Missouri Code of State Regulations — Title 12 (Department of Revenue)
12 CSR 10-2.035
Conformity of Missouri With Federal Accounting Methods
PURPOSE: The rule provides that a taxpayer must employ the same method of accounting for Missouri income tax purposes as is used for federal income tax purposes.
# (1)
A taxpayer must employ the same method of accounting in determining Missouri taxable income as is used for federal income tax purposes. The term method of accounting refers not only to the overall method of accounting (such as cash or accrual) but also to the accounting treatment of particular items of income, gain, loss or deduction, such as depreciation, bad debts, inventory valuation, research and experimental expenditures.
# (2)
If the taxpayer is allowed or is required to change an accounting method for federal income tax purposes, a similar change in the accounting method for Missouri income tax purposes will automatically be made. No application for change of accounting method for Missouri income tax purposes shall be required.
AUTHORITY: section 143.961, RSMo 1986.* Regulations 1.281-1 and 1.281-2 were originally filed March 8, 1974, effective March 18, 1974.
*Original authority: 143.961, RSMo 1972.
Armco Steel Corporation v. State Tax Commission, 580 SW2d 242 (Mo. banc 1979). Appellant filed a consolidated federal tax return for 1969, making certain intercorporate payments to its subsidiaries for their tax losses incurred. Appellant then claimed as a deduction on its Missouri tax return the amount of federal tax that would have been paid if the appellant had filed as a separate entity. For deduction purposes on Missouri income tax returns, United States income taxes “assessed” are those that are actually paid. And, although the director of revenue is to “follow as nearly as practicable the rules and regulations prescribed by the United States government on income tax assessments and collection,” the director cannot interpret the statute in accordance with the federal regulations if to do so will change the substantive rules of the Missouri statute.
Amendment history
AUTHORITY: section 143.961, RSMo 1986.* Regulations 1.281-1 and 1.281-2 were originally filed March 8, 1974, effective March 18, 1974. *Original authority: 143.961, RSMo 1972. Armco Steel Corporation v. State Tax Commission, 580 SW2d 242 (Mo. banc 1979). Appellant filed a consolidated federal tax return for 1969, making certain intercorporate payments to its subsidiaries for their tax losses incurred. Appellant then claimed as a deduction on its Missouri tax return the amount of federal tax that
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In this chapter (40 sections)
- 12 CSR 10-2.005 · Questions and Answers
- 12 CSR 10-2.010 · Income Tax of Current or Former Spouses
- 12 CSR 10-2.015 · Withholding of Tax
- 12 CSR 10-2.016 · Quarter-Monthly Period Reporting and Remitting…
- 12 CSR 10-2.017 · Transient Employer Financial Assurance Instrument for…
- 12 CSR 10-2.019 · Determination of Withholding for Work Performed at…
- 12 CSR 10-2.020 · Difference in Basis on December 31, 1972
- 12 CSR 10-2.025 · Adjustment to Avoid Double Taxation
- 12 CSR 10-2.030 · Non-Standard Tax Periods, Subsequent Change of…
- 12 CSR 10-2.035 · Conformity of Missouri With Federal Accounting Methods
- 12 CSR 10-2.040 · Transitional Adjustments in Accounting Methods
- 12 CSR 10-2.045 · Missouri Consolidated Income Tax Returns
- 12 CSR 10-2.050 · Elective Division of Income
- 12 CSR 10-2.052 · Optional Single Sales Factor
- 12 CSR 10-2.055 · Failure to File Tax Returns
- 12 CSR 10-2.060 · Failure to Pay Tax
- 12 CSR 10-2.065 · Failure to Pay Estimated Tax
- 12 CSR 10-2.067 · Failure to Pay Estimated Tax for Tax Years Ending…
- 12 CSR 10-2.070 · Interest on Overpayments
- 12 CSR 10-2.075 · Multistate Allocation and Apportionment
- 12 CSR 10-2.076 · Allocation and Apportionment (Beginning on or After…
- 12 CSR 10-2.080 · Domestic International Sales Corporations
- 12 CSR 10-2.085 · Credit for New or Expanded Business Facility
- 12 CSR 10-2.090 · Computation of Federal Income Tax Deduction for…
- 12 CSR 10-2.105 · Report of Changes in Federal Income Tax Return
- 12 CSR 10-2.110 · Penalty for Filing Incomplete or Misleading Income…
- 12 CSR 10-2.115 · Enterprise Zone Credit and Exemption
- 12 CSR 10-2.120 · Information at Source Reporting Requirements
- 12 CSR 10-2.125 · Cultural Contributions PURPOSES: This rule…
- 12 CSR 10-2.130 · Allocation of Taxable Social Security Benefits…
- 12 CSR 10-2.135 · Frivolous Returns
- 12 CSR 10-2.140 · Partnership Filing Requirements
- 12 CSR 10-2.145 · Regulation for Computation of Interest on Investment…
- 12 CSR 10-2.150 · Tax Exempt Status of United States Government-Related…
- 12 CSR 10-2.155 · Regulated Investment Companies
- 12 CSR 10-2.160 · State Income Tax Deduction Add-Back
- 12 CSR 10-2.165 · Net Operating Losses on Corporate Income Tax Returns
- 12 CSR 10-2.170 · Wood Energy Credit
- 12 CSR 10-2.175 · Agricultural Unemployed Person
- 12 CSR 10-2.180 · Public Law 86-272 Immunity