Missouri S Corporation Income Tax Return and Franchise Tax Return Instructions

S Corporation Income Tax Return and Franchise Tax Return Instructions
MO-1120S Insturctions
2023

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.

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.

Convenience

•

Security

•

Benefits of Electronic Filing
Proof of Filing • Direct Deposit of Refunds

FORM MO-1120S
GENERAL INFORMATION

•

Greater Accuracy

NONRESIDENT SHAREHOLDERS
Every S-Corporation must file Form MO-1NR, Income Tax Withheld
for Non­resi­dent Individual Partners or S-Corporation Shareholders
and send in copies of Form MO-2NR, Statement of Income Tax
Payments for Nonresident Individual Partners or S-Corporation
Shareholders if they have nonresident individual shareholders who
do not meet one of the following exceptions:

This information is for guidance only and does not state the complete law.

FILING REQUIREMENTS FOR FORM MO-1120S
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
Missouri resident; or 2) any income derived from Missouri sources.
Attach a copy of Federal Form 1120S and all Schedule K-1(s).
For further information, see Section 143.471, RSMo, and 12 CSR
10-2.190.

•	The nonresident shareholder, not otherwise required to file a
return, elects to have the Missouri income tax due paid as part
of the S-Corporation’s composite return;
•	 The nonresident shareholder, not otherwise required to file a
re­turn, 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, income was
generated by a transaction related to termination or liquidation,
and no cash or property was distributed in the current or prior
taxable year.

Every S-Corporation must register with the Department of Revenue
to receive a Missouri Tax Identification Num­ber. To register visit our
website at dor.mo.gov/register-business/, call Business Registration
at (573) 751-5860, or contact: Missouri Department of Revenue,
Taxation Division, P.O. Box 3300, Jefferson City, MO 65105-3300.

Pursuant to Section 143.411, RSMo, a nonresident shareholder can
request the S-Corporation be exempt from withholding by filing a
completed Form MO-3NR, Partnership or S-Corporation
With­holding Exemption or Revocation Agreement.

WHEN TO FILE
The Missouri S-Corporation return is due on or before the 15th day of
the fourth month following the end of the tax year. Example: Taxable
period of January 1, 2023, to December 31, 2023 is due April 15, 2024.

Form MO-1NR must be filed by the due date or extended due date
for filing the S-Corporation income tax return. Form MO-3NR must be
filed by the due date for filing the S-Corporation income tax return
without regard to an extension of time to file.

Note: When the due date falls on a Saturday, Sunday, or legal holiday,
the return will be considered timely filed on the next business day.

Forms may be obtained online at our website at dor.mo.gov/forms/.
If you have technical questions concerning the filing of Form
MO-1NR and Form MO-3NR or are filing a composite return and you
have questions, contact the Taxation Division at (573) 751-1467 or by
e-mail at [email protected].

Mail your return to: Missouri Department of Revenue, P.O. Box 336,
Jefferson City, MO 65105-0336.

PERIOD COVERED BY THE RETURN

S-CORPORATION ADJUSTMENTS

Form MO-1120S must cover the same period as the corresponding
Federal Form 1120S. Indicate the period covered on the front of the return.

Each S-Corporation, having modifications, must complete the Form
MO-1120S, Pages 1 and 2, Lines 1–15 and Page 3, the Allocation of
Missouri S-Corporation Adjustment to Shareholders, and notify each
shareholder of the adjustments to which they are entitled. Missouri
income tax law provides adjustments to a shareholder’s share of the
S-Corporation income included in their individual federal income
tax return in order to properly determine their individual Missouri
adjusted gross income reported on Form MO-1040. A copy of the
Form MO-1120S should be provided to each shareholder.

REPORTABLE TRANSACTION DISCLOSURE
STATEMENT FEDERAL FORM 8886
Every corporation must include with the Missouri return a copy of each
Federal Form 8886 that was filed with the IRS as part of its federal return.

EXTENSION OF TIME TO FILE
If an S-Corporation has been granted an extension of time to file its
federal income tax return, the time for filing the Missouri corporation
income tax return is automatically extended. Select the box at the top
of the form indicating you have an approved federal extension and
attach a copy of the Federal Extension Form 7004 to the MO-1120S.
(Failure to check this box may result in disallowing the extension.)

CONTACT INFORMATION
If you have questions, you may contact Corporate Tax at
(573) 751-4541 or by e-mail at [email protected].

