

Effective 1-1-73

1. The liability at law or in equity, of a transferee of
property of a taxpayer for any tax, addition to tax, penalty, or interest
due under sections 143.011 to 143.996, shall be assessed, paid and
collected in the same manner and subject to the same provisions and
limitations as in the case of the tax to which the liability relates
except as hereinafter provided in this section. The term "transferee"
includes donee, heir, legatee, devisee, and distributee.

2. In the case of the liability of an initial transferee, the period of
limitation for assessment of any liability expires one year after the
expiration of period of limitation against the transferor; in the case of
the liability *of a transferee* of a transferee, it expires one year
after the expiration of the period of limitation against the preceding
transferee, but not more than three years after the expiration of the
period of limitation for assessment against the original transferor.

3. If before the expiration of the time provided in this section for the
assessment of the liability the director of revenue and the transferee
have consented in writing to its assessment after such time, the
liability may be assessed at any time prior to the expiration of the
period agreed upon or an extension thereof. For the purpose of
determining the period of limitation on credit or refund to the
transferee of overpayments of tax made by the transferor of which the
transferee is legally entitled to credit or refund, such agreement and
any extension thereof shall be deemed an agreement or extension referred
to in subsection 3 of section 143.801. If the agreement is executed after
the expiration of the period of limitation for assessment against the
taxpayer with reference to whom the liability of such transferee arises,
then in applying the limitations under subsection 2 of section 143.801 on
the amount of the credit or refund, the periods specified in subsection 1
of section 143.801 shall be increased by the period from the date of such
expiration to the date of the agreement.

4. If any person is deceased, the period of limitation for assessment
against such person shall be the period that would be in effect had death
not occurred. (L. 1972 S.B. 549)

Effective 1-1-73

*....* This language appears in original rolls and appears to be a
clerical error.

1. If the director of revenue finds that the assessment or the
collection of a tax or a deficiency for any year, current or past, will
be jeopardized in whole or in part by delay, he may mail or issue notice
of his finding to the taxpayer, together with a demand for immediate
payment of the tax or the deficiency declared to be in jeopardy,
including additions to tax, interest, and penalties.

2. In the case of a tax for a current period, the director of revenue
shall declare the taxable period of the taxpayer immediately terminated
and his notice and demand for a return and immediate payment of the tax
shall relate to the period declared terminated, including therein income
accrued and deductions incurred up to the date of termination if not
otherwise properly includable or deductible in respect of the period.

3. A jeopardy assessment is immediately due and payable, and proceedings
for collection may be commenced at once. The taxpayer, however, may stay
collection and prevent the jeopardy assessment from becoming final by
filing, within ten days after the date of mailing or issuing the notice
of jeopardy assessment, a request for reassessment, accompanied by a bond
or other security in the amount of the assessment including additions to
tax, penalties, and interest as to which the stay of collection is
sought. If a request for reassessment, accompanied by a bond or other
security in the appropriate amount, is not filed within the ten-day
period, the assessment becomes final.

4. If a request for reassessment, accompanied by a bond or other
security, is filed within a ten-day period, the director of revenue shall
reconsider the assessment. The director of revenue's action on the
request for reassessment becomes final upon the expiration of thirty days
from the date when he mails notice of his action to the taxpayer, unless
within that thirty-day period the taxpayer files an application to seek
review of the director of revenue's determination by the administrative
hearing commission.

5. The director of revenue may abate the jeopardy assessment if he finds
that jeopardy does not exist. (L. 1972 S.B. 549, A.L. 1978 S.B. 661)

1. Upon the adjudication of bankruptcy of any taxpayer in any
bankruptcy proceeding or the appointment of a receiver for any taxpayer
in any receivership proceeding before any court of the United States or
any state or territory or of the District of Columbia, any deficiency
(together with additions to tax and interest provided by law) determined
by the director of revenue may be immediately assessed.

2. Claims for the deficiency and such additions to tax and interest may
be presented, for adjudication in accordance with law, to the court
before which the bankruptcy or receivership proceeding is pending despite
the pendency of a protest before the administrative hearing commission
under section 143.651. No protest against a proposed assessment shall be
filed after the adjudication of bankruptcy or appointment of the
receiver. (L. 1972 S.B. 549, A.L. 1978 S.B. 661)

1. In any case in which any assessment of tax, interest,
additions to tax or penalty imposed under sections 143.005 to 143.998 has
been made and has become final, the director of revenue may file for
record in the recorder's office of any county in which the taxpayer owing
such tax, interest, additions to tax or penalty resides, owns property or
has a place of business, a certificate of lien specifying the amount of
the tax, interest, additions to tax or penalty due and the name of the
taxpayer liable for the same. Included in the notice of deficiency, the
director shall notify the taxpayer of the department's intent to file
prior to the filing of such certificate. Such notification shall contain
a summary of the taxpayer's right to protest or contest such proposed
deficiency. The director shall within twenty days after filing such
certificate notify the taxpayer by first class mail postage prepaid.

(1) The lien shall arise on the date such assessment becomes final and
shall be continuing and shall attach to real or personal property or
interest in real or personal property owned by the taxpayer or acquired
in any manner by the taxpayer after the filing of the certificate of
lien. Unless sooner released or discharged, the lien shall expire ten
years after the certificate of lien was filed, unless within such
ten-year period, the certificate of lien has been refiled by the director
of revenue with the recorder. Unless sooner released or discharged, a
timely refiled certificate of lien shall be treated as if filed on the
date of filing of the original certificate of lien, and shall expire ten
years after the refiling. A certificate of lien may not be refiled more
than one time.

