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2024
Form
MO-1120S
S-Corporation Income Tax Return
General Instructions
File Electronically
Electronic filing is fast and easy. See page 1 for details.
Tax Deadline is April 15. See page 1 for extensions.
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ELECTRONIC FILING OPTIONS FOR S-CORPORATION TAX RETURNS
Corporations may file Missouri MO-1120S 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 methods:
1. Federal and State Corporation tax returns may be prepared and filed electronically by an IRS approved Electronic Return Originator (ERO).
Corporations may visit https://www.irs.gov/e-file-providers/authorized-irs-e-file-provider-locator-service-for-tax-professionals to find a
participating ERO.
2. State Corporation MO-1120S 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
FORM MO-1120S NONRESIDENT SHAREHOLDERS
GENERAL INFORMATION Every S-Corporation must file Form MO-1NR, Income Tax Withheld
for Non resi dent Individual Partners or S-Corporation Shareholders
This information is for guidance only and does not state the complete law. and send in copies of Form MO-2NR, Statement of Income Tax
Payments for Nonresident Individual Partners or S-Corporation
FILING REQUIREMENTS FOR FORM MO-1120S Shareholders if they have nonresident individual shareholders who
do not meet one of the following exceptions:
Every S-Corporation must file Form MO-1120S if they file Federal
Form 1120S and the S-Corporation has: 1) a shareholder that is a • The nonresident shareholder, not otherwise required to file a
Missouri resident; or 2) any income derived from Missouri sources. return, elects to have the Missouri income tax due paid as part
Attach a copy of Federal Form 1120S and all Schedule K-1(s). of the S-Corporation’s composite return;
For further information, see Section 143.471, RSMo, and 12 CSR • The nonresident shareholder, not otherwise required to file a
10-2.190. re turn, had Missouri assignable federal adjusted gross income
from the S-Corporation of less than $1,200;
MISSOURI REGISTRATION • The S-Corporation is liquidated or terminated; no cash or other
Every S-Corporation must register with the Department of Revenue property was distributed in both the current and prior taxable
year; or a transaction related to the S corporation’s termination
to receive a Missouri Tax Identification Num ber. To register visit our or liquidation generated the income from which the nonresident
website at dor.mo.gov/register-business/, call Business Registration shareholder’s dividend and share of undistributed taxable
at (573) 751-5860, or contact: Missouri Department of Revenue, income was derived.
Taxation Division, P.O. Box 3300, Jefferson City, MO 65105-3300.
Pursuant to Section 143.411, RSMo, a nonresident shareholder can
WHEN TO FILE request the S-Corporation be exempt from withholding by filing a
completed Form MO-3NR, Partnership or S-Corporation
The Missouri S-Corporation return is due on or before the 15th day of With holding Exemption or Revocation Agreement.
the fourth month following the end of the tax year. Example: Taxable Form MO-1NR must be filed by the due date or extended due date
period of January 1, 2024, to December 31, 2024 is due April 15, 2025. for filing the S-Corporation income tax return. Form MO-3NR must be
Note: When the due date falls on a Saturday, Sunday, or legal holiday, filed by the due date for filing the S-Corporation income tax return
the return will be considered timely filed on the next business day. without regard to an extension of time to file.
Mail your return to: Missouri Department of Revenue, P.O. Box 336, Forms may be obtained online at our website at dor.mo.gov/forms/.
Jefferson City, MO 65105-0336. If you have technical questions concerning the filing of Form
MO-1NR and Form MO-3NR or are filing a composite return and you
PERIOD COVERED BY THE RETURN have questions, contact the Taxation Division at (573) 751-1467 or by
Form MO-1120S must cover the same period as the corresponding e-mail at corporate@dor.mo.gov.
Federal Form 1120S. Indicate the period covered on the front of the return.
