12 CSR 10-2.436 - SALT Parity Act Implementation
(1) For tax years ending on or after December
31, 2022, a partnership or S corporation electing to become an affected
business entity for a tax year shall make such election on its affected
business entity tax return (Form MO-PTE). A separate election must be made for
each tax year.
(2) An election to
become an affected business entity for a tax year shall not be effective if the