Fillable Form Mo-1065 - Partnership Return Of Income

General Information

Authorization

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

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

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

Who Must File Form MO-1065

signature appears on the Form MO-1065 or to any member of his or her firm. If the

Form MO-1065 must be filed, if Federal Form 1065 is required to be filed and the

authorization box is selected “no”, or if no box is selected, the Department of Revenue can

partnership has (1) a partner that is a Missouri resident or (2) any income derived from

only discuss this return with a partner. Refer to

Section 32.057(1),

RSMo.

Missouri sources,

Section 143.581, RSMo.

Items of income, gain, loss, and deduction

Sign the Return

derived from, or connected with, sources within Missouri are those items attributable to (1)

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

the ownership or disposition of any interest in real or tangible personal property in Missouri

of the partnership or one of the members of the joint venture or other enterprise. Any

or (2) a business, trade, profession, or occupation carried on in Missouri. Income from

member or partner, regardless of position, may sign the return.

intangible personal property, to the extent that such property is employed in a business,

Internet

trade, profession, or occupation carried on in Missouri, constitutes income derived from

sources within Missouri.

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

Short Form — Form MO-1065

Americans With Disabilities Act (ADA)

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

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

Form 1065 and all its schedules, including Schedule K-1. Sign Form MO-1065 and mail

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

individual with a speech or hearing impairment may call a voice user at TDD (800)

the return.

735-2966 or fax (573) 526-1881.

If you select “Yes” on question 1 on Form MO-1065, Parts 1 and 2 must be completed. If

you select “Yes” on question 2, Form MO-1065, complete

Form

MO-NRP. Attach a copy

Form MO-1065, Partnership

of Federal Form 1065 and all its schedules, including Schedule K-1. Sign Form MO-1065

Return of Income Instructions

and mail the return.

Part 1 — Missouri Partnership Adjustment

When and Where to File

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

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

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

modifications. Completion of Part 1 will result in the net Missouri partnership adjustment

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

that will be allocated to the partners in Part 2. The partner’s adjustment can only be made

year basis, the partnership return is due on or before April 15. When the due date falls on

from information available from the partnership. It is necessary for each partnership

a Saturday, Sunday, or legal holiday, the return will be considered timely if filed on the next

having modifications to complete Form MO-1065, Parts 1 and 2, and notify each partner of

business day. Please mail the return to: Missouri Department of Revenue, P.O. Box 3000,

the adjustment to which he or she is entitled.

Jefferson City, MO 65105-3000.

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

Period Covered by the Return

Government, such as U.S. savings bonds, U.S. treasury bills, bonds, and notes is

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

exempt from state taxation under the laws of the United States. Attach a detailed list

corresponding Federal Form 1065. Indicate the period covered on the front of the return if

or all Federal Form 1099(s). Partnerships that claim an exclusion for interest from

other than a calendar year.

U.S. obligations must identify the specific securities owned, (e.g., U.S. savings bond).

A general description, such as “interest on U.S. obligation” or “U.S. Government

Rounding on Missouri Returns

securities” is not acceptable. (See

12 CSR 10-2.150

for the taxability of various U.S.

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

Government-related obligations.) A list of exempt U.S. obligations must be provided

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

to each partner by the partnership.

This list will allow the partner to report the

up to the next whole dollar amount. For your convenience, the zeros have already been

modification on his or her Form MO-1040, Individual Income Tax Return.

placed in the cent columns on the returns.

A federally taxed distribution received from a mutual fund investing exclusively

Credits

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

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

exempt (direct) and nonexempt (indirect) federal obligations, the deduction allowed

percentage of ownership and reported on the

Form MO-1040,

Individual Income Tax

will be the distribution received from the mutual fund attributable to the direct U.S.

Return. See Form MO-1040 and

Form MO-TC

instructions for further information. You

Government obligations, as determined by the mutual fund. A copy of the year-end

may also access the information at

statement received from the mutual fund showing the amount of monies received

Nonresident Partners

or the percentage of funds received from direct U.S. Government obligations or a

summary statement received from the mutual fund which clearly identifies the exempt

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

and nonexempt por tions of the U.S. Government obligations interest, must be pro vided

by the Internal Revenue Service (IRS), must file

Form

MO-1NR, Income Tax Withheld

to each partner by the partnership. Note: Failure to attach a copy of the notification

for Nonresident Individual Partners or S Corporation Shareholders and send in copies of

furnished to you that specifically details the amount of the subtraction being claimed as

Form

MO-2NR, Statement of Income Tax Payments for Nonresident Individual Partners

the distributive share will result in the disallowance of the deduction.

or S Corporation Shareholders, if it has non resident individual partners who do not meet

one of the fol low ing exceptions:

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

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

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

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

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

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

method reasonably reflects related expenses for Missouri-exempt income.

assignable federal adjusted gross income from the partnership of less than twelve

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

hundred ($1,200) dollars;

make an adjustment based on the best information made available. If sufficient information

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

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

related to termination or liquidation, and no cash or prop erty was distributed in the

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

current or prior taxable year.

Exempt income x Expense items = Reduction to exempt income

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

Total income

a com pleted

Form

MO-3NR, Partnership or S Corporation Withholding Exemption or

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

Revocation Agree ment.

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

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

production of exempt income. The taxpayer may propose an al ter na tive method provided

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

that it properly reflects the amount of related expenses.

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

Part 2 — Allocation of Missouri Partnership

contacting: Missouri Department of Revenue, Taxation Division, P.O. Box 3022, Jefferson

City, MO 65105-3022, calling (800) 877-6881 (TDD (800) 735-2966), or visiting the

Adjustment to Partners

Department’s website at

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

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

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

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

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

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

and related modifications. Attach a detailed explanation (including extracts from the

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

partnership agreement) if the Column 5 amounts are not based upon the same single

Form MO-1040. Complete instructions can be found on the Department’s website at

percentage allocation indicated on Federal Form 1065, Schedule K-1. The explanation

must include the non tax purposes and effects of the special allocation method.

Form Mo-1065 - Partnership Return Of Income - 2013 Page 2

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