(2) If any taxpayer fails to pay any tax, interest, additions to tax or
penalties imposed by this chapter when due and the assessment for which
has become final, the director may file for record in the office of the
clerk of the circuit court of any county in which the taxpayer resides,
or has a place of business, or owns property, the certificate of lien
specifying the amount of the tax, interest, additions to tax and
penalties due and the name of the liable taxpayer. The clerk of the
circuit court shall file such certificate and enter it in the record of
the circuit court for judgments and decrees under the procedure
prescribed for filing transcripts of judgments. If the taxpayer does not
reside, have a place of business or own property in the state of
Missouri, the director may file for record a certificate of delinquency
in the office of the clerk of the circuit court of Cole County. From the
time of the filing of the certificate of lien or certificate of
delinquency with the clerk of the circuit court, the amount of the tax,
interest, additions to tax and penalties specified therein shall have the
full force and effect of a default judgment of the circuit court until
satisfied. Execution shall issue at the request of the director of
revenue or his agent as is provided in the case of other judgments. No
exemption shall be allowed from the levy of an execution issued for any
delinquent tax, interest, additions to tax or penalties due under the
provisions of sections 143.191 to 143.265. No bond shall be required of
the director of revenue, his agent or of the sheriff before making the
levy.

(3) The remedies in this subsection are cumulative and in addition to
other collection methods given the director of revenue. No action taken
shall be construed as an election on the part of the state or any of its
officers to pursue any remedy or action hereunder to the exclusion of any
other remedy or action for which provision is made.

(4) If any certificate of lien has been erroneously or improvidently
filed, the taxpayer or any other person affected by the lien may notify
the director of revenue. The taxpayer or other affected person shall
provide the director with the reasons the filing of the certificate of
lien is erroneous or improvident as to such person (including that the
affected person's name or other identification is similar to the
taxpayer's) and a list of creditors with current addresses who are
affected by the department's action. Upon receipt of the creditor list,
reasons and verification of the erroneous or improvident filing, the
director shall release the lien as to the taxpayer or the affected
person, as necessary, and notify all creditors, stating the certificate
of lien was filed erroneously or improvidently. If the certificate of
lien was erroneously or improvidently filed the director shall forthwith
make a determination in writing which shall become a public record in the
same place the certificate of lien is noted under subsection 5 of this
section that the same be expunged from the record and give written notice
thereof, duly certified, by certified mail to the recorder of deeds in
the county where the same is recorded and upon receipt by the recorder of
deeds of the certification the recorder shall immediately cause such
record to be expunged. The director shall take whatever steps are
necessary to ensure the lien is expunged. The director shall pay a
three-dollar fee charged by the recorder when an erroneously or
improvidently filed lien is expunged.

2. The lien imposed under subsection 1 of this section may be wholly or
partly released by filing for record in the office of the county recorder
a release thereof executed by the director of revenue upon payment of the
tax, interest, additions to tax and penalties or upon receipt by the
director of revenue of security sufficient to secure payment thereof, or
by final judgment holding such certificate of lien to have been
erroneously or improvidently imposed.

3. The director may release any part of the property subject to the lien
by filing with the county recorder a copy of the original lien document
and an affidavit containing a legal description of the property, and
stating that the property is to be released from the lien. The county
recorder shall note the partial release in the same manner as provided in
section 443.090, RSMo. The release of any specific property shall not
affect in any manner other property subject to lien.

4. Each county recorder shall receive a fee of three dollars which shall
be charged for the filing of each certificate of lien and a fee of one
dollar and fifty cents for each release of lien filed for record. Such
amounts shall be paid to the county recorder from funds appropriated to
the department of revenue for that purpose. The county recorder shall be
reimbursed by presenting a statement, showing the number of certificates
and releases filed, to the department of revenue each calendar quarter.
The department of revenue is authorized to collect an additional penalty
from each taxpayer equal to the cost of filing a certificate of lien or
release of lien with respect to such taxpayer.

5. The director of revenue shall establish and maintain records for all
certificates of lien filed under this section. The director shall also
maintain records of all releases of lien filed under this section. The
provisions of section 32.057, RSMo, to the contrary notwithstanding, the
records prepared by the director under this section, to the extent such
information is or may be on file with the recorder, shall be open to
public inspection. Such records established and maintained by the
director shall not be the official record and are not conclusive evidence
of any liability of any taxpayer to this state.

6. If any action is taken by the director under the provisions of this
chapter; including, but not limited to, section 143.791, to alter or
abate any assessment upon which a judgment has been filed under the
provisions of subsection 1 of this section, the director is authorized to
file a modification or satisfaction of such judgment. (L. 1988 H.B. 1335,
A.L. 1992 H.B. 1155)

1. Any provision of law to the contrary notwithstanding, an
unexpected decision by or order of a court of competent jurisdiction or
the administrative hearing commission shall only apply after the most
recently ended tax period of the particular class of persons subject to
such tax imposed by chapters 143 and 144, RSMo, and any credit, refund or
additional assessment shall be only for periods after the most recently
ended tax period of such persons.

