Fill in a Valid Mo 1065 Form Open Document Now

Fill in a Valid Mo 1065 Form

The MO 1065 Form serves as a vital document for partnerships, mandating the reporting of income within Missouri for the 2020 fiscal year. This form is requisite for partnerships that have either a Missouri resident as a partner or have accrued income from Missouri sources. It plays a crucial role in ensuring compliance with Missouri's tax regulations by detailing Missouri modifications, income, and adjustments relevant to partnerships. For a detailed guide on how to accurately complete and submit the MO 1065 Form, click the button below.

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The complexities of tax filing for partnerships in Missouri are encapsulated in the MO-1065 Partnership Return of Income form, which serves as a critical document for the accurate reporting of a partnership's income, gains, losses, and deductions for the tax year 2020. This form is mandated for partnerships that have either a Missouri resident as a partner or any Missouri-sourced income, marking its significance in complying with state tax regulations. Its intricacies include various sections that require detailed financial information, calling for adjustments and subtractions reflective of Missouri-specific tax laws. Among its notable features, the form accommodates different statuses like amendments, name or address changes, and marks the closure of a partnership through a final return. It also outlines specific instructions for limited liability companies taxed as partnerships, highlighting the necessity for precise differentiation of state and local income taxes, interest exclusions, and the implications of federal obligations on state tax liability. Moreover, the MO-1065 form includes provisions for nonresident partners and delineates the process for electronic filing, offering a streamlined option for partnerships to fulfill their filing obligations digitally. With its comprehensive scope, the form not only facilitates the accurate reporting of partnership income but also guides on adjustments necessary under Missouri tax laws, underscoring the importance of meticulous record-keeping and adherence to state-specific tax requirements.

Example - Mo 1065 Form

 

 

Department Use Only

Form

 

(MM/DD/YY)

MO-1065

2022 Partnership Return of Income

 

 

Missouri Partnership Return of

Beginning

Income for 2022

(MM/DD/YY)

Ending (MM/DD/YY)

Federal Employer

 

 

 

 

 

 

 

 

 

 

Missouri Tax

 

 

 

 

 

 

 

 

(if applicable)

I.D. Number

 

 

 

 

 

 

 

 

 

 

I.D. Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ZIP

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Select Applicable Boxes. Failure to select the address change box may result in mailings going to the last address on file.

Select this box if you have an approved federal extension. Attach a copy of the approved Federal Extension (Form 7004).

Amended Return

Name Change

Address Change

Final Return

 

Composite

 

If you are a Limited Liability Company being taxed as a partnership, please select this box.

 

Instructions

1.

Does the Partnership have any Missouri modifications?

 

Yes

 

 

 

 

 

If Yes, complete Lines 1–13 on pages 1 and 2, and the partner information on page 3.

 

 

 

Filing

2.

Does the Partnership have any nonresident partners?

 

Yes

 

 

 

 

If Yes, complete Lines 1–13 on pages 1 and 2, the partner information on page 3, and Form MO-NRP.

 

 

 

 

 

 

 

 

 

 

 

 

 

No

No

Adjustments

Additions

1a. State and local income taxes deducted on Federal Form 1065.....

1b. Less: Kansas City & St. Louis earnings taxes.

Enter Lines 1a less 1b on Line 1 ......................................................

2a. State and local bond interest (except Missouri) .............................

2b. Less: related expenses (omit if less than $500)

Enter Line 2a less Line 2b on Line 2..............................................

1a

1b

2a

2b

.00

.00

.00

.00

1

2

.00

.00

Partnership

3.

 

Partnership

 

 

Fiduciary

 

Other adjustments (list _______________________)

3

 

 

 

 

 

 

4.

Donations claimed for the Food Pantry Tax Credit deducted from federal taxable income,

 

 

 

 

 

 

 

 

4

 

 

Section 135.647, RSMo

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.

Total of Lines 1 through 4

 

 

 

 

 

5

 

Subtractions

 

 

 

 

 

.

 

 

 

 

 

 

 

6a

 

00

 

 

 

6a.

Interest from exempt federal obligations

 

 

 

 

 

 

 

 

 

 

 

6b.

Less: related expenses (omit if less than $500)

 

 

.

 

 

 

 

 

Enter Line 6a less Line 6b on Line 6

6b

 

00

 

6

 

 

 

 

 

 

 

 

7.

Amount of any state income tax refund included in federal ordinary income

 

 

7

 

.00

.00

.00

.00

.00

Page 1

Partnership Adjustments

Subtractions (continued)

 

 

8.

