Missouri S Corporation Allocation and Apportionment Form and Instructions

S Corporation Allocation and Apportionment Form and Instructions
MO-MSS 2022 S-Corporation Allocation and Apportionment Schedule
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(MM/DD/YY)

2023 S-Corporation Allocation
and Apportionment Schedule

MO-MSS

Taxable Year

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Attachment Sequence No. 1120S-02

Beginning

Ending

(MM/DD/YY)

(MM/DD/YY)

Missouri Tax

Do not complete this form if all income is from Missouri sources.

I.D. Number
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).

Apportionment Election

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).
Missouri Miles	

Total Miles	

÷

Percent

=

.

%

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

Part 1

For use with Method Two A or as directed by instructions

1.

Amount of receipts in Missouri  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

.

00

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)

*23105010001*
23105010001

.

%

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

Part 1

	
Gross Income	
	 (1) Everywhere	
(2) Missouri	

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

Related Expenses
(3) Everywhere	
(4) Missouri

00	 00	00	 00

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

Allocation and Apportionment of Share Items

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	
	
2	
–	 3,000	
			 $12,000	

Allocated as nonapportionable income
Apportionable income

	

X 33.333% = $4,000

3		 $12,000	

	
4		 $1,000	
	
5	
+	$4,000	
			 $5,000	
	

6	

Net rental real estate income (loss)

Nonapportionable income allocated to Missouri
From Step 3
Enter on Form MO-NRS, Part 1, Line 2, Column (b).

$5,000/15,000 = 33.333% This percentage is entered on Form MO-NRS, Part 1, Line 2, Column (c).

*23105020001*
23105020001
Attach to Form MO-1120S and mail to
the Missouri Department of Revenue.
Refund or No Amount Due:
P.O. Box 336
Jefferson City, MO 65105-0336

Form MO-MSS (Revised 12-2023)

FORM MO-MSS S-CORPORATION
ALLOCATION AND APPORTIONMENT
FORM

APPORTIONABLE AND NONAPPORTIONABLE
INCOME DEFINED
“Apportionable income” means all income that is apportionable under
the Constitution of the United States and is not allocated under the
laws of this state. Apportionable income includes, but is not limited
to, income arising from transactions and activity in the regular course
of the corporation’s trade or business. Apportionable income also
includes, but is not limited to, income arising from tangible and
intangible property if the acquisition, management, employment,
development, or disposition of the property is or was related to the
operation of the corporation’s trade or business. “Nonapportionable
income” means all income other than apportionable income.
The classification of income by the labels customarily given
them, such as interest, dividends, rents, and royalties, is not
conclusive in determining whether the income is apportionable or
nonapportionable income.

Use Form MO-MSS to allocate and apportion income by using the
Receipts Factor Apportionment Method or other appropriate method.
If utilizing the Receipts Factor Apportionment Method, complete Part
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
Column (c) times the amounts in Column (a). The percentage is also
entered in the other lines on Column (c). If a distributive share item is
wholly or partially allocated as nonapportionable income, a different
percentage will be computed for the item, following the steps listed
on Form MO-MSS. As noted on the Form MO-MSS, special methods
three to seven may be used. Attach a detailed explanation to the
Form MO-1120S when utilizing these methods.

TAXABLE IN ANOTHER STATE

If the corporation owns a percentage of a partnership(s), the
partnership factors must be multiplied by the corporation’s percentage
of ownership, and then added into the corporation’s apportionment
factors.

A taxpayer is “taxable in another state” if it meets either one of two
tests:

APPORTIONMENT ELECTION

(a) if by reason of business activity in another state the taxpayer
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
business, or a corporate stock tax; or

Missouri statutes provide a number of methods for determining
Missouri taxable income from Missouri sources.
Method Two A Receipts Factor Apportionment — Section 143.455.2,
RSMo. See instructions for completing Method Two A.
Method Three Transportation — Section 143.455.14, RSMo.
Method Four Railroad — Section 143.455.15, RSMo.
Method Five Interstate Bridge — Section 143.455.16, RSMo.
Method Six Telephone and Telegraph — Section 143.455.17, RSMo.

(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
on the taxpayer.
The first test is applicable only if a taxpayer carries on business
activities in another state. If the taxpayer voluntarily files and pays one
or more of such taxes when not required to do so by the laws of that
state or pays a minimal fee for qualification, organization, or for the
privilege of doing business in that state, but:

Method Seven Other Approved Method — This method can only be
used with prior approval from the Missouri Director of Revenue or
pursuant to a Missouri regulation creating an alternative industryspecific method under Section 143.455.13(2), 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. As of the date
of this publication, the only industry-specific method allowed by
Missouri regulation applies to broadcasters under12 CSR 10-2.260.
Corporations defined as a broadcaster under 12 CSR 10-2.260 must
choose Method Seven.

(a) does not engage in business activities in that state; or
(b) does engage in some activity, not sufficient for nexus, and the
minimum tax bears no relation to the corporation’s activities within
such state, the taxpayer is not “taxable” in another state.
The second test applies if the taxpayer’s business activities are
sufficient 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 the provisions of Public Law 86-272, 15 U.S.C.A.
Sections 381–385.

METHOD TWO A RECEIPTS FACTOR
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
will be allocated and apportioned according to Section 143.455,
RSMo. The taxpayer must determine which portion of the taxpayer’s
federal taxable income constitutes “nonapportionable income.” The
various items of nonapportionable income are directly allocated to
specific states, which may include Missouri. The apportionable income
of the taxpayer is divided between states by using the receipts
factor. Items of nonapportionable income may be reported on Form
MO-MSS.

