Fill in a Valid Missouri Mo 1Nr Form Open Document Now

Fill in a Valid Missouri Mo 1Nr Form

The Missouri MO-1NR form serves as an income tax payment document for nonresident individual partners or S corporation shareholders, as mandated by the Missouri Department of Revenue. This document is crucial for partnerships, S corporations, and limited liability companies treated as partnerships, which are required to withhold Missouri income tax for nonresident individuals under specific stipulations. Its effective implementation ensures compliance with state tax obligations and aids in the accurate reporting of withheld incomes. To make filing this form easier, click the button below.

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The intricacies of tax compliance for nonresident individuals who engage in business through partnerships or S corporations in Missouri are addressed through specific forms mandated by the Missouri Department of Revenue. Primarily, the 2012 FORM MO-1NR, designed for Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders, is a critical document that underscores Missouri's tax structure's regard for nonresident income. This form, alongside the MO-2NR, caters to reporting and withholding income tax on behalf of nonresident members, ensuring that the Missouri Department of Revenue captures the tax liabilities accrued from incomes generated within the state's jurisdiction. These obligations are not just limited to traditional partnerships and S corporations but extend to Limited Liability Companies treated as partnerships for tax purposes. The MO-1NR form outlines various conditions under which withholding is required, as well as exceptions, such as when nonresident individuals elect to have their taxes paid through a composite return or when their Missouri income is beneath the specified threshold. Additionally, this framework details the procedural aspects, from the required attachments, such as copies of the MO-2NR forms issued to nonresident individuals, to the specific check or electronic payment methods directed to the Missouri Department of Revenue. This system underscores the dual objectives of facilitating state revenue collection and ensuring nonresident taxpayers comply with Missouri’s income tax laws, reflecting a nuanced understanding of how state-level taxation intersects with the broader fabric of national and international business operations.

Example - Missouri Mo 1Nr Form

MISSOURI DEPARTMENT OF REVENUE

INCOME TAX PAYMENTS FOR NONRESIDENT INDIVIDUAL PARTNERS OR S CORPORATION SHAREHOLDERS

2012

FORM

MO-1NR

DLN

FOR CALENDAR YEAR 2012 OR FISCAL YEAR BEGINNING

,2012 AND ENDING

, 2013

NAME OF PARTNERSHIP OR S CORPORATION

MISSOURI TAX ID NUMBER

FEDERAL ID NUMBER

ADDRESS

CITY OR TOWN

 

 

STATE

ZIP CODE

 

 

 

 

 

 

__ __ __ __ __

Check box for type of entity filing this return:

Partnership

S Corporation

 

 

 

 

Limited Liability Company (Treated as a Partnership)

 

 

Check box if filing under extension (see instructions)

 

 

 

 

1.

Number of Forms MO‑2NR attached

. . . . . . . . . . . . . .

. . . . . . . . . . . . . .

. . . . . . . . . . . . . . . .

1

 

2.

Total Missouri income tax withheld (total of all Forms MO‑2NR). .

. . . . . . . . . . . . . .

. . . . . . . . . . . . . . .

2

00

I have direct control, supervision, or responsibility for filing this report and payment of the tax due. Under penalties of perjury, I declare that it is a true, accurate, and correct report.

SIGNATURE

TITLE

TELEPHONE NUMBER

DATE (MM/DD/YYYY)

(_ _ _) _ _ _ ‑ _ _ _ _ _ _ / _ _ / _ _ _ _

Attach a copy of each Form MO‑2NR issued. Make your check payable to: Missouri Department of Revenue. Mail to: Missouri Department of Revenue, P.O. Box 555, Jefferson City, MO 65105‑0555. If you pay by check, you authorize the Department of Revenue to process the check electronically. Any check returned unpaid may be presented again electronically.

MO 860‑2854 (12‑2012)

Instructions for Form MO-1NR and Form MO-2NR

Who Must File

Form MO‑1NR, Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders and Form MO‑2NR, Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders are filed to report Missouri withholding for nonresident partners and shareholders.

Partnerships and S corporations are required to withhold Missouri income tax for nonresident individual partners or shareholders who do not meet one of the exceptions below. Limited liability companies that are treated as a partnership by the IRS are also considered a partner‑ ship for Missouri tax purposes.

