Missouri State Income Tax Protest and Appeal to Administrative Hearing Commission

MISSOURI STATE INCOME TAX PROTEST AND APPEAL

TABLE OF CONTENTS

1. Overview and Procedural Posture
2. Section A — Written Protest to the Missouri Department of Revenue
3. Section B — Petition for Review to the Administrative Hearing Commission
4. Section C — Judicial Review (Court of Appeals / Supreme Court)
5. Verification and Signature Blocks
6. Certificate of Service
7. Missouri Practice Notes
8. Sources and References

1. OVERVIEW AND PROCEDURAL POSTURE

The Missouri income tax controversy track has three sequential stages:

2. SECTION A — WRITTEN PROTEST TO THE MISSOURI DEPARTMENT OF REVENUE

Date: [__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

Missouri Department of Revenue

Taxation Division — Income Tax Bureau

P.O. Box 3365

Jefferson City, MO 65105-3365

Re: Protest of Notice of Deficiency

To Whom It May Concern:

Pursuant to RSMo § 143.631, Taxpayer hereby files this timely written protest to the above-referenced Notice of Deficiency. This protest is filed within sixty (60) days of the mailing of the Notice.

A.1. Statement of Taxpayer Information

1.1. Taxpayer is [an individual / a corporation / a partnership / an estate / a trust] with a principal residence/place of business at [ADDRESS].

1.2. Taxpayer timely filed a Missouri [Form MO-1040 / MO-1120 / MO-1065] for the tax year(s) [YEAR(S)] reporting the following:

A.2. Adjustments Protested

Taxpayer protests the following adjustments set forth in the Notice of Deficiency:

☐ Disallowance of [deduction / credit / exemption — describe] in the amount of $[AMOUNT].

☐ Addition to Missouri adjusted gross income of $[AMOUNT] characterized by the Department as [describe].

☐ Recharacterization of [non-resident allocation / pass-through income / federal adjustment flow-through] in the amount of $[AMOUNT].

☐ Imposition of additions to tax under RSMo § 143.741 (failure to file), § 143.751 (failure to pay), or § 143.761 (negligence) in the amount of $[AMOUNT].

☐ Interest assessed under RSMo § 32.065 in the amount of $[AMOUNT].

☐ Other: [DESCRIBE].

A.3. Statement of Facts

3.1. [Set forth a chronological narrative of the taxable transactions, residency, source of income, and the taxpayer's accounting and reporting positions.]

3.2. [Identify the underlying federal return treatment if relevant and any RAR (Revenue Agent's Report) flow-through under RSMo § 143.601.]

3.3. [Identify supporting books, records, third-party documentation, and witnesses.]

A.4. Legal Argument

4.1. [Cite the specific RSMo provision(s) and any applicable Missouri regulation (12 CSR 10), Missouri case law, and Letter Rulings supporting Taxpayer's position.]

4.2. [Address the burden of proof allocation under RSMo § 621.050.5 and any presumption or substantial-authority arguments.]

4.3. [If federal conformity is at issue, cite the Missouri conformity provisions in RSMo § 143.091 and § 143.121.]

A.5. Relief Requested

WHEREFORE, Taxpayer respectfully requests that the Department of Revenue:

• A. Withdraw the Notice of Deficiency in full;
• B. Alternatively, abate the asserted deficiency in the amount of $[AMOUNT] plus all related additions to tax and interest;
• C. Schedule an informal conference with the Department's protest unit pursuant to internal Department procedures;
• D. Issue a written decision setting forth the Department's findings; and
• E. Grant such further relief as is just and proper.

A.6. Request for Informal Conference

Taxpayer [requests / does not request] an informal conference with the Department's protest officer prior to the issuance of any final decision.

Respectfully submitted,

[________________________________]

[TAXPAYER NAME or AUTHORIZED REPRESENTATIVE]

[TITLE, if applicable]

[ADDRESS]

Telephone: [NUMBER]

Email: [EMAIL]

Power of Attorney: ☐ Form 2827 attached ☐ Not applicable

3. SECTION B — PETITION FOR REVIEW TO THE ADMINISTRATIVE HEARING COMMISSION

BEFORE THE ADMINISTRATIVE HEARING COMMISSION

STATE OF MISSOURI

Case No. [________________________________]

PETITION FOR REVIEW OF DECISION OF DIRECTOR OF REVENUE

COMES NOW Petitioner, by and through undersigned counsel, and pursuant to RSMo § 621.050 and RSMo Chapter 536, petitions the Administrative Hearing Commission for review of the final decision of the Director of Revenue, and in support states:

B.1. Parties and Jurisdiction

1.1. Petitioner [NAME] is [an individual residing at / a corporation organized under the laws of [STATE] with its principal place of business at] [ADDRESS].

