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Form 2023 S‑Corporation Allocation (MM/DD/YY)
MO‑MSS and Apportionment Schedule Attachment Sequence No. 1120S-02

Beginning Ending
Taxable Year
(MM/DD/YY) (MM/DD/YY)
Missouri Tax
I.D. Number Do not complete this form if all income is from Missouri sources.
Federal Employer Charter
I.D. Number Number
Corporation
Name

Select only one of the boxes below and enter the percentage calculated on Form MO‑NRS, Parts 1 and 2, Column (c).

Two A - Receipts Factor Apportionment - Section 143.455.2, RSMo - (Complete Part 1)

Special Methods - See Instructions and Attach Detailed Explanation (if directed).

Three - Transportation Four - Railroad

Five - Interstate Bridge Six - Telephone and Telegraph

Note: Complete mileage information below for Method Three - Six and enter the percentage on Form MO-NRS, Parts 1 and 2, Column (c).

Apportionment Election Missouri Miles Total Miles Percent

÷ = %
.
Seven – Broadcasters or Other Approved Method – Attach a detailed explanation (see instructions).

For use with Method Two A or as directed by instructions

1. Amount of receipts in Missouri ................................................................ . 00

Part 1 2. Amount of total receipts everywhere .......................................................... . 00

3. Receipts Factor - Divide Line 1 by Line 2.
Enter on Form MO-NRS Parts 1 and 2, Column (c) %
.

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Directly allocable nonapportionable income. Do not allocate expenses that have been excluded from federal taxable income. All income is
presumed to be apportionable income unless you can clearly show the income to be nonapportionable income. If you have nonapportionable
income pertaining to distributive share items not listed below, attach a table similar to the one below for the distributive share item.

Allocation of Nonapportionable Income
Gross Income Related Expenses
(1) Everywhere (2) Missouri (3) Everywhere (4) Missouri

4. Interest income ........................................................................ 00 00 00 00

Part 1 5. Royalties .................................................................................. 00 00 00 00

6. Net Rental Real Estate Income (Loss) ..................................... 00 00 00 00

7. Net Short-Term Capital Gain (Loss) ........................................ 00 00 00 00

8. Ordinary Dividends .................................................................. 00 00 00 00

9. Other income .......................................................................... 00 00 00 00

10. Total each column ................................................................. 00 00 00 00

The following steps must be followed for each distributive share item for which there is an allocation of nonapportionable income. Attach an
explanation and computations detailing the nature of the nonapportionable income.
Example: Assume $15,000 in net rental real estate income (loss) of which $12,000 is apportionable income and $3,000 is nonapportionable of
which $1,000 is directly allocated to Missouri income. Assume an apportionment factor of 33.333% (from Part 1, Line 3):

Step
1 $15,000 Net rental real estate income (loss)
2 – 3,000 Allocated as nonapportionable income
$12,000 Apportionable income
3 $12,000 X 33.333% = $4,000
4 $1,000 Nonapportionable income allocated to Missouri
5 + $4,000 From Step 3
$5,000 Enter on Form MO‑NRS, Part 1, Line 2, Column (b).
Allocation and Apportionment of Share Items 6 $5,000/15,000 = 33.333% This percentage is entered on Form MO-NRS, Part 1, Line 2, Column (c).

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Attach to Form MO‑1120S and mail to Form MO-MSS (Revised 12-2023)
the Missouri Department of Revenue.
Refund or No Amount Due:
P.O. Box 336
Jefferson City, MO 65105-0336

