Frequently Asked Questions

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+ What form do I use to file an amended income tax return?
For tax years beginning January 1, 1993, the same form is used to file an amended return that was used to file the original return.  For tax years prior to 1993, the Form MO-1120X PDF file is used.  Forms may be obtained by calling (800) 877-6881 or (573) 751-5337 or downloading from the Department of Revenue's tax forms page or by fax at (573) 751-4800.
+ If I am a Limited Liability Company (LLC), how do I file?
LLC's shall be classified consistent with Federal income tax purposes.  If for federal purpose you are treated as a corporation and file a Federal Form 1120 PDF file then you will be treated as a corporation with Missouri and would file a Form MO-1120 PDF file . ( Section 347.187.2, RSMo ) LLC's are not subject to Franchise Tax.
+ What is the tax rate for Missouri corporation income tax?
For tax years beginning on or after September 1, 1993, the tax rate is 6.25 percent.  For tax years before September 1, 1993, the tax rate was five percent, except for tax years 1990 and 1991 when the rate was graduated.
+ How do I pay tax on my S Corporation?
For Missouri income tax purposes, the S Corporation income tax return is for informational purposes only.  The tax is paid by the shareholder on their Missouri individual income tax return.  However, a Form MO-1120S PDF file return must be filed to fulfill the S Corporation's franchise tax liability, and payment of franchise tax is due if the corporation's assets are greater than $1 million in or apportioned to Missouri.
+ If my company for any reason is required to file a short period return, when is my Missouri return due?
Your Missouri return is due the 15th day of the 4th month following the year end.  If your short period return ended August 31, 2003, then your Missouri corporation return would have been due December 15, 2003.  Missouri does not follow the federal guidelines for due dates on short period returns.
+ What if my Missouri due date falls before the federal due date?
You must file and pay an estimated return by the original Missouri due date and when the federal return is completed, file an amended Missouri return.
+ What are additions to tax and interest charges?
For taxable periods ending December 31, 2005, additions to tax are imposed for failure to file by April 15, 2006, at the rate of 5 percent per month, not to exceed 25 percent of the unpaid balance.  Additions to tax are imposed for failure to pay by April 15, 2006, at the rate of 5 percent of the unpaid balance.

Interest is imposed on the portion of your Missouri tax liability that is not received on or before April 15, 2006.  Simple interest is charged on all delinquent taxes at the rate of 7 percent, beginning January 1, 2006.  For assistance in calculating additions to tax and interest, click here.
+ If I file a Federal Form 990, 990EZ or 990PF, what do I file for Missouri?
Any corporation filing a Federal Form 990, 990EZ or 990PF is not required to file a Missouri corporation income tax return and should not send a copy of the federal form to the Department of Revenue.
+ If I am filing an amended Missouri return to carry back a federal net operating loss, what documentation should I include?
If your consolidated federal income is positive and you are carrying back a separate company loss, attach a copy of the consolidated Federal Form 1120 PDF file to document there was no consolidated loss to be carried back.  If your consolidated federal return was a loss for 2004 and the previous tax periods are consolidated losses, attach a copy of the consolidated Federal Form 1120 for 2004 and the consolidated Federal 1120 for the tax period being amended on a separate company basis.  For tax periods that your consolidated and separate company incur a net operating loss that is carried back, attach a copy of the consolidated Federal Form 1139.  Also include a revised income statement for the loss year and the amended tax period and a schedule showing the calculation of the federal income tax deduction on the amended return.
+ What do I need to provide to the Missouri Department of Revenue if I claim non-business or non-Missouri source income?
A schedule must be attached that clearly states the nature and/or source of the non-business income in order to be considered by the Missouri Department of Revenue.  The schedule must state the reasons that the income is being allocated.  For example, a corporation owns a ten story building.  The first two stories are used for the corporation's headquarters and the remaining eight floors are rented to an unrelated company.  The rental income for the remaining eight floors is non-business income as it is incidental to the corporation's main business activity.