Partnership

Fiduciary

 

 

Other adjustments (list _____________________________________________________)

8

9.

Missouri depreciation basis adjustment (Section 143.121.3(7), RSMo)

9

10. Total Subtractions - Add Lines 6 through 9

10

11. Missouri Partnership adjustment — Net Addition — excess Line 5 over Line 10

11

12. Missouri Partnership adjustment — Net Subtraction — excess Line 10 over Line 5

12

13. Agriculture Disaster Relief (Section 143.121.3(10), RSMo)

13

.

.

.

.

.

.

00

00

00

00

00

00

Department Use Only

Under penalties of perjury, I declare that the above information and any attached supplement is true,

A

R

N

 

 

S

 

E

complete, and correct.

 

 

 

 

 

 

 

 

 

 

 

 

 

I authorize the Director of Revenue or delegate to discuss my return and attachments with the preparer or any

 

 

 

 

 

Yes

 

 

No

member of his or her firm, or if internally prepared, any member of the internal staff

 

 

 

 

 

 

 

Signature

Signature

of General

Partner

Telephone

Number

Preparer’s Signature

(Including Internal Preparer)

Address

(City, State, Zip Code)

Telephone

Number

Printed

Name

Date Signed (MM/DD/YY)

Preparer’s FEIN,

SSN, or PTIN

Date Signed (MM/DD/YY)

Did you pay a tax return preparer to complete your return, but they failed or were unwilling to sign the return

 

 

or provide their Internal Revenue Service preparer tax identification number? If you marked yes, please insert

 

 

their name, address, and phone number in the applicable sections of the signature block above

Yes

No

Page 2

Partnership

Name

Federal Employer

I.D. Number

1.Name of each partner. All partners must be listed. Use attachment if necessary.

2. Select if

partner is3. Social Security Number nonresident

4.

Partner’s Share %

5. Partner’s Adjustment

Addition

 

Subtraction

 

a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners

f)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to

g)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment

h)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partnership

j)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

k)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Missouriof

l)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

m)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation

n)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

p)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

q)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

r)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

Column 4 — Enter percentages from Federal Schedule K-1(s). Round percentages to whole numbers.

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

Column 5 — Enter Missouri Partnership adjustment from Form MO-1065, Line 5 or Line 10, as total of Column 5. Multiply each percent- age in Column 4 by the total in Column 5. Indicate at the top of Column 5 whether the adjustments are additions or subtrac- tions. The amount after each partner’s name in Column 5 must be reported as a modification by the partner on his or her Form MO-1040, Individual Income Tax Return, either as an addition to, or subtraction from, federal adjusted gross income.

Mail to: Taxation Division

E-mail:

income@dor.mo.gov

Form MO-1065 (Revised 12-2022)

 

P.O. Box 3000

Visit dor.mo.gov/taxation/business/tax-types/partnership/ for additional information.

Jefferson City, MO 65105-3000

 

Phone: (573) 751-1467 Fax: (573) 522-1762

Ever served on active duty in the United States Armed Forces?

If yes, visit dor.mo.gov/military/ to see the services and benefits we offer to all eligible military individuals. A list of all state agency resources and benefits can be found at veteranbenefits.mo.gov/state-benefits/.

Page 3

Electronic Filing for Partnership Return of Income

Partnerships may file Missouri Form MO-1065 Partnership Return of Income and attachments electronically. Missouri, in cooperation with the Internal Revenue Service (IRS), offers a joint federal and state electronic filing of partnership returns through Modernized E-File (MeF).

This system has been developed through a cooperative effort between the IRS, states, and the software community. The system

uses the latest electronic technology and industry standards. A partnership may visit the Department’s website at dor.mo.gov/taxation/business/tax-types/partnership/ for more information regarding electronic filing as well as a list of approved vendors

that support partnership electronic filing.

General Information

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

Who Must File Form MO-1065

Form MO-1065 must be filed, if Federal Form 1065 is required to be filed and the partnership has (1) a partner that is a Missouri resident or

(2)any income derived from Missouri sources, Section 143.581, RSMo. Items of income, gain, loss, and deduction derived from, or connected with, sources within Missouri are those items attributable to (1) the ownership or disposition of any interest in real or tangible personal property in Missouri or (2) a business, trade, profession, or 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, constitutes income derived from sources within Missouri.

Note: At the time the Department printed their tax booklets, the Internal Revenue Service had not finalized the federal income tax forms.

