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Missouri Code of State Regulations — Title 12 (Department of Revenue)

12 CSR 10-2.045

Missouri Consolidated Income Tax Returns

Official textsos.mo.gov26 subsections

PURPOSE: This rule sets forth the requirements for the filing of Missouri consolidated income tax returns by affiliated groups or corporations.
PUBLISHER’S NOTE: The secretary of state has determined that publication of the entire text of the material that is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

# (1)

Affiliated group. The term affiliated group means those members of an affiliated group of corporations as defined by Internal Revenue Code (IRC) Section 1504 which participate or are required to participate in the filing of a federal consolidated income tax return for the taxable year.

# (2)

Missouri consolidated return year. The term Missouri consolidated return year means a taxable year for which a Missouri consolidated return is filed or required to be filed by an affiliated group under this rule.

# (3)

IRC section. The term IRC section shall mean the pertinent provision of the Internal Revenue Code for the taxable year.

# (4)

Required member. The term required member shall mean any corporation included on the federal consolidated return for the affiliated group, except—

# (A)

An express company which is subject to an annual tax on its gross receipts in this state pursuant to section 153.020, RSMo;

# (B)

An insurance company which is subject to an annual tax on its gross premium receipts in this state;

# (C)

A Missouri mutual or extended Missouri mutual insurance company organized under Chapter 380, RSMo; or

# (D)

An association or credit union which is subject to an annual tax pursuant to section 148.620, RSMo.

# (5)

Director. The term director, except as otherwise specifically provided in this rule, shall mean the director of revenue or his/ her duly authorized agent or designee.

# (6)

Computing Missouri Consolidated Taxable Income From
All Sources. The Missouri consolidated taxable income (all sources) of an affiliated group shall be its federal consolidated taxable income for the taxable year, adjusted to reflect the applicable modifications provided in section 143.121, RSMo, section 143.431.4, RSMo, section 143.141, RSMo, to reflect the federal income tax deduction under section 143.171, RSMo, and to reflect the exclusion (for purposes of calculating Missouri consolidated taxable income) of any members of the affiliated group that are not required members.

# (7)

Computing Missouri Consolidated Taxable Income From
Missouri Sources.

# (A)

The Missouri consolidated taxable income (Missouri sources) of an affiliated group shall be so much of its Missouri consolidated taxable income (all sources) as is derived from sources within Missouri pursuant to the apportionment and allocation rules set forth in section (14) of this rule, reduced, to the extent applicable, by the Missouri dividends deduction under section 143.431.2, RSMo.

# (B)

If only part of the Missouri consolidated taxable income (all sources) is derived from sources within Missouri, the Missouri consolidated taxable income (Missouri sources) shall only reflect the effect of the consolidated net operating loss deduction allowed by IRC Section 172 to the extent applicable to Missouri. The extent to which this deduction is applicable to Missouri shall be determined by multiplying the amount that would otherwise affect Missouri consolidated taxable income (all sources) by the ratio of Missouri consolidated taxable income (Missouri sources) for the year divided by the Missouri consolidated taxable income (all sources) for the year. For the purpose of the preceding sentence, Missouri consolidated taxable income shall not reflect the consolidated net operating loss deduction allowed by IRC Section 172.

# (C)

If an affiliated group files a Missouri income tax return in which one (1) or more members of the affiliated group are not required members, the federal income tax deduction for such Missouri income tax return shall be determined by multiplying the federal income tax liability of the affiliated group by a fraction, the numerator of which is the sum of the positive federal taxable incomes of the required members and the denominator of which is the sum of the positive federal taxable incomes of all members of the affiliated group, and then multiplying that result by fifty percent (50%). For purposes of the preceding sentence, a federal taxable income of zero is considered positive, and the federal income tax deduction shall not be allowed if the aforementioned numerator and denominator are both zero dollars ($0).

# (8)

Qualifying for Privilege to File Consolidated Return. An affiliated group (other than one which is required to file a Missouri consolidated return for the year) shall be qualified to file a Missouri consolidated return if it files a federal consolidated return for the taxable year and the affiliated group is not disqualified from filing a Missouri consolidated return for the year under sections (25)–(28) of this rule.

# (9)

Election to File. If an affiliated group qualified to file a Missouri consolidated return wishes to elect to file a Missouri consolidated return, the election must be exercised by the filing of a Missouri consolidated return on or before the due date (including extensions of time) for the filing of the common parent’s separate Missouri return. Notwithstanding the foregoing, the director may grant an affiliated group a relief extension of this due date, even after the due date specified in the prior sentence has passed, if the affiliated group submits a letter ruling request under 12 CSR 10-1.020, as it may be amended from time to time, and which substantially complies with the requirements of 26 CFR section 301.9100-3, as amended May 6, 2024, by providing evidence to establish to the satisfaction of the director that the taxpayer acted reasonably and in good faith, and that the grant of a relief extension will not prejudice the interests of the state.

# (10)

Election Irrevocable. The exercise of an election to file a Missouri consolidated return is irrevocable and may not be withdrawn after the due date (including extensions of time) for the filing of the common parent’s separate Missouri return, except as provided in sections (25)–(28) of this rule.

# (11)

Continued Filing Requirement. Except as provided in sections (25)–(28) of this rule, an affiliated group which filed (or was required to file) a Missouri consolidated return for the immediately preceding taxable year is required to file a Missouri consolidated return for the current taxable year.