A partnership or S corporation is not required to deduct and withhold Missouri income tax for a nonresident partner or shareholder if:

The nonresident partner or S corporation shareholder, not otherwise required to file a return, elects to have the Missouri income tax paid as part of the partnership’s or S corporation’s composite return;

The nonresident partner or S corporation shareholder, not otherwise required to file a return, had Missouri assignable federal adjusted gross income from the partnership or S corporation of less than twelve hundred ($1,200) dollars;

The partnership or S corporation is liquidated or terminated, income was generated by a transaction related to termination or liquidation, and no cash or property was distributed in the current or prior taxable year.

The nonresident partner or S corporation shareholder has provided the partnership or S corporation with a completed Form MO‑3NR, Partnership or S Corporation Withholding Exemption Agreement, and such agreement was filed with the Missouri Department of Revenue (Department) on or before the due date of the partnership or S corporation return, determined without regard to a request for an extension of time to file such return.

Due Date

Form MO‑1NR, Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders, must be filed by the due

date or extended due date for filing the partnership or S corporation income tax return. An extension of time for filing the partnership or S corporation return automatically extends the time to file the Form MO‑1NR. If you are filing under an extension, please indicate on the front of the form.

Note: Form MO‑1NR, payment and Copy C of the Form MO‑2NR must be filed with the Department either before or at the same time the partnership or S corporation provides Copy A of the Form MO‑2NR to the nonresident partner or S corporation shareholder. Failure to do so may result in the Department disallowing the withholding claimed by the nonresident partner or S corporation shareholder.

Determining How Much to Withhold

The amount of tax to be withheld is 6 percent (.06) of the partner’s or shareholder’s share of Missouri source distributive income, or the tax withheld may be determined based on Missouri withholding tables if the partner or shareholder submits a Form MO W‑4, Missouri Withholding Allowance Certificate. Missouri source distributive income consists of those items on an individual’s K‑1 schedule that are used to arrive at federal adjusted gross income as apportioned or allocated to Missouri. The Missouri source distributive income of partnerships is the net total of the amounts listed on Lines 1 through 11 of Form MO‑NRP, Nonresident Partnership Form. The Missouri source distributive income of S corporations is the net total of the amounts listed on Lines 1 through 10 of Form MO‑NRS, S Corporation Nonresident Form.

Line-by-line instructions for Form MO-1NR, Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders

Year Ending

If not filing on a calendar year basis, enter the beginning and the ending date of the tax year.

Missouri Tax Identification Number

If you have a Missouri tax identification number enter it here.

Federal Identification Number

Enter your federal identification number.

MO‑1NR (11‑2012)

Type of Entity Filing This Return

Check the box indicating whether you are a partnership, S corporation, or limited liability company treated as a partnership.

Filing Under Extension

Check this box if you are filing under an extension. You may file this return under an extension only if you are filing your Form MO‑1065, Partnership Return of Income, or Form MO‑1120S, S Corporation Income Tax Return, under an extension.

Line 1

Number of Forms MO‑2NR, Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders Enclosed — Fill in the total number of Forms MO‑2NR issued to nonresident partners or shareholders. You are required to include a copy of each Form MO‑2NR issued.

Line 2

Missouri Income Tax Withheld — Enter the total amount of Missouri income tax you withheld from the nonresident partners or shareholders. This is the amount to be remitted.

Make your check payable to: Missouri Department of Revenue

Mail to: Missouri Department of Revenue P.O. Box 555

Jefferson City, MO 65105‑0555

Line-by-line instructions for Form MO-2NR, Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders.

Only individual nonresident partners or S corporation shareholders are subject to withholding. Do not withhold for any partners or S corporation shareholders who are partnerships, corporations, trusts, or estates. Grantor trusts that file or can file in accordance with IRC Reg. Section 1.671.4(b) are considered individuals. Do not withhold for any partners or shareholders who include their Missouri income on a composite return.

Line 4

Type of Entity — Check the appropriate box to indicate whether you are filing for a partnership, an S corporation, or limited liability company treated as a partnership.

Line 7

Income Subject to Withholding — Enter the partner’s or shareholder’s share of Missouri source distributive income.

Line 8

Missouri Income Tax Withheld — Enter the amount withheld for the non‑resident partner or shareholder. The amount withheld is 6 percent (.06) of the amount on Line 7 or as determined by the Missouri withholding tax tables.

Form MO‑2NR is to be given to each partner or shareholder who is subject to withholding. Issue Form MO‑2NR even if no tax is withheld because of an exemption certificate. Do not issue a Form MO‑2NR to a partner or shareholder who includes their Missouri income on a composite return.

Attach copies of each Form MO‑2NR to the Form MO‑1NR, Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders.