Short Form — Form MO-1065

If you select “No” on both questions 1 and 2 on Form MO-1065, attach a copy of Federal Form 1065 and all its schedules, including Schedule K-1. Sign Form MO-1065 and mail the return.

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 on Form MO-1065, complete Form MO-NRP. Attach a copy of Federal Form 1065 and all its schedules, including Schedule K-1. Sign Form MO-1065 and mail the return.

When and Where to File

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 following the close of the taxable year. For partnerships operating on a calendar year basis, the partnership return is due on or before April 18, 2023. When the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely if filed on the next business day. Please mail the return to: Missouri Department of Revenue, P.O. Box 3000, Jefferson City, MO 65105-3000.

Period Covered by the Return

Form MO-1065, Partnership Return of Income, must cover the same period as the corresponding Federal Form 1065. Indicate the period covered on the front of the return if other than a calendar year.

Rounding on Missouri Returns

You must round all cents to the nearest whole dollar on your return. For cents .01 through .49, round down to the previous whole dollar amount. For cents .50 through .99, round up to the next whole dollar amount. For your convenience, the zeros have already been placed in the cent columns on the returns.

Credits

Partners may be entitled to tax credits. These credits must be allocated to the partners’ percentage of ownership and reported on the Form MO-1040, Individual Income Tax Return. See Form MO-1040 and Form MO-TC instructions for further information. You may also access the information at

dor.mo.gov/tax-credits/.

Nonresident Partners

Every partnership, including limited liability companies that are treated as a partnership by the Internal Revenue Service (IRS), must file Form MO-1NR, Income Tax Withheld for Nonresident Individual Partners or S Corporation Shareholders and send in copies of Form MO-2NR, Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Share- holders, if it has nonresident individual partners who do not meet one of the following exceptions:

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

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

the partnership 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.

A nonresident partner can request the partnership be exempt from with- holding by filing a completed Form MO-3NR, Partnership or S Corporation Withholding Exemption or Revocation Agreement.

Form MO-1NR must be filed by the due date or extended due date for filing the partnership income tax return. Form MO-3NR must be filed by the due date for filing the partnership income tax return without regard to an extension of time to file. Forms may be obtained by contacting: Missouri Department of Revenue, Taxation Division, P.O. Box 3022, Jefferson City, MO 65105-3022, calling (800) 877-6881 (TTY (800) 735-2966), or visiting the Department’s website at: dor.mo.gov/forms/.

If you have technical questions concerning the filing of Form MO-1NR and Form MO-3NR, you may contact the Taxation Division at (573) 751-1467.

Partnerships filing a composite return on behalf of their nonresident partners should mark the composite return box on Page 1 of the return. The composite return is filed on the Form MO-1040. Complete instructions can be found on the Department’s website at: dor.mo.gov/forms/5677_2022.pdf.

Authorization

Select the “yes” box for authorization of release of confidential information for the Director of 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, or if internally prepared, any member of the internal staff. If the authorization box is selected “no”, or if no box is selected, the Department of Revenue can only discuss this return with a partner. Refer to Section 32.057(1), RSMo.

Sign the Return

Form MO-1065, Partnership Return of Income, must be signed by one of the partners of the partnership or one of the members of the joint venture or other enterprise. Any member or partner, regardless of position, may sign the return.

Internet

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

dor.mo.gov.

Americans With Disabilities Act (ADA)

The state of Missouri offers a Dual Party Relay Service (DPRS) for speech or hearing 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 TTY (800) 735-2966 or fax (573) 526-1881.

Page 4

Form MO-1065, Partnership

Return of Income Instructions

Missouri Partnership Adjustment

The addition and subtraction items listed in this section are necessary Missouri modifications. Completion of the Partnership Adjustment section will result in the net Missouri partnership adjustment that will be allocated to the partners on page 3. The partner’s adjustment can only be made from information available from the partnership. It is necessary for each partnership having modifications to complete Form MO-1065, Partnership Adjustment section and Allocation of Missouri Partnership Adjustment to Partners section, and notify each partner of the adjustment to which he or she is entitled.

Line 6a - Interest from Exempt Federal Obligations — Interest from direct obligations of the U.S. Government, such as U.S. savings bonds, U.S. treasury bills, bonds, and notes are exempt from state taxation under the laws of the United States. Attach a detailed list or all Federal Form 1099(s). Partnerships that claim an exclusion for interest from 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 securities” is not accepable. (See 12 CSR 10-2.150 for the taxability of various U.S. Government-related obligations.) A list of exempt U.S. obligations 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.

