Missouri Department of Revenue Form Instructions
MO-1120 Instructions — Corporation Income Tax booklet
preamble
Corporation Income Tax Return
General Instructions
Form Tax Deadline is April 15. See page 3 for extensions. File Electronically Electronic filing is fast and easy. See page 2 for details.
MISSOURI REGISTRATION
Every corporation and S-corporation must register with the De part ment of Revenue to receive a Missouri Tax Identification Number. To register, please contact: Missouri De part ment of R eve nue , Taxation Division, P.O. Box 3300, Jefferson City, MO 65105-3300, visit mytax.mo.gov or call Business Registration at (573) 751-5860.
TIME AND PLACE OF FILING AND PAYMENT
Corporation income tax is due on or before the 15th day of the fourth month following the end of the tax year. Example: Taxable period of January 1, 2025, to December 31, 2025; due April 15, 2026. Note: When the due date falls on a Saturday, Sunday, or legal holiday, the return and payment will be considered timely if made on the next business day. If you have a refund or have no amount due, mail your return to: Missouri Department of Revenue, P.O. Box 700, Jefferson City, MO 65105-0700. If you have a balance due, payments must be postmarked by April 15, 2026, to avoid interest and late payment charges. The Department of Revenue offers several payment options. If you mail your payment after your return is filed, attach your payment to the Form MO-1120V. • Check or money order: Attach a check or money order (U.S. funds only) payable to the Missouri Department of Revenue indicating the Missouri Tax Identification Number. • Mail to: Missouri Department of Revenue, P.O. Box 3365, Jefferson City, MO 65105-3365. Do not postdate. By submitting payment by check, you authorize the Department of Revenue to process the check electronically upon receipt. The Department of Revenue may electronically resubmit checks returned for insufficient or uncol lect ed funds. • Electronic Bank Draft (E-Check): You can pay online at mytax.mo.gov/rptp/portal/omefileandpaybusinesstaxesonline or by calling (888) 929-0513. You will need to enter your bank routing number and checking account number. There will be a $0.50 fee per filing period/transaction to use this service. • Credit Card: The Department accepts MasterCard, Discover, Visa, and American Express. For online payment information and convenience fee charges, visit: mytax.mo.gov/rptp/portal/omefileandpaybusinesstaxesonline. Note: The convenience fees charged are paid to the third party vendor, not to the Missouri Department of Revenue. By accessing this payment system, you will leave the Department's website and connect to the third party vendor's website, which is secure and confi dential.
GENERAL INFORMATION This information is for guidance only and does not state the complete law.
FILING REQUIREMENTS FOR FORM
MO-1120 CORPORATION INCOME TAX Every corporation, as defined in Chapter 143, RSMo, is required to file a return of income in Missouri for each year it is required to file a federal income tax return and the corporation's gross income from sources within Missouri is $100 or more. The tax on corporations will not apply to: • A corporation, which by reason of its purposes and activities, is exempt from federal income tax. The preceding sentence shall not apply to unrelated business taxable income and other income on which Chapter 1 of the Internal Revenue Code imposes the federal income tax or any other tax measured by income. Note: Any corporation filing a Federal Form 990, 990-EZ, 990-N, or 990-PF should not send a copy of the federal form or any Missouri MO-1120 Corporation Income tax form to the Department of Revenue. • An express company as defined in Chapter 153, RSMo, which pays an annual tax on its gross receipts, in this state; • An insurance company, which is subject to an annual tax on its gross premium receipts, in this state; • A Missouri mutual or an extended Missouri mutual in su r ance company organized under Chapter 380, RSMo; or • Any other corporation that is exempt from Missouri income taxation under the laws of Missouri or the laws of the United States.
Attach a copy of your Federal Form 1120. Corporations reporting taxable income on a federal return other than a Federal Form 1120 (such as Federal Forms 1120-POL, 1120-H, 1120-SF, 1120-REIT, 990-T, or 1120-C), shall attach a copy of the appropriate federal form and make the computations on Form MO-1120. A "candidate committee" set up under Section 130.011, RSMo, who is required by the Internal Revenue Code Section 527 to file a Federal Form 1120-POL, but is not set up as a corporation, is not required to file Form MO-1120.
ADMINISTRATIVE DISSOLUTION
If a corporation required to file income tax fails to file and pay the tax within 90 days from the original due date (or 90 days from the extension due date), it shall forfeit its charter in this state under the provisions of Section 351.486. 2
ELECTRONIC FILING OPTIONS FOR CORPORATION TAX RETURNS
Corporations may file Missouri MO-1120 Corporation Income tax returns electronically in conjunction with the IRS through Modernized E-File (MeF). This system has been developed through a cooperative effort between the IRS, states, and the software community. The system uses the latest electronic technology and industry standards. Corporations may visit the Department's website at dor.mo.gov/taxation/business/ tax-types/corporation-income/efile.html for more information regarding electronic filing as well as a list of approved vendors that support corporate electronic filing. Corporations may choose from the following filing options: 1. Federal and State Corporation tax returns may be prepared and filed electronically by an IRS approved Electronic Return Originator (ERO). Corporations may visit the IRS website to find a participating ERO at: irs.gov/e-file-providers/modernized-e-file-program-information. 2. Missouri MO-1120 Corporation Income tax returns can be prepared and transmitted as a stand-alone state return through an IRS approved ERO. Benefits of Electronic Filing Convenience • Security • Proof of Filing • Direct Deposit of Refunds • Greater Accuracy *14000000001*
CONSOLIDATED FEDERAL RETURN AND SEPARATE MISSOURI RETURN
A corporation, which is a member of an affiliated group filing a consolidated federal corporation income tax return, shall (if no Missouri consolidated return is filed) determine its federal taxable income as if it had filed a separate federal corporation income tax return for the year. The corporation must enclose a pro forma Federal Form 1120, with all pertinent schedules, where in its separ ate federal taxable income is computed with Form MO-1120. The first five pages of the actual consolidated federal corporation income tax return and an income statement, or a summary of profit com panies f or the year, must be attached. The complete consolidated federal return may be required upon an audit of the Mis souri r eturn. Attach supporting statements for each corporation included in the consolidated return. Do not use Form MO-1120 as a supporting statement. The corporation's federal income tax de duc tion will be a portion of the tax on consolidated Federal Form 1120. See Form MO-1120, Part 3.
SUBSIDIARIES INCLUDED IN THE FILING OF THIS RETURN
If the corporation is filing a consolidated Missouri return, attach a separate schedule that lists the names of the subsidiaries, Federal Identification Numbers and Mis souri T ax Identification Numbers.
NET OPERATING LOSSES
Corporations that file a Missouri return with a federal net operating loss (NOL) must treat the loss under the provisions of the Internal Revenue Code. Corporations that file a consolidated federal and separate Missouri return must compute the separate federal taxable income as if each member filed a separate federal return. In any year an NOL is carried forward or carried back, a corporation is required to provide a schedule detailing each NOL: the year of the loss, the amount of the loss, the loss previously utilized and the amount of the loss currently being utilized on a consolidated and separate company basis. For federal and Missouri purposes, a corporation can use the federal NOL incurred in one tax year to reduce the taxable income in another tax year. The NOL deduction cannot exceed the corporation's taxable income (after special deductions). An NOL deduction cannot be used to increase a loss in a loss year or to create a loss in a profit year. A separate company is bound by the consolidated federal return election to carry losses forward or back, (i.e., if the loss is carried back on your federal return, the separate company loss must be carried back). If the loss is carried forward the corporation must provide detailed schedules reflecting the loss amount(s), year(s) of the loss, and year and amount of the loss utilized on a consolidated and separate company basis. If the consolidated return shows taxable income and the separate company return shows a loss, the corporation may elect to carry the federal separate company loss forward or back pursuant to the Internal Revenue Code on a separate company basis in Missouri. The corporation must provide a copy of page 1 of the federal consolidated return for the separate company loss year. The only NOL subject to carry forward or carry back is the loss from the federal tax return. Missouri does not have provisions for a state NOL deduction. A negative number on Form MO-1120, Lines 8, 9, or 13 is not an NOL. If the corporation is required to file an amended Missouri return to carry back a federal NOL, provide the following information with the amended Form MO-1120: • If the consolidated federal income is positive and you are carrying back a separate company loss, attach a copy of the consolidated Federal Form 1120 page 1 for the separate company loss year to confirm that there is no consolidated loss to be carried back. • If the consolidated federal return is a loss for the current tax period and the previous tax periods are consolidated losses, attach a copy of the consolidated Federal Form 1120 for the current tax period and the consolidated Federal 1120 for the tax period(s) being amended on a separate company basis. • For tax periods that the consolidated return and separate company return show an NOL that is carried back, attach a copy of the consolidated Federal Form 1139 or Federal Form 1120X. Also include the income statement for the loss year, the revised income statement for the amended tax period(s), and a schedule showing the calculation of the federal income tax de duc tion on the amended r eturn. Note: The corporation is required to file an amended return to adjust the federal income tax deduction for any tax period that the consolidated tax liability changes due to an NOL carryback, even if no loss exists to be carried back on a separate company basis.
