Modifies provisions relating to the filing of income tax returns

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Official Summary Text

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House Committee Substitute

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HCS/SB 994 - This act modifies provisions relating to the filing of income tax returns.

MILITARY INCOME TAX DEDUCTION
Current law authorizes an income tax deduction for income received for military service while the taxpayer serves in a combat zone. For all tax years beginning on or after January 1, 2027, this act modifies such deduction to apply to all military income, as defined in the act, regardless of duty status or filing status. (Section 143.121)

This provision has a delayed effective date of January 1, 2027.

BEGINNING FARMER INCOME TAX DEDUCTION
Current law authorizes an income tax deduction for certain income received for the sale or lease of farmland to beginning farmers. This act adds a definition of "taxpayer" to such deduction. (Section 143.121)

This provision is identical to SB 1291 (2026), SB 682 (2025), and HB 1042 (2025), and to a provision in HCS/SS/SB 67 (2025), HCS/HB 828 (2025), and HCS/SS/SCS/SB 466 (2025).

This provision has a delayed effective date of January 1, 2027.

TAX RETURNS
Current law provides that the date for filing income tax returns shall be the fifteenth day of the fourth month following the close of the taxpayer's taxable year. This act provides that such date shall be the date prescribed for the filing of federal tax returns. (Section 143.511)

This provision is substantially similar to a provision in HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025).

Current law requires withholding tax returns to be submitted electronically by employers with at least two hundred fifty employees. Beginning January 1, 2027, this act requires such electronic returns for employers with at least ten employees. (Section 143.591)

This provision is identical to HB 1919 (2026) and is substantially similar to SB 1429 (2026).

This act provides that tax return forms for all tax years beginning on or after January 1, 2026, shall indicate the name of the public school district in which the taxpayer resides. (Section 143.971)

TAX DEFICIENCIES
This act provides that if a taxpayer has a state income tax balance due resulting from the full or partial denial of a tax credit, the taxpayer shall not be held liable for any addition to tax, penalty, or interest on such amount of income tax due if the reason for the denial of a tax credit was the cumulative maximum amount of allowable tax credits being exceeded for the tax year, if the balance due is paid or payment arrangements have been made within sixty days of receiving notice of the balance due, and the addition to tax or penalty is not due to fraud or fraudulent intent. (Section 143.512)

This provision is substantially similar to a provision in HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025).

This act provides that a taxpayer that has paid a deficiency and any interest, additions to tax, or penalties attributable to such deficiency that is subsequently found to be erroneous, regardless of whether such taxpayer has timely filed a protest with the Director of Revenue, shall be entitled to a refund in the amount of the deficiency and any interest, additions to tax, or penalties attributable to such deficiency that were paid by the taxpayer. Such refund shall be paid as provided in current law. (Section 143.621)

This provision is identical to SB 1377 (2026).
JOSH NORBERG

Perfected

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SB 994 - This act modifies provisions relating to the filing of income tax returns.

BEGINNING FARMER INCOME TAX DEDUCTION
Current law authorizes an income tax deduction for certain income received for the sale or lease of farmland to beginning farmers. This act adds a definition of "taxpayer" to such deduction. (Section 143.121)

This provision is identical to SB 1291 (2026), SB 682 (2025), and HB 1042 (2025), and to a provision in HCS/SS/SB 67 (2025), HCS/HB 828 (2025), and HCS/SS/SCS/SB 466 (2025).

TAX RETURNS
Current law provides that the date for filing income tax returns shall be the fifteenth day of the fourth month following the close of the taxpayer's taxable year. This act provides that such date shall be the date prescribed for the filing of federal tax returns. The act provides that if such date is changed for any reason, the date for filing state income tax returns shall also be changed to such date. (Section 143.511)

This provision is identical to a provision in HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025).

This act provides that tax return forms for all tax years beginning on or after January 1, 2026, shall indicate the name of the public school district in which the taxpayer resides. (Section 143.971)

TAX DEFICIENCIES
This act provides that a taxpayer shall not be liable for penalties or interest on an income tax balance due if such taxpayer is denied part or all of a tax credit to which the taxpayer has qualified pursuant to any provision of law due to lack of available funds, and such denial causes a balance-due notice to be generated by the Department of Revenue or any other redeeming agency. Such taxpayer shall pay the balance due within sixty days or be subject to penalties and interest pursuant to current law. (Section 143.512)

This provision is identical to a provision in HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025).

This act provides that a taxpayer that has paid a deficiency and any interest, additions to tax, or penalties attributable to such deficiency that is subsequently found to be erroneous, regardless of whether such taxpayer has timely filed a protest with the Director of Revenue, shall be entitled to a refund in the amount of the deficiency and any interest, additions to tax, or penalties attributable to such deficiency that were paid by the taxpayer. Such refund shall be paid as provided in current law. (Section 143.621)

This provision is identical to SB 1377 (2026).
JOSH NORBERG

Introduced

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SB 994 - Current law provides that the date for filing income tax returns shall be the fifteenth day of the fourth month following the close of the taxpayer's taxable year. This act provides that such date shall be the date prescribed for the filing of federal tax returns. The act provides that if such date is changed for any reason, the date for filing state income tax returns shall also be changed to such date. (Section 143.511)

This act provides that a taxpayer shall not be liable for penalties or interest on an income tax balance due if such taxpayer is denied part or all of a tax credit to which the taxpayer has qualified pursuant to any provision of law due to lack of available funds, and such denial causes a balance-due notice to be generated by the Department of Revenue or any other redeeming agency. Such taxpayer shall pay the balance due within sixty days or be subject to penalties and interest pursuant to current law. (Section 143.512)

This act is identical to provisions in HCS/SS/SB 67 (2025), HCS/SS/SCS/SB 466 (2025), and HCS/HB 828 (2025).
JOSH NORBERG