2. The provisions of this section shall apply only to final decisions by
or orders of a court of competent jurisdiction or the administrative
hearing commission which are rendered after October 1, 1990, and which
are determined by the court or the administrative hearing commission
rendering the decision, or subsequently by a lower court or the
administrative hearing commission, to be unexpected. For the purposes of
this section the term "unexpected" shall mean that a reasonable person
would not have expected the decision or order based on prior law,
previous policy or regulation of the department of revenue. (L. 1990 H.B.
960 § 2)

Effective 10-1-90

Any person who willfully attempts in any manner to evade or
defeat any tax imposed by sections 143.011 to 143.996 or the payment
thereof shall, in addition to other penalties provided by law, and upon
conviction thereof, be fined not more than ten thousand dollars, or be
imprisoned in the county jail for not more than one year or by not less
than two nor more than five years in the state penitentiary or by both
fine and imprisonment together with the cost of prosecution. (L. 1972
S.B. 549, A.L. 1974 H.B. 1286)

Any person required under sections 143.011 to 143.996 to
collect, truthfully account for, and pay over any tax imposed by sections
143.011 to 143.996 who willfully with intent to defraud fails to collect
or truthfully account for and pay over such tax shall, in addition to
other penalties provided by law, and upon conviction thereof, be fined
not more than ten thousand dollars, or be imprisoned in the county jail
for not more than one year or by not less than two nor more than five
years in the state penitentiary or by both fine and imprisonment together
with the cost of prosecution. (L. 1972 S.B. 549, A.L. 1974 H.B. 1286)

Any person required under sections 143.011 to 143.996 to pay any
tax, or required by sections 143.011 to 143.996 to make a return (other
than a return of estimated tax), keep any records, or supply any
information, who willfully with intent to defraud fails to pay such tax,
make such return, keep such records, or supply such information, at the
time or times required by law, shall, in addition to other penalties
provided by law, and upon conviction thereof, be fined not more than ten
thousand dollars, or be imprisoned in the county jail for not more than
one year or by not less than two nor more than five years in the state
penitentiary or by both fine and imprisonment together with the cost of
prosecution. (L. 1972 S.B. 549, A.L. 1974 H.B. 1286)

Any person who willfully makes and subscribes any returns,
statement, or other document, which contains or is verified by a written
declaration that it is made under the penalties of perjury, and which he
does not believe to be true and correct as to every material matter; or
willfully aids or procures the preparation or presentation in a matter
arising under the provisions of sections 143.011 to 143.996 of a return,
affidavit, claim, or other document which is fraudulent or is false as to
any material shall, and upon conviction thereof, be fined not more than
ten thousand dollars, or be imprisoned in the county jail for not more
than one year or by not less than two nor more than five years in the
state penitentiary or by both fine and imprisonment together with the
cost of prosecution. (L. 1972 S.B. 549, A.L. 1974 H.B. 1286)

If any person convicted of an offense, or of the attempt to
commit an offense under sections 143.911, 143.921, 143.931, or 143.941 is
charged thereafter with having committed or having attempted to commit a
subsequent offense under such sections, and is convicted, he shall be
punished by imprisonment by the department of corrections and human
resources for a term of not less than five nor more than ten years. If
the prior conviction is appealed, then this section shall not apply until
after the judgment is affirmed or the appeal is dismissed. (L. 1972 S.B.
549, A.L. 1974 H.B. 1286)

Any prosecution under sections 143.011 to 143.996 shall be
instituted within three years after the commission of the offense,
provided that if such offense is the failure to do an act required by or
under the provisions of sections 143.011 to 143.996 to be done by a
certain date, a prosecution for such offense may be commenced not later
than four years after such date. Any prosecution under sections 143.011
to 143.996 may be conducted in any county where the person or corporation
to whose liability the proceeding relates resides or has a place of
business or in any county where any element of the offense occurred. (L.
1972 S.B. 549)

Effective 1-1-73

1. The director of revenue shall administer and enforce the tax
imposed by sections 143.011 to 143.996 and he is authorized to make such
rules and regulations and to require such facts and information to be
reported, as he may deem necessary to enforce the provisions of sections
143.011 to 143.996. The director of revenue may for enforcement and
administrative purposes establish temporary or permanent branch offices.

2. The rules and regulations prescribed by the director of revenue shall
follow as nearly as practicable the rules and regulations of the
Secretary of the Treasury of the United States or his delegate regarding
income taxation. Such construction of sections 143.011 to 143.996 will
further their purposes to simplify the preparation of income tax returns,
aid in their interpretation through use of federal precedents, and
improve their enforcement. (L. 1972 S.B. 549)

Effective 1-1-73

1. The director of revenue may prescribe the form and contents
of any return or other document required to be filed under the provisions
of sections 143.011 to 143.996.

2. The director of revenue for the purpose of ascertaining the
correctness of any return, or for the purpose of making an estimate of
taxable income of any person, shall have power to examine or to cause to
have examined, by any agent or representative designated by him for that
purpose, any books, papers, records, or memoranda bearing upon the
matters required to be included in the return, and may require the
attendance of the person rendering the return or any officer or employee
of such person, or the attendance of any other person having knowledge in
the premises, and may take testimony and require proof material for his
information, with power to administer oaths to such person or persons.

3. Reports and returns required to be filed under sections 143.011 to
143.996 shall be preserved for four years and thereafter until the
director of revenue orders them to be destroyed. (L. 1972 S.B. 549)

Effective 1-1-73

1. The director of revenue, or any person authorized in writing
by him, is authorized to enter into an agreement with any person relating
to the liability of such person in respect to the tax imposed by sections
143.011 to 143.996 for any taxable period.

2. Any such agreement shall be final and conclusive and, except upon a
showing of fraud or malfeasance, or misrepresentation of a material fact:

(1) The case shall not be reopened as to matters agreed upon or the
agreement modified by any officer, employee, or agent of this state, and

(2) In any suit, action, or proceeding under such agreement, or any
determination, assessment, collection, payment, abatement, refund, or
credit made in accordance therewith, shall not be annulled, modified, set
aside, or disregarded. (L. 1972 S.B. 549)

Effective 1-1-73

1. The period of service in the armed forces of the United
States in a combat zone plus any period of continuous hospitalization
outside this state attributable to such service plus the next one hundred
eighty days shall be disregarded in determining, under regulations to be
promulgated by the director of revenue, whether any act required by
sections 143.011 to 143.996 was performed by a taxpayer within the time
prescribed therefor.

