Form Mo-1065 - Partnership Return Of Income

GENERAL INFORMATION

Authorization

Check the “yes” box for authorization of release of confidential information for the Director of

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

Revenue or delegate to discuss this return and attachments with the preparer whose signature

appears on the Form MO‑1065 or to any member of his or her firm. If the authorization box is

Who Must File Form MO‑1065

checked “no”, or if no box is checked, the Department of Revenue can only discuss this return

Form MO‑1065 must be filed, if Federal Form 1065 is required to be filed and the partnership has

with a partner. Refer to Section 32.057(1), RSMo.

(1) a partner that is a Missouri resident or (2) any income derived from Missouri sources, Section

Sign the Return

143.581, RSMo. Items of income, gain, loss, and deduction derived from, or connected with,

Form MO‑1065, Partnership Return of Income, must be signed by one of the partners of the part‑

sources within Missouri are those items attributable to (1) the ownership or disposition of any

nership or one of the members of the joint venture or other enterprise. Any member or partner,

interest in real or tangible personal property in Missouri or (2) a business, trade, profession, or

regardless of position, may sign the return.

occupation carried on in Missouri. Income from intangible personal property, to the extent that

such property is employed in a business, trade, profession, or occupation carried on in Missouri,

Internet

constitutes income derived from sources within Missouri.

To obtain information and Missouri tax forms, access our web site at:

Americans With Disabilities Act (ADA)

Short Form — Form MO‑1065

The state of Missouri offers a Dual Party Relay Service (DPRS) for speech or hearing impaired

If you check “No” on both questions 1 and 2 on Form MO‑1065, attach a copy of Federal Form

individuals in accordance with the Americans with Disabilities Act (ADA). An individual with

1065 and all its schedules, including Schedule K‑1. Sign Form MO‑1065 and mail the return.

a speech or hearing impairment may call a voice user at TDD (800) 735‑2966 or fax (573)

If you check “Yes” on question 1 on Form MO‑1065, Parts 1 and 2 must be completed. If “Yes” was

526‑1881.

checked on question 2, Form MO‑1065, complete Form MO‑NRP. Attach a copy of Federal Form

mo-1065, P

1065 and all its schedules, including Schedule K‑1. Sign Form MO‑1065 and mail the return.

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artnershiP

When and Where to File

eturn oF

ncome

nstructions

A Missouri partnership return should be completed after the federal partnership return is

completed. The Missouri partnership return is due no later than the 15th day of the 4th month

fol low ing the close of the taxable year. For partnerships operating on a calendar year basis, the

Part 1 —

Missouri Partnership Adjustment

partnership return is due on or before April 15. When the due date falls on a Saturday, Sunday,

The addition and subtraction items listed on Part 1 are necessary Missouri modifications.

or legal holiday, the return will be considered timely if filed on the next business day. Please mail

Completion of Part 1 will result in the net Missouri partnership adjustment that will be allocated

the return to: Missouri Department of Revenue, P.O. Box 3000, Jefferson City, MO 65105‑3000.

to the partners in Part 2. The partner’s adjustment can only be made from information available

Period Covered by the Return

from the partnership. It is necessary for each partnership having modifications to complete Form

MO‑1065, Parts 1 and 2, and notify each partner of the adjustment to which he or she is entitled.

Form MO‑1065, Partnership Return of Income, must cover the same period as the corre‑

sponding Federal Form 1065. Indicate the period covered on the front of the return if other than

Interest on Exempt Federal Obligations — Interest from direct obligations of the U.S. Govern‑

a calendar year.

ment, such as U.S. savings bonds, U.S. treasury bills, bonds, and notes is exempt from state

taxation under the laws of the United States. Attach a detailed list or all Federal Form 1099(s).

Rounding on Missouri Returns

Partnerships that claim an exclusion for interest from U.S. obligations must identify the

You must round all cents to the nearest whole dollar on your return. For cents .01 through .49,

specific securities owned, (e.g., U.S. savings bond). A general description, such as “interest

round down to the previous whole dollar amount. For cents .50 through .99, round up to the

on U.S. obligation” or “U.S. Government securities” is not acceptable. (See 12 CSR 10‑2.150

next whole dollar amount. For your convenience, the zeros have already been placed in the cent

for the taxability of various U.S. Government‑related obligations.) A list of exempt U.S. obliga‑

columns on the returns.

tions must be provided to each partner by the partnership. This list will allow the partner to

report the modification on his or her Form MO‑1040, Individual Income Tax Return.

