Farmers & Merchants Bank v. Director of Revenue

ROBERTSON, Judge.

In this case we determine whether a bank is entitled to a bank franchise tax refund for income it claims it mistakenly reported when it changed accounting methods. The Director of Revenue and the Administrative Hearing Commission denied the refund. As this case involves the construction of the revenue laws of this state, we have jurisdiction. Mo.Const. art. V, § 3. Affirmed.

I

On January 1, 1990, The Farmers and Merchants Bank (“Farmers”) changed from a cash method to an accrual accounting basis pursuant to demands of federal law. Ae-counting by the cash method requires…