S-CORPORATION ADJUSTMENTS
REPORTABLE TRANSACTION DISCLOSURE
Each S-Corporation, having modifications, must complete the Form
STATEMENT FEDERAL FORM 8886 MO-1120S, Pages 1 and 2, Lines 1–15 and Page 3, the Allocation of
Every corporation must include with the Missouri return a copy of each Missouri S-Corporation Adjustment to Shareholders, and notify each
Federal Form 8886 that was filed with the IRS as part of its federal return. shareholder of the adjustments to which they are entitled. Missouri
income tax law provides adjustments to a shareholder’s share of the
EXTENSION OF TIME TO FILE S-Corporation income included in their individual federal income
tax return in order to properly determine their individual Missouri
If an S-Corporation has been granted an extension of time to file its adjusted gross income reported on Form MO-1040. On or before
federal income tax return, the time for filing the Missouri corporation the due date (including extensions) of the MO-1120S, furnish a copy
income tax return is automatically extended. Select the box at the top of (or extract of all relevant information from) the Form MO-1120S
of the form indicating you have an approved federal extension and to each shareholder, but with information about other shareholders,
attach a copy of the Federal Extension Form 7004 to the MO-1120S. such as social security numbers or share percentages, removed or
(Failure to check this box may result in disallowing the extension.) redacted.
CONTACT INFORMATION
If you have questions, you may contact Corporate Tax at
(573) 751-4541 or by e-mail at corporate@dor.mo.gov. *14000000001*
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should use the same or similar method used to compute related
Additions expenses for federal income tax purposes, provided that the method
reasonably reflects related expenses for Missouri exempt income.
LINE 1 - MISSOURI CORPORATION INCOME TAX &
CORPORATION INCOME TAX OF OTHER STATES If a taxpayer fails to compute reasonable related expenses, the
DEDUCTED IN DETERMINING FEDERAL TAXABLE INCOME Director of Revenue will make adjustments based on the information
made available. If sufficient information is not made available or if the
Line 1a: Enter the amount of Missouri income tax deducted on Federal taxpayer’s records do not provide sufficient information, the Director of
Form 1120S (Section 143.141(1), RSMo), and the amount of income Revenue will use the following formula to compute related expenses:
taxes from other states, their subdivisions and the District of Columbia
deducted on Federal Form 1120S (12 CSR 10-2.160 and Sec tion Exempt Income Expense Reduction to
143.141(2), RSMo). Total Income X Items = Exempt Income
Include on Line 1a the income taxes (however named) of all states The principal expense item in this formula is interest expense; however,
that were taken as a deduction on the Federal Form 1120-S. This may the Director of Revenue may include other expense items because
include, but not be limited to, a state’s elective pass-through entity of their direct relationship to the production of exempt income. The
income tax. taxpayer may propose an alternative method provided that it properly
reflects the amount of related expenses.
Line 1b: Enter the amount of Kansas City and St. Louis earnings tax.
EnterLINEon7 -LineAMOUNT6 the netOF ANYamountSTATEof LineINCOME6a lessTAXLine 6b.
REFUND INCLUDED IN FEDERAL TAXABLE INCOME
LINE 2 - STATE AND LOCAL BOND INTEREST
(EXCEPT MISSOURI) 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
Line 2a: Enter all interest from state and local bonds, excluding 143.121.3(5), RSMo).
Missouri (Section 143.121.2(2), RSMo).
Line 2b: Enter the amount of expenses associated with the state and LINE 8 - FEDERALLY TAXABLE MISSOURI EXEMPT
local bond interest. The expenses must equal or exceed $500. If less
than $500, enter zero. Refer to Section 143.121.2(2), RSMo, for further OBLIGATION
explanation.