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Additions

equal or exceed $500. If less than $500, enter zero. Refer to Section
143.121.3(1), RSMo, for further explanation.
In arriving at the amount of related expenses, the taxpayer may use
actual expenses or a reasonable estimate. In general, the taxpayer
should use the same or similar method used to compute related
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
DEDUCTED IN DETERMINING FEDERAL TAXABLE INCOME
Line 1a: Enter the amount of Missouri corporation income tax deducted
on Federal Form 1120S (Section 143.141(1), RSMo), and the amount of
corporation income taxes from other states, their subdivisions and the
District of Columbia deducted on Federal Form 1120S (12 CSR 10-2.160
and Sec­tion 143.141(2), RSMo).

If a taxpayer fails to compute reasonable related expenses, the
Director of Revenue will make adjustments based on the information
made available. If sufficient information is not made available or if the
taxpayer’s records do not provide sufficient information, the Director of
Revenue will use the following formula to compute related expenses:

Include on Line 1a the income tax (however named) of the following
states taken as a deduction on the federal Form 1120S:

Alabama
Alaska
Arizona
Arkansas
California

(income and
franchise tax)

Colorado
Delaware
Florida
Georgia (excludes

net worth tax)

Hawaii
Idaho

Illinois

(includes replacement tax)

Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Michigan
Minnesota
Mississippi

Exempt Income
Total Income

(excludes Corporate
Missouri
License Fee)
Montana
South Dakota
Nebraska
Tennessee
New Hampshire (excise tax)
(Business Profits Tax)
Texas
New Mexico
Utah
North Carolina
Vermont
North Dakota
Virginia
Oklahoma
West Virginia
Oregon
Wisconsin
Pennsylvania

X

Expense
Items

=

Reduction to
Exempt Income

The principal expense item in this formula is interest expense; however,
the Director of Revenue may include other expense items because
of their direct relationship to the production of exempt income. The
taxpayer may propose an alternative method provided that it properly
reflects the amount of related expenses.

LINEon
7 -Line
AMOUNT
OFamount
ANY STATE
INCOME
TAX6b.
Enter
6 the net
of Line
6a less Line
REFUND INCLUDED IN FEDERAL TAXABLE INCOME

Rhode Island
South Carolina

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
143.121.3(5), RSMo).

Line 1b: Enter the amount of Kansas City and St. Louis earnings tax.

LINE 2 - STATE AND LOCAL BOND INTEREST
(EXCEPT MISSOURI)

LINE 8 - FEDERALLY TAXABLE MISSOURI EXEMPT
OBLIGATION

Line 2a: Enter all interest from state and local bonds, excluding
Missouri (Section 143.121.2(2), RSMo).
Line 2b: Enter the amount of expenses associated with the state and
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
explanation.

The amount of any bond issued by the Missouri Higher Education Loan
Authority (MOHELA) including interest or proceeds resulting from the
sale of the bond is exempt from Missouri tax. If the amount is included
in federal taxable income, the amount can be sub­tracted from federal
taxable income for Missouri tax purposes pursuant to Section 173.440,
RSMo. Enter the exempt amount on Line 8 and provide documentation
with the return.

LINE 3 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT
(FROM FORM MO-1041 AND FORM MO-1065)

LINE 9 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT (FROM
FORM MO-1041 AND FORM MO-1065), BUILD AMERICA
AND RECOVERY ZONE BOND INTEREST, MISSOURI
PUBLIC-PRIVATE TRANSPORTATION ACT, OTHER

Enter the share of fiduciary and partnership adjustment as shown
on Form MO-1041, Page 2, Part 1, Line 19, and Form MO-1065, Line
11 (Section 143.121.4 and 5, RSMo). A copy of Forms MO-1041 and
MO-1065 must be attached.

Fiduciary and Partnership Adjustment - Enter the share of fiduciary and
partnership adjustment as shown on Form MO-1041, Page 2, Part 1, Line
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.

LINE 4 - DONATIONS CLAIMED FOR THE FOOD PANTRY
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
108.1020,RSMo).

Enter the total amount of donations claimed for the Food Pantry Tax
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
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
Article XIV of Missouri’s Constitution. The Missouri deduction wll be
the difference between the profit/loss as calculated on the hedule(s)
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 your Missouri Form MO-1120S to claim the deduction.

Enter the total of Line 1 through Line 4.