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FORM MO-MSS S-CORPORATION APPORTIONABLE AND NONAPPORTIONABLE
ALLOCATION AND APPORTIONMENT INCOME DEFINED
FORM “Apportionable income” means all income that is apportionable under
Use Form MO-MSS to allocate and apportion income by using the the Constitution of the United States and is not allocated under the
Receipts Factor Apportionment Method or other appropriate method. laws of this state. Apportionable income includes, but is not limited
If utilizing the Receipts Factor Apportionment Method, complete Part to, income arising from transactions and activity in the regular course
1. Attach Form MO-MSS to Form MO-1120S. Enter the percentage of the corporation’s trade or business. Apportionable income also
from Part 1, Line 3 on Form MO-NRS Part 1, Line 1, Column includes, but is not limited to, income arising from tangible and
(c). Line 1, Column (b) is computed by multiplying the percentage in intangible property if the acquisition, management, employment,
Column (c) times the amounts in Column (a). The percentage is also development, or disposition of the property is or was related to the
entered in the other lines on Column (c). If a distributive share item is operation of the corporation’s trade or business. “Nonapportionable
wholly or partially allocated as nonapportionable income, a different income” means all income other than apportionable income.
percentage will be computed for the item, following the steps listed The classification of income by the labels customarily given
on Form MO-MSS. As noted on the Form MO-MSS, special methods them, such as interest, dividends, rents, and royalties, is not
three to seven may be used. Attach a detailed explanation to the conclusive in determining whether the income is apportionable or
Form MO-1120S when utilizing these methods. nonapportionable income.
If the corporation owns a percentage of a partnership(s), the TAXABLE IN ANOTHER STATE
partnership factors must be multiplied by the corporation’s percentage
of ownership, and then added into the corporation’s apportionment A taxpayer is “taxable in another state” if it meets either one of two
factors. tests:

APPORTIONMENT ELECTION (a) if by reason of business activity in another state the taxpayer
Missouri statutes provide a number of methods for determining 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
Missouri taxable income from Missouri sources. business, or a corporate stock tax; or
Method Two A Receipts Factor Apportionment — Section 143.455.2,
RSMo. See instructions for completing Method Two A. (b) if another state has jurisdiction to subject the taxpayer to a net
Method Three Transportation — Section 143.455.14, RSMo. income tax, regardless of whether or not that state imposes such a tax
on the taxpayer.
Method Four Railroad — Section 143.455.15, RSMo.
Method Five Interstate Bridge — Section 143.455.16, RSMo. The first test is applicable only if a taxpayer carries on business
Method Six Telephone and Telegraph — Section 143.455.17, RSMo. activities in another state. If the taxpayer voluntarily files and pays one
Method Seven Other Approved Method — This method can only be or more of such taxes when not required to do so by the laws of that
used with prior approval from the Missouri Director of Revenue or state or pays a minimal fee for qualification, organization, or for the
pursuant to a Missouri regulation creating an alternative industry- privilege of doing business in that state, but:
specific method under Section 143.455.13(2), RSMo. Attach a (a) does not engage in business activities in that state; or
detailed explanation of how any allocation and apportionment was
performed. Either a letter of approval must be attached to the return (b) does engage in some activity, not sufficient for nexus, and the
or the detailed explanation must identify the Missouri regulation that minimum tax bears no relation to the corporation’s activities within
authorizes the industry-specific method used and explain why the such state, the taxpayer is not “taxable” in another state.
taxpayer qualifies for the industry-specific method. As of the date
of this publication, the only industry-specific method allowed by The second test applies if the taxpayer’s business activities are
Missouri regulation applies to broadcasters under12 CSR 10-2.260. sufficient to give the state jurisdiction to impose a net income tax
Corporations defined as a broadcaster under 12 CSR 10-2.260 must under the Constitution and statutes of the United States. Jurisdiction
choose Method Seven. 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.
METHOD TWO A RECEIPTS FACTOR Sections 381–385.
APPORTIONMENT INSTRUCTIONS
LINES 1, 2, AND 3 - RECEIPTS FACTOR
A taxpayer must have income from more than one state in order to
apportion and allocate income. Income from business activity includes
apportionable and nonapportionable income. The taxpayer’s income Complete Part 1, Lines 1 through 3.
will be allocated and apportioned according to Section 143.455, • The denominator of the receipts factor is generally all gross
RSMo. The taxpayer must determine which portion of the taxpayer’s receipts received by a taxpayer from transactions and activity
federal taxable income constitutes “nonapportionable income.” The in the regular course of its trade or business. However, receipts
various items of nonapportionable income are directly allocated to from hedging transactions or from the maturity, redemption, sale,
specific states, which may include Missouri. The apportionable income exchange, loan, or other disposition of cash or securities (e.g.
of the taxpayer is divided between states by using the receipts stocks, stock options, bonds) must not be included in either the
factor. Items of nonapportionable income may be reported on Form numerator or denominator of the receipts factor. The numerator of
MO-MSS. 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.