1.2. Respondent is the Director of Revenue of the State of Missouri, whose office is located at the Harry S Truman State Office Building, 301 West High Street, Jefferson City, Missouri 65101.

1.3. This Commission has jurisdiction pursuant to RSMo § 621.050.1, which provides that any person or entity may appeal to the Administrative Hearing Commission from any finding, order, decision, assessment, or additional assessment made by the Director of Revenue.

B.2. Timeliness

2.1. The Director of Revenue issued a final decision dated [__/__/____] (the "Final Decision"), a true and correct copy of which is attached hereto as Exhibit A.

2.2. The Final Decision was [mailed / hand-delivered] to Petitioner on [__/__/____].

2.3. This Petition is filed within thirty (30) days of the Final Decision's mailing/delivery and is therefore timely under RSMo § 621.050.1.

2.4. This Petition is being [transmitted by certified mail and is deemed filed on the date of mailing under RSMo § 621.050.3 / hand-delivered to the Commission].

B.3. Statement of the Case

3.1. The Final Decision concerns Missouri [individual / corporate / fiduciary] income tax for tax year(s) [YEAR(S)].

3.2. The Director assessed a deficiency of $[AMOUNT] in tax, $[AMOUNT] in interest, and $[AMOUNT] in additions to tax.

3.3. The Director's decision is based on [summarize Director's grounds].

B.4. Specific Grounds for Review

The Director's Final Decision is erroneous because:

4.1. [Ground 1 — e.g., the Director misapplied RSMo § ___ by ___];

4.2. [Ground 2 — e.g., the Director's factual findings are not supported by competent and substantial evidence];

4.3. [Ground 3 — e.g., the assessment is barred by the statute of limitations under RSMo § 143.711];

4.4. [Ground 4 — e.g., the Director failed to give effect to a controlling federal determination];

4.5. [Additional grounds as appropriate].

B.5. Burden of Proof

5.1. Petitioner acknowledges that, as the moving party, it bears the burden of proof on the deficiency under RSMo § 621.050.5, except as to:

☐ Allegations of fraud (Director's burden);

☐ Transferee liability (Director's burden);

☐ Increase of asserted deficiency above amount in Director's decision (Director's burden).

B.6. Hearing Request and Discovery

6.1. Petitioner requests a hearing on the merits under RSMo § 621.135 and the Commission's regulations at 1 CSR 15-3.

6.2. Petitioner anticipates the need for discovery, including interrogatories, requests for production, and depositions, pursuant to 1 CSR 15-3.420 and Missouri Supreme Court Rules 56–58 to the extent applicable.

B.7. Prayer for Relief

WHEREFORE, Petitioner respectfully requests that the Administrative Hearing Commission:

• A. Set this matter for hearing;
• B. Reverse the Director's Final Decision;
• C. Determine that no deficiency, interest, or additions to tax are owed for the tax year(s) at issue;
• D. In the alternative, abate the deficiency in part as the evidence shall warrant;
• E. Award such interest on overpayments as is allowed by RSMo § 32.065 and § 143.811; and
• F. Grant such other and further relief as is just and proper.

4. SECTION C — JUDICIAL REVIEW (COURT OF APPEALS / SUPREME COURT)

C.1. Petition for Judicial Review — Caption

IN THE [MISSOURI COURT OF APPEALS, [WESTERN / EASTERN / SOUTHERN] DISTRICT] / [SUPREME COURT OF MISSOURI]

Case No. [________________________________]

PETITION FOR JUDICIAL REVIEW OF DECISION OF THE ADMINISTRATIVE HEARING COMMISSION

C.2. Statement of Jurisdiction and Venue

2.1. This Court has jurisdiction pursuant to [Mo. Const. Art. V, § 3 (Supreme Court — construction of revenue laws) / RSMo § 621.189 and Mo. Const. Art. V, § 18 (Court of Appeals — administrative review)].

2.2. The Administrative Hearing Commission entered its decision on [__/__/____]. This Petition is filed within thirty (30) days of that decision.

2.3. Venue lies in this District because [Petitioner resides in / Petitioner's principal place of business is located in / the cause of action arose in] [COUNTY] County, Missouri.

C.3. Standard of Review

3.1. The Court reviews the AHC's decision under RSMo § 621.193 and the standards of RSMo § 536.140, examining whether the decision is supported by competent and substantial evidence on the whole record, is authorized by law, and is not arbitrary, capricious, or unreasonable.

3.2. Questions of statutory construction are reviewed de novo. Brinker Mo., Inc. v. Director of Revenue, 319 S.W.3d 433, 435 (Mo. banc 2010).

C.4. Points Relied On

Point I. The AHC erred in [holding / concluding / finding] that [ ___ ], in that [legal reason], because [evidentiary or statutory support].