Each nonresident partner or shareholder not included on a composite return should claim the payment made on Line 34 of his or her Form MO‑1040, Missouri Individual Income Tax Return.

NOTE: If you have technical questions regarding the withholding or reporting requirements, contact the Taxation Division at (573) 751‑1467.

If you have questions regarding completion of the forms, contact the Department at (573) 751‑5862.

Speech and hearing impaired may reach a voice user through the Dual Party Relay Service at (800) 735‑2966 or fax (573) 526‑1881.

For additional information, visit http://dor.mo.gov/

MO‑1NR (11‑2012)

File Attributes

Fact Name Description
Purpose of Form MO-1NR Used by partnerships, S corporations, or limited liability companies treated as partnerships to report Missouri income tax withheld for nonresident partners or S corporation shareholders.
Who Must File Required for entities that withhold Missouri income tax from nonresident individual partners or S corporation shareholders, except under specific exemptions provided by Missouri law.
Exemptions from Withholding Entities are not required to withhold if nonresident partners or shareholders elect to have tax paid via the entity's composite return, if income is below $1,200, among other exceptions.
Withholding Rate The withholding rate is 6% of the Missouri source distributive income for partners or shareholders, unless determined by Missouri withholding tables.
Due Date Form MO-1NR must be filed by the due date or extended due date of the entity's income tax return. An extension for the entity's return also extends the deadline for MO-1NR.
Penalty for Failure to File Filing Form MO-1NR and the accompanying Form MO-2NR(s) after providing Copy A of Form MO-2NR to the nonresident may result in the Missouri Department of Revenue disallowing the withholding claimed.

How to Write Missouri Mo 1Nr

Completing the Missouri MO-1NR form is a straightforward process when you have all the necessary information at hand. This form is essential for partnerships, S corporations, or limited liability companies treated as partnerships that are required to withhold Missouri income tax for nonresident individual partners or shareholders. Here are the steps you need to follow to ensure the form is filled out correctly and submitted on time.

  1. Start by entering the calendar year or fiscal year that the form is covering at the top of the MO-1NR form.
  2. Fill in the name of the partnership, S corporation, or limited liability company as it appears on federal tax documents.
  3. Enter the Missouri Tax ID Number, if available. If not, ensure to obtain this number as it is crucial for state tax purposes.
  4. Provide the Federal ID Number next to the Missouri Tax ID Number to identify your entity with the IRS.
  5. Fill out the entity's address, including city or town, state, and zip code, to ensure all communication reaches you promptly.
  6. Check the appropriate box to indicate the type of entity you are filing the return for: Partnership, S Corporation, or Limited Liability Company treated as a partnership.
  7. If you are filing under an extension, tick the filing under extension box. This box must be checked if you have an extension for filing your partnership or S corporation income tax return.
  8. Enter the number of Forms MO-2NR attached. This number should equal the total number of nonresident individual partners or shareholders you are reporting.
  9. In Line 2, input the total Missouri income tax withheld for all nonresident partners or shareholders. This amount is the total of all Forms MO-2NR attached.
  10. Complete the certification section at the bottom by providing a signature, title, telephone number, and the date of filing.
  11. Remember to attach a copy of each Form MO-2NR issued before mailing the form.
  12. Prepare a check for the total amount of Missouri income tax withheld, made payable to the Missouri Department of Revenue.
  13. Mail the completed MO-1NR form, along with the payment and attached MO-2NR forms, to the Missouri Department of Revenue at the address provided: P.O. Box 555, Jefferson City, MO 65105-0555.

Following these steps ensures that your MO-1NR form is correctly filled out and submitted. Timely and accurate completion of this form helps fulfill your withholding obligations for nonresident individual partners or shareholders, thereby avoiding potential penalties and interest. It's important to stay organized and keep records of all documentation submitted for your records.

What You Should Know About This Form

Who is required to file Form MO-1NR?

Form MO-1NR must be filed by partnerships and S corporations that have nonresident individual partners or shareholders. This also includes limited liability companies treated as partnerships by the IRS for Missouri tax purposes. These entities are required to withhold Missouri income tax for nonresident individual partners or shareholders unless certain exceptions are met.

What are the exceptions for withholding Missouri income tax on nonresident partners or shareholders?

A partnership or S corporation is not required to withhold Missouri income tax for a nonresident partner or shareholder if:

  • The nonresident elects to have the Missouri income tax paid as part of the partnership's or S corporation's composite return.
  • The nonresident's Missouri assignable federal adjusted gross income from the entity is less than $1,200.
  • The entity is liquidating or terminating and the income was related to the termination or liquidation.
  • The nonresident has provided the entity with a completed Form MO-3NR, and it was filed with the Missouri Department of Revenue on time.