REPORTABLE TRANSACTION DISCLOSURE
STATEMENT FEDERAL FORM 8886 Every corporation must attach a copy of each Federal Form 8886 that was filed with the IRS as part of its federal return or as part of a consolidated federal return.
UNCERTAIN TAX POSITION STATEMENT FEDERAL SCHEDULE UTP
A corporation must attach a copy of Federal Schedule UTP if the corporation has one or more tax positions that must be reported to the IRS on Schedule UTP and the schedule was filed with the IRS as part of its federal return or as part of a consolidated federal return.
DECLARATION OF ESTIMATED TAX
Every corporation subject to income tax in this state must make a declaration of its estimated tax for the taxable year on Form MO-1120ES, if its Missouri estimated tax could reasonably be ex pected to be at least $250 (Section 143.521, RSMo). If an affiliated group of corporations files a Missouri consolidated income tax return for the taxable year, its Missouri estimated tax payments may be combined on Form MO-1120 (12 CSR 10-2.045(36)). A corporation may amend its declaration on Form MO-1120ES. Mail the declaration of estimated tax payments to: Missouri Department of Rev e nue , P.O. Box 3020, Jefferson City, MO 65105-3020. Make the check payable to Missouri Department of Revenue and include your Missouri Tax Identification Number on your check. You can file and pay Declaration of Estimated Tax for Corporation Income Tax (Form MO-1120ES), online using a Credit Card or E-Check (Electronic Bank Draft). To file and pay online, please visit
EXTENSION OF TIME TO FILE AND PAY
If a corporation has been granted an extension of time to file its federal income tax return, the time for filing the Missouri corporation income tax return is automatically extended. Select the box at the top of the form indicating you have an approved federal extension and attach a copy of the Federal Extension, Form 7004, to the MO-1120. (Failure to check this box may result in disallowing the extension.) An extension of time to file does not extend the time for payment of the tax. The corporation must pay, on or before the original due date, the amount properly estimated. If you expect to owe tax, file Form MO-7004.
FILING AMENDED RETURNS
To file an amended corporation income tax return, use Form MO-1120. Select the Amended Return box at the top of the form. The corporation must complete the entire return using the corrected figures. Complete each line using the corrected amounts. Failure to fill out the entire return will delay the processing of the return. *14000000001*
For amending tax years prior to the 2015 corporation income tax: • Form MO-1120 must be used for amending corporation income tax for tax years 1993-1999. • Form MO-FT, must be used for amending corporation franchise tax for tax years 2000 and prior. • Form MO-1120 and Form MO-FT must be used for amending corporation income tax years 2000-2014 and corporation franchise tax years 2001-2015. • Form MO-1120X must be used for amending corporation income tax for tax year 1992 and prior. The amended return must contain a complete explanation of the reasons for filing the claim or amendment. You must attach any required schedules or forms to support your claim. If the amended return is submitted without the proper attachments it may be partially or totally denied. Note: Form MO-1120, Parts 4 and 5 must be completed when applicable.
A corporation must file an amended return within 90 days of filing an amended federal income tax return or within 90 days after the final determination of changes made by the Internal Revenue Service (12 CSR 10-2.105 and Section 143.601, RSMo). Attach a copy of the amended federal return with applicable schedules (e.g., Federal Revenue Agent's Report, Form 1139, Form 1120X). If the federal return was not amended, explain why the corporation is amending the Missouri return and accompany the explanation with applicable schedules. For Missouri forms, access the Department of Revenue's website at dor.mo.gov/forms/.
CONTACT INFORMATION
If you have any questions, you may contact Corporate Tax at (573) 751-4541 or by email at corporate@dor.mo.gov. FORM MO-1120 MISSOURI CORPORATION
TAX LINE-BY-LINE INSTRUCTIONS
At the top of the return, fill in the blanks indicating the beginning and ending dates of the tax period. The corporation's accounting period and method of accounting for Missouri corporation income tax purposes must be the same as for federal income tax purposes (12 CSR 10-2.030, 12 CSR 10-2.035, and Sections 143.271 and 143.281, RSMo).
NAME AND ADDRESS SECTION
The corporation's Missouri Tax I.D. Number, Charter Num ber , and Fed er al I.D. Number must be entered in the spaces provided. Failure to include the Missouri Tax I.D. Number and Charter Number will delay the processing of the return. Please contact Business Registration at (573) 751-5860 if you cannot locate or do not have a Missouri Tax I.D. Number.
FEDERAL EXTENSION
Select this box if you have an approved federal extension. Attach a copy of the approved Federal Extension, Form 7004. (Failure to check this box may result in disallowing the extension.)
RETURN TYPE
• Consolidated Missouri Return - Check this box if filing a consolidated Missouri return. In order to file a consolidated Missouri return, the corporation must be part of a consolidated federal return (12 CSR 10-2.045 and Section 143.431, RSMo). Form MO-22 must be included for each member of the consolidated group when filing the initial consolidated Form MO-1120 and for each new member added thereafter. • Consolidated Federal and Separate Missouri Return - Check this box if filing a consolidated federal return and a separate Missouri return. The following information must be included with the Form MO-1120: (1) pro forma Federal Form 1120 plus schedules; (2) consolidated Federal Form 1120; (3) consolidated Schedule J; and (4) income statement showing the income and loss of all corporations included in the con soli da ted group. Alabama Alaska Arizona Arkansas California (income & franchise tax) Colorado Delaware Florida Georgia (excludes net worth tax) Hawaii Idaho Illinois (includes replacement tax) Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Michigan Mississippi
Missouri Nebraska
New Hampshire (Business Profits Tax) New Mexico North Carolina North Dakota Oklahoma Oregon Pennsylvania