The amount of any bond issued by the Missouri Higher Education Loan
Authority (MOHELA) including interest or proceeds resulting from the
LINE 3 - FIDUCIARY, PARTNERSHIP, AND OTHER sale of the bond is exempt from Missouri tax. If the amount is included
ADJUSTMENTS in federal taxable income, the amount can be sub tracted from federal
taxable income for Missouri tax purposes pursuant to Section 173.440,
Enter the share of fiduciary and partnership adjustment as shown RSMo. Enter the exempt amount on Line 8 and provide documentation
on Form MO-1041, Page 2, Part 1, Line 19, and Form MO-1065, Line with the return.
11 (Section 143.121.4 and 5, RSMo). A copy of Forms MO-1041 and
MO-1065 must be attached. LINE 9 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT (FROM
Business Interest Expense Carryforward – Enter any interest expense FORM MO-1041 AND FORM MO-1065), BUILD AMERICA
paid or accrued in a previous taxable year, but allowed as a deduction AND RECOVERY ZONE BOND INTEREST, MISSOURI
under 26 U.S.C. Section 163, as amended, in the current taxable year by PUBLIC-PRIVATE TRANSPORTATION ACT, OTHER
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). Fiduciary and Partnership Adjustment - Enter the share of fiduciary and
partnership adjustment as shown on Form MO-1041, Page 2, Part 1, Line
LINE 4 - DONATIONS CLAIMED FOR THE FOOD PANTRY 20 and Form MO-1065, Line 12 (Section 143.121.4 and 5, RSMo). A copy
of Forms MO-1041 and MO-1065 must be attached.
TAX CREDIT THAT WERE DEDUCTED FROM FEDERAL
TAXABLE INCOME Build America and Recovery Zone Bond Interest - Enter the share
of Build America and Recovery Zone Bond interest (Section
Enter the total amount of donations claimed for the Food Pantry Tax 108.1020,RSMo).
Credit that were also taken as a deduction on the Federal Form 1120S
return (Section 135.647, RSMo). Missouri Public-Private Partnerships Transportation Act - Enter the share
of income received under the Missouri Public-PrivateTransportation Act
(Section 227.646, RSMo).
LINE 5 - TOTAL Marijuana Business Deduction - Enter the amount that is eligible to
Enter the total of Line 1 through Line 4. 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
Subtractions Article XIV of Missouri’s Constitution. The Missouri deduction will be
LINE 6 - INTEREST AND DIVIDENDS FROM EXEMPT the difference between the profit/loss as calculated on the schedule(s)
FEDERAL OBLIGATIONS (MUST ATTACH SCHEDULE) 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
Line 6a: Enter the amount of interest and dividends from federal your Missouri Form MO-1120S to claim the deduction.
obligations to the extent they are exempt from Missouri income tax,
but subject to federal tax (12 CSR 10-2.150 and Section 143.121.3(1), Broadband Grant Income Tax Subtraction – If you received grant money
RSMo). A detailed list showing the amount of monies received or the disbursed from a federal, state, or local program, for the express purpose
percentage of funds received from direct U.S. Government obligations of providing or expanding broadband internet to areas of Missouri that
must be attached to Form MO-1120S. are deemed to be lacking such access, you may qualify to subtract the
Line 6b: Enter the amount of interest on indebtedness and grant money received. The grant amount to be subtracted must have
expenses associated with the production of interest and dividend been included in income reported on the Federal Form 1120-S, Schedule
income on federal obligations shown on Line 6a. The expenses must K. To the extent such grant income was also included on Federal Form
equal or exceed $500. If less than $500, enter zero. Refer to Section 1120-S, Line 5, the subtraction for that portion of the grant income
143.121.3(1), RSMo, for further explanation. cannot exceed the amount on Federal Form 1120-S, Line 22. Attach
In arriving at the amount of related expenses, the taxpayer may use the Form 1099-G issued to you validating the grant money received,
actual expenses or a reasonable estimate. In general, the taxpayer grant documents that indicate the area of Missouri was deemed to be
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lacking broadband internet access, a copy of Federal Form 1120-S, and If you have supporting documentation, arrange in the same order of
applicable schedules. forms and schedules they support and attach them last. Do not attach
Disallowed Business Interest Expense – To the extent allowed by Section items unless required to do so.