A federally taxed distribution received from a mutual fund investing exclu- sively in direct U.S. Government obligations is exempt. If the mutual fund invests in both exempt (direct) and nonexempt (indirect) federal obligations, the deduction allowed will be the distribution received from the mutual fund attributable to the direct U.S. Government obligations, as determined by the mutual fund. A copy of the year-end statement received from the mutual 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 clearly identifies the exempt and nonexempt portions of the U.S. Government obligations interest, must be provided to each partner by the partnership. Note: Failure to attach a copy of the notification furnished to you that specifically details the amount of the subtraction being claimed as the distributive share will result in the disallowance of the deduction.

Line 6b - Related Expenses — In arriving at the amount of related expenses, the taxpayer may use actual expenses or a reasonable estimate. In general, the taxpayer should use the same or similar method to that used to compute related expenses for federal income tax purposes, provided that the method reasonably reflects related expenses for Missouri-exempt income.

If a taxpayer fails to compute reasonable related expenses, the Director of Revenue will make an adjustment based on the best information made available. If sufficient information is not made available or if the taxpayer’s records do not provide sufficient information, the Director of Revenue will use the following formula to compute related expenses:

Exempt income x Expense items = Reduction to exempt income Total income

The principal expense item in this formula is interest expense; however, the Director of Revenue may include other expense items because of the direct relationship to the production of exempt income. The taxpayer may propose an alternative method provided that it properly reflects the amount of related expenses.

Line 8 - Other

Recreational Marijuana Business Deduction. Enter the amount of any expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed by section 280E of the Internal Revenue Code.

Calculating this deduction, you must provide a financial statement/federal schedule(s) for business profit or loss that the federal government was unable to allow as a deduction for marijuana business, as marijuana is a controlled substance under federal law.

The Missouri deduction will be the difference between the profit/loss as calculated on the schedule(s) filed with the federal return and the pro forma schedule(s) described above.

You must submit the financial statement, schedule(s), the medical license number (MED) and all federal schedule(s) with your Missouri Form MO-1040 to claim the deduction.

Line 13 - Agriculture Disaster Relief — Enter the share of income received by a partnership as payment from any program which provides compensation to agricultural producers who have suffered a loss as the result of a disaster or emergency. You must attach a copy of the Form 1099 indicating your agri- cultural payment. Include a schedule with each partner’s name, identification number, ownership percentage, and their portion of the subtraction. A copy of this schedule (or its information) must be provided to each partner. The amount indicated after each partner’s name must be reported as a modifi- cation on his or her Form MO-1040, Individual Income Tax Return, Part 1 of the Form MO-A, Line 16. Each partner must attach an explanation for the adjustment to his or her form. For partners who are companies or trusts, this amount must be reported on their respective forms.

Allocation of Missouri Partnership

Adjustment to Partners

This section indicates the portion of the Missouri adjustment from Partnership Adjustments section that is allocated to each partner. Column 4 and the instructions for Column 5 are based upon the usual situation that a single general profit and loss sharing percentage applies to all partnership items and related modifications. Attach a detailed explanation (including extracts from the partnership agreement) 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 non tax purposes and effects of the special allocation method.

Column 1 - Enter the name of each partner, attach additional sheets if needed.

Column 2 - Indicate if the partner is a nonresident to the state of Missouri by marking the box.

Column 3 - Enter the partner’s social security number. If the partner is another company or trust, enter the federal identification number.

Column 4 - Enter percentage from Federal Form 1065, Schedule K-1. Round the percentage to the nearest whole number.

Column 5 - Enter Missouri partnership adjustment from the Partnership Adjustment section, Line 11 or Line 12 on Total line. Enter each partner’s allocated portion on their respective line by multiplying the percentage in Column 4 by the Total line in Column 5. Indicate at the top of Column 5 whether the adjustments are either additions or subtractions by marking the appropriate box. A copy of this part (or its information) must be provided to each partner. The amount indicated after each partner’s name in Column 5 must be reported as a modification on his or her Form MO-1040, Individual Income Tax Return, Part 1 of the Form MO-A as a partnership addition on Line 2 or subtraction on Line 11, to the federal adjusted gross income. Each partner must attach an explanation for the adjustment to his or her form. For partners who are companies or trust, this amount must be reported on their respective forms.