2. In the case of any individual who dies during an induction period
while in active service as a member of the armed forces of the United
States, if such death occurred while the individual was serving in a
combat zone or as a result of wounds, disease, or injury incurred while
so serving, the tax imposed by sections 143.011 to 143.996 shall not
apply with respect to the taxable year in which falls the date of his
death, or with respect to any prior taxable year ending on or after the
first day he so served in a combat zone. (L. 1972 S.B. 549)

Effective 1-1-73

No member of the general assembly shall represent a client for a
fee in negotiations or discussions with the department of revenue for an
adjustment or revision of the client's alleged or actual tax liability.
(L. 1972 S.B. 549)

Effective 1-1-73

Any provision of law to the contrary notwithstanding, where a
statute or a rule promulgated by the director has excluded any income
from the computation of tax imposed under this chapter and is thereafter
held by a final decision of the Missouri supreme court to be invalid, the
director shall not be entitled to serve a notice of deficiency of taxes
which result from such court decision for any period occurring prior to
the date of the court's mandate or the implementation of regulations
interpreting such court decision, whichever is later. (L. 1990 H.B. 1554
§ 1)

Effective 6-12-90

Every person filing an individual income tax return form under
this chapter shall place in the space provided on said form the number
assigned by the department of revenue to the school district of which the
person filing is a resident. (L. 1977 H.B. 131 § 2)

1. Employer contributions to an individual medical account which
are used to pay for health care expenses of the employee in accordance
with this section shall be exempt from state income tax under this
chapter, to the extent such contributions are not excluded from gross
income under 26 U.S.C. 105 and 26 U.S.C. 106 and regulations promulgated
thereunder. In order to qualify for such an exemption from taxation under
this chapter, such contributions shall be made in accordance with health
care coverage arrangements which contain at a minimum the following
components:

(1) The employer shall annually determine a contribution level to be
expended for coverage of an insured person and any dependents, which
shall be in lieu of any standard indemnity or health insurance provided
under a health insurance benefit package which is established by the
department of insurance. Such a benefit package may be offered as an
individual or group policy or other insurance arrangement by an insurer,
health maintenance organization, health services corporation, or as a
self-funded employer plan. A percentage of the employer's designated
contribution level as established by rule and regulation of the
department of insurance shall be used by the insurer, health maintenance
organization, health services corporation, or as a self-funded employer
plan to purchase or provide a policy or plan of major medical health care
benefits for the insured person and any dependents. The remainder of the
employer's contribution level not used to provide major medical coverage
shall be used to fund an individual medical account. Funds in the account
shall be used by the insured person or his dependents, if any, to pay for
that portion of bona fide medical and health care expenses not covered by
the policy or plan of major medical health insurance coverage, including
any deductible, co-payment, or coinsurance requirements established by
regulation of the department of insurance to discourage unnecessary use
of health care services. Funds in the individual medical account shall be
spent for no other purpose except as otherwise provided by this section;

(2) Any amount in the insured's individual medical account that is
unspent at the end of the year shall remain in the account. The director
of the department of insurance shall by rule and regulation establish a
balance for the account which, if exceeded, shall allow the insured to
withdraw any moneys in excess of such balance. Any moneys so withdrawn
from the account and interest earned on such moneys shall be subject to
state income taxation;

(3) The amount in an individual medical account shall not be subject to
state income taxation while it remains in the account. Any amount spent
from the individual medical account on medical and health care expenses
and interest accrued on such amount shall be totally exempt from state
income taxation;

(4) The insurer, health maintenance organization, health services
corporation, or employer which sponsors or provides health insurance
coverage as authorized by this section shall administer the account on
behalf of the insured person and any dependents.

2. As used in this section, bona fide medical and health care expenses
shall be those medical and health procedures as defined by regulation of
the department of insurance. Such regulations shall be developed in
consultation with the department of health and senior services.

3. The director of the department of insurance shall promulgate such
rules and regulations as may be necessary to implement the provisions of
this section and section 374.126*, RSMo. No rule or portion of a rule
promulgated under the authority of this section shall become effective
unless it has been promulgated pursuant to the provisions of section
536.024, RSMo. (L. 1993 H.B. 564 § 18, A.L. 1995 S.B. 3)

*Section 374.126 was repealed by S.B. 732 § A, 1994.

1. In each tax year beginning on or after January 1, 1983, each
individual or corporation entitled to a tax refund in an amount
sufficient to make a designation under this section may designate that
two dollars or any amount in excess of two dollars on a single return,
and four dollars or any amount in excess of four dollars on a combined
return, of the refund due be credited to the children's trust fund. The
contribution designation authorized by this section shall be clearly and
unambiguously printed on the first page of each income tax return form
provided by this state. If any individual or corporation which is not
entitled to a tax refund in an amount sufficient to make a designation
under this section wishes to make a contribution to the children's trust
fund, such individual or corporation may, by separate check, draft, or
other negotiable instrument, send in with the payment of taxes, or may
send in separately, that amount, clearly designated for the children's
trust fund, the individual or corporation wishes to contribute and the
department of revenue shall forward such amount to the state treasurer
for deposit to the children's trust fund as provided in subsection 2 of
this section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals under this section to the state
treasurer for deposit to the children's trust fund.

3. The director of revenue shall transfer at least monthly all
contributions designated by corporations under this section, less an
amount sufficient to cover the cost of collection and handling by the
department of revenue, to the state treasurer for deposit to the
children's trust fund.