Point II. [Additional points as appropriate].

5. VERIFICATION AND SIGNATURE BLOCKS

STATE OF MISSOURI

COUNTY OF [COUNTY]

I, [PETITIONER / OFFICER NAME], being first duly sworn upon oath, depose and state that I am the Petitioner / a duly authorized officer of the Petitioner in the foregoing matter; that I have read the foregoing Protest/Petition; and that the statements of fact contained therein are true and correct to the best of my knowledge, information, and belief.

[________________________________]

[NAME], [TITLE]

Subscribed and sworn to before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public

(My Commission Expires: [_______________])

Date: [__/__/____]

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Mo. Bar No. [####]

Counsel for [Taxpayer / Petitioner]

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

6. CERTIFICATE OF SERVICE

I hereby certify that on this the [____] day of [_______________], 20[____], a true and correct copy of the foregoing was served by [certified mail, return receipt requested / hand delivery / electronic filing through the AHC e-filing system] upon:

General Counsel

Missouri Department of Revenue

301 W. High Street, Room 670

P.O. Box 475

Jefferson City, MO 65105-0475

[________________________________]

[ATTORNEY NAME]

7. MISSOURI PRACTICE NOTES

• Strict 30-day AHC deadline. RSMo § 621.050.1 requires the petition to be filed with the Administrative Hearing Commission within thirty (30) days after the Director's decision is placed in the U.S. mail OR delivered, whichever is earlier. Despite occasional secondary-source references to 60 days, the statute and the AHC rules use 30 days. Use registered or certified mail to lock in the mailing-date filing rule under § 621.050.3.
• 60-day protest at the Department. Before reaching the AHC, a taxpayer must protest a Notice of Deficiency within sixty (60) days under RSMo § 143.631. Failure to protest converts the notice to a Final Assessment.
• Burden of proof. Under RSMo § 621.050.5, the taxpayer bears the burden of proof except as to fraud, transferee liability, and any increase in the asserted deficiency, where the burden falls on the Director.
• Statute of limitations on assessment. Generally three (3) years from the later of the return's due date or filing date under RSMo § 143.711, extended to six (6) years for omissions exceeding 25% of gross income, with no limitation in cases of fraud or non-filing.
• Refund claims. Income tax refund claims must be filed within three (3) years from the date the tax was due (including extensions) or two (2) years from the date paid, whichever is later — RSMo § 143.801.
• Appellate routing. Under Mo. Const. Art. V, § 3, the Supreme Court has exclusive appellate jurisdiction in cases involving the construction of the revenue laws of Missouri. Routine substantial-evidence challenges go to the Court of Appeals.
• Federal RAR conformity. Final federal adjustments must be reported to the Department within ninety (90) days under RSMo § 143.601. Late reporting can extend the assessment limitations period.
• Interest. Both deficiency interest and refund interest are computed under RSMo § 32.065 at the federal short-term rate plus three percent.
• Power of attorney. Use Missouri Form 2827 to authorize representation before the Department; the AHC requires a separate entry of appearance by counsel.

8. SOURCES AND REFERENCES

• RSMo Chapter 143 (Missouri Income Tax) — https://revisor.mo.gov/main/OneChapter.aspx?chapter=143
• RSMo § 143.631 (Protest of Notice of Deficiency) — https://revisor.mo.gov/main/OneSection.aspx?section=143.631
• RSMo § 621.050 (AHC appeals from Director of Revenue) — https://revisor.mo.gov/main/OneSection.aspx?section=621.050
• RSMo § 621.189 (Judicial Review) — https://revisor.mo.gov/main/OneSection.aspx?section=621.189
• RSMo Chapter 536 (Missouri Administrative Procedure Act) — https://revisor.mo.gov/main/OneChapter.aspx?chapter=536
• Missouri Department of Revenue, Forms & Manuals — https://dor.mo.gov/forms/
• Missouri Form 2827 (Power of Attorney) — https://dor.mo.gov/forms/2827.pdf
• Missouri Form 3097 (Taxpayer Bill of Rights) — https://dor.mo.gov/forms/3097.pdf
• Administrative Hearing Commission — https://ahc.mo.gov/
• 1 CSR 15-3 (AHC Rules of Practice and Procedure) — https://www.sos.mo.gov/cmsimages/adrules/csr/current/1csr/1c15-3.pdf
• Brinker Mo., Inc. v. Director of Revenue, 319 S.W.3d 433 (Mo. banc 2010)
• Mo. Const. Art. V, § 3 (Supreme Court appellate jurisdiction)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Missouri must review and customize this document before filing. Statutory deadlines for tax protests are strictly enforced; verify all citations and dates before use.