Missouri Revised Statutes













Chapter 143

Income Tax

←143.401

Section 143.411.1

143.421→

August 28, 2015

Resident partner modifications--nonresident partners, composite returns--withholding required, when, amount.

143.411. 1. Any modification described in sections 143.121 and 143.141

which relates to an item of partnership income, gain, loss, or deduction

shall be made in accordance with the partner's distributive share, for

federal income tax purposes, of the item to which the modification relates.

Where a partner's distributive share of any such item is not required to be

taken into account separately for federal income tax purposes, the partner's

distributive share of such item shall be determined in accordance with his

distributive share, for federal income tax purposes, of partnership taxable

income or loss generally.



2. Each item of partnership income, gain, loss, or deduction shall have

the same character for a partner under sections 143.005 to 143.998 as it has

for federal income tax purposes. Where an item is not characterized for

federal income tax purposes, it shall have the same character for a partner

as if realized directly from the source from which realized by the

partnership or incurred in the same manner as incurred by the partnership.



3. Where a partner's distributive share of an item of partnership

income, gain, loss, or deduction is determined for federal income tax

purposes by a special provision in the partnership agreement with respect to

such item, and the principal purpose of such provision is the avoidance of

tax under sections 143.005 to 143.998, the partner's distributive share of

such item and any modification required with respect thereto shall be

determined in accordance with his distributive share of the taxable income or

loss of the partnership generally (that is, exclusive of those items

requiring separate computation under the provisions of Section 702 of the

Internal Revenue Code).



4. The director of revenue shall permit partnerships to file composite

returns and to make composite payments of tax on behalf of its nonresident

partners not otherwise required to file a return. If the nonresident

partner's filing requirements result* solely from one or more interests in

any other partnerships or subchapter S corporations, that nonresident partner

may be included in the composite return.



5. If a partnership pays or credits amounts to any of its nonresident

individual partners on account of their distributive share of the partnership

income for a taxable year of the partnership, the partnership shall either

timely file with the department of revenue an agreement as provided in

subsection 6 of this section or withhold Missouri income tax as provided in

subsection 7 of this section. A partnership that timely files an agreement

as provided in subsection 6 of this section with respect to a nonresident

partner for a taxable year shall be considered to have timely filed such an

agreement for each subsequent taxable year. A partnership that does not

timely file such an agreement for a taxable year shall not be precluded from

timely filing such an agreement for subsequent taxable years. A partnership

is not required to deduct and withhold Missouri income tax for a nonresident

partner if:



(1) The nonresident partner not otherwise required to file a return

agrees to have the Missouri income tax due paid as part of the partnership's

composite return;



(2) 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 dollars;



(3) The partnership is liquidated or terminated;



(4) Income was generated by a transaction related to termination or

liquidation; or



(5) No cash or other property was distributed in the current and prior

taxable year.



6. The agreement referred to in subdivision (1) of subsection 5 of this

section is an agreement by a nonresident partner of the partnership to:



(1) File a return in accordance with the provisions of section 143.481

and to make timely payment of all taxes imposed on the partner by this state

with respect to income of the partnership; and



(2) Be subject to personal jurisdiction in this state for purposes of the

collection of income taxes, together with related interest and penalties,

imposed on the partner by this state with respect to the income of the

partnership. The agreement will be considered timely filed for a taxable year,

and for all subsequent taxable years, if it is filed at or before the time

the annual return for such taxable year is required to be filed pursuant to

section 143.511.



7. The amount of Missouri income tax to be withheld is determined by

multiplying the partner's distributive share allocable to Missouri that is

paid or credited to a nonresident partner during the taxable year by the

highest rate used to determine a Missouri income tax liability for an

individual, except that the amount of the tax withheld may be determined

based on withholding tables provided by the director of revenue if the partner

submits a Missouri withholding allowance certificate.



8. A partnership shall be entitled to recover for a partner on whose

behalf a tax payment was made pursuant to this section, if such partner has

no tax liability.



(L. 1972 S.B. 549, A.L. 1993 S.B. 66 & 20, A.L. 1997 H.B. 655 merged

with S.B. 170)



Effective 6-24-97 (H.B. 655)



5-20-97 (S.B. 170)



*Word "results" appears in original rolls.







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