MO-MS: Corporation Allocation and Apportionment of Income Schedule and Instructions (2024)

Who files this form

Complete the 2024 Form MO-MS if your corporation's taxable income is not entirely from Missouri sources. You must complete it even if Missouri taxable corporation income is zero.

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

To apportion and allocate income, the corporation must have business income taxable by Missouri and at least one other state. Corporations that do not qualify for a special method must use Method Two A, Receipts Factor Apportionment.

What you'll need

Have these forms and details available:

• Form MO-1120, including taxable income from Line 8. Attach Form MO-MS to this return.
• Corporation information, including the corporation name, taxable-year beginning and ending dates, Missouri tax identification number, charter number, and federal employer identification number.
• Missouri and total receipts for Method Two A, or Missouri and total mileage for Methods Three through Six, if applicable.
• Partnership factors and ownership percentages, if the corporation owns part of a partnership.

Depending on your situation, also include:

• A completed, detailed Form MO-NAI for nonapportionable income to be considered.
• The net operating loss amount from Federal Form 1120, Line 29a, and a detailed schedule showing the loss-apportionment ratio calculation.
• Detailed explanations supporting special methods or income allocations, as directed.
• For Method Seven, an approval letter or an explanation identifying the authorizing Missouri regulation and why the corporation qualifies.
• A detailed statement explaining any reasonable approximation used when the state assignment of receipts cannot be determined.

How to file

1. Choose the appropriate apportionment method and enter its number on Form MO-1120, Line 9 Method.
2. For Method Two A, complete Part 1, Lines 1 through 3. Divide Missouri receipts by receipts everywhere to calculate the receipts factor.
3. Stop after Line 3 unless you have nonapportionable income, a net operating loss on Federal Form 1120, Line 29a, or both. If you stop there, enter Line 3 on Form MO-1120, Line 9 Percent. Otherwise, complete Lines 4 through 12 and transfer the Line 12 percentage.
4. For a special method, follow that method's instructions and attach the required explanations.
5. Attach Form MO-MS to Form MO-1120 and mail to the Missouri Department of Revenue at the applicable address:

Balance due:

P.O. Box 3365

Jefferson City, MO 65105-3365

Refund or no amount due:

P.O. Box 700

Jefferson City, MO 65105-0700

Common mistakes

• Choosing more than one method or trying to change the election. Choose only the appropriate method. Once elected, it cannot be changed for the same taxable period.
• Omitting Form MO-NAI. Nonapportionable income is considered only when a detailed Form MO-NAI is completed and attached.
• Reporting income already subtracted from the return. Report nonapportionable income only to the extent it is included in Form MO-1120, Line 8. Do not report amounts subtracted on Form MO-1120, Line 5.
• Including excluded receipts in the receipts factor. Receipts from hedging transactions and the listed dispositions of cash or securities must not be included in either the Missouri or total receipts amounts.
• Using an excessive net operating loss ratio. The loss-apportionment ratio must not exceed 100%, and a detailed calculation schedule must be attached.
• Using Method Seven without authorization. It requires prior approval from the Missouri Director of Revenue or an authorizing Missouri industry-specific regulation.

Questions people ask

Do I need Form MO-MS if Missouri taxable income is zero?

Yes, if the corporation's taxable income is not entirely from Missouri sources. The instructions require the form even when Missouri taxable corporation income is zero.

How do I include a partnership interest?

Multiply the partnership's factors by the corporation's ownership percentage, then add those amounts to the corporation's apportionment factors.

Are interest and dividends automatically nonapportionable income?

No. Income labels do not determine the classification. Interest and dividends are presumed to be apportionable unless the corporation clearly demonstrates on Form MO-NAI that they are nonapportionable.

Which method must a broadcaster use?

Corporations defined as broadcasters under 12 CSR 10-2.260 must choose Method Seven. They must attach a detailed explanation identifying the regulation and explaining why they qualify, along with the required allocation and apportionment details.

Official sources

• https://dor.mo.gov/forms/MO-MS_2024.pdf