Schedule Mo-Ft - Corporation Franchise Tax Return With Instructions

MO-FT, F

CHEDULE

RANCHISE

CHEDULE

NSTRUCTIONS

Corporations/S Corporations Subject to Franchise Tax

apportionment may only be used with prior approval from the Missouri

Director of Revenue.

All domestic corporations must file a Form MO-1120, Corporation Income

Tax/Corporation Franchise Tax Return or Form MO-1120S, S Corporation

C. ACCOUNTS RECEIVABLE: Include as Missouri assets all notes,

Income/Franchise Tax Return and Schedule MO-FT, Franchise Tax Schedule

accounts, and contracts receivable that are based upon Missouri destina-

and pay any tax due. All foreign corporations engaged in business or quali-

tion sales. Receivables which are not derived from sales must be included

fied to do business in Missouri must likewise file a Form MO-1120 or Form

as Missouri assets if the borrower is located in Missouri.

If accounts

MO-1120S and Schedule MO-FT and pay any tax due. Franchise tax is

receivable from subsidiaries are included in Line 2b, do not include in

based on the total assets of the corporation or the par value of issued and

Line 3a. Receivables must be reported net of allowance for bad debt.

outstanding capital stock, whichever is greater. For capital stock with no par

D. INVENTORIES: Include as Missouri assets the amount of all invento-

value, the value is $5 per share or actual value, whichever is higher.

ries owned by the corporation and used in Missouri. The value of invento-

If a corporation’s assets in Missouri or apportioned to Missouri are

ries should be reported net and at book value.

$1,000,000 or less, the corporation is not required to pay franchise tax.

E. LAND AND FIXED ASSETS: Include as Missouri assets all land and fixed

However, the corporation must still file and state that their assets do not

assets located in Missouri owned by the corporation. The value is the origi-

exceed $1,000,000. Check Box A on Form MO-1120 or Form MO-1120S

nal cost less accumulated depreciation. Include property and equipment

to indicate assets do not exceed $1,000,000 and sign the return.

under construction and leasehold improvements.

To determine the corporation’s tax basis, complete Schedule MO-FT, Lines

F. NEGATIVE ASSETS: Negative assets as shown on the balance sheet

1 through 6.

constitute a liability and are not deductible. Add negative figures back to

Corporations/S Corporations Exempt From Filing

total assets.

Franchise Tax

Administrative Dissolution

Not-for-profit corporations, industrial development authorities, insurance

If a corporation required to file franchise tax, fails to file and/or pay the tax

companies, which pay an annual tax on their premium receipts in this state,

within 90 days from the original due date (or 90 days from the extension

certain electric and telephone corporations, mutual insurance corporations

due date), it shall forfeit its charter (or Certificate of Authority for a foreign

not having shares, savings and loan associations, and regulated investment

corporation) in this state under the provisions of Section 351.525, RSMo.

companies (see Section 147.010.2, RSMo), or banking institutions subject to

the franchise tax imposed by Sections 148.010–148.110, RSMo, are exempt

Miscellaneous Tax Credits

from filing corporation franchise tax.

Corporations filing Schedule MO-FT, Franchise Tax Schedule may be eligi-

New Domestic and Foreign Corporations

ble to take credits against their franchise tax due.

Corporations required to file a franchise tax return will have the return due

NAC—Neighborhood Assistance Credit

SCC—Missouri Business Modernization & Technology (Seed Capital) Credit

by the 15th day of the fourth month after the date of incorporation (date of

IDC—Infrastructure Development Credit

qualification in Missouri if a foreign corporation) whether it be a short

SBI—Small Business Incubator Credit

period or a full 12 months.

ISB—Small Business Investment (Capital) Credit

Time and Place for Filing and Payment of Taxes

LHC—Missouri Low-Income Housing Credit

A corporation which uses a calendar year (from January 1 to December 31)

DRC—Development Reserve Credit

must file and pay taxes on or before April 15 of each year. For tax years

EFC—Export Finance Credit

other than a calendar year, the return and tax payments are due on or

AHC—Affordable Housing Credit

before the 15th day of the fourth month from the beginning of the taxable

RCC—Rebuilding Community Credit

period. A short period return and payment is due on or before the 15th

NEC—New Enterprise Creation Credit

day of the fourth month from the beginning of the short period.

