PURPOSE: This rule sets out the formula that
will be used to determine the federal income tax deduction of a member of the
affiliated group for each taxable year an affiliated group of corporations
filed a federal consolidated income tax return and did not file a Missouri
consolidated income tax return.
PUBLISHER'S NOTE: The secretary of state has
determined that publication of the entire text of the material that is
incorporated by reference as a portion of this rule would be unduly cumbersome
or expensive. This material as incorporated by reference in this rule shall be
maintained by the agency at its headquarters and shall be made available to the
public for inspection and copying at no more than the actual cost of
reproduction. This note applies only to the reference material. The entire text
of the rule is printed here.
(1) For each taxable year an affiliated group
of corporations filing a federal consolidated income tax return does not file a
Missouri consolidated income tax return, the federal income tax deduction of a
member of the affiliated group shall be determined by applying the formula set
forth as follows:
(A) The group's consolidated
federal income tax liability under Chapter 1 of the Internal Revenue
Code (IRC) for the same taxable year for which the Missouri return is
being filed after reduction for all credits on the return, except for the
credit for the overpayment of any federal tax and the credits allowed by the
IRC of 1986 by Section 31 (tax withheld on wages), Section 27 (taxes of foreign
countries and possessions of the United States) and Section 34 (certain uses of
gasoline and special fuels) shall be multiplied by a fraction, the numerator of
which shall be the federal taxable income of the member in question and the
denominator of which shall be the sum of the federal taxable incomes of each
member of the consolidated group with a positive federal taxable income;
and
(B) The product computed in
subsection (1)(A) shall be multiplied by the apportionment factor of the member
in question calculated under section
143.455, RSMo, or such other
apportionment factor as is computed under the apportionment method applicable
to the member in question.
Notes
12 CSR
10-2.090
AUTHORITY:
sections 143.431 and
143.961, RSMo 2016.* Original
rule filed Feb. 24, 1984, effective June 11, 1984. Amended: Filed Aug. 17,
1984, effective Dec. 13, 1984. Amended: Filed Nov. 9, 2023, effective May 30,
2024.
AUTHORITY: section
143.961, RSMo 1986.* Original
rule filed Feb. 24, 1984, effective June 11, 1984. Amended: Filed Aug. 17,
1984, effective Dec. 13, 1984.
Amended by
Missouri
Register April 15, 2024/volume 49, Number 08, effective
5/31/2024.