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• Tangible Personal Property Receipts from the sale of tangible                this state and the taxpayer is not organized under the laws of, or taxable 
personal property are in this state if the property is received in             in, the state in which the property is utilized. The extent of utilization of 
Missouri by the purchaser. Receipts from the rental, lease, or                 tangible personal property in a state is determined by multiplying the 
license of tangible personal property are in this state to the extent          rents and royalties by a fraction, the numerator of which is the number 
that the tangible personal property is located in Missouri.                    of days of physical location of the property in the state during the rental 
• Real Property Receipts from the sale, rental, lease, or license of           or royalty period in the taxable year and the denominator of which is 
real property are in this state to the extent that the real property is        the number of days of physical location of the property everywhere 
located in Missouri.                                                           during all royalty or rental period during the taxable year. If the physical 
                                                                               location of the property during the rental or royalty period is unknown 
• Services Receipts from the sale of a service are in this state if and        or unascertainable by the taxpayer, tangible personal property is utilized 
to the extent that the ultimate beneficiary is in Missouri. Generally,         in the state in which the property was located at the time the rental or 
the ultimate beneficiary of the service (except for bartering and              royalty payor obtained possession.
similar in-kind transactions) is the entity that receives benefit or value 
from, but does not also receive monetary or credit-based payment               (c) Capital gains and losses from sales of real property located in this 
in direct connection with, the service at issue (other than refunds,           state are allocable to this state.
cashback, or discount-equivalents). In the event that the ultimate 
beneficiary is a corporate or other entity that owns or operates in            (d) Capital gains and losses from sales of tangible personal property are 
locations in multiple states, and the extent to which the ultimate             allocable to this state if: (1) the property had a situs in this state at the time 
beneficiary is located in Missouri cannot reasonably be determined,            of the sale; or (2) the taxpayer’s commercial domicile is in this state and 
the extent to which the ultimate beneficiary is located in Missouri may        the taxpayer is not taxable in the state in which the property had a situs.
be reasonably approximated as follows: The ratio of the number of              (e) Capital gains and losses from sales of intangible personal property are 
Missouri locations, which the ultimate beneficiary owns or operates in,        allocable to this state if the taxpayer’s commercial domicile is in this state.
to the number of such locations throughout the United States. 
                                                                               (f) Interest and dividends are allocable to this state if the taxpayer’s 
• If the ratio above cannot reasonably be determined, then the ratio of        commercial domicile is in this state.
one to the number of states in which the ultimate beneficiary operates.
                                                                               (g) Patent and copyright royalties are allocable to this state: (1) if and to 
• If the ratio above cannot reasonably be determined, then fifty               the extent that the patent or copyright is utilized by the royalty payor in 
percent (50%). A taxpayer will not be subject to an addition to tax for 
negligence in relying upon this approximation of fifty percent (50%).          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 
• Rental, Lease, or License of Intangible Property Receipts from the           and the taxpayer’s commercial domicile is in this state. A patent is utilized 
rental, lease, or license of intangible property are in this state to the      in a state to the extent that it is employed in production, fabrication, 
extent that the intangible property is used in Missouri. Intangible            manufacturing, or other processing in the state or to the extent that a 
property that is rented, leased, or licensed and then used in this             patented product is produced in the state. A copyright is utilized in a 
state in marketing a good or service to a consumer is used in this             state to the extent that printing or other publication originates in the 
state if the marketed good or service is purchased by a consumer               state. If the basis of receipts from patent royalties or copyright royalties 
in this state. Franchise fees or franchise royalties received for the          does not permit allocation to states or if the accounting procedures do 