Page 5

File Attributes

Fact Number Description
1 The MO-1065 form is required for partnerships that need to file Federal Form 1065 and have a Missouri resident as a partner or derive any income from Missouri sources, under Section 143.581, RSMo.
2 Direct obligations of the U.S. Government, such as U.S. savings bonds and treasury notes, are exempt from state taxation and are listed under adjustments on the MO-1065 form.
3 Partnerships must complete the Partnership Adjustment section on the MO-1065 form, which results in a net Missouri partnership adjustment to be allocated among the partners.
4 A Missouri partnership return is due the 15th day of the 4th month following the close of the taxable year, aligning with the deadline for federal partnership returns.
5 Partners can file the MO-1065 and attachments electronically through the Modernized E-File (MeF) system, as part of a cooperative effort between the IRS, states, and the software community.
6 If a partnership has nonresident partners, it must file Form MO-1NR, Income Tax Withheld for Nonresident Individual Partners or S Corporation Shareholders, unless specific exceptions apply.
7 The form includes specific boxes for indicating changes in the partnership's name or address, existence of an approved federal extension, and whether it is an amended or final return.
8 Authorized signatures include any member of the partner regardless of position, adhering to the stipulations set in Section 32.057(1), RSMo, for authorization of release of confidential information.

How to Write Mo 1065

Filled with nuances and specifics, the Missouri Form MO-1065 stands as a requisite document for partnerships that need to report income within the state. This form harmonizes state and federal tax obligations, providing a detailed account of a partnership's financial activities over the tax year. This explanation is presented not to delve into the purpose behind the form but to navigate its completion accurately. By following a step-by-step guide, filled with attentiveness to every detail, completing the MO-1065 can be achieved with precision and compliance.

  1. Start by entering the partnership's basic information, including the Missouri Partnership Return of Beginning Income for the tax year specified at the top of the form, followed by the Ending date in the format (MM/DD/YY).
  2. Provide both the Federal Employer I.D. Number and Missouri Tax I.D. Number, if applicable.
  3. Indicate the name of the partnership and its address, including city, state, and ZIP code.
  4. Select the applicable boxes that relate to your tax situation for the year. This includes marking if there's been an address change, if a federal extension is approved, and if filing an amended, final, or composite return. LLCs taxed as partnerships should also indicate their status.
  5. Answer the preliminary questions regarding Missouri modifications and nonresident partners to determine the necessary sections of the form to complete.
  6. Under the Additions section, fill in relevant adjustments from 1a through 4, detailing state and local income taxes deducted, state and local bond interest outside Missouri, and any other adjustments specified.
  7. Proceed to the Subtractions section, completing lines 6a through 13 as applicable. This involves detailing interest from exempt federal obligations, state income tax refunds included in federal income, and any applicable agriculture disaster relief, among others.
  8. Totalize the Additions and Subtractions accordingly on lines 5 and 10, then compute the Net Addition or Subtraction for Missouri Partnership adjustments on lines 11 and 12.
  9. On the second page, ensure the declaration section is completed, including the signature of a general partner, date, and the preparer’s information if prepared by someone other than a partner.
  10. Complete the partner information section. List each partner's name, indicate if they are a nonresident, provide their social security number or federal identification number, their share percentage, and their specific adjustments.
  11. Review the entire form for accuracy and completeness. Attach any required documents, such as a copy of the federal extension if applicable.
  12. Mail the completed MO-1065 form to the Missouri Department of Revenue at the address provided at the end of the instructions, ensuring it's sent by the due date to avoid penalties.

Upon successful submission, it's essential to retain a copy of all documents for your records. The completion and accurate filing of the MO-1065 form reflect a partnership's commitment to compliant financial reporting and contribute to the smooth operation of both state tax administration and the business itself.

What You Should Know About This Form

What is the MO-1065 Form and who needs to file it?

The MO-1065 Form, also known as the Partnership Return of Income, is a document required by the state of Missouri. It must be filed by entities that operate as partnerships if they are required to file a Federal Form 1065. Specifically, the form must be submitted if the partnership has either a partner who is a Missouri resident or any income, gains, losses, or deductions derived from sources within Missouri. This requirement stems from Section 143.581, RSMo, which outlines the obligations for reporting income connected to Missouri sources.

How are modifications on the MO-1065 Form handled?

Modifications on the MO-1065 Form refer to adjustments made to transfer certain items from the federal tax return to the state tax return. These modifications are necessary because some income or deductions recognized at the federal level are treated differently for Missouri tax purposes. For instance, adjustments might include adding back state and local income taxes deducted on the federal return, subtracting interest from federal obligations exempt from Missouri tax, and other specific adjustments as listed in the Missouri Partnership Adjustment section and the Allocation of Missouri Partnership Adjustment to Partners section of the form.