4. A contribution designated under this section shall only be transferred
and deposited in the children's trust fund after all other claims against
the refund from which such contribution is to be made have been
satisfied. (L. 1983 H.B. 550 § 5, A.L. 1986 S.B. 688)

*Transferred 2004; formerly 210.174

CROSS REFERENCE: Children's trust fund, RSMo 210.170 to 210.173

1. In each tax year beginning on or after January 1, 1990, each
individual or corporation entitled to a tax refund in an amount
sufficient to make a designation under this section may designate that
two dollars or any amount in excess of two dollars on a single return,
and four dollars or any amount in excess of four dollars on a combined
return, of the refund due be credited to the veterans' trust fund. The
contribution designation authorized by this section shall be clearly and
unambiguously printed on each income tax return form provided by this
state. If any individual or corporation which is not entitled to a tax
refund in an amount sufficient to make a designation under this section
wishes to make a contribution to the veterans' trust fund, such
individual or corporation may, by separate check, draft, or other
negotiable instrument, send in with the payment of taxes, or may send in
separately, that amount, clearly designated for the veterans' trust fund,
the individual or corporation wishes to contribute and the department of
revenue shall forward such amount to the state treasurer for deposit to
the veterans' trust fund as provided in subsection 2 of this section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals under this section to the state
treasurer for deposit to the veterans' trust fund.

3. The director of revenue shall transfer at least monthly all
contributions designated by corporations under this section, less an
amount sufficient to cover the cost of collection and handling by the
department of revenue, to the state treasurer for deposit to the
veterans' trust fund.

4. A contribution designated under this section shall only be transferred
and deposited in the veterans' trust fund after all other claims against
the refund from which such contribution is to be made have been satisfied.

5. Notwithstanding any other law to the contrary, the names and addresses
of individuals or corporations who designate a contribution to this fund
may be supplied to the veterans' commission, for the purpose of sending
an acknowledgment and written appreciation to those individuals and
corporations. Under no circumstances shall the names and addresses be
used for any purpose other than that expressed in this subsection.
Release or use of the names and addresses for any other purpose is a
class C felony. (L. 1989 H.B. 850, A.L. 1991 H.B. 99)

*Transferred 2004; formerly 42.140

CROSS REFERENCE: Veterans' trust fund, RSMo 42.135

1. In each tax year beginning on or after January 1, 1993, each
individual or corporation entitled to a tax refund in an amount
sufficient to make a designation pursuant to this section may designate
that two dollars or any amount in excess of two dollars on a single
return, and four dollars or any amount in excess of four dollars on a
combined return, of the refund due be credited to the elderly
home-delivered meals trust fund, established in subsection 3 of this
section. The contribution designation authorized by this section shall be
clearly and unambiguously printed on each income tax return form provided
by this state. If any individual or corporation which is not entitled to
a tax refund in an amount sufficient to make a designation pursuant to
this section wishes to make a contribution to the division of aging
elderly home-delivered meals trust fund, such individual or corporation
may, by separate check, draft, or other negotiable instrument, send in
with the payment of taxes, or may send in separately, that amount,
clearly designated for the division of aging elderly home-delivered meals
trust fund, the individual or corporation wishes to contribute and the
department of revenue shall forward such amount to the state treasurer
for deposit to the fund as provided in subsection 2 of this section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals or corporations pursuant to this
section, less an amount not to exceed five percent of such transferred
contributions which is sufficient to cover the cost of collection and
handling by the department of revenue, to the state treasurer for deposit
in the state treasury to the credit of the elderly home-delivered meals
trust fund. A contribution designated pursuant to this section shall only
be transferred and deposited in the elderly home-delivered meals trust
fund after all other claims against the refund from which such
contribution is to be made have been satisfied.

3. There is hereby established in the state treasury the "Elderly
Home-Delivered Meals Trust Fund", which shall consist of all moneys
deposited in the fund pursuant to subsection 2 of this section. The state
treasurer shall administer the fund, and the moneys in the fund shall be
used solely, upon appropriation, by the department of health and senior
services for assistance in preparing and transporting meals to elderly
persons in this state through a program designed to meet such purposes.
These funds shall be transferred by the department to the area agencies
on aging using the same formula as used for distribution of federal Older
Americans Act moneys and moneys from the general revenue fund.
Notwithstanding the provisions of section 33.080, RSMo, to the contrary,
moneys in the elderly home-delivered meals trust fund at the end of any
biennium shall not be transferred to the credit of the general revenue
fund. (L. 1992 S.B. 573 & 634 § 9, A.L. 1998 H.B. 1476 merged with S.B.
793, A.L. 2003 S.B. 556 & 311)

*Transferred 2004; formerly 660.078

1. In each tax year beginning on or after January 1, 1999, each
individual or corporation entitled to a tax refund in an amount
sufficient to make a designation pursuant to this section may designate
that two dollars or any amount in excess of two dollars on a single
return and four dollars or any amount in excess of four dollars on a
combined return, of the refund due be credited to the Missouri national
guard trust fund. The contribution designation authorized by this section
shall be clearly and unambiguously printed on each income tax return form
provided by this state. If any individual or corporation which is not
entitled to a tax refund in an amount sufficient to make a designation
pursuant to this section wishes to make a contribution to the Missouri
national guard trust fund, such individual or corporation may, by
separate check, draft or other negotiable instrument, send in with the
payment of taxes, or may send in separately, that amount, clearly
designated for the Missouri national guard trust fund, the individual or
corporation wishes to contribute and the department of revenue shall
forward such amount to the state treasurer for deposit to the Missouri
national guard trust fund as provided in subsection 2 of this section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals pursuant to this section to the
state treasurer for deposit in the Missouri national guard trust fund.