Rhode Island South Carolina (excludes Corporate License Fee) South Dakota Tennessee (excise tax) Texas Utah Vermont Virginia West Virginia Wisconsin • Amended Return - Check the box if the corporation is filing an amended return. • Name Change - Check this box if the corporation's name has changed since filing the previous Form MO-1120. • Address Change - Check this box if the corporation's address has changed since filing the previous Form MO-1120. • Final Return and Close Corporation Income Tax Account - Check this box if the corporation ceased doing business during the tax period for which this return is being filed. • Bankruptcy - Check this box if the corporation has filed for bankruptcy since filing the previous Form MO-1120 or if the corporation is still in bankruptcy. • 1120-C - Check this box if the corporation filed Federal Form 1120-C. Per Section 143.511, RSMo, the effective due date for tax-exempt entities filing Federal Form 1120-C is the same as the federal due date. For calendar year filers, this is September 15, 2026. For fiscal year filers, the due date is the 15th day of the ninth month following the close of the taxable year. For entities filing Federal Form 1120-C that are not tax-exempt, the due date is the same as a corporation that files Federal Form 1120. • 990-T - Check this box if the corporation filed Federal Form 990-T. Per Section 143.511, RSMo, the effective due date for entities filing Federal Form 990-T is the same as the federal due date. For calendar year filers, this is May 15, 2026. For fiscal year filers, the due date is generally the 15th day of the fifth month following the close of the taxable year. • All Missouri source income is from an interest(s) in a partnership(s)- Check this box if the corporation owns a percentage of a partnership( s). The partnership(s)' factor(s) must be multiplied b y the corporation's percentage of ownership, and then added int o the corporation's apportionment factor by completing F orm MO-MS. • Public Law 86-272 - Check this box if Missouri cannot impose inc ome tax on this corporation because the corporation meets the r equirement(s) of P.L. 86-272. You may complete and attach a F orm 4458 to assist the Department in determining whether y our PL 86-272 is valid. LINE 1 - FEDERAL TAXABLE INCOME Enter the total amount of federal taxable income from Federal Form 1120, Line 30. The line numbers for federal taxable income will differ on other federal forms (1120-POL, 1120-H, 1120-SF, 1120-REIT, 990-T, and 1120-C). LINE 2 - MISSOURI CORPORATION INCOME TAX &
CORPORATION INCOME TAX OF OTHER STATES DEDUCTED IN DETERMINING FEDERAL
TAXABLE INCOME
Enter the amount of Missouri corporation income tax deducted in determining federal taxable income (Section 143.141(1), RSMo), and the amount of corporation income taxes from other states, their subdivisions and the District of Columbia deducted in determining federal taxable income (12 CSR 10-2.160 and Sec tion 143.141(2), RSMo). Do not include St. Louis or Kansas City earnings taxes. A schedule must be attached showing the breakdown of taxes on Federal Form 1120, Line 17. Include on Line 2 any income tax (however named) of the following states taken as a deduction in determining federal taxable income:
5 *14000000001* LINE 3 - MISSOURI MODIFICATIONS - ADDITIONS Enter the net amount from Page 3, Part 1, Line 6. See instructions for completing Part 1. LINE 4 - TOTAL ADDITIONS Enter the total of Line 2 and Line 3. LINE 5 - MISSOURI MODIFICATIONS - SUBTRACTIONS Enter the net amount from Page 3, Part 2, Line 14. See instructions for completing Part 2. LINE 6 - BALANCE Enter the total of Line 1 and Line 4 minus Line 5. LINE 7 - FEDERAL INCOME TAX - CURRENT YEAR Enter the amount from Page 4, Part 3, Line 3 or Line 6. See the instructions for completing Part 3. Consolidated federal and separate Missouri filers must compute the federal income tax de duc tion per 12 CSR 10-2.090. LINE 8 - TAXABLE INCOME (ALL SOURCES) Enter the total of Line 6 minus Line 7. LINE 9 - PRELIMINARY MISSOURI TAXABLE INCOME If taxable income is 100 percent from Missouri sources, enter the amount from Line 8. If taxable income is not 100 percent from Missouri sources, complete and attach Form MO-MS. Enter the apportionment method number used (apportionment election 2a, 3, 4, 5, 6, or 7) and the appropriate percentage (rounded to three digits to the right of the decimal point, such as 12.345 percent) from Form MO-MS in the boxes provided. Multiply Line 8 by the percentage and enter the result on Line 9. If the corporation owns a percentage of a partnership(s), the partnership factors must be multiplied by the corporation's percentage of ownership, and then added into the corporation's apportionment factors by completing Form MO-MS. LINE 10 - MISSOURI DIVIDENDS DEDUCTION If income is 100 percent from Missouri sources, calculate the net dividend deduction by subtracting Federal Form 1120, Line 29b from Federal Form 1120, Line 4, except as noted below. If income is not 100 percent from Missouri sources, complete Form MO-C. The dividends eligible for deduction (other than nonapportionable dividends) are then multiplied by a percentage factor. This percentage factor generally is from Form MO-MS, Part 1, Line 3. For taxpayers using any other apportionment method, this percentage factor is on Form MO-1120, Line 9 Percent. After multiplying such eligible dividends by the appropriate percentage factor, add to that result the amount of Missouri-allocated nonapportionable dividends, and enter the sum on Form MO-C, Line 30 and on Form MO-1120, Line 10. Note: If income is 100 percent from Missouri sources but a portion of your Internal Revenue Code Section 250 deduction was attributable to Foreign-Derived Intangible Income (FDII), complete and attach Form MO-C and enter 100% on Form MO-C, Line 27. LINE 11 - ENTERPRISE ZONE OR RURAL
EMPOWERMENT INCOME MODIFICATION
Enter the amount of modification as approved by the Missouri De part ment of E conomic Development. LINE 12 - RESERVED Line 12 has been reserved for future use.
LINE 13 - MISSOURI TAXABLE INCOME Enter the total of Line 9 minus Lines 10 and 11. Do not enter a negative number. If the result is less than zero, enter zero. LINE 14 - CORPORATION INCOME TAX Enter the amount of Line 13 multiplied by 4 percent. Income tax cannot be prorated or annualized. LINE 15 - RECAPTURE OF MISSOURI
LOW INCOME HOUSING CREDIT
If your corporation is required to recapture a portion of any federal low income housing credit(s) taken on a low income housing pro ject, your corporation is also required to recapture a portion of any Missouri credits. The Missouri recapture amount is equal to the proportion of the Missouri credit that equals the proportion the federal recapture amount bears to the original federal low income housing credit amount subject to recapture (Section 135.355.2, RSMo). You must attach to your Missouri return a copy of your Federal Form 8611. LINE 16 - TOTAL TAX Enter the total of Lines 14 and 15. LINE 17 - TAX CREDITS Enter the total from Form MO-TC, Line 12. Access the Department of Revenue's website at: dor.mo.gov/forms/ to download Form MO-TC. LINE 18 - ESTIMATED TAX PAYMENT(S) Enter the total 2025 estimated payment(s) made with Form MO-1120ES. Include any approved overpayment(s) credited from 2024. If the requested overpayment(s) credited from 2024 has been adjusted, you must use the adjusted amount. If filing a consolidated Missouri return, Form MO-851 (Affiliations Schedule) or a complete list of subsidiary payments must be attached to Form MO-1120. The list must in clude each c orporation's Missouri Tax I.D. Num ber . Enter on Line 18 the total amount withheld from 2025 total compensation as a nonresident entertainer, as shown on Form(s) MO-2ENT, Line 7. Attach copies of Form MO-2ENT. LINE 19 - PAYMENTS WITH FORM MO-7004 Enter the total payment(s) made with Form MO-7004. LINE 20 - AMENDED RETURN ONLY: TAX PAID WITH (OR AFTER) THE FILING OF THE ORIGINAL RETURN Enter the amount of tax previously paid on the original return and any previously filed amended return. LINE 21 - SUBTOTAL
Enter the total of Lines 17 through 20.