Can the MO-1065 Form be filed electronically?

Yes, partnerships can file the MO-1065 Form and its attachments electronically through the Modernized E-File (MeF) system. This platform is a result of cooperation among the IRS, the states, and the software community, utilizing the latest technology for secure and efficient filings. The Missouri Department of Revenue’s website provides information on electronic filing and a list of approved vendors for submitting the partnership return electronically.

What are the due dates for filing the MO-1065 Form?

The Missouri partnership return should be filed after the completion of the federal partnership return. The due date for the MO-1065 is the 15th day of the 4th month following the close of the taxable year. For partnerships operating on a calendar year, this translates to an April 15th deadline. If this date falls on a weekend or legal holiday, the return is considered timely if filed on the next business day.

Are there any specific credits that partners in a Missouri partnership may claim?

Partners in a Missouri partnership might be eligible for various tax credits, which need to be allocated according to each partner’s percentage of ownership. These credits can then be claimed on the individual income tax return using Form MO-1040 and the associated MO-TC instructions. Information about these credits and how to claim them is detailed on the Department of Revenue’s website.

What are the requirements for nonresident partners of Missouri partnerships?

Missouri requires partnerships to file Form MO-1NR and provide Form MO-2NR statements if they have nonresident individual partners, with some exceptions. For instance, exceptions include nonresident partners who elect to have their Missouri income tax paid through the partnership's composite return or whose Missouri assignable income from the partnership is less than $1,200. Furthermore, nonresident partners can file Form MO-3NR to request the partnership be exempt from withholding requirements.

How should partners report adjustments from the MO-1065 Form on their individual Missouri tax returns?

Partners must report their share of Missouri modifications, as indicated in the Allocation of Missouri Partnership Adjustment to Partners section of the MO-1065 Form, on their individual Missouri tax returns. These adjustments, whether additions or subtractions to their income, should be reported on Form MO-1040, with a detailed explanation attached to the return. For partners that are entities rather than individuals, these adjustments should be reported on the respective entity's Missouri tax return.

Common mistakes

  1. Not checking the box to indicate a change of address is a common oversight. This mistake can lead to important correspondence not reaching the partnership, as any mailings will be sent to the last address on file.

  2. Failing to attach a copy of the approved Federal Extension (Form 7004) when selecting the box for having an approved federal extension. This oversight can lead to issues with the processing of the return.

  3. Omitting necessary details on Missouri modifications when the partnership has Missouri modifications. Completing Lines 1–13 accurately is crucial for reflecting these adjustments on the return.

  4. Forgetting to complete the partner information on page 3 and, if applicable, Form MO-NRP for nonresident partners. This information is essential for proper filing and compliance.

  5. Incorrectly reporting or overlooking adjustments and subtractions, such as state and local income taxes or interest from exempt federal obligations without the corresponding deductions and related expenses.

  6. Miscalculating Missouri Partnership adjustments by not properly accounting for the Net Addition or Net Subtraction on Lines 11 and 12, respectively. This can result in an inaccurate representation of the partnership's income.

  7. Not providing each partner with their share of the Missouri Partnership adjustment and necessary modifications. Partners need this information to correctly file their individual returns.

  8. Signing the return without verifying that all information is complete and correct. As the signature declares the information to be true under the penalties of perjury, ensuring accuracy before signing is paramount.

  • Ensuring the correct rounding of amounts to the nearest whole dollar as per Missouri's requirements is often neglected. This step is essential for consistency and accuracy on the return.

  • Failure to indicate the partnership's tax year correctly, especially if it doesn't align with the calendar year, can lead to processing delays.

  • Not utilizing the available electronic filing option, which can streamline the submission process and reduce errors associated with manual entries.

  • Omitting documentation or detailed explanations for exempt federal obligations and agriculture disaster relief, which are necessary to support exemptions and deductions claimed.

Documents used along the form

When completing the Missouri Form MO-1065, several other forms and documents may be necessary to support or supplement the information required. These documents ensure accurate and compliant reporting of income and adjustments for partnerships operating within Missouri. Below is a list of forms commonly used alongside MO-1065 and a brief description of each.