3. A contribution designated pursuant to this section shall only be
transferred and deposited in the Missouri national guard trust fund after
all other claims against the refund from which such contribution is to be
made have been satisfied.

4. Notwithstanding any other law to the contrary, the names and addresses
of individuals or corporations who designate a contribution to this fund
may be supplied to the office of the adjutant general, for the purpose of
sending an acknowledgment and written appreciation to those individuals
and corporations. Under no circumstances shall the names and addresses be
used for any purpose other than that expressed in this subsection. Any
person who releases or uses any of the names and addresses for any other
purpose is guilty of a class C felony.

5. Moneys to be credited to the Missouri national guard trust fund
pursuant to subsection 1 of this section shall be placed in a subaccount
and shall be used solely for the purpose authorized in section 41.958.
(L. 1998 H.B. 1519 & 1165)

*Transferred 2004; formerly 41.215

1. In each taxable year beginning on or after January 1, 2005,
each individual or corporation entitled to a tax refund in an amount
sufficient to make a designation under this section may designate that
one dollar or any amount in excess of one dollar on a single return, and
two dollars or any amount in excess of two dollars on a combined return,
of the refund due be credited to the Missouri military family relief
fund. If any individual or corporation that is not entitled to a tax
refund in an amount sufficient to make a designation under this section
wishes to make a contribution to the Missouri military family relief
fund, such individual or corporation may, by separate check, draft, or
other negotiable instrument, send in with the payment of taxes, or may
send in separately, that amount, clearly designated for the Missouri
military family relief fund, the individual or corporation wishes to
contribute. The department of revenue shall deposit such amount to the
Missouri military family relief fund as provided in subsection 2 of this
section.

2. The director of revenue shall deposit at least monthly all
contributions designated by individuals under this section to the state
treasurer for deposit to the Missouri military family relief fund. The
fund shall be administered by a command sergeants major of the Missouri
national guard, a command sergeants major of a reserve component or its
equivalent, and a representative of the Missouri veterans commission.

3. The director of revenue shall deposit at least monthly all
contributions designated by the corporations under this section, less an
amount sufficient to cover the cost of collection, handling, and
administration by the department of revenue during fiscal year 2006, to
the Missouri military family relief fund, not to exceed seventy thousand
dollars.

4. A contribution designated under this section shall only be deposited
in the Missouri military family relief fund after all other claims
against the refund from which such contribution is to be made have been
satisfied.

5. Moneys deposited in the Missouri military family relief fund shall be
distributed by the adjutant general in accordance with the provisions of
sections 41.216 and 41.218, RSMo.

6. The state treasurer shall invest moneys in the fund in the same manner
as other funds are invested. Any interest and moneys earned on such
investments shall be credited to the fund.

7. Pursuant to section 23.253, RSMo, of the Missouri sunset act:

(1) The provisions of the new program authorized under this section shall
automatically sunset six years after August 28, 2005, unless reauthorized
by an act of the general assembly; and

(2) If such program is reauthorized, the program authorized under this
section shall automatically sunset twelve years after the effective date
of the reauthorization of this section; and

(3) This section shall terminate on December thirty-first of the calendar
year immediately following the calendar year in which the program
authorized under this section is sunset. (L. 2005 H.B. 437 § 143.822)

Sunset date 8-28-11, unless reauthorized

Termination date 12-31-12

1. For all tax years beginning on or after January 1, 2004,
each individual or corporation entitled to a tax refund in an amount
sufficient to make an irrevocable designation under this section may
designate that an amount not less than one dollar but not more than two
hundred dollars, on a single or a combined return, of the refund due be
credited to the American Cancer Society, Heartland Division, Inc., fund,
the ALS Lou Gehrig's Disease fund, the American Lung Association of
Missouri fund, the Muscular Dystrophy Association fund, the Arthritis
Foundation fund, the American Diabetes Association Gateway Area fund, the
American Heart Association fund, the March of Dimes fund, or the National
Multiple Sclerosis Society fund established in this section. The director
of revenue shall establish a method that allows the contribution
designations authorized by this section and the contribution designation
authorized in section 143.1020 to be combined into two contribution
designation boxes clearly and unambiguously printed on the first page of
each income tax return form provided by this state. The method may allow
for a separate instruction list for the tax return that lists each
authorized contribution designation together with the designation
provided in section 143.1020. Any organization to be listed on the income
tax return form under this section shall have qualified as a 501(c)(3)
organization as defined by the Internal Revenue Code of 1986, as amended,
for at least five years, shall be a statewide organization, shall have
the cure of a chronic illness as its primary purpose, and shall submit to
the director of revenue an application fee of one thousand dollars, and
the fee shall be deposited in the designated fund. If any individual or
corporation which is not entitled to a tax refund in an amount sufficient
to make a designation under this section wishes to make an irrevocable
contribution to the funds established in this section, such individual or
corporation may, by separate check, draft, or other negotiable
instrument, send in with the payment of taxes, or may send in separately,
that amount, clearly designated for which funds the individual or
corporation wishes to contribute, and the department of revenue shall
forward such amount to the state treasurer for deposit to the designated
funds as provided in this section.

2. Moneys accruing to and deposited in the designated funds shall not be
part of total state revenues as defined in sections 17 and 18, article X,
Constitution of Missouri, and the expenditure of such revenues shall not
be an expense of state government under section 20, article X,
Constitution of Missouri.

3. The director of revenue shall transfer at least monthly all
contributions designated by individuals under this section to the state
treasurer for deposit to the designated funds.