What is the due date for filing Form MO-1NR?

Form MO-1NR must be filed by the due date or extended due date for the partnership or S corporation income tax return. An extension for filing the entity's income tax return also extends the deadline for filing Form MO-1NR. If filing under an extension, this should be indicated on the form.

How is the withholding amount determined?

The tax to be withheld is calculated as 6% (.06) of the nonresident partner's or shareholder's share of Missouri source distributive income. Alternatively, the tax can be calculated based on Missouri withholding tables if a Form MO W-4 is submitted by the partner or shareholder. The income is determined from items listed on an individual's K-1 schedule that contribute to the federal adjusted gross income apportioned or allocated to Missouri. The specific line items from Forms MO-NRP and MO-NRS help determine this income for partnerships and S corporations, respectively.

How should Form MO-1NR and the withheld taxes be submitted?

The completed Form MO-1NR, alongside the total amount of Missouri income tax withheld (indicated on the form), should be mailed to the Missouri Department of Revenue. Payments need to be made payable to the Missouri Department of Revenue. It's important to include a copy of each Form MO-2NR issued when submitting.

What should I do if I have more questions?

If you have technical questions about the withholding or reporting requirements, you can contact the Taxation Division at (573) 751-1467. For questions regarding completion of the forms, the Department helpline at (573) 751-5862 is available. For speech and hearing impaired assistance, a Dual Party Relay Service is accessible at (800) 735-2966 or via fax (573) 526-1881. Additionally, more information is available on the Missouri Department of Revenue website.

Common mistakes

Completing forms for tax purposes requires a careful attention to detail. The Missouri Mo 1Nr form, aimed at reporting income tax payments for nonresident individual partners or S Corporation shareholders, is no exception. Errors in filling out this form can lead to delays in processing and potential fines. To assist in proper completion, here are nine common mistakes to avoid:

  1. Not confirming the entity type: Whether you're filing for a partnership, an S Corporation, or a limited liability company treated as a partnership, it's crucial to check the correct box. This fundamental information guides the Department of Revenue in processing your form correctly.

  2. Omitting the Missouri Tax ID Number or Federal ID Number: Both of these identifiers are essential for the state to associate the form with the right entity. Neglecting to include either number can result in processing delays.

  3. Incorrect fiscal year dates: For entities not operating on a calendar year basis, inaccurately reporting the fiscal year's beginning and end dates can lead to confusion regarding the tax period in question.

  4. Skipping the extension indication: If you're filing under an extension, it's necessary to check the box indicating this status. Failure to do so could lead to misconceptions about your filing timeliness.

  5. Not including the correct number of MO-2NR Forms: The MO-1NR form requires you to disclose how many MO-2NR forms are attached. This number should align with the actual forms included to avoid discrepancies in reported information.

  6. Miscalculating the Missouri Income Tax Withheld: Accurately calculating the total Missouri income tax withheld is vital. This figure ensures the Department of Revenue can verify the amount of tax paid on behalf of nonresident partners or shareholders.

  7. Incorrect signature and date: The MO-1NR form must be signed by someone with direct control, supervision, or responsibility for filing the report. An unsigned form or one lacking the proper date is considered incomplete.

  8. Failure to attach MO-2NR Forms: Every MO-2NR form issued needs to be attached to the MO-1NR submission. Overlooking this requirement can result in unverified withholding claims.

  9. Misunderstanding withholding requirements: It's important to know under what conditions withholding is not required, such as for nonresident partners with Missouri income below a certain threshold or those providing a completed Form MO-3NR. Misapplying these rules can lead to unnecessary withholding.

To avoid these and other mistakes, filers should carefully review instructions provided by the Missouri Department of Revenue and consider seeking clarification when uncertainties arise. Proper completion of the MO-1NR form ensures timely processing and contributes to the efficient management of tax liabilities for nonresident individuals associated with partnerships or S Corporations in Missouri.

Documents used along the form

When dealing with income tax payments for nonresident individual partners or S corporation shareholders in Missouri, it is crucial to understand the associated forms and documents that might be needed alongside the Missouri MO-1NR form. The process involves a variety of documentation to accurately report and comply with Missouri tax laws.