Childhood Lead Testing Fund - Activities supported by this fund ensure that Missouri children at risk for lead poisoning are tested and receive appropriate follow-up activities to protect their health and well being from the harmful effects of lead. For more information please contact the Missouri State Public Health Laboratory at (573) 751-3334, or e-mail labweb1@health.mo.gov. (Minimum contribution: $1) Missouri Military Family Relief Fund - For more information, please contact: Missouri Military Family Relief Fund, 2302 Militia Drive, ATTN: JFMO-J1/SS, Jefferson City, MO 65201- 1203. (Minimum contribution: $1) General Revenue Fund - Requests for information and contributions may be made at any time directly to General Revenue Fund, ATTN: Department of Revenue, P.O. Bo x 3022, Jefferson City, MO 65105-3022. (Minimum contribution: $1) Organ Donor Program Fund - C ontributions support organ and tissue donation education and registry operation. For more information, please contact Missouri Department of Health and Senior Services, Organ and Tissue Donor Program, P.O. Box 570, Jefferson City, MO 65102-0570, or call (888) 497-4564. (Minimum contribution: $2) Kansas City Regional Law Enforcement Memorial Foundation Fund The Regional Law Enforcement Memorial Garden honors and celebrates the men and women who have laid down their lives in the line of duty. Donations can be made directly to Kansas City Regional Law Enforcement Memorial Foundation Fund at 527 W 39th Street (132.24 mi) Kansas City, MO 64111. (Minimum contribution: $1.) Soldiers Memorial Military Museum in St. Louis Fund - Supports Soldiers Memorial Military Museum in honoring military service members, veterans, and their families, and sharing St. Louis's involvement in the nation's military history from the American Revolution through today. Donations can be made directly to Soldiers Memorial Military Museum Fund at P.O. Box 775460 1315 Chestnut St., St. Louis, MO, 63103. (Minimum contribution: $1.) Additional Funds If you choose to give to additional funds, enter the two-digit fund code (see below) in the spaces provided on Line 25. If you want to give to more than two additional funds, please submit a contribution directly to the fund. See dor.mo.gov/taxation/individual/trust-funds.html for additional information. Donations received from the following funds are designated specifically for Missouri residents. Funds C odes American Cancer Society Heartland Division, Inc., Fund ........ 01 American Diabetes Association Gateway Area Fund ............ 02 American Heart Association Fund ............................ 03 Amyotrophic Lateral Sclerosis (ALS-Lou Gehrig's Disease) Fund ... 05 Muscular Dystrophy Association Fund ........................ 07 March of Dimes Fund ....................................... 08 Arthritis Foundation Fund ................................... 09 National Multiple Sclerosis Society Fund ...................... 10 Foster Care and Adoptive Parents Recruitment and Retention Fund ........................................... 14 Enter the total of Lines 18, 19, 20, and 21.LINE 22 - AMENDED RETURN ONLY: OVERPAYMENT,
IF ANY, AS SHOWN ON ORIGINAL RETURN OR AS LATER ADJUSTED
Enter the amount of overpayment received (or expected to be received) or the amount to be credited to estimated tax, as shown or adjusted on the original return. Any refund due on the original return will be refunded separately from any additional refund claimed on the amended return. LINE 23 - TOTAL Enter Line 21 minus Line 22. LINE 24 - OVERPAYMENT
Enter the overpayment if Line 23 is greater than Line 16. LINE 25 - FUND CONTRIBUTIONS Enter any portion of your corporation income tax overpayment you wish to contribute to the following funds. If you file a balance due return and wish to contribute to the funds, enter the amount in the appropriate box and attach a separate check for this amount. Missouri Medal of Honor Trust Fund - Supports the cost of maintenance and repair and to help pay renewal fees for memorial bridges or memorial signs provided by the Department of Transportation. Donations can be made directly to Medal of Honor Fund at 105 West Capitol Avenue, Jefferson City, MO 65102 (Minimum contribution: $1.) Children's Trust Fund - Children's Trust Fund, Missouri's Foundation for Child Abuse Prevention, is a non-profit organization dedicated to the vision of children free to grow and reach their full potential in a nurturing and healthy environment free from child abuse and neglect. For more information, please contact: Children's Trust Fund, ctf4kids.org or call (888) 826-5437. (Minimum contribution: $2) Veterans Trust Fund - T he Missouri Veterans Commission's Veterans Trust Fund is a means by which individuals and corporations may donate money to expand and improve services to veterans in Missouri. Con tri bu tions ma y be made at any time directly to: Veterans Trust Fund, c/o The Missouri Veterans Commission, P.O. Drawer 147, Jefferson City, MO 65102-0147 or call (573) 751-3779. (Minimum contribution: $2) Elderly Home Delivered Meals Trust Fund - The Elderly Home Delivered Meals Trust Fund supports the home delivered meals program for Missouri's home-bound senior citizens, helping them to continue to live independently in their homes. The need for home delivered meals increases yearly as persons are living longer and may need assistance. For more information, please contact: health.mo.gov/seniors/aaa/index.php. (Minimum contribution: $2)
Missouri National Guard Trust Fund
- The Missouri National Guard Trust Fund expands the capability to provide or coordinate Military Funeral Honors Ceremonies for veterans of Missouri and veterans buried in Missouri who have served their country in an honorable manner. Contributions may be made at any time directly to Missouri National Guard Trust Fund, ATTN: JFMO-J1/SSH, 2302 Militia Drive, Jefferson City , MO 65101-1203 or call (573) 638-9663. (Minimum contribution: $2) Workers' Memorial Fund - T his fund has been established to create a permanent memorial for all workers who suffered a job related death or injuries that resulted in a permanent disability while on the job in Missouri. Requests for information and contributions may be made at any time to: Workers' Memorial Fund, ATTN: Director's Office, 412 E. Dunklin St., Jefferson City, MO 65101. (Mini mum c ontribution: $1)
American Cancer Society Heartland Division, Inc., Fund (01) - For more information anytime, call toll free (800) ACS-2345 or visit cancer.org. Donations can be sent directly to the American Cancer Society at 1100 Pen nsylvania Avenue, Kansas City, MO 64105. (Minimum irrevocable contribution: $1, not to exceed $200) American Diabetes Asso ci a tion Gateway Area Fund (02) - Request for information may be made by calling (314) 822-5490 or contacting Gateway Area Diabetes Association Fund, 15455 Conway Road, Suite 360, Chesterfield, MO 63017. (Minimum irrevocable contribution: $1, not to exceed $200) American Heart Association Fund (03) - For more information, please contact: American Heart Association, 460 N. Lindbergh Blvd., St. Louis, MO 63141-7808, or call (314) 692-5600. (Minimum irrevocable contribution: $1, not to exceed $200) ALS Lou Gehrig's Disease Fund (05) - Call (888) 873-8539 for patient services in Eastern Missouri and (800) 878-2062 for patient services in Western Missouri. (Minimum irrevocable contribution: $1, not to exceed $200) Arthritis Foundation Fund (09) - Call (800) 283-7800 or visit arthritis.org. Contributions can be made at any time directly to the Arthritis Foundation, 9433 Olive Blvd. Suite 100, St. Louis, MO 63132. (Minimum irrevocable contribution: $1, not to exceed $200) Foster Care and Adoptive Parents Recruitment and Retention Fund (14) - For more information please contact: Missouri Children's Division, P.O. Box 88, Jefferson City, MO 65103-0088 or call (573) 522-8024. (Minimum contribution: $1) March of Dimes Fund (08) - Send requests for information and contributions directly to the March of Dimes Fund, 11829 Dorsett Road, Maryland Heights, MO 63043. (Minimum irrevocable contribution: $1, not to exceed $200) Muscular Dystrophy Asso ci a tion Fund (0 7) - Requests for information and contributions may be made at any time directly to: Muscular Dystrophy Association, 222 South Riverside Plaza, Suite 1500, Chicago, IL 60606; (312) 260-5900. (Minimum irrevocable contribution: $1, not to exceed $200) National Multiple Sclero sis Society Fund (10) - Visit nationalmssociety.org, call (800)FIGHTMS, or contact National Multiple Sclerosis Society Fund, 12125 Woodcrest Executive Drive, Suite 320, St. Louis, MO 63141. (Minimum irrevocable contribution: $1, not to exceed $200) LINE 26 - OVERPAYMENT TO BE APPLIED
TO NEXT FILING PERIOD
Enter the amount of overpayment to be applied to the next filing period. If filing an amended return do not include the original amount requested to be applied to the next filing period. LINE 27 - REFUND Enter the total of Line 24 minus Line 25 and Line 26. This is the amount to be refunded. No refund of less than $1.00 will be made. If there is any other liability owed the state of Missouri, the refund may be applied to that liability (Sections 143.781, 143.782, 143.783, and 143.784, RSMo). The cor por a tion will be notified if any debts are offset with the refund. The Department requires approved refunds of $100,000 or more to be issued electronically. If claiming a refund of $100,000 or more, please file your return electronically to receive your refund by direct deposit to your bank account. Complete Form 5378 and submit with your return. The form is available at dor.mo.gov/forms. Failure to include the form and all required documentation will delay the processing of your return. *14000000001*
LINE 28 - UNDERPAYMENT Enter the underpayment if Line 16 is larger than Line 23. LINE 29 - INTEREST, ADDITION TO TAX,
UNDERPAYMENT OF ESTIMATED TAX
Enter the amount of interest computed. Simple interest is charged on all delinquent taxes from the due date of the return until the payment is received. The simple interest rate, effective January 1, 2026, is 7 per c ent per annum ( Section 32.065, RSMo).