  • Form 7004 (Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns): This is used to request an automatic extension for filing federal business income tax returns, including Form 1065.
  • Form MO-NRP (Missouri Income Tax Withheld for Nonresident Partners): Filed by partnerships with nonresident partners, detailing income tax withheld on behalf of these partners.
  • Form MO-1NR (Income Tax Withheld for Nonresident Individual Partners or S Corporation Shareholders): Required if the partnership has nonresident partners and is withholding Missouri income tax on their behalf.
  • Form MO-2NR (Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders): Accompanies Form MO-1NR, providing detailed statements of income and tax withholdings for nonresident partners.
  • Form MO-3NR (Partnership or S Corporation Withholding Exemption or Revocation Agreement): Used by nonresident partners to declare an exemption from or revocation of Missouri withholding requirements.
  • Form MO-1040 (Individual Income Tax Return): Required for individual partners in the partnership to report their share of Missouri-adjusted partnership income or loss on their individual state tax returns.

Each of these documents plays a vital role in the full and accurate reporting of partnership income and adhering to Missouri’s state tax requirements. Partnerships should ensure that they complete not only the MO-1065 form but also any additional forms that are applicable to their specific circumstances. This comprehensive approach to tax filing helps in maintaining compliance and avoiding potential penalties.

Similar forms

The MO-1065 form is similar to several other tax documents that partnerships and limited liability companies (LLCs) taxed as partnerships might encounter. Understanding these similarities can help those preparing their Missouri Partnership Return of Income navigate the process more efficiently. Two such documents, the Federal Form 1065 and Form MO-NRP, have distinct parallels with the MO-1065, not only in their purpose but also in the specifics of their content and filing requirements.

Federal Form 1065 is a tax document required by the Internal Revenue Service (IRS) for reporting the income, gains, losses, deductions, credits, and other financial information of a partnership. The structure of the MO-1065 form closely mirrors that of Federal Form 1065, reflecting their shared objective of capturing the financial activities of partnerships. Both forms serve as a means for partnerships to report their income and determine which items of income and deductions are passed through to the partners. They require detailed listing of the partnership's financial operations, including income adjustments and taxable income calculations. Significantly, the MO-1065 form requests that a copy of the Federal Form 1065 and its schedules, including Schedule K-1s for each partner, be attached if certain conditions are met. This highlights not only the similarity in the information requested but also the direct link in how this information is utilized across state and federal tax filing processes.

Form MO-NRP, on the other hand, is a Missouri-specific document that deals with nonresident partners of a partnership. This form is especially relevant if the partnership has nonresident members and derives income from Missouri sources. It complements the MO-1065 by ensuring that income attributable to Missouri is reported and any tax due from nonresident partners is properly handled. This requirement parallels the section in the MO-1065 that queries about nonresident partners, underscoring the need to address state tax obligations for partners who do not reside in Missouri. Both forms work in tandem to ensure compliance with Missouri's tax laws, specifically in how nonresident income is treated and taxed. By filing Form MO-NRP alongside the MO-1065 when required, partnerships ensure that all partners meet their tax obligations in regard to Missouri income, embodying the interconnected nature of these forms in the context of state tax compliance for partnerships.

Dos and Don'ts

When completing the Missouri Form MO-1065, Partnership Return of Income, attention to detail and adherence to guidelines ensure accurate processing and compliance. This list delineates critical practices to follow and to avoid for a successful submission.

Do's:

  • Ensure all relevant boxes are carefully selected, including changes in address, status as an amended return, and if it is a final return, to avoid any processing delays or errors.
  • Attach a copy of the approved Federal Extension (Form 7004) if you have marked the box for having an approved federal extension, to ensure the state recognizes the extended filing period.
  • Complete Missouri modifications sections thoroughly if applicable, specifically Lines 1–13 for adjustments, and provide detailed partner information on page 3, to ensure that state-specific income modifications are accurately reported.
  • Round all amounts to the nearest dollar, removing cents, as required on the form, to comply with Missouri Department of Revenue's rounding guidelines.
  • Include a signature from one of the partners or an authorized member, with all contact details filled out correctly, to validate the return.
  • For limited liability companies taxed as partnerships, remember to select the indicated box on the form to clarify the entity type to the state.

Don'ts:

  • Avoid leaving any fields related to Missouri modifications blank if they apply to your situation, specifically ignoring Lines 1–13 related to adjustments, which could result in inaccurate tax liability calculations.
  • Do not omit attaching a copy of Federal Form 1065 and its schedules, including Schedule K-1, when required based on the selections made on questions 1 and 2 of the form, as failure to include these could delay processing.
  • Do not forget to check the box authorizing the release of confidential information if you wish the Department of Revenue to discuss your return with your preparer or a member of their firm; leaving this unchecked limits discussion capabilities.
  • Refrain from estimating or rounding percentages on the Allocation of Missouri Partnership Adjustment to Partners section; precise percentages are required for accurate allocation.
  • Do not neglect the electronic filing options that might streamline your submission process, as Missouri, in collaboration with the IRS, offers a joint federal and state electronic filing of partnership returns through Modernized E-File (MeF).
  • Avoid signing the form without reviewing all entries for accuracy, as the return must be complete and correct under penalties of perjury.