143.121.3(11), RSMo, enter interest expense paid or accrued in the current
taxable year, but not deducted on the federal return as a result of the FORM MO-MSS S-CORPORATION
limitation imposed under 26 U.S.C. Section 163(j), as amended. ALLOCATION AND APPORTIONMENT
FORM
LINE 10 - MISSOURI DEPRECIATION BASIS ADJUSTMENT Use Form MO-MSS to allocate and apportion income by using the
Enter the difference between the federal and Missouri depreciation Receipts Factor Apportionment Method or other appropriate method.
calculated on assets purchased between July 1, 2002 and June 30, If utilizing the Receipts Factor Apportionment Method, complete Part
2003. See Section 143.121.3(7), RSMo for more information. 1. Attach Form MO-MSS to Form MO-1120S. Enter the percentage
from Part 1, Line 3 on Form MO-NRS Part 1, Line 1, Column
(c). Line 1, Column (b) is computed by multiplying the percentage in
LINE 11 - DEPRECIATION RECOVERY ON Column (c) times the amounts in Column (a). The percentage is also
QUALIFIED PROPERTY THAT IS SOLD entered in the other lines on Column (c). If a distributive share item is
wholly or partially allocated as nonapportionable income, a different
Enter any depreciation that was previously not recovered when an percentage will be computed for the item, following the steps listed
asset is sold or otherwise disposed of and federal bonus depreciation on Form MO-MSS. As noted on the Form MO-MSS, special methods
was previously taken. (Section 143.121.3(9), RSMo) This can only apply three to seven may be used. Attach a detailed explanation to the Form
if the property was purchased between July 1, 2002, and June 30, MO-1120S when utilizing these methods.
2003.
If the corporation owns a percentage of a partnership(s), the partnership
LINE 12 - TOTAL factors must be multiplied by the corporation’s percentage of ownership,
Enter the total of Line 6 through Line 11. and then added into the corporation’s apportionment factors.
LINE 13 - MO S-CORPORATION ADJUSTMENT - APPORTIONMENT ELECTION
NET ADDITION Missouri statutes provide a number of methods for determining
If Line 5 is greater than Line 12, enter the difference on Line 13 as a positive Missouri taxable income from Missouri sources.
number. If Line 5 is less than Line 12, skip Line 13 and complete Line 14. Method Two A Receipts Factor Apportionment — Section 143.455.2,
RSMo. See instructions for completing Method Two A.
LINE 14 - MO S-CORPORATION ADJUSTMENT - Method Three Transportation — Section 143.455.14, RSMo.
NET SUBTRACTION Method Four Railroad — Section 143.455.15, RSMo.
If Line 12 is greater than Line 5, subtract Line 5 from Line 12. Enter as a Method Five Interstate Bridge — Section 143.455.16, RSMo.
positive number on Line 14. Method Six Telephone and Telegraph — Section 143.455.17, RSMo.
LINE 15 - AGRICULTURE DISASTER RELIEF Method Seven Other Approved Method — This method can only be
used with prior approval from the Missouri Director of Revenue or
Enter the amount of income your corporation received as payment pursuant to a Missouri regulation creating an alternative industry-
from any program which provides compensation to agricultural specific method under Section 143.455.13(2), RSMo. Attach a detailed
producers who have suffered a loss as the result of a disaster or explanation of how any allocation and apportionment was performed.
emergency (Section 143.121.3(10), RSMo) . You must attach a copy Either a letter of approval must be attached to the return or the detailed
of the Form 1099 indicating your agricultural payment. For more explanation must identify the Missouri regulation that authorizes the
information, visit dor.mo.gov. industry-specific method used and explain why the taxpayer qualifies
for the industry-specific method. As of the date of this publication, the
only industry-specific method allowed by Missouri regulation applies
AUTHORIZATION to broadcasters under 12 CSR 10-2.260. Corporations defined as a
Check the “yes” box for authorization of release of confidential broadcaster under 12 CSR 10-2.260 must choose Method Seven.