ADDITION TO TAX - FAILURE TO FILE
Enter the amount of penalty computed. If the return is not filed by the due date, including extensions of time to file, a penalty of 5 percent (of the unpaid tax) per month (not to exceed 25 percent in the aggregate) is charged during the period of such failure.
ADDITION TO TAX - FAILURE TO PAY
If the tax due is not paid, by the original due date of the return, regardless of an extension of time to file, a penalty of 5 percent (of the unpaid tax) is charged.
UNDERPAYMENT OF ESTIMATED TAX
Enter the addition to tax for underpayment of estimated tax from Form MO-2220, Line 26. If the total payment and credit amount on Line 23 is less than 90 percent of the amount on Line 14, or if the estimated tax payments were not paid in full or timely, addi tions t o tax for failure to pay enough estimated taxes may be owed. However, the corporation may be able to meet one of the exceptions explained on Form MO-2220. Attach a completed Form MO-2220. If there is an overpayment on Line 24, the De part ment of R evenue will reduce the overpayment by the additions to tax amount (12 CSR 10-2.067 and Section 143.761, RSMo). LINE 30 - AMOUNT DUE Enter the total of Line 28 and Line 29. Refer to Page 1, "Time and Place of Filing and Payment" for payment options.
AUTHORIZATION
Check the "yes" box for authorization of release of confidential information. This authorizes the Missouri Director of Revenue or delegate to discuss this return and attachments with the preparer whose signature appears on the Form MO-1120 or with any member of their firm or if internally prepared, any member of the internal staff. If the authorization box is checked "no", or if no box is checked, the Missouri Director of Revenue or delegate can only discuss this return with a duly authorized representative of the corporation. Refer to Section 32.057, RSMo, and 12 CSR 10-41.030.
SIGNATURE
The Department of Revenue requires the return to be signed by an officer of the corporation. Enter the date signed, the title of the officer whose signature is affixed, and the corporation's tele phone number. Lines are provided for the preparer's signature (other than taxpayer), Federal I.D. Number, telephone number, and date. Failure to sign the return will cause a delay in the processing of the return. If a paid tax return preparer prepared this return and failed to sign the return or enter the preparer's tax identification number on the return, the paid tax return preparer may be penalized under Section 143.980, RSMo.
Part 2 - Subtractions
LINE 1 - INTEREST AND DIVIDENDS FROM EXEMPT FEDERAL OBLIGATIONS (MUST ATTACH SCHEDULE) Enter on Line 1a the amount of interest and dividends from federal obligations to the extent they are exempt from Missouri corporation income tax, but subject to federal tax (12 CSR 10-2.150 and Section 143.121.3(1), RSMo). A detailed list showing the amount of monies received or the percentage of funds received from direct U.S. Government obligations must be attached to Form MO-1120. Enter on Line 1b the amount of interest on indebtedness and expenses associated with the production of interest and dividend income on federal obligations shown on Line 1a. The expenses must equal or exceed $500. Refer to Section 143.121.3(1), RSMo, for further explanation. In arriving at the amount of related expenses, the taxpayer may use actual expenses or a reasonable estimate. In general, the taxpayer should use the same or similar method to that used to compute related expenses for federal income tax purposes, provided that the method reasonably reflects related expenses for Missouri exempt income. If a taxpayer fails to compute reasonable related expenses, the Department of Revenue will make adjustments based on the information available. If sufficient information is not available, the Department of Revenue will use the following formula to compute related expenses: Exempt Income Total Income X Expense Items = Reduction to Exempt Income The principal expense item in this formula is interest expense; however, the Department of Revenue may include other expense items because of their direct relationship to the production of exempt income. The taxpayer may propose an alternative method provided that it properly reflects the amount of related expenses. Enter on Line 1 the net amount of Line 1a minus Line 1b. LINE 2 - FEDERALLY TAXABLE -
MISSOURI EXEMPT OBLIGATION
The amount of any bond issued by the Missouri Higher Education Loan Authority (MOHELA) including interest or proceeds resulting from the sale of the bond is exempt from Missouri tax. If the amount is included in federal taxable income, the amount can be sub tr acted from federal taxable income for Missouri tax purposes pursuant to Section 173.440, RSMo. Enter the exempt amount on Line 2 and provide documentation with the return. LINE 3 - AGRICULTURE DISASTER RELIEF Enter the amount of income your corporation received as payment from any program which provides compensation to agricultural producers who have suffered a loss as the result of a disaster or emergency (Section 143.121.3(10), RSMo). You must attach a copy of the Form 1099 indicating your agricultural payment. For additional information, visit dor.mo.gov. LINE 4 - PREVIOUSLY TAXED INCOME Enter the amount of any income or gain included in federal taxable income to the extent it was properly reported as income or gain on a prior Form MO-1120, Corporation Income Tax Return, filed under Missouri laws in effect prior to January 1, 1973 (Section 143.121.3(3), RSMo). LINE 5 - AMOUNT OF ANY STATE INCOME TAX
REFUND INCLUDED IN FEDERAL TAXABLE INCOME
Enter the amount of any state income tax refund for a prior year that was included in the federal taxable income for the current year (Section 143.121.3(5), RSMo). *14000000001* FORM MO-1120, PAGE 3 AND 4
LINE-BY-LINE INSTRUCTIONS
A detailed explanation of any modification must be attached to the return. Failure to attach such explanation will delay the processing of the return.
Part 1 - Additions
LINE 1 - STATE AND LOCAL BOND INTEREST (EXCEPT MISSOURI) Enter on Line 1a all interest from state and local bonds, excluding Missouri (Section 143.121.2(2), RSMo). Enter on Line 1b the amount of expenses associated with the state and local bond interest shown on Line 1a. The expenses must exceed $500. Refer to Section 143.121.2(2), RSMo, for further explanation. Enter on Line 1 the net amount of Line 1a minus Line 1b. LINE 2 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT (FROM FORM MO-1041 AND FORM MO-1065) Enter the share of fiduciary and partnership adjustment as shown on Form MO-1041, Page 2, Part 1, Line 19, and Form MO-1065, Line 11 (Section 143.121.4 and 5, RSMo). A copy of Forms MO-1041 and MO-1065, must be attached to the Form MO-1120. LINE 3 - NET OPERATING LOSS MODIFICATION If a net operating loss deduction is allowed for this tax year, and if, in the tax year of the corresponding net operating loss, the total addition modifications exceeded total subtraction modifications, enter the smaller of: (a) The net operating loss deduction attributable to the loss year (the tax year in which the net operating loss occurred); or (b) The cumulative net operating loss deductions attributable to the loss year that are allowed for this tax year and all prior tax years plus the net addition modification (amount that addition modification exceed the subtraction modifications) for the loss year minus the total net operating loss for the loss year. The above items are each considered to be a positive amount for purposes of this calculation. If the result of combining amounts is negative, enter zero. If the total net operating loss deduction for this tax year consists of net operating losses from more than one tax year, calculate the modifications separately for each loss and enter the total. If the total addition modifications exceed the total subtraction modifications in the tax year of the net operating loss, attach Form MO-5090, Net Operating Loss Modification Work sheet. (Section 143.431.4, RSMo). Note: Your net operating loss deduction is already reflected on Form MO-1120, Line 1. LINE 4 - DONATIONS CLAIMED FOR THE FOOD
PANTRY TAX CREDIT THAT WERE DEDUCTED FROM FEDERAL TAXABLE INCOME
Enter the total amount of donations claimed for the Food Pantry Tax Credit included on Form MO-1120, Line 17, that were also taken as a deduction on the Federal Form 1120 return (Section 135.647, RSMo). LINE 5 - BUSINESS INTEREST EXPENSE CARRYFORWARD Enter any interest expense paid or accrued in a previous taxable year, but allowed as a deduction under 26 U.S.C. Section 163, as amended, in the current taxable year by reason of the carryforward of disallowed business interest provisions of 26 U.S.C. Section 163(j), as amended. (Section 143.121.2(6), RSMo) LINE 6 - TOTAL Add Line 1 through Line 5. Enter the total amount of Line 1 through Line 5. Also enter amount on Form MO-1120, Line 3.
