Missouri Revised Statutes













Chapter 143

Income Tax

←143.751

Section 143.761.1

143.771→

August 28, 2015

Failure to pay estimated income tax.

143.761. 1. In the case of any underpayment of estimated tax by an

individual or a corporation, except as provided in subsection 4 of this

section, there shall be added to the tax for the taxable year an amount

determined at the rate determined by section 32.065 upon the amount of the

underpayment (determined under subsection 2 of this section) for the period of

the underpayment (determined under subsection 3 of this section).



2. For purposes of subsection 1 of this section, the amount of the

underpayment shall be the excess of:



(1) The amount of the installment which would be required to be paid if

the estimated tax were equal to ninety percent in the case of a corporation

or of an individual (sixty-six and two-thirds percent in the case of a farmer

described in subsection 2 of section 143.531) of the tax shown on the return

for the taxable year, or, if no return was filed, of the tax for such year;

over



(2) The amount, if any, of the installment paid on or before the last

date prescribed for such payment.



3. The period of the underpayment shall run from the date the

installment was required to be paid to whichever of the following dates is

the earlier:



(1) The fifteenth day of the fourth month following the close of the

taxable year; or



(2) With respect to any portion of the underpayment, the date on which

such portion is paid. For purposes of this subdivision, a payment of

estimated tax on any installment date shall be considered a payment of any

previous underpayment only to the extent such payment exceeds the amount of

the installment determined under subdivision (1) of subsection 2 of this

section for such installment date.



4. Notwithstanding the provisions of the preceding subsections, the

addition to the tax with respect to any underpayment of any installment shall

not be imposed if the total amount of all payments of estimated tax made on

or before the last date prescribed for the payment of such installment equals

or exceeds the amount which would have been required to be paid on or before

such date if the estimated tax were whichever of the following is the least:



(1) The tax shown on the return of the individual or corporation for the

preceding taxable year, if a return showing a liability for tax was filed for

the preceding year and such preceding year was a taxable year of twelve

months;



(2) An amount equal to ninety percent (sixty-six and two-thirds percent

in the case of a farmer described in subsection 2 of section 143.531) of the

tax of an individual or of a corporation for the taxable year computed by

placing on an annualized basis the taxable income for the months in the

taxable year ending before the month in which the installment is required to

be paid;



(3) An amount equal to ninety percent of the tax of an individual or

corporation computed, at the rates applicable to the taxable year, on the

basis of the actual taxable income for the months in the taxable year ending

before the month in which the installment is required to be paid as if such

months constituted the taxable year;



(4) An amount equal to the tax of an individual or corporation computed,

at the rates applicable to the taxable year, on the basis of the taxpayer's

status with respect to the Missouri deductions for personal and dependency

exemptions for the taxable year, but otherwise on the basis of the facts

shown on his return for, and the law applicable to, the preceding taxable

year;



(5) For corporations, an amount equal to ninety percent of the tax for

the taxable year computed by placing on an annualized basis the taxable

income:



(a) For the first three months of the taxable year, in the case of an

installment required to be paid in the fourth month;



(b) For the first three months or for the first five months of the

taxable year, in the case of the installment required to be paid in the sixth

month;



(c) For the first six months or for the first eight months of the taxable

year, in the case of the installment required to be paid in the ninth month;

and



(d) For the first nine months or for the first eleven months of the

taxable year, in the case of the installment required to be paid in the

twelfth month of the taxable year. For purposes of this subdivision, the

taxable income shall be placed on an annualized basis by multiplying by

twelve the taxable income referred to and dividing the resulting amount by

the number of months in the taxable year (3, 5, 6, 8, 9 or 11, as the case may

be).



5. For purposes of applying this section:



(1) The estimated tax shall be computed without any reduction for the

amount which the individual estimates as his credit under section 143.211 for

tax withheld; and



(2) The amount of the credit allowed under section 143.211 for the

taxable year shall be deemed a payment of estimated tax, and an equal part of

such amount shall be deemed paid on each installment date for such taxable

year, unless the taxpayer establishes the dates on which all amounts were

actually withheld, in which case the amounts so withheld shall be deemed

payments of estimated tax on the dates on which such amounts were actually

withheld.



6. Subdivisions (1) and (4) of subsection 4 of this section shall not

apply to a large corporation. "Large corporation" means that the corporation

(or any predecessor corporation) in any of the three preceding taxable years

had a federal taxable income of at least one million dollars and had a

Missouri taxable income of at least one hundred thousand dollars.



(L. 1972 S.B. 549, A.L. 1982 H.B. 1351, et al.,

A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1988 H.B. 1054, et al.)



Effective 1-1-89







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