information. This authorizes the Missouri Director of Revenue or
delegate to discuss this return and attachments with the preparer METHOD TWO A RECEIPTS FACTOR
whose signature appears on the Form MO-1120S or with any member APPORTIONMENT INSTRUCTIONS
of their firm or if internally prepared, any member of the internal staff. A taxpayer must have income from more than one state in order to
If the authorization box is checked “no,” or if no box is checked, the apportion and allocate income. Income from business activity includes
Missouri Director of Revenue or delegate can only discuss this return apportionable and nonapportionable income. The taxpayer’s income
with an officer of the corporation. Refer to Section 32.057, RSMo. will be allocated and apportioned according to Section 143.455, RSMo.
The taxpayer must determine which portion of the taxpayer’s
SIGNATURE federal taxable income constitutes “nonapportionable income.” The
The Department of Revenue requires the return to be signed by an various items of nonapportionable income are directly allocated to
officer of the corporation. Enter the date signed, the title of the officer specific states, which may include Missouri. The apportionable income
whose signature is affixed, and the corporation’s tele phone number. of the taxpayer is divided between states by using the receipts factor.
Lines are provided for the preparer’s signature (other than taxpayer), Items of nonapportionable income may be reported on Form MO-MSS.
Federal Identification Number, telephone number, and date. Failure to
sign the return will cause a delay in the processing of the return. If a paid APPORTIONABLE AND NONAPPORTIONABLE
tax return preparer prepared this return and failed to sign the return or INCOME DEFINED
enter the preparer’s tax identification number on the return, the paid tax
return preparer may be penalized under Section 143.980, RSMo. “Apportionable income” means all income that is apportionable under
the Constitution of the United States and is not allocated under the
ASSEMBLE YOUR RETURN laws of this state. Apportionable income includes, but is not limited
to, income arising from transactions and activity in the regular course
Assemble any forms and schedules in order behind Form MO-1120S.
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of the corporation’s trade or business. Apportionable income also be reasonably approximated as follows: The ratio of the number of
includes, but is not limited to, income arising from tangible and Missouri locations, which the ultimate beneficiary owns or operates in,
intangible property if the acquisition, management, employment, to the number of such locations throughout the United States.
development, or disposition of the property is or was related to the • If the ratio above cannot reasonably be determined, then the ratio of
operation of the corporation’s trade or business. “Nonapportionable one to the number of states in which the ultimate beneficiary operates.
income” means all income other than apportionable income. The
classification of income by the labels customarily given them, such as • If the ratio above cannot reasonably be determined, then fifty
interest, dividends, rents, and royalties, is not conclusive in determining percent (50%). A taxpayer will not be subject to an addition to tax for
whether the income is apportionable or nonapportionable income. negligence in relying upon this approximation of fifty percent (50%).
• Rental, Lease, or License of Intangible Property Receipts from the
TAXABLE IN ANOTHER STATE rental, lease, or license of intangible property are in this state to the
extent that the intangible property is used in Missouri. Intangible
A taxpayer is “taxable in another state” if it meets either one of two tests: 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
(a) if by reason of business activity in another state the taxpayer is state if the marketed good or service is purchased by a consumer
subject to one of these taxes: a net income tax, a franchise tax measured in this state. Franchise fees or franchise royalties received for the
rent, lease, license, or use of a trade name, trademark, service mark,
by net income, a franchise tax for the privilege of doing business, or a or franchise system, or the right to conduct business activity in a
corporate stock tax; or specific geographic area, are receipts in this state to the extent that
the franchise is located in this state.