LINE 6 - CAPITAL GAIN EXCLUSION FROM THE
SALE OF LOW INCOME HOUSING PROJECT
Enter the excludable amount of gain resulting from the sale of a low income project subsidized by the Federal Department of Housing and Urban Development to a nonprofit or governmental organization, agreeing to pre serv e or increase the low income occupancy of the project. A copy of Federal Form 4797 must be attached to verify the exclusion. For those owners whose low income project has at least 40 percent of its units occupied by persons or families having income of 60 percent or less of the median income, the exclusion shall equal 25 percent of the capital gain (Section 135.357, RSMo). LINE 7 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT (FROM FORM MO-1041 AND FORM MO-1065) AND OTHER Fiduciary and Partnership Adjustment - Enter the share of fiduciary and partnership adjustment as shown on Form MO-1041, Page 2, Part 1, Line 20 and Form MO-1065, Line 12 (Section 143.121.4 and 5, RSMo). Copies of any Forms MO-1041 or MO-1065 must be attached to the Form MO-1120. Marijuana Business Deduction - Enter the amount that is eligible to be claimed as a federal income tax deduction but is disallowed by section 280E of the Internal Revenue Code. This deduction is exclusively limited to taxpayers authorized to do business under Article XIV of Missouri's Constitution. The Missouri deduction will be the difference between the profit/loss as calculated on the schedule(s) filed with the federal return and the pro forma schedule(s) described above. You must submit the financial statement, schedule(s), your medical license number (MED), if any, and all federal schedule(s) with your Missouri Form MO-1120 to claim the deduction. Broadband Grant Income Tax Subtraction - If you received grant money disbursed from a federal, state, or local program, for the express purpose of providing or expanding broadband Internet to areas of Missouri that are deemed to be lacking such access, you may qualify to subtract 100 percent of the grant money received. The grant money must have been included in your federal taxable income. Attach the Form 1099-G issued to you validating the grant money received, grant documents that indicate the area of Missouri was deemed to be lacking broadband internet access, a copy of Federal Form 1120, and applicable schedule(s). The amount reported cannot exceed your federal taxable income (Section 143.121.3(13) RSMo). LINE 8 - MISSOURI DEPRECIATION BASIS ADJUSTMENT Enter on Line 8 the difference between the federal and Missouri depreciation calculated on assets purchased between July 1, 2002 and June 30, 2003. See Section 143.121.3(7), RSMo, for more information. LINE 9 - SUBTRACTION MODIFICATION OFFSETTING
PREVIOUS ADDITION MODIFICATION FROM A NET OPERATING LOSS (NOL) DEDUCTION FROM AN
APPLICABLE YEAR
Enter on Line 9 any applicable net operating loss carryback that was previously treated as an addition modification on the Missouri return because the net operating loss was carried back more than two years from the loss year on the federal return. For example, any applicable 2018 through 2020 NOL carryback that was previously treated as an addition modification on the Missouri return for the 2013 through 2017 tax years. Do not enter a loss amount that has previously been reported on Line 9 for a prior tax year. Do not enter any loss amount if the tax year for which this return is filed is more than twenty years past the year of the initial loss. Do not enter any loss amount which was treated as an addition modification pursuant to (Section 143.121.2(4), RSMo), on or before June 18, 2002. (Section 143.121.2(4), RSMo). Note: Only enter the amount needed on this return. LINE 10 - DEPRECIATION RECOVERY ON QUALIFIED
PROPERTY THAT IS SOLD
Enter on Line 10 any depreciation that was previously not recovered when an asset is sold or otherwise disposed of and federal bonus depreciation was previously taken (Section 143.121.3(9), RSMo). This can only apply if the property was purchased between July 1, 2002, and June 30, 2003. LINE 11- BUILD AMERICA AND RECOVERY
ZONE BOND INTEREST
Enter the share of Build America and Recovery Zone Bond interest received (Section 108.1020, RSMo). LINE 12 - MISSOURI PUBLIC-PRIVATE
PARTNERSHIPS TRANSPORTATION ACT
Enter the share of income received under the Missouri Public-Private Partnerships Transportation Act (Section 227.646, RSMo). LINE 13 - DISALLOWED BUSINESS INTEREST EXPENSE Enter any interest expense paid or accrued in the current taxable year, but not deducted on the federal return as a result of the limitation imposed under 26 U.S.C. Section 163(j), as amended. (Section 143.121.3(11), RSMo) LINE 14 - TOTAL Add Line 1 through Line 13. Enter the amount on Line 14 and on Form MO-1120, Page 1, Line 5.
Part 3 - Federal Income Tax
Enter the amounts of federal income tax on Line 1 and Line 2. The instructions for entering the federal income tax are found on each line number. The line numbers will differ on other federal forms (1120POL, 1120H, 1120REIT, 990T, and 1120C). Add Line 1 and Line 2; multiply total by 50 percent; and enter the result on Line 3 and on Form MO-1120, Page 1, Line 7. If filing a consolidated federal and separate Missouri return, the federal income tax deduction must be com put ed as follows: LINE 1 Enter federal tax from the consolidated Schedule J, Line 12. LINE 2 Enter the foreign tax credit from the consolidated Schedule J, Line 5a. LINE 3 Add Lines 1 and 2 and enter 50% of total. LINE 4 Enter the amount of separate company federal taxable income. LINE 5 Enter the total of all positive separate company federal taxable incomes. Do not include companies which incurred a loss. LINE 6 Divide Line 4 by Line 5 and enter the result as a percentage in the box on Line 6 (round percentage to four digits to the right of the decimal point, such as 12.3456 percent). Multiply Line 3 by the percentage and enter on Part 3, Line 6 and on Form MO-1120, Page 1, Line 7. Refer to 12 CSR 10-2.090 and 12 CSR 10-2.165 for further explanation. Attach the consolidated Federal Form 1120, con soli da ted Schedule J, and an income statement or summary of profit companies.
Part 4 - Amended Reason
Check the box that indicates the reason for filing this amended return. A separate Form MO-1120 must be completed for each reason. The applicable Federal Form 1139, 1120X, 4549, 4549A, 870AD, or 5278 must be attached.
A separate Form MO-1120 must be filed for each amendment reason. If there is more than one loss year carryback, a separate Form MO-1120 must be filed for each loss year. For example, if you have an IRS audit or federal correction that in cludes a Net Oper ating Loss, one amended return must be filed for the federal audit and a separate amended return must be filed for the NOL. The amended return must contain a complete explanation of the reason(s) for filing the claim or amendment. You must attach any required schedules or forms to support your claim. If the amended return is submitted without the proper attachments it may be partially or totally denied.
Part 5 - Amended Return Loss Carryback or
Federal Tax Credit Carryback
Complete when there is a loss carryback or credit carryback. A loss would include an NOL. A loss carryback is required to be filed by the 15th day of the 39th month following the end of the loss year (Section 143.801.6, RSMo). Lines 2 and 3 should reflect the total net operating loss or capital loss carryback. Line 4 should reflect the difference between the original and amended federal income tax deductions for Missouri Form MO-1120, Line 7. A separate Form MO-1120 must be filed for each loss year carryback. Note: Missouri does not allow an NOL to be carried back more than two years; the amount of an NOL carried back more than two years results in an addition modification for the carryback year. (Section 143.121.2(4), RSMo). An NOL disallowed (added back) on this basis may be carried forward for 20 years from the loss year. See Form MO-1120, Page 3, Part 2, Line 9.
ASSEMBLE YOUR RETURN
Assemble any forms and schedules behind Form MO-1120. If you have supporting documentation, arrange in the same order of the forms and schedules they support and attach behind the schedule they support.
