Section 18 Department of Revenue Forms and Subchapter S Bank-Related Issues

• Library: Tax Law 2009

As a result of the change in federal law that permitted Subchapter S banks in 1996, various states adopted different tax laws to accommodate Subchapter S banks’ state taxation. The banking industry proposed and the legislature adopted a statutory regime to provide the Subchapter S bank shareholders with tax credits. A review of MoDOR’s forms may suggest a more expansive approach to the tax credit. The formula used in MoDOR Form MO-BTC, Bank Franchise Tax Credit for S Corporation Shareholders (Rev 10-2007)...