(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 • Sale of Intangible Property Receipts from the sale of intangible
on the taxpayer. property are in this state to the extent the intangible property is
used in Missouri. If the intangible property sold is a contract right,
The first test is applicable only if a taxpayer carries on business activities government license, or similar property that authorizes the holder
in another state. If the taxpayer voluntarily files and pays one or more of to conduct a business activity in a specific geographic area, such
such taxes when not required to do so by the laws of that state or pays intangible property is used in Missouri if the geographic area
a minimal fee for qualification, organization, or for the privilege of doing includes all or part of Missouri. If receipts from the intangible
business in that state, but: property sale are contingent on the productivity, use, or disposition
of the intangible property, these receipts shall be treated as receipts
(a) does not engage in business activities in that state; or from the rental, lease, or license of intangible property. All other
receipt from a sale of intangible property shall be excluded from
(b) does engage in some activity, not sufficient for nexus, and the both the numerator and the denominator of the receipts factor.
minimum tax bears no relation to the corporation’s activities within such If the state or states to which to assign receipts cannot be determined,
state, the taxpayer is not “taxable” in another state. the state or states of assignment must be reasonably approximated and
you must attach a detailed statement explaining the basis of the
The second test applies if the taxpayer’s business activities are sufficient reasonable approximation.
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 PART 1, LINES 4 THROUGH 10 - ALLOCATION
the provisions of Public Law 86-272, 15 U.S.C.A. Sections 381–385. OF NON APPORTIONABLE INCOME
LINES 1, 2, AND 3 - RECEIPTS FACTOR Complete Part 1, Lines 4 through 10 if the taxpayer has nonapportionable
income to allocate.
Complete Part 1, Lines 1 through 3. For this purpose “commercial domicile” means the principal place from
• The denominator of the receipts factor is generally all gross receipts which the trade or business of the taxpayer is directed or managed.
received by a taxpayer from transactions and activity in the regular Rents and royalties from real or tangible personal property, capital
course of its trade or business. However, receipts from hedging gains, interest, or patent or copyright royalties, to the extent that they
transactions or from the maturity, redemption, sale, exchange, constitute nonapportionable income shall be allocated as follows:
loan, or other disposition of cash or securities (e.g. stocks, stock (a) Net rents and royalties from real property located in this state are
options, bonds) must not be included in either the numerator or allocable to this state.
denominator of the receipts factor. The numerator of the receipts
factor is generally all gross receipts in Missouri from transactions (b) Net rents and royalties from tangible personal property are allocable
and activity in the regular course of the taxpayer’s trade or business. to this state: (1) if and to the extent that the property is utilized in this
• Tangible Personal Property Receipts from the sale of tangible state; or (2) in their entirety if the taxpayer’s commercial domicile is in
personal property are in this state if the property is received in this state and the taxpayer is not organized under the laws of, or taxable
Missouri by the purchaser. Receipts from the rental, lease, or in, the state in which the property is utilized. The extent of utilization of
license of tangible personal property are in this state to the extent tangible personal property in a state is determined by multiplying the
that the tangible personal property is located in Missouri. rents and royalties by a fraction, the numerator of which is the number
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
• Services Receipts from the sale of a service are in this state if and location of the property during the rental or royalty period is unknown
to the extent that the ultimate beneficiary is in Missouri. Generally, or unascertainable by the taxpayer, tangible personal property is utilized
the ultimate beneficiary of the service (except for bartering and in the state in which the property was located at the time the rental or
similar in-kind transactions) is the entity that receives benefit or value royalty payor obtained possession.
from, but does not also receive monetary or credit-based payment
in direct connection with, the service at issue (other than refunds, (c) Capital gains and losses from sales of real property located in this
cashback, or discount-equivalents). In the event that the ultimate state are allocable to this state.
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.