Subtractions
LINE 6 - INTEREST AND DIVIDENDS FROM EXEMPT
FEDERAL OBLIGATIONS (MUST ATTACH SCHEDULE)
Line 6a: Enter the amount of interest and dividends from federal
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),
RSMo). A detailed list showing the amount of monies received or the
percentage of funds received from direct U.S. Government obligations
must be attached to Form MO-1120S.
Line 6b: Enter the amount of interest on indebtedness and
expenses associated with the production of interest and dividend
income on federal obligations shown on Line 6a. The expenses must

Federal Broadband Grant Income Tax Subtraction - Taxpayers can now
receive a subtraction from their federal adjusted gross income or
federal taxable income of the federal grant money they receive for the
purpose of providing or expanding broadband internet to the areas of
the state that are deemed to be lacking broadband internet access. This
subtraction only applies to grant funds received on or after August 28,
2023. You must submit a statement, and all federal schedule(s) with your

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FORM MO-MSS S-CORPORATION
ALLOCATION AND APPORTIONMENT
FORM

Missouri Form MO-1120S to claim this deduction (Section 143.121, RSMo).

LINE 10 - MISSOURI DEPRECIATION BASIS ADJUSTMENT
Enter the difference between the federal and Missouri depreciation
calculated on assets purchased between July 1, 2002 and June 30,
2003. See Section 143.121.3(7), RSMo for more information.

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.

LINE 11 - DEPRECIATION RECOVERY ON
QUALIFIED PROPERTY THAT IS SOLD
Enter any depreciation that was previously not recovered when an
asset is sold or otherwise disposed of and federal bonus depreciation
was previously taken. (Section 143.121.3(9), RSMo) This can only apply
if the property was purchased between July 1, 2002, and June 30,
2003.

LINE 12 - TOTAL

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.

Enter the total of Line 6 through Line 11.

LINE 13 - MO S-CORPORATION ADJUSTMENT NET ADDITION

APPORTIONMENT ELECTION

If Line 5 is greater than Line 12, enter the difference on Line 13 as a positive
number. If Line 5 is less than Line 12, skip Line 13 and complete Line 14.

Missouri statutes provide a number of methods for determining
Missouri taxable income from Missouri sources.

LINE 14 - MO S-CORPORATION ADJUSTMENT NET SUBTRACTION

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.

If Line 12 is greater than Line 5, subtract Line 5 from Line 12. Enter as a
positive number on Line 14.

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
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.

Enter the amount of income your corporation received as payment
from any program which provides compensation to agricultural
producers who have suffered a loss as the result of a disaster or
emergency (Section 143.121.3(10), RSMo). You must attach a copy
of the Form 1099 indicating your agricultural payment. For more
information, visit dor.mo.gov.

AUTHORIZATION
Check the “yes” box for authorization of release of confidential
information. This authorizes the Missouri Director of Revenue or
delegate to discuss this return and attachments with the preparer
whose signature appears on the Form MO-1120S or with any member
of their firm or if internally prepared, any member of the internal staff.
If the authorization box is checked “no,” or if no box is checked, the
Missouri Director of Revenue or delegate can only discuss this return
with an officer of the corporation. Refer to Section 32.057, RSMo.

METHOD TWO A RECEIPTS FACTOR
APPORTIONMENT INSTRUCTIONS
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.

SIGNATURE
The Department of Revenue requires the return to be signed by an
officer of the corporation. Enter the date signed, the title of the officer
whose signature is affixed, and the corporation’s tele­phone number.
Lines are provided for the preparer’s signature (other than taxpayer),
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
tax return preparer prepared this return and failed to sign the return or
enter the preparer’s tax identification number on the return, the paid tax
return preparer may be penalized under Section 143.980, RSMo.

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,

ASSEMBLE YOUR RETURN
Assemble any forms and schedules in order behind Form MO-1120S.
If you have supporting documentation, arrange in the same order of
forms and schedules they support and attach them last. Do not attach
items unless required to do so.

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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.

•	If the ratio above cannot reasonably be determined, then the ratio of
one to the number of states in which the ultimate beneficiary operates.
•	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.

TAXABLE IN ANOTHER STATE
A taxpayer is “taxable in another state” if it meets either one of two tests:
(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
(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.

•	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.

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:
(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.

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.

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.

PART 1, LINES 4 THROUGH 10 - ALLOCATION
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
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:

•	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.

(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
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.

•	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.
•	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.

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(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

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commercial domicile is in this state.

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.

(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.

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.

METHOD THREE, FOUR, FIVE, OR SIX
INSTRUCTIONS
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.

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.

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,

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 sup­porting 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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