4. The director of revenue shall transfer at least monthly all
contributions designated by corporations under this section, less one
percent of the amount in each fund at the time of the transfer for the
cost of collection and handling by the department of revenue, to be
deposited in the state's general revenue fund, to the state treasurer for
deposit to the designated funds. The amount transferred annually to the
department of revenue for the cost of collection and handling shall not
exceed one hundred thousand dollars.

5. A contribution designated under this section shall only be transferred
and deposited in the designated funds after all other claims against the
refund from which such contribution is to be made have been satisfied.

6. (1) There is hereby created in the state treasury the "American Cancer
Society, Heartland Division, Inc., Fund", which shall consist of money
collected under this section. The state treasurer shall be custodian of
the fund and shall approve disbursements from the fund in accordance with
this section and sections 30.170 and 30.180, RSMo.

(2) There is hereby created in the state treasury the "ALS Lou Gehrig's
Disease Fund", which shall consist of money collected under this section.
The state treasurer shall be custodian of the fund and shall approve
disbursements from the fund in accordance with this section and sections
30.170 and 30.180, RSMo.

(3) There is hereby created in the state treasury the "American Lung
Association of Missouri Fund", which shall consist of money collected
under this section. The state treasurer shall be custodian of the fund
and shall approve disbursements from the fund in accordance with this
section and sections 30.170 and 30.180, RSMo.

(4) There is hereby created in the state treasury the "Muscular Dystrophy
Association Fund", which shall consist of money collected under this
section. The state treasurer shall be custodian of the fund and shall
approve disbursements from the fund in accordance with this section and
sections 30.170 and 30.180, RSMo.

(5) There is hereby created in the state treasury the "Arthritis
Foundation Fund", which shall consist of money collected under this
section. The state treasurer shall be custodian of the fund and shall
approve disbursements from the fund in accordance with this section and
sections 30.170 and 30.180, RSMo.

(6) There is hereby created in the state treasury the "National Multiple
Sclerosis Society Fund", which shall consist of money collected under
this section. The state treasurer shall be custodian of the fund and
shall approve disbursements from the fund in accordance with this section
and sections 30.170 and 30.180, RSMo.

(7) There is hereby created in the state treasury the "American Diabetes
Association Gateway Area Fund", which shall consist of money collected
under this section. The state treasurer shall be custodian of the fund
and shall approve disbursements from the fund in accordance with this
section and sections 30.170 and 30.180, RSMo.

(8) There is hereby created in the state treasury the "American Heart
Association Fund", which shall consist of money collected under this
section. The state treasurer shall be custodian of the fund and shall
approve disbursements from the fund in accordance with this section and
sections 30.170 and 30.180, RSMo.

(9) There is hereby created in the state treasury the "March of Dimes
Fund", which shall consist of money collected under this section. The
state treasurer shall be custodian of the fund and shall approve
disbursements from the fund in accordance with this section and sections
30.170 and 30.180, RSMo.

7. All moneys collected, transferred, and disbursed under this section
shall stand appropriated, and any moneys remaining in the funds
established in this section at the end of the biennium shall not revert
to the credit of the general revenue fund.

8. The state treasurer shall invest moneys in the funds established in
this section in the same manner as other funds are invested. Any interest
and moneys earned on such investments shall be credited to the funds.

9. The director of the department of revenue shall establish a procedure
by which the moneys deposited in the funds shall be distributed
semiannually to the American Cancer Society, Heartland Division, Inc.,
the Amyotrophic Lateral Sclerosis Association, and the American Lung
Association of Missouri, the Muscular Dystrophy Association, the
Arthritis Foundation, the American Diabetes Association Gateway Area, the
National Multiple Sclerosis Society, the American Heart Association, and
the March of Dimes.

10. Any organization receiving moneys under this section shall expend
such moneys solely for the support of residents of this state.

11. Any organization receiving funds under this section shall report to
the director of revenue annually, on forms prescribed by the director,
detailing how the funds were expended. The director shall compile such
information and provide a report to the general assembly in each year
such expenditures are made.

12. The director of revenue is authorized to promulgate rules and
regulations necessary to administer and enforce this section. Any rule or
portion of a rule, as that term is defined in section 536.010, RSMo, that
is created under the authority delegated in this section shall become
effective only if it complies with and is subject to all of the
provisions of chapter 536, RSMo, and, if applicable, section 536.028,
RSMo. This section and chapter 536, RSMo, are nonseverable and if any of
the powers vested with the general assembly pursuant to chapter 536,
RSMo, to review, to delay the effective date, or to disapprove and annul
a rule are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after August 28,
2004, shall be invalid and void.

13. If an organization that has the cure of sickle cell anemia as its
primary purpose is formed that meets the requirements of this section,
such organization shall be included on the income tax form in accordance
with the provisions of this section and there shall be created in the
state treasury a fund with the name of the organization. The fund shall
consist of money collected under this section. The state treasurer shall
be custodian of the fund and shall approve disbursements from the fund in
accordance with this section and sections 30.170 and 30.180, RSMo. (L.
2004 H.B. 1290 § 143.605)

1. In each taxable year beginning on or after January 1, 2005,
each individual or corporation entitled to a tax refund in an amount
sufficient to make a designation under this section may designate that
one dollar or any amount in excess of one dollar on a single return, and
two dollars or any amount in excess of two dollars on a combined return,
of the refund due be credited to the childhood lead testing fund created
in section 701.345, RSMo. The contribution designation authorized by this
section shall be clearly and unambiguously printed on the first page of
each income tax return form provided by this state. If any individual or
corporation that is not entitled to a tax refund in an amount sufficient
to make a designation under this section wishes to make a contribution to
the childhood lead testing fund, such individual or corporation may, by
separate check, draft, or other negotiable instrument, send in with the
payment of taxes, or may send in separately, that amount, clearly
designated for the childhood lead testing fund, the individual or
corporation wishes to contribute. The department of revenue shall forward
such amount to the state treasurer for deposit to the childhood lead
testing fund as provided in subsection 2 of this section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals under this section to the state
treasurer for deposit to the childhood lead testing fund.