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(e) Capital gains and losses from sales of intangible personal property are the appropriate apportionment percentage, such as the mileage
allocable to this state if the taxpayer’s commercial domicile is in this state. percentage (if applicable), for the Receipts Factor. When completing
(f) Interest and dividends are allocable to this state if the taxpayer’s Form MO-MSS, Part 1, Lines 4 through 10 (including any attached
commercial domicile is in this state. table for distributive share items not listed on Form MO-MSS,
Part 1, Lines 4 through 9), enter gross income allocated (as
(g) Patent and copyright royalties are allocable to this state: (1) if and to opposed to apportioned) everywhere and gross income allocated
the extent that the patent or copyright is utilized by the royalty payor in to Missouri, respectively, as well as related expenses. Attach a
this state; or (2) if and to the extent that the patent or copyright is detailed explanation supporting any allocation (as opposed to
utilized by the royalty payor in a state in which the taxpayer is not taxable apportionment) of income.
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, METHOD SEVEN INSTRUCTIONS
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 This method can only be used with prior approval from the Missouri
the basis of receipts from patent royalties or copyright royalties does not Director of Revenue or pursuant to a Missouri regulation creating an
permit allocation to states or if the accounting procedures do not reflect alternative industry-specific method under Section 143.455.13(1),
states of utilization, the patent or copyright is utilized in the state in which RSMo. Attach a detailed explanation of how any allocation and
the taxpayer’s commercial domicile is located. 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
METHOD THREE, FOUR, FIVE, OR SIX used and explain why the taxpayer qualifies for the industry-specific
INSTRUCTIONS 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
Enter Missouri miles, total miles, and percentage in the Apportionment
choose Method Seven.
Election section on Form MO-MSS, page 1, if applicable. Enter the
resulting mileage percentage on Form MO-NRS, Parts 1 and 2, Complete Form MO-MSS, Part 1, Lines 3 through 12 and follow the
Column (c), unless required to complete Form MO-MSS, Part 1, Lines directions on Form MO-MSS, Pages 1 or 2 (as applicable) to arrive
3 through 10 as discussed below. If the mileage percentage on Form at the percentage(s) to be entered on Form MO-NRS, Column (c)
MO-MSS, Page 1, is inapplicable, attach a detailed explanation of how for each distributive share item. When completing Form MO-MSS,
apportionment and allocation was performed. Part 1, Line 3, substitute the appropriate apportionment percentage
(without taking into account allocation of income) for the Receipts
If the mileage percentage on Form MO-MSS, Page 1, is inapplicable
Factor. When completing Form MO-MSS, Part 1, Lines 4 through 10
or if there is any income to be allocated (as opposed to
(including any attached table for distributive share items not listed
apportioned), the taxpayer must complete Form MO-MSS, Part
on Form MO-MSS, Part 1, Lines 4 through 9), enter gross income
1, Lines 3 through 10 and follow the directions on Form MO-MSS,
allocated (as opposed to apportioned) everywhere and gross income
Pages 1 or 2 (as applicable) to arrive at the percentage(s) to be
allocated to Missouri, respectively, as well as related expenses.
entered on Form MO-NRS, Column (c) for each distributive share
Include on the detailed explanation attachment support for any
item. When completing Form MO-MSS, Part 1, Line 3, substitute
allocation (as opposed to apportionment) of income.
Final Checklist Before Mailing
r Did an officer of the corporation sign Form MO-1120S?
r Did you review your completed return?
r Are the corporation name, address, and I.D. numbers correctly shown on the return?
r Are your beginning and ending filing periods shown on the Form MO-1120S?
r Have you verified all math calculations?
r Did you receive a federal extension of time to file your return? If so, have you attached a copy of
the federal extension (Federal Form 7004) and checked the box on the first page of the MO-1120S?
r Have you attached a copy of the federal form and sup porting schedules?
r Have you addressed your envelope to the proper address?
r Did you enter your Missouri Tax I.D. Number? If you do not know your Missouri Tax I.D. Number,
an officer must call Business Registration at (573) 751-5860.
r Did you enter your Charter Number? If you do not know your Charter Number, call
(866) 223-6535.
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