RELEASE OF INFORMATION
The Department of Revenue can only release confidential information to corporate officers, authorized individuals hav ing po wer of attorney, the preparer, or any member of their firm, or if internally prepared, any member of the internal staff, when the authorization box is checked. When the authorization box is checked, this authorizes the Missouri Director of Revenue or delegate to discuss this return and attachments with the preparer whose signature appears on the Form MO-1120 or with any member of their firm or if internally prepared, any member of the internal staff. The Department of Revenue strives to assist taxpayers in their inquiries; however, the Department of Revenue is bound by confidentiality statutes dealing with the release of confidential information. If you are contacting the Department of Revenue regarding financial information of a corporation, refund issuance, or filing status of a corporation, you will be asked to identify your position with the corporation. If you are an officer of the corporation, an authorized individual having power of attorney, the preparer or any member of their firm, or if internally prepared, any member of the internal staff, the authorization box on the form must have been checked for the Department of Revenue to release financial information. To prevent delays in answering questions, you must provide the Department of Revenue with a Form 2827, Power of Attorney, prior to making the inquiry. This also applies to employees of the corporation. This form must list the tax type, the tax form, and tax year(s) in question. These procedures are to protect the taxpayer from unauthorized disclosure of financial records. To update corporate officers, send Form 126 : Taxation Division, P.O. Box 3300, Jefferson City, MO 65105-3300 or email at corporate@dor.mo.gov.
FORM MO-MS INSTRUCTIONS This information is for guidance only and does not state the complete law.
GENERAL INSTRUCTIONS
Complete the Form MO-MS if taxable corporation income is not 100 percent from Missouri sources. This form must be completed even if Missouri taxable corporation income is zero. If the corporation owns a percentage of a partnership(s), the partnership factors must be multiplied by the corporation's percentage of ownership, and then added into the corporation's apportionment factors. All taxpayers that do not qualify for a Special Method (Methods Three through Seven) must choose Method Two A - Receipts Factor Apportionment.
APPORTIONMENT ELECTION
Missouri statutes provide a number of methods for determining Missouri taxable income from Missouri sources. Choose only the appropriate one of the listed methods and enter the method number on Form MO-1120, Line 9 Method. Once an election has been made, it cannot be changed with respect to the same taxable period.
METHOD TWO A
Receipts Factor Apportionment - Section 143.455.2, RSMo and 12 CSR 10-2.076. See instructions for completing Method Two A.
METHOD THREE Transportation - Section 143.455.14, RSMo.
METHOD FOUR Railroad - Section 143.455.15, RSMo.
METHOD FIVE Interstate Bridge - Section 143.455.16, RSMo.
METHOD SIX Telephone and Telegraph - Section 143.455.17, RSMo.
METHOD SEVEN
This method can be used only pursuant to a Missouri regulation creating an alternative industry-specific method under Section 143.455.13(1), RSMo, (see 12 CSR 10-2.260 regarding broadcasters) or with prior approval of a different method from the Missouri Director of Revenue (Section 143.455.13(2), RSMo). Receipts Factor Apportionment Instructions - Step 1 A taxpayer must have income from business activity taxable by this state and at least one other state to apportion and allocate income. Income from business activity includes apportionable and nonapportionable income. The taxpayer's income will be allocated and apportioned according to Section 143.455. The taxpayer must determine which portion of the taxpayer's federal taxable income constitutes "nonapportionable income." The various items of nonapportionable income are directly allocated to specific states, which may include Missouri. The apportionable income of the taxpayer is divided between states by using the receipts factor. The sum of the items of nonapportionable income directly allocated to this state, plus the amount of apportionable income attributable to this state by the apportionment formula constitutes the amount of the taxpayer's Preliminary Missouri taxable income. Items of nonapportionable income may be reported on Form MO-MS or Form MO-NAI only to the extent such items are included in Form MO-1120, Line 8 (Taxable Income - All Sources). For example, an item of nonapportionable income that was added on Form MO-1120, Line 3, would also be reported on Form MO-MS and Form MO-NAI. If all or part of an item of nonapportionable income was subtracted on Form MO-1120, Line 5, do not report the amount of nonapportionable income so subtracted on Form MO-MS or Form MO-NAI. 10 *14000000001*
APPORTIONABLE AND NONAPPORTIONABLE INCOME DEFINED
"Apportionable income" means all income that is apportionable under the Constitution of the United States and is not allocated under the laws of this state. Apportionable income includes, but is not limited to, income arising from transactions and activity in the regular course of the corporation's trade or business. Apportionable income also includes, but is not limited to, income arising from tangible and intangible property if the acquisition, management, employment, development, or disposition of the property is or was related to the operation of the corporation's trade or business. "Nonapportionable income" means all income other than apportionable income. The classification of income by the labels customarily given them, such as interest, dividends, rents, and royalties, is not conclusive in determining whether the income is apportionaal l e or nonapportionable income. Nonapportionable income will be considered only if a detailed Form MO-NAI is completed and attached.
TAXABLE IN ANOTHER STATE
A taxpayer is "taxable in another state" if it meets either one of two tests: (a) if by reason of business activity in another state the taxpayer is subject to one of these taxes: a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or (b) if another state has jurisdiction to subject the taxpayer to a net income tax, regardless of whether or not that state imposes such a tax on the taxpayer. The first test is applicable only if a taxpayer carries on business activities in another state. If the taxpayer voluntarily files and pays one or more of such taxes when not required to do so by the laws of that state or pays a minimal fee for qualification, organization, or for the privilege of doing business in that state, but: (a) does not actually engage in business activities in that state; or (b) does actually engage in some activity, not sufficient for nexus, and the minimum tax bears no relation to the corporation's activities within such state, the taxpayer is not "taxable" in another state. The second test applies if the taxpayer's business activities are sufficient to give the state jurisdiction to impose a net income tax under the Constitution and statutes of the United States. Jurisdiction to tax is not present where the state is prohibited from imposing the tax by reason of the provisions of Public Law 86-272, 15 U.S.C.A. Sections 381-385. If you believe you do not have sufficient nexus and you are not liable for Missouri tax, you may complete a Form 4458, Business Activity Questionnaire. For Missouri forms access the Department of Revenue's website at dor. mo.gov. LINES 1, 2, AND 3 - RECEIPTS FACTOR Complete Part 1, Lines 1 through 3. • The denominator of the receipts factor is generally all gross receipts received by a taxpayer from transactions and activity in the regular course of its trade or business. However, receipts from hedging transactions or from the maturity, redemption, sale, exchange, loan, or other disposition of cash or securities (e.g. stocks, stock options, bonds) must not be included in either the numerator or denominator of the receipts factor. The numerator of the receipts factor is generally all gross receipts in Missouri from transactions and activity in the regular course of the taxpayer's trade or business. • Tangible Personal Property. Receipts from the sale of tangible personal property are in this state if the property is received in Missouri by the purchaser. Receipts from the rental, lease, or license of tangible personal property are in this state to the extent that the tangible personal property is located in Missouri. • Real Property. Receipts from the sale, rental, lease, or license of real property are in this state to the extent that the real property is located in Missouri. • Services. Receipts from the sale of a service are in this state if and to the extent that the ultimate beneficiary is in Missouri. Generally, the ultimate beneficiary of the service (except for bartering and similar in-kind transactions) is the entity that receives benefit or value from, but does not also receive monetary or credit-based payment in direct connection with, the service at issue (other than refunds, cashback, or discountequivalents). In the event that the ultimate beneficiary is a corporate or other entity that owns or operates in locations in multiple states, and the extent to which the ultimate beneficiary is located in Missouri cannot reasonably be determined, the extent to which the ultimate beneficiary is located in Missouri may be reasonably approximated as follows: • The ratio of the number of Missouri locations, which the ultimate beneficiary owns or operates in, to the number of such locations throughout the United States. • If the ratio above cannot reasonably be determined, then the ratio of one to the number of states in which the ultimate beneficiary operates. • If the ratio above cannot reasonably be determined, then use fifty percent (50%). A taxpayer will not be subject to an addition to tax for negligence in relying upon this approximation of fifty percent (50%). • Rental, Lease, or License of Intangible Property. Receipts from the rental, lease, or license of intangible property are in this state to the extent that the intangible property is used in Missouri. Intangible property that is rented, leased, or licensed and then used