  • Form MO-2NR: This form is a Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders. It is used to report the Missouri income tax withheld for each nonresident partner or shareholder. This document must be attached to the MO-1NR when filed.
  • Form MO-1065: Partnership Return of Income, required by partnerships operating in Missouri to report their income, gains, losses, deductions, and credits to the state.
  • Form MO-1120S: S Corporation Income Tax Return, which is used by S corporations to report their federal income, adjustments, and credits.
  • Form MO-NRP: Nonresident Partnership Form, required for reporting the Missouri source distributive income for partnerships.
  • Form MO-NRS: S Corporation Nonresident Form, similar to the MO-NRP but specifically designed for S corporations, detailing the income that is allocable to Missouri.
  • Form MO-3NR: Partnership or S Corporation Withholding Exemption Agreement, for partners or shareholders who qualify for a withholding exemption.
  • Form MO W-4: Missouri Employee's Withholding Allowance Certificate, which may be given by a partner or shareholder to request a specific withholding amount based on allowances.
  • Copy A of Form MO-2NR: This is given to the nonresident partner or S corporation shareholder to report the tax withheld on their behalf. It must be issued even if no tax is withheld due to exemptions.
  • Copy C of Form MO-2NR: Retained by the filer, it should be filed with the Missouri Department of Revenue alongside the MO-1NR form, as evidence of the withholding tax reported and remitted.

Understanding each of these documents and correctly completing them is essential for compliance with Missouri's state taxation requirements for nonresident individuals associated with partnerships or S corporations. These forms ensure that all necessary information is communicated to the state's Department of Revenue, aiding in the accurate calculation and payment of taxes due.

Similar forms

The Missouri MO-1NR form, intended for income tax payments for nonresident individual partners or S corporation shareholders, shows similarities to several other tax documents used for reporting and withholding purposes. These documents, although distinct in their application, share common features in structure, purpose, and the kind of information they solicit from the filer. Understanding these similarities can provide a clearer comprehension of the tax reporting ecosystem and how different entities are expected to fulfill their tax obligations.

The Form MO-2NR, Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders, closely mirrors the MO-1NR in several aspects. Primarily, both forms target nonresident entities—partners in the first case and individual partners or S corporation shareholders in the second. They both serve the purpose of reporting Missouri source income and ensuring the appropriate income tax is withheld and paid to the Missouri Department of Revenue. The MO-2NR complements the MO-1NR by providing detailed statements for each nonresident partner or shareholder, specifying their share of income and the tax withheld. This connection ensures that nonresident individuals can verify their income and taxes paid on their behalf when filing their personal income tax returns, promoting transparency and accuracy in tax reporting.

The Form MO-NRP, Nonresident Partnership Form, although designed specifically for partnerships, shares its objective with the MO-1NR of reporting income earned and taxes withheld for nonresident entities. Both forms are integral in capturing the financial activities of nonresident individuals involved in business operations within Missouri. The MO-NRP goes into detail about the Missouri source distributive income of partnerships, delineating items that contribute to the federal adjusted gross income as apportioned or allocated to Missouri. This form's data plays a crucial role in computing the withholding amounts entered on the MO-1NR, thereby establishing a foundational link between the documents in managing and reporting nonresident income tax obligations.

The Form MO-NRS, S Corporation Nonresident Form, functions similarly to the MO-NRP but caters to nonresident S corporation shareholders. It works in tandem with the MO-1NR by detailing the distributive share of income relevant to S corporations that must be reported and for which taxes must be withheld. Just like the partnership version, the S corporation's Missouri source income is broken down to facilitate the accurate reporting and withholding of taxes. Through the MO-NRS, the total distributive income of the nonresident shareholder is calculated, providing essential information that feeds into the process of completing the MO-1NR. This interconnectedness ensures that nonresident shareholders are correctly taxed on their Missouri income, fostering compliance with state tax laws.

Dos and Don'ts

When it comes to filling out the Missouri MO-1NR form for Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders, accurate and thorough completion is crucial for compliance with state tax obligations. To guide you through this process, here are key dos and don'ts to keep in mind:

  • Do ensure that you have the correct year's form. Tax forms can be updated, and using an outdated version may result in errors or processing delays.
  • Do fill in the Missouri Tax Identification Number and Federal Identification Number accurately. These identifiers are crucial for the state's processing of your form.
  • Do check the appropriate box for the type of entity filing the return. Whether you are a partnership, S corporation, or limited liability company treated as a partnership, correctly identifying the entity type ensures proper treatment of your tax obligations.
  • Do include the total number of Forms MO-2NR issued in Line 1 and the total Missouri income tax withheld in Line 2. These figures are essential for both reporting and payment accuracy.
  • Don't forget to sign and date the form. The signature attests that the information provided is accurate and complete, and the form is not considered filed without it.
  • Don't overlook checking the box if you are filing under an extension. This information helps the Missouri Department of Revenue process your form in accordance with your extension status.