The only items of income that will be allowed as a deduction as non-Missouri source income is interest from non-Missouri municipal bonds and dividends.
+ What information must I provide to the Missouri Department of Revenue if I am filing an amended Missouri consolidated federal/separate Missouri corporation income tax return due to a federal audit or a federal amended return?
Federal audits and federal amended returns may contain numerous pages.  When filing the Missouri amended income tax return, not all of the federal audit or amended return is needed.  The minimum information needed is the consolidated federal tax liability (federal audit or federal amended - this information has to be from the Internal Revenue Service or Form 1120X PDF file ); separate company adjustments (adjustments affecting the amended Missouri return); income statement (or summary of positive federal taxable income companies) before and after federal changes; and federal income tax calculation (before and after federal changes).
+ Does Missouri have a claim of right doctrine similar to the Internal Revenue Service?
No.  Missouri does not have a claim of right doctrine similar to the Internal Revenue Service.  Form MO-1120 PDF file, Line 1, is the federal taxable income reported to the Internal Revenue Service and the federal income tax deduction is based on Federal Form 1120 PDF file, Schedule J.  No additional modifications are allowed on the Missouri income tax return related to the claim of right doctrine calculations on the federal income tax return.
+ What is the MITS/MO ID number that is asked for on the Form MO-1120?
A MITS/MO ID number is assigned to all corporations registered with the Missouri Department of Revenue.  This number is used to locate financial information associated with the corporation.  This includes original returns, estimated tax payments, Form MO-7004 PDF file payments, etc.  Every Form MO-1120 PDF file filed must have a MITS/MO ID number on it.  A return without this number or one with an incorrect number may cause a delay in processing.

If you do not have a MITS number, or need to locate the MITS number, an officer may call the Missouri Department of Revenue, Business Tax Registration at (573) 751-5860.
+ How does a corporation compute its Missouri taxable income on Form MO-MS?
The corporation must include in its Form MO-MS PDF file its percentage of ownership of the partnership's or Subchapter S Corporation's factors.  For example, Company C owns 40 percent of Partnership P.  The corporation does not have any property, payroll, or sales except for in its ownership of the partnership.  The corporation would take 40 percent of the partnership's property, payroll, and sales everywhere and Missouri only and use these amounts to complete the Form MO-MS.
+ How are Qualified Subchapter S Subsidiaries (QSSS) treated for Missouri income and franchise taxes?
QSSS's are treated the same way for Missouri income tax purposes as they are treated with the Internal Revenue Service.  One Form MO-1120S is filed under the parent's name and includes all of the activity of the parent and subsidiaries.  However, for Missouri franchise tax purposes (Form MO-FT), each company (parent and subsidiaries) must file a separate Form MO-FT PDF file.  For example, Company P and QSSS companies S1 and S2 file a Federal Form 1120S PDF file as parent and Qualified Subchapter S Subsidiaries.  Company P would file Form MO-1120S as Company P and subsidiaries.  Company P would complete Form MO-FT on just its balance sheet items.  Subsidiaries S1 and S2 will file a separate Form MO-1120S, mark the box indicating the filing is for Franchise Tax Only and complete Form MO-FT on each company's balance sheet.  Each company would be responsible for paying their franchise tax on the separate Form MO-1120S.
+ Who can discuss a corporate income tax question concerning payments, adjustments, etc.  with the Missouri Department of Revenue?
General questions that do not address confidential information filed with the Missouri Department of Revenue may be discussed with anyone.  Confidential information (including any payment received, return, adjustment, extension filed, etc.) can only be discussed with an officer of the corporation, the preparer (or any member of the preparer's firm or if internally prepared, any member of the internal staff) if the authorization box is checked on Form MO-1120 PDF file , Page 1, or Form MO-1120S PDF file, Page 1, or a person who has a Missouri power of attorney on file ( Form 2827 PDF file).
+ Does Missouri require the 50% depreciation to be added back?
No.  The provision requiring the adding back of bonus depreciation includes property purchased on or after July 1, 2002 but before July 1, 2003, in determining if the bonus depreciation must be used as a Missouri modification.  Property purchased before July 1, 2002 and after June 30, 2003, does not qualify for the modification.
+ For federal purposes, our company carried back a net operating loss 5 years with the Internal revenue Service.  Are we required to carry back our net operating loss 5 years on our Missouri return?
Yes.  If the loss for federal purposes is carried back 5 years, the same tax periods must be amended for state tax purposes.

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 shall compute the separate federal taxable income as if each member filed a separate federal return.  The corporation is bound by the 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).
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