Complete Part 1, Lines 1 through 3.
•	The denominator of the receipts factor is generally all gross
receipts received by a taxpayer from transactions and activity
in the regular course of its trade or business. However, receipts
from hedging transactions or from the maturity, redemption, sale,
exchange, loan, or other disposition of cash or securities (e.g.
stocks, stock options, bonds) must not be included in either the
numerator or denominator of the receipts factor. The numerator of
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
personal property are in this state if the property is received in
Missouri by the purchaser. Receipts from the rental, lease, or
license of tangible personal property are in this state to the extent
that the tangible personal property is located in Missouri.

this state and the taxpayer is not organized under the laws of, or taxable
in, the state in which the property is utilized. The extent of utilization of
tangible personal property in a state is determined by multiplying the
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
or royalty period in the taxable year and the denominator of which is
the number of days of physical location of the property everywhere
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
or unascertainable by the taxpayer, tangible personal property is utilized
in the state in which the property was located at the time the rental or
royalty payor obtained possession.

•	Real Property Receipts from the sale, rental, lease, or license of
real property are in this state to the extent that the real property is
located in Missouri.
•	Services Receipts from the sale of a service are in this state if and
to the extent that the ultimate beneficiary is in Missouri. Generally,
the ultimate beneficiary of the service (except for bartering and
similar in-kind transactions) is the entity that receives benefit or value
from, but does not also receive monetary or credit-based payment
in direct connection with, the service at issue (other than refunds,
cashback, or discount-equivalents). In the event that the ultimate
beneficiary is a corporate or other entity that owns or operates in
locations in multiple states, and the extent to which the ultimate
beneficiary is located in Missouri cannot reasonably be determined,
the extent to which the ultimate beneficiary is located in Missouri may
be reasonably approximated as follows: The ratio of the number of
Missouri locations, which the ultimate beneficiary owns or operates in,
to the number of such locations throughout the United States.

(c) Capital gains and losses from sales of real property located in this
state are allocable to this state.
(d) Capital gains and losses from sales of tangible personal property are
allocable to this state if: (1) the property had a situs in this state at the time
of the sale; or (2) the taxpayer’s commercial domicile is in this state and
the taxpayer is not taxable in the state in which the property had a situs.
(e) Capital gains and losses from sales of intangible personal property are
allocable to this state if the taxpayer’s commercial domicile is in this state.
(f) Interest and dividends are allocable to this state if the taxpayer’s
commercial domicile is in this state.

•	If the ratio above cannot reasonably be determined, then the ratio of
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
the extent that the patent or copyright is utilized by the royalty payor in
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
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,
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 the basis of receipts from patent royalties or copyright royalties
does not permit allocation to states or if the accounting procedures do
not reflect states of utilization, the patent or copyright is utilized in the
state in which the taxpayer’s commercial domicile is located.

•	If the ratio above cannot reasonably be determined, then fifty
percent (50%). A taxpayer will not be subject to an addition to tax for
negligence in relying upon this approximation of fifty percent (50%).
•	Rental, Lease, or License of Intangible Property Receipts from the
rental, lease, or license of intangible property are in this state to the
extent that the intangible property is used in Missouri. Intangible
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
state if the marketed good or service is purchased by a consumer
in this state. Franchise fees or franchise royalties received for the
rent, lease, license, or use of a trade name, trademark, service mark,
or franchise system, or the right to conduct business activity in a
specific geographic area, are receipts in this state to the extent that
the franchise is located in this state.

METHOD THREE, FOUR, FIVE, OR SIX
INSTRUCTIONS

•	Sale of Intangible Property Receipts from the sale of intangible
property are in this state to the extent the intangible property is
used in Missouri. If the intangible property sold is a contract right,
government license, or similar property that authorizes the holder
to conduct a business activity in a specific geographic area, such
intangible property is used in Missouri if the geographic area
includes all or part of Missouri. If receipts from the intangible
property sale are contingent on the productivity, use, or disposition
of the intangible property, these receipts shall be treated as receipts
from the rental, lease, or license of intangible property. All other
receipt from a sale of intangible property shall be excluded from
both the numerator and the denominator of the receipts factor.

Enter Missouri miles, total miles, and percentage in the Apportionment
Election section on Form MO-MSS, page 1, if applicable. Enter the
resulting mileage percentage on Form MO-NRS, Parts 1 and 2,
Column (c), unless required to complete Form MO-MSS, Part 1, Lines
3 through 10 as discussed below. If the mileage percentage on Form
MO-MSS, Page 1, is inapplicable, attach a detailed explanation of how
apportionment and allocation was performed.
If the mileage percentage on Form MO-MSS, Page 1, is inapplicable
or if there is any income to be allocated (as opposed to
apportioned), the taxpayer must complete Form MO-MSS, Part
1, Lines 3 through 10 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, such as the mileage
percentage (if applicable), 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. Attach a
detailed explanation supporting any allocation (as opposed to
apportionment) of income.

If the state or states to which to assign receipts cannot be determined,
the state or states of assignment must be reasonably approximated and
you must attach a detailed statement explaining the basis of the
reasonable approximation.

PART 1, LINES 4 THROUGH 10 - ALLOCATION
OF NON APPORTIONABLE INCOME
Complete Part 1, Lines 4 through 10 if the taxpayer has nonapportionable
income to allocate.
For this purpose “commercial domicile” means the principal place from
which the trade or business of the taxpayer is directed or managed.
Rents and royalties from real or tangible personal property, capital
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

2

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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