rent, lease, license, or use of a trade name, trademark, service mark,         not reflect states of utilization, the patent or copyright is utilized in the 
or franchise system, or the right to conduct business activity in a            state in which the taxpayer’s commercial domicile is located.
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             METHOD THREE, FOUR, FIVE, OR SIX  
property are in this state to the extent the intangible property is            INSTRUCTIONS
used in Missouri. If the intangible property sold is a contract right, 
government license, or similar property that authorizes the holder             Enter Missouri miles, total miles, and percentage in the Apportionment 
to conduct a business activity in a specific geographic area, such             Election section on Form MO-MSS, page 1, if applicable. Enter the 
intangible property is used in Missouri if the geographic area                 resulting mileage percentage on Form MO-NRS, Parts 1 and 2, 
includes all or part of Missouri. If receipts from the intangible              Column (c), unless required to complete Form MO-MSS, Part 1, Lines 
property sale are contingent on the productivity, use, or disposition          3 through 10 as discussed below. If the mileage percentage on Form 
of the intangible property, these receipts shall be treated as receipts        MO-MSS, Page 1, is inapplicable, attach a detailed explanation of how 
from the rental, lease, or license of intangible property. All other           apportionment and allocation was performed.
receipt from a sale of intangible property shall be excluded from 
both the numerator and the denominator of the receipts factor.                 If the mileage percentage on Form MO-MSS, Page 1, is inapplicable 
                                                                               or if there is any income to be allocated (as opposed to 
If the state or states to which to assign receipts cannot be determined,       apportioned), the taxpayer must complete Form MO-MSS, Part 
the state or states of assignment must be reasonably approximated and          1, Lines 3 through 10 and follow the directions on Form MO-MSS, 
you must attach a detailed statement explaining the basis of the               Pages 1 or 2 (as applicable) to arrive at the percentage(s) to be 
reasonable approximation.                                                      entered on Form MO-NRS, Column (c) for each distributive share 
                                                                               item. When completing Form MO-MSS, Part 1, Line 3, substitute 
PART 1, LINES 4 THROUGH 10 - ALLOCATION                                        the appropriate apportionment percentage, such as the mileage 
OF NON APPORTIONABLE INCOME                                                    percentage (if applicable), for the Receipts Factor. When completing 
                                                                               Form MO-MSS, Part 1, Lines 4 through 10 (including any attached 
Complete Part 1, Lines 4 through 10 if the taxpayer has nonapportionable       table for distributive share items not listed on Form MO-MSS, 
income to allocate.                                                            Part 1, Lines 4 through 9), enter gross income allocated (as 
                                                                               opposed to apportioned) everywhere and gross income allocated 
For this purpose “commercial domicile” means the principal place from          to Missouri, respectively, as well as related expenses. Attach a 
which the trade or business of the taxpayer is directed or managed.            detailed explanation supporting any allocation (as opposed to 
Rents and royalties from real or tangible personal property, capital           apportionment) of income.
gains, interest, or patent or copyright royalties, to the extent that they 
constitute nonapportionable income shall be allocated 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 
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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. 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 industry-specific 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-MSS, Part 1, Lines 3 through 12 and follow the 
directions on Form MO-MSS, Pages 1 or 2 (as applicable) to arrive 
at the percentage(s) to be entered on Form MO-NRS, Column (c) 
for each distributive share item. When completing Form MO-MSS, 
Part 1, Line 3, substitute the appropriate apportionment percentage 
(without taking into account allocation of income) for the Receipts 
Factor. When completing Form MO-MSS, Part 1, Lines 4 through 10 
(including any attached table for distributive share items not listed 
on Form MO-MSS, Part 1, Lines 4 through 9), enter gross income 
allocated (as opposed to apportioned) everywhere and gross income 
allocated to Missouri, respectively, as well as related expenses. 
Include on the detailed explanation attachment support for any 
allocation (as opposed to apportionment) of income.

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