Hirsch v. State Tax Commission

DONNELLY, Judge.

This is an appeal from the Circuit Court of Cape Girardeau County which reversed the State Tax Commission’s decision to assess income tax against respondents. Respondents are shareholders of the Hirsch Broadcasting Company, a Missouri corporation which, during the taxable years in question, was a Subchapter S corporation under 26 U.S.C. § 1372. For the taxable years ending December 31, 1973, and December 31, 1974, respondents included as taxable income on their Missouri tax returns their pro rata share of the corporation’s undistributed taxable income. Each took a deduction…