Section 16 Interest on United States Obligations

• Library: Tax Law 2009

If a corporation’s federal taxable income includes amounts received as interest or dividends from certain United States obligations that are exempt from state income tax under the federal law, the corporation is allowed to reduce its federal taxable income by these amounts. Section 143.121.3(a), RSMo Supp. 2007. This provision brings Missouri’s income tax law into compliance with 31 U.S.C. § 3124, which prohibits the taxation of “[s]tocks and obligations of the United States Government.” 31 U.S.C. §...