3. The director of revenue shall transfer at least monthly all
contributions designated by the corporations under this section, less an
amount sufficient to cover the cost of collection and handling by the
department of revenue, to the state treasurer for deposit to the
childhood lead testing fund.

4. A contribution designated under this section shall only be transferred
and deposited in the childhood lead testing fund after all other claims
against the refund from which such contribution is to be made have been
satisfied. (L. 2005 S.B. 95 § 143.603)

1. For each income tax year beginning in 1993, 1994, or 1995,
each individual or corporation who is entitled to a tax refund in an
amount sufficient to make a designation under sections 143.1010 to
143.1012 may designate that one dollar or any amount in excess of one
dollar on a corporate or single return, and two dollars or any amount in
excess of two dollars on a combined return, of the refund due be credited
to the "United States Olympic Festival Trust Fund", hereinafter referred
to as the "trust fund". All moneys credited to the trust fund shall be
considered nonstate funds under the provisions of article IV, section 15
of the Missouri Constitution. The contribution designation authorized by
sections 143.1010 to 143.1012 shall be clearly and unambiguously printed
on the first page of each corporate and individual income tax return form
provided by this state.

2. The director of revenue shall determine at least monthly the amount of
all contributions designated under sections 143.1010 to 143.1012 less an
amount sufficient to cover the cost of collection and handling by the
department of revenue, and shall then transfer such amount to the trust
fund.

3. A contribution designated under sections 143.1010 to 143.1012 shall
only be transferred and deposited to the trust fund after all other
claims against the refund from which such contribution is to be made have
been satisfied. (L. 1993 S.B. 155 § 1 subsecs. 1, 2, 3, A.L. 1994 S.B.
477, et al.)

All moneys transferred to the trust fund shall be distributed
by the director of revenue at times he deems appropriate to the
Metropolitan St. Louis Festival Organizing Committee, Inc., which is a
Missouri corporation granted a certificate of incorporation on December
15, 1989, or its successor organization which is a tax exempt
organization under section 501(c)(3) of the 1986 Internal Revenue Code,
as amended. Such funds shall only be used for the planning, development,
maintenance, improvement and construction of facilities to be used during
the 1994 United States Olympic Festival to be held in St. Louis City, St.
Louis County, St. Charles County and Jefferson County, and for the
promotion and operation of such festival. If any moneys remain or are
subsequently deposited in such trust fund after such festival is
conducted, then such moneys shall be distributed by the director of
revenue to the Metropolitan St. Louis Festival Organizing Committee,
Inc., or its successor organization. (L. 1993 S.B. 155 § 1 subsec. 4,
A.L. 1994 S.B. 477, et al.)

The provisions of section 33.080, RSMo, requiring all
unexpended balances remaining in various state funds to be transferred
and placed to the credit of the general revenue fund at the end of each
biennium shall not apply to the trust fund. (L. 1993 S.B. 155 § 1 subsec.
5)

1. For each taxable year beginning on or after January 1, 2003,
each individual or corporation entitled to a tax refund may designate
that all or part of the refund due be credited to the state general
revenue fund. The contribution designation authorized by this section
shall be clearly and unambiguously printed on the first page of each
income tax return form provided by this state. If any individual or
corporation which is not entitled to a tax refund wishes to make a
contribution to the state general revenue fund, such individual or
corporation may, by separate check, draft, or other negotiable
instrument, send in with the payment of taxes, or may send in separately,
that amount, clearly designated for the state general revenue fund, the
individual or corporation wishes to contribute and the department of
revenue shall forward such amount to the state treasurer for deposit to
the state general revenue fund as provided in subsection 2 of this
section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals or corporations pursuant to this
section to the state treasurer for deposit to the state general revenue
fund. (L. 2003 H.B. 600)

Effective 7-1-03

1. In each tax year beginning on or after January 1, 2003, each
individual or corporation entitled to a tax refund in an amount
sufficient to make a designation under this section may designate that
one dollar or any amount in excess of one dollar on a single return, and
two dollars or any amount in excess of two dollars on a combined return,
of the refund due be credited to the workers memorial fund. The
contribution designation authorized by this section shall be clearly and
unambiguously printed on the first page of each income tax return form
provided by this state. If any individual or corporation which is not
entitled to a tax refund in an amount sufficient to make a designation
under this section wishes to make a contribution to the workers memorial
fund, such individual or corporation may, by separate check, draft, or
other negotiable instrument, send in with the payment of taxes, or may
send in separately, that amount, clearly designated for the workers
memorial fund, the individual or corporation wishes to contribute and the
department of revenue shall forward such amount to the state treasurer
for deposit to the workers memorial fund as provided in subsection 2 of
this section.

2. The director of revenue shall transfer at least monthly all
contributions designated by individuals under this section to the state
treasurer for deposit to the workers memorial fund.

3. The director of revenue shall transfer at least monthly all
contributions designated by corporations under this section, less an
amount sufficient to cover the cost of collection and handling by the
department of revenue, to the state treasurer for deposit to the workers
memorial fund.

4. A contribution designated under this section shall only be transferred
and deposited in the workers memorial fund after all other claims against
the refund from which such contribution is to be made have been
satisfied. (L. 2003 S.B. 248, et al. § 3)

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