SB 0105 Authorizes claim of right credit for taxes paid in error in previous year
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:
Effective Date:August 28, 1999
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Current Bill Summary

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).