By adhering to these dos and don'ts, entities can ensure they meet their Missouri withholding obligations for nonresident individual partners or S corporation shareholders, avoiding common pitfalls and assisting in the smooth processing of their tax forms.

Misconceptions

  • One common misconception is that the MO-1NR form is only for S Corporations. However, this form is also applicable to partnerships and limited liability companies treated as partnerships for IRS purposes. The form clearly provides options to indicate the type of entity filing the return.

  • Many believe that the MO-1NR form must be filed independently of any other tax documentation. In reality, Form MO-1NR, along with the payment and Copy C of the Form MO-2NR, must be filed concurrently with or prior to the partnership or S corporation supplying Copy A of the Form MO-2NR to the nonresident partner or shareholder to ensure compliance.

  • Another misconception is that nonresident individuals always have to file a return in Missouri if they are partners or shareholders. Nonresident individuals may not be required to file if their income from the partnership or S corporation is less than $1,200, or they opt to include their Missouri income tax as part of the entity's composite return, among other exceptions.

  • It is often mistakenly believed that the withholding tax rate is negotiable or variable. The prescribed rate is 6 percent (.06) of the Missouri source distributive income, demonstrating a fixed approach unless specific adjustments are warranted under certain circumstances, like if a partner submits a Missouri Withholding Allowance Certificate.

  • Some assume that all entities should withhold taxes for their nonresident members. MO-1NR instructions specify not to withhold taxes for partners or shareholders who are themselves partnerships, corporations, trusts, or estates, with certain exceptions for grantor trusts.

  • There's a misunderstanding that the deadline for filing MO-1NR is fixed. The due date corresponds with the due or extended due date of the entity’s income tax return, highlighting a deadline that may vary depending on when the partnership or S corporation files its respective return.

  • A misconception exists that MO-1NR involves a complex determination of taxable income. The instructions provide clear guidelines on calculating Missouri source distributive income, simplifying the process by referring to specific lines on Forms MO-NRP or MO-NRS for partnerships and S corporations, respectively.

  • People often think there are no provisions for extensions. Entities can file under an extension if they are also filing their income tax returns (Form MO-1065 or MO-1120S) under an extension, providing flexibility in submission timelines.

  • There is a false belief that electronic payments are not allowed. While the form mentions making checks payable to the Missouri Department of Revenue, it also states that checks can authorize electronic processing, implying that electronic transactions are permissible and practical.

Key takeaways

Filling out and using the Missouri MO-1NR form is a critical task for partnerships, S corporations, and limited liability companies treated as partnerships when dealing with income tax payments for nonresident individual partners or S corporation shareholders. Here are five key takeaways to ensure the process is completed correctly:

  • The MO-1NR form is specifically designed for reporting Missouri income tax withheld for nonresident partners and shareholders. This requirement applies unless the nonresident is part of a composite return, earns less than $1,200 from the entity, or has filed a MO-3NR, showing they are exempt from withholding.
  • To properly file the MO-1NR form, entities must also submit Form MO-2NR for each nonresident partner or shareholder from whom taxes were withheld. This dual-form submission ensures that all withheld income is accurately reported to the Missouri Department of Revenue.
  • Filing the MO-1NR form is time-sensitive. It must be filed by the due date or extended due date of the entity’s income tax return. Granting an extension for the income tax return also extends the filing period for the MO-1NR, simplifying compliance for entities that need more time to organize their financial information.
  • The amount of tax to withhold for each nonresident individual is set at 6 percent of their Missouri source income. However, entities can opt to calculate withholding based on Missouri withholding tax tables if the nonresident partner or shareholder submits a Missouri Withholding Allowance Certificate (Form MO W-4).
  • Failure to timely file the MO-1NR form and provide the necessary MO-2NR forms to the nonresident individuals or the Department of Revenue can lead to penalties. The withheld taxes must be reported before or at the same time as issuing the MO-2NR to the relevant parties, ensuring that all stakeholders have accurate financial records.

It is essential for entities to be diligent in adhering to Missouri's tax withholding and reporting requirements for nonresident partners and shareholders. Employing careful attention to deadlines, withholding calculations, and the submission of all required forms can help avoid complications and ensure compliance with Missouri tax laws.

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