Credits

A federally taxed distribution received from a mutual fund investing exclusively in direct

Partners may be entitled to tax credits. These credits must be allocated to the partners’

U.S. Government obligations is exempt. If the mutual fund invests in both exempt (direct)

percentage of ownership and reported on the Form MO‑1040, Individual Income Tax Return. See

and nonexempt (indirect) federal obligations, the deduction allowed will be the distribution

Form MO‑1040 and Form MO‑TC instructions for further information. You may also access the

received from the mutual fund attributable to the direct U.S. Government obligations, as

information at taxcredit/.

determined by the mutual fund. A copy of the year‑end statement received from the mutual

Nonresident Partners

fund showing the amount of monies received or the percentage of funds received from direct

U.S. Government obligations or a summary statement received from the mutual fund which

Every partnership, including limited liability companies that are treated as a partnership by the

clearly identifies the exempt and nonexempt por tions of the U.S. Government obligations

Internal Revenue Service (IRS), must file Form MO‑1NR, Income Tax Withheld for Nonresi‑

interest, must be pro vided to each partner by the partnership. Note: Failure to attach a copy

dent Individual Partners or S Corporation Shareholders and send in copies of Form MO‑2NR,

of the notification furnished to you that specifically details the amount of the subtraction

Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Share‑

being claimed as the distributive share will result in the disallowance of the deduction.

holders, if it has non resident individual partners who do not meet one of the fol low ing exceptions:

• the nonresident partner, not otherwise required to file a return, elects to have the Missouri

In arriving at the amount of related expenses, the taxpayer may use actual expenses or a

income tax due paid as part of the partnership’s composite return;

reasonable estimate. In general, the taxpayer should use the same or similar method to that

• the nonresident partner, not otherwise required to file a return, had Missouri assignable federal

used to compute related expenses for federal income tax purposes, provided that the method

adjusted gross income from the partnership of less than twelve hundred ($1,200) dollars;

reasonably reflects related expenses for Missouri‑exempt income.

• the partnership is liquidated or terminated, income was generated by a transaction related

If a taxpayer fails to compute reasonable related expenses, the Director of Revenue will make

to termination on liquidation, and no cash or prop erty was distributed in the current or prior

an adjustment based on the best information made available. If sufficient information is not

taxable year.

made available or if the taxpayer’s records do not provide sufficient information, the Director of

A nonresident partner can re quest the partnership be exempt from withholding by filing

Revenue will use the fol low ing formula to compute related expenses:

a com pleted Form MO‑3NR, Partnership or S Corporation Withholding Exemption or Revocation

Exempt income x Expense items = Reduction to exempt income

Agree ment.

Total income

Form MO‑1NR must be filed by the due date or extended due date for filing the partnership

The principal expense item in this formula is interest expense; however, the Direc tor of Revenue

income tax return. Form MO‑3NR must be filed by the due date for filing the partnership income

may include other expense items because of the direct re la tionship to the production of exempt

tax return without regard to an extension of time to file. Forms may be obtained by contacting:

income. The taxpayer may propose an al ter na tive method provided that it properly reflects the

Missouri Department of Revenue, Taxation Division, P.O. Box 3022, Jefferson City, MO

amount of related expenses.

65105‑3022, calling (800) 877‑6881 (TDD (800) 735‑2966), or visiting the Department’s web

site at .

Part 2 — Allocation of Missouri Partnership

If you have technical questions concerning the filing of Form MO‑1NR and Form MO‑3NR, you

Adjustment to Partners

may contact the Taxation Division at (573) 751‑1467.

Part 2 indicates the portion of the Missouri adjustment from Part 1 that is allocated to each

Partnerships filing a composite return on behalf of their nonresident partners should mark

partner. Column 4 and the instructions for Column 5 are based upon the usual situation that a

the composite return box on Page 1 of the return. The composite return is filed on the Form

single general profit and loss sharing percentage applies to all partnership items and related

MO‑1040. Complete instructions can be found on the Department’s web site at

modifications. Attach a detailed explanation (including extracts from the partnership agreement)

forms/Composite_Return_2012.pdf.

if the Column 5 amounts are not based upon the same single percentage allocation indicated

on Federal Form 1065, Schedule K‑1. The explanation must include the nontax purposes and

effects of the special allocation method.

DOR-1065 (11-2012)

Form Mo-1065 - Partnership Return Of Income - 2012 Page 2

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