in this state in marketing a good or service to a consumer is used in this state if the marketed good or service is purchased by a consumer in this state. Franchise fees or franchise royalties received for the rent, lease, license, or use of a trade name, trademark, service mark, or franchise system, or the right to conduct business activity in a specific geographic area, are receipts in this state to the extent that the franchise is located in this state. • Sale of Intangible Property. Receipts from the sale of intangible property are in this state to the extent the intangible property is used in Missouri. If the intangible property sold is a contract right, government license, or similar property that authorizes the holder to conduct a business activity in a specific geographic area, such intangible property is used in Missouri if the geographic area includes all or part of Missouri. If receipts from the intangible property sale is contingent on the productivity, use, or disposition of the intangible property, these receipts shall be treated as receipts from the rental, lease, or license of intangible property. All other receipts from a sale of intangible property shall be excluded from both the numerator and the denominator of the receipts factor. If the s tate or states to which to assign receipts, other than r eceipts from the sale of tangible personal property, cannot be determined, the state or states of assignment must be r easonably approximated. Attach a detailed statement e xplaining the basis of any reasonable approximation of receipts. LINES 4 THROUGH 12 - ALLOCATION OF
NONAPPORTIONABLE INCOME
Complete Lines 4 through 12 if the taxpayer has either nonapportionable income or a net operating loss on Federal Form 1120, Line 29a, or both. 11 *14000000001*
Nonapportionable income will be considered only if a detailed Form MO-NAI is completed and attached. In general, any income arising from transactions and activity in the regular course of the taxpayer's trade or business, or any income arising from property if the acquisition, management, employment, development, or disposition of the property is or was related to the operation of the taxpayer's trade or business, will be apportionable income rather than nonapportionable income Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, are presumed to be apportionable income unless the taxpayer clearly demonstrates on Form MO-NAI that they are nonapportionable income. To the extent one or more of these income items are nonapportionable income, allocate such item(s) as follows: (a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state; or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of, or taxable in, the state in which the property is utilized. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days the property was physically located in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all royalty or rental periods during the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payor obtained possession. (c) Capital gains and losses from sales of real property located in this state are allocable to this state. (d) Capital gains and losses from sales of tangible personal property are allocable to this state if: (1) the property had a situs in this state at the time of the sale; or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs. (e) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state. (f) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state. (g) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the royalty payor in this state; or (2) if and to the extent that the patent or copyright is utilized by the royalty payor in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state. A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from patent royalties or copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent or copyright is utilized in the state in which the taxpayer's commercial domicile is located. Note: For allocation purposes, "commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed. LINE 10 - APPORTIONED NET OPERATING LOSS Apportion the net operating loss by multiplying it by a ratio. The numerator and the denominator of the ratio are both determined without including the net operating loss deduction. The numerator of the ratio is the Missouri Taxable Income calculated on Form MO-1120, Line 13, with the amount of the net operating loss added back. The denominator of the ratio is the Missouri Taxable Income calculated as though all income, including all corporate dividends and all nonapportionable income, was derived from Missouri sources, with the amount of the net operating loss added back. Attach a detailed schedule showing how you calculated this ratio. Multiply the ratio by the net operating loss from MO-MS, Part 1, Line 5, and enter the result on Form MO-MS, Part 1, Line 10. The ratio must not exceed 100%. Method Three, Four, Five, or Six Instructions Enter Missouri miles, total miles, and percentage in the Apportionment Election section on Form MO-MS, Page 1, if applicable. Enter the resulting mileage percentage on Form MO-MS, Part 1, Line 3 and Form MO-1120, Line 9, unless required to complete Form MO-MS, Part 1, Lines 4 through 12 as discussed below. If the mileage percentage on Form MO-MS, Page 1, is inapplicable, attach a detailed explanation of how apportionment and allocation was performed. If the mileage percentage on Form MO-MS, Page 1, is inapplicable, or if the taxpayer utilizes any net operating loss for this tax year, or if the taxpayer has included in Taxable Income - All Sources (Form MO-1120, Line 8) any item of income to be allocated (as opposed to apportioned), the taxpayer must complete Form MO-MS, Part 1, Lines 4 through 12 and enter the resulting percentage from Form MO-MS, Part 1, Line 12 onto Form MO-1120, Line 9 Percent. When completing Form MO-MS, Part 1, Lines 7 and 9, enter income allocated (as opposed to apportioned) everywhere and income allocated to Missouri, respectively, to the extent they are items included in Taxable Income - All Sources (Form MO-1120, Line 8). Attach a detailed explanation supporting any allocation (as opposed to apportionment) of income. Method Seven Instructions This method can only be used with prior approval from the Missouri Director of Revenue or pursuant to a Missouri regulation creating an alternative industry-specific method under Section 143.455.13(1), RSMo. At latest sixty days before the close of the tax year to which alternative apportionment is sought to apply, a taxpayer may file a petition for alternative apportionment, following all requirements of 12 CSR 10-2.076 and section 143.455.13(2), RSMo, by emailing the petition to corporate@dor.mo.gov. Attach a detailed explanation of how any allocation and apportionment was performed. Either a letter of approval must be attached to the return or the detailed explanation must identify the Missouri regulation that authorizes the industry-specific method used and explain why the taxpayer qualifies for the industry-specific method. The only industryspecific method currently allowed by Missouri regulation applies to broadcasters under 12 CSR 10-2.260. Corporations defined as a broadcaster under 12 CSR 10-2.260 must choose Method Seven. Complete Form MO-MS, Part 1, Lines 4 through 12 and enter the resulting percentage from Form MO-MS, Part 1, Line 12 onto Form MO-1120, Line 9 Percent. When completing Form MO-MS, Part 1, Line 3, substitute the appropriate apportionment percentage (without taking into account allocation or NOL apportionment) for the Receipts Factor. When completing Form MO-MS, Part 1, Lines 7 and 9, enter income allocated (as opposed to apportioned) everywhere and income allocated to Missouri, respectively, to the extent that item is included in Taxable Income - All Sources (Form MO-1120, Line 8). Include on the detailed explanation attachment support for any allocation (as opposed to apportionment) of income. Unless the approved method or Missouri regulation directs otherwise, the Apportioned NOL entered on Form MO-MS, Part 1, Line 11 must be determined in a manner consistent with Section 143.455.19, RSMo. *14000000001*
r Ar e you a corporation filing a Federal Form 990, 990-EZ, 990-N, or 990-PF? If yes, do not file a Form MO-1120. r Did an offic er of the corporation sign Form MO-1120? r Did you review your completed return? r Are the corporation name, address, and I.D. numbers correctly shown on the return? r Ar e your beginning and ending filing periods shown on the Form MO-1120? r Have you verified all math calculations? r Did y ou receive a federal extension of time to file your return? If so, have you attached a copy of the federal e xtension (Federal Form 7004) and checked the box on the first page of the MO-1120? r Have you attached a copy of the federal form or pro forma and sup porting schedules ? r Ha ve you addressed your envelope to the proper address? r Did y ou enter your Missouri Tax I.D. Number? If you do not know your Missouri Tax I.D. Number, an officer mus t call Business Registration at (573) 751-5860. r Did y ou enter your Charter Number? If you do not know your Charter Number, call the Secretary of State's offic e at (866) 223-6535. Final Checklist Before Mailing *14000000001* Pursuant to Section 105.1500, RSMo, the Department of Revenue is prohibited from requiring any entity exempt from federal income tax under Section 501(c) of the Internal Revenue Code, or any individual, to provide the Department with any list, record, register, registry, roll, roster, or other compilation of data of any kind that directly or indirectly identifies a person as a member, supporter, volunteer of, or donor of financial or nonfinancial support to, any entity exempt from federal income tax under Section 501(c) of the Internal Revenue Code. Nothing in this form should be read or understood as a requirement that you provide any such information. Notwithstanding any publication, webpage, form, instruction, regulation, or statement shared by the Department, you are not required to include such information on this form. If you encounter any technical difficulty in submitting this form without including information that you believe is protected by Section 105.1500, RSMo, feel free to contact the Department by email at corporate@dor.mo.gov or by phone at 573-751-4541.
Source: official text