FDA—Family Development Account Credit

CBC—Community Bank Investment Credit

Extension of Time for Filing

RTC—Remediation Credit

Extra time for filing a Form MO-1120 or Form MO-1120S and Schedule

YOC—Youth Opportunities Credit

MO-FT, Franchise Tax Schedule can be obtained by filing an extension

MWC—Mature Worker Childcare Program Credit

request on Form MO-7004, Application for Extension of Time to File. To

TDC—Transportation Development Credit

avoid penalty, at least 90 percent of the tax must be paid by the original due

DTC—Demolition Credit

date.

RCN—Rebuilding Communities and Neighborhood Preservation Credit

For more information or forms to make claims for the credits listed above,

Rate and Basis of Tax

contact the Missouri Department of Economic Development, P.O. Box

Section 147.010, RSMo, requires 1/30 of 1 percent (.000333) of the value of

118, Jefferson City, MO 65102 or access:

the tax basis.

HEC—Higher Education Scholarship Fund Credit—contact the Missouri De-

partment of Higher Education, P.O. Box 6730, Jefferson City, MO 65102.

Balance Sheet

DVC—Shelter for Victims of Domestic Violence Credit—contact the

A copy of the balance sheet and supporting schedules as of the beginning of

Missouri Department of Public Safety, P.O. Box 749, Jefferson City, MO

the corporation’s taxable period must be attached. Only include those

65102-0749 or call (573) 751-4905.

schedules pertaining to asset information. A new corporation should submit

MHC—Maternity Home Credit—contact the Missouri Department of

its balance sheet as of the date of its incorporation/authorization or date in

Social Services, P.O. Box 88, Jefferson City, MO 65103-0088 or call (573)

which operations began in Missouri, when filing the franchise tax schedule.

751-4920.

An explanation must be attached with the report if an alternate accounting

For more information regarding the following credits, contact the Missouri

method is used.

Agricultural and Small Business Development Authority, P.O. Box 630,

Jefferson City, MO 65102 or access:

Definitions

NGC—New Generation Cooperative Incentive Credit

A. INVESTMENTS IN AND ADVANCES TO SUBSIDIARIES:

Submit a

APU—Agriculture Product Utilization Contributor Credit

schedule of investments and advances to all subsidiaries. Indicate the names

DPC—Development Tax Credit

and percentage of ownership in each and the amount of investments or ad-

vances. Ownership of the subsidiary must be over 50 percent to qualify.

Foreign Corporations Acting as General Partners

Subsidiaries must be corporations.

The Limited Partnership Law (Chapter 359) does not require foreign corpora-

tions acting as general partners of limited partnerships to qualify as foreign

B. ALLOCATION AND APPORTIONMENT: A corporation having assets

corporations doing business in Missouri. Nevertheless, these foreign corpo-

both within and without Missouri, apportions its total assets based on the

rations may owe a franchise tax. If they do, they should indicate on their

amount of accounts receivable, inventory, land, and fixed assets allocated

franchise tax schedule that they are a general partner of a limited partner-

to Missouri.

Corporations doing business within and without Missouri

ship.

Calculate the tax liability based upon either the partner’s capital

should submit a schedule of Missouri assets in addition to the balance

account or the corporation’s initial investment. Include percentage propor-

sheet. Extend the apportionment percentage on Schedule MO-FT, Line 4,

tionate share in both total assets (Line 2a) and apportioned assets (Line 3a, b,

to six digits to the right of the decimal point: such as 12.34565 percent is

or c).

.123457 and 1.2345 percent is .012345. NOTE: An alternative method of

Schedule Mo-Ft - Corporation Franchise Tax Return With Instructions - 2003 Page 2

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