Misconceptions

Understanding the MO-1065 form, a partnership return of income for the state of Missouri, can sometimes be confusing due to common misconceptions. Here’s a breakdown of nine myths and the truths behind them:

  • Only Missouri-based partnerships need to file the MO-1065 form. In reality, any partnership that has either a Missouri resident as a partner or derives any income from Missouri sources must file this form.

  • If you file a federal extension, you don't need to attach a copy with your MO-1065. Contrary to this belief, if you have an approved federal extension, you must attach a copy of the approved Federal Extension (Form 7004) with your MO-1065.

  • Filing the MO-1065 electronically is optional. While it might have been optional in the past, Missouri encourages electronic filing (e-file) for the partnership return through a joint federal and state e-file program, aiming for a more streamlined and efficient process.

  • All partnerships must complete every section of the form. Not all sections apply to every filer. Depending on answers to certain questions regarding Missouri modifications and nonresident partners, only relevant sections would require completion.

  • If there are no modifications, the form doesn’t need to be filed. This is incorrect. The form must be filed if Federal Form 1065 is required and the partnership has either a Missouri resident partner or income from Missouri sources, regardless of modifications.

  • Information on distributions from U.S. Government obligations is not necessary. Actually, interest from direct U.S. Government obligations is exempt from state tax, and detailed information on such interest and any related expenses is required for proper filing.

  • A partnership cannot file a composite return on behalf of nonresident partners. Missouri allows partnerships to file a composite return for nonresident partners, simplifying the filing process for partnerships with nonresident members.

  • The MO-1065 form does not need to be signed. Every MO-1065 form must be signed by a partner or a member of the enterprise. This signature is a declaration that the information provided is accurate.

  • Rounding cents to the nearest dollar is optional. On the contrary, all cents must be rounded to the nearest whole dollar when completing the Missouri returns, ensuring uniformity across all filings.

Correcting these misconceptions ensures accurate and compliant completion of the MO-1065 form, avoiding potential errors and penalties. Knowledge and careful attention to the specific requirements of the MO-1065 form can streamline the filing process for partnerships operating in Missouri.

Key takeaways

When preparing and submitting the Missouri Form MO-1065, Partnership Return of Income, it's crucial to keep several key points in mind to ensure accuracy and compliance. Below are 10 important takeaways to guide you through the process:

  1. Who Must File: Any partnership that is required to file Federal Form 1045 and has either a Missouri resident as a partner or derives any income from Missouri sources must file Form MO-1065.
  2. Filing Deadline: The return is due by the 15th day of the 4th month following the end of the taxable year. For calendar year partnerships, the due date is April 15.
  3. Address and Identity Changes: It’s important to indicate any changes in address, name, or the final return status to ensure the Missouri Department of Revenue has current and correct information.
  4. Partnerships should attach a copy of the approved Federal Extension (Form 7004) if they have received a federal extension to file.
  5. Missouri Adjustments: Complete all necessary Missouri modifications, including additions and subtractions specified in the form, to accurately report income derived from Missouri sources.
  6. Round to Whole Dollars: When filling out the return, round all amounts to the nearest whole dollar, improving the readability and processing of your return.
  7. Electronic Filing: Missouri supports electronic filing for partnership returns through the Modernized E-File system, which may offer a more convenient and faster filing method.
  8. Nonresident Partners: If the partnership has nonresident partners, additional forms such as Form MO-NRP or Form MO-1NR may be required to account for income tax withheld for nonresident individual partners.
  9. Partnerships are authorized to discuss the return with the preparer or any member of the preparer’s firm, provided this authorization is selected on the form.
  10. Agriculture Disaster Relief: If the partnership received any agricultural disaster relief payments, these should be noted as Missouri modifications and require additional documentation for both the partnership and individual partners’ returns.

Understanding these key aspects of the MO-1065 form will help ensure that your partnership's income from Missouri sources is accurately reported and compliant with state requirements. Proper attention to deadlines, modifications, and the needs of nonresident partners can streamline the filing process and avoid potential issues.

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