Goldberg v. Administrative Hearing Commission

ROBERT R. WELBORN, Special Judge.

Appeal from decision of Administrative Hearing Commission of Missouri, reversing assessment of additional Missouri income taxes against respondents Jones by petitioner-appellant Director of Revenue.

Kenrick and Lois Jones (“taxpayers”) timely filed joint individual federal and Missouri income tax returns for the year 1976. On their federal return, taxpayers reported a long-term capital gain arising from the sale of real estate, resulting in federal tax liability under Section 56 of the Internal Revenue Code. Taxpayers also reported two other “items of tax…