| SB 0105 | Authorizes claim of right credit for taxes paid in error in previous year |
| Sponsor: | Sims | |||
| LR Number: | S0061.01P | Fiscal Note: | 0061-01 | |
| Committee: | Ways and Means | |||
| Last Action: | 04/13/99 - Voted Do Pass H Ways & Means Committee | Journal page: | ||
| Title: | ||||
| Effective Date: | August 28, 1999 | |||
SB 105 - Under the "claim of right" provision of federal law, a taxpayer is allowed to recalculate taxes previously paid, but subsequently determined to have been paid in error. The usual situation is when a taxpayer claims income in a taxable year and pays tax on it, discovers at a later time that the income should have not have been claimed, and returns that amount in a later year. The federal statute allows that taxpayer to calculate income tax for the year in which the amount is returned and to take either a deduction or a credit.
Under current law, Missouri taxpayers are allowed to take the deduction in these circumstances, but not a credit. This act authorizes the credit.
The act is the same as SCS/SB 524 (1998).
RUSS HEMBREE