Section 7 Current Year Loss

• Library: Tax Law 2009

In Brown Group, Inc. v. Administrative Hearing Commission, 649 S.W.2d 874 (Mo. banc 1983), the Supreme Court of Missouri held that the “federal taxable income” could not be less than zero. This meant that a taxpayer could not use a current year federal loss to offset the additions to federal taxable income required by § 143.121.2, RSMo Supp. 2007. The Court’s ruling in Brown Group was based in part on its view that a taxpayer would receive a double benefit from its net operating losses if it could take...