# (12)

Improper Separate Return Filing. If an affiliated group filed (or was required to file) a Missouri consolidated return for the immediately preceding taxable year and, without authorization under sections (25)–(28) of this rule, one (1) or more required members of an affiliated group attempt to file Missouri corporate income tax returns on a separate basis for the taxable year, then—

# (A)

If the common parent has filed a Missouri corporate income tax return for the taxable year, the Missouri return of the common parent shall be deemed the sole Missouri consolidated return of the affiliated group and other Missouri corporate income tax returns filed by other required members of the affiliated group shall be void (with any payments made therewith being credited to the affiliated group);

# (B)

If the common parent has not filed a Missouri corporate income tax return for the taxable year, the affiliated group shall be deemed not to have filed a Missouri corporate income tax return for the taxable year until a Missouri income tax return is filed by the common parent, and the other returns filed by other required members of the affiliated group shall be void (with any payments made therewith being credited to the affiliated group).

# (13)

Filing Consolidated Return in Special Circumstances.
Notwithstanding that an affiliated group may be disqualified to file a Missouri consolidated return for the current taxable year under sections (25)–(28) of this rule, the director may permit the affiliated group to file a Missouri consolidated return for the current taxable year. Application for permission shall be directed to the director’s Taxation Division exclusively by email to corporate@dor.mo.gov, and approval of the application shall be subject to such terms and conditions as the director may prescribe.

# (14)

Apportionment and Allocation of Net Income for Missouri Consolidated Return. In the determination of that portion of the Missouri consolidated taxable income (all sources) as is derived from sources within Missouri, the affiliated group shall apportion and allocate its Missouri consolidated taxable income (all sources) according to the provisions of sections 143.455.1–.12, RSMo, except as otherwise provided in section (14) of this rule.

# (A)

Method Under Section 143.455.13, RSMo. The affiliated group, through its common parent, may petition, or the director may require, an alternative method of allocation or apportionment to be used in determining Missouri consolidated taxable income from Missouri sources consistent with sections 143.455.13(2)–(5), RSMo, and 12 CSR 10-2.076. The approval of an alternative allocation or apportionment method for an affiliated group to use on a Missouri consolidated return does not constitute approval of the use of such alternative allocation or apportionment method on any separate Missouri return.

# (B)

Members to Which Different Apportionment and
Allocation Methods Apply. If the affiliated group is composed of a membership such that, if separate Missouri returns were filed by each member, the same apportionment and allocation method under sections 143.455.1 through 143.455.12, RSMo (relating to general business corporations), 143.455.14, RSMo (relating to transportation), 143.455.15, RSMo (relating to railroads, and the like), 143.455.16, RSMo (relating to interstate bridges), 143.455.17, RSMo (relating to telephone or telegraph companies), 143.455.13, RSMo (other approved methods), or

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In this chapter (40 sections)
  1. 12 CSR 10-2.005 · Questions and Answers
  2. 12 CSR 10-2.010 · Income Tax of Current or Former Spouses
  3. 12 CSR 10-2.015 · Withholding of Tax
  4. 12 CSR 10-2.016 · Quarter-Monthly Period Reporting and Remitting…
  5. 12 CSR 10-2.017 · Transient Employer Financial Assurance Instrument for…
  6. 12 CSR 10-2.019 · Determination of Withholding for Work Performed at…
  7. 12 CSR 10-2.020 · Difference in Basis on December 31, 1972
  8. 12 CSR 10-2.025 · Adjustment to Avoid Double Taxation
  9. 12 CSR 10-2.030 · Non-Standard Tax Periods, Subsequent Change of…
  10. 12 CSR 10-2.035 · Conformity of Missouri With Federal Accounting Methods
  11. 12 CSR 10-2.040 · Transitional Adjustments in Accounting Methods
  12. 12 CSR 10-2.045 · Missouri Consolidated Income Tax Returns
  13. 12 CSR 10-2.050 · Elective Division of Income
  14. 12 CSR 10-2.052 · Optional Single Sales Factor
  15. 12 CSR 10-2.055 · Failure to File Tax Returns
  16. 12 CSR 10-2.060 · Failure to Pay Tax
  17. 12 CSR 10-2.065 · Failure to Pay Estimated Tax
  18. 12 CSR 10-2.067 · Failure to Pay Estimated Tax for Tax Years Ending…
  19. 12 CSR 10-2.070 · Interest on Overpayments
  20. 12 CSR 10-2.075 · Multistate Allocation and Apportionment
  21. 12 CSR 10-2.076 · Allocation and Apportionment (Beginning on or After…
  22. 12 CSR 10-2.080 · Domestic International Sales Corporations
  23. 12 CSR 10-2.085 · Credit for New or Expanded Business Facility
  24. 12 CSR 10-2.090 · Computation of Federal Income Tax Deduction for…
  25. 12 CSR 10-2.105 · Report of Changes in Federal Income Tax Return
  26. 12 CSR 10-2.110 · Penalty for Filing Incomplete or Misleading Income…
  27. 12 CSR 10-2.115 · Enterprise Zone Credit and Exemption
  28. 12 CSR 10-2.120 · Information at Source Reporting Requirements
  29. 12 CSR 10-2.125 · Cultural Contributions PURPOSES: This rule…
  30. 12 CSR 10-2.130 · Allocation of Taxable Social Security Benefits…
  31. 12 CSR 10-2.135 · Frivolous Returns
  32. 12 CSR 10-2.140 · Partnership Filing Requirements
  33. 12 CSR 10-2.145 · Regulation for Computation of Interest on Investment…
  34. 12 CSR 10-2.150 · Tax Exempt Status of United States Government-Related…
  35. 12 CSR 10-2.155 · Regulated Investment Companies
  36. 12 CSR 10-2.160 · State Income Tax Deduction Add-Back
  37. 12 CSR 10-2.165 · Net Operating Losses on Corporate Income Tax Returns
  38. 12 CSR 10-2.170 · Wood Energy Credit
  39. 12 CSR 10-2.175 · Agricultural Unemployed Person
  40. 12 CSR 10-2.180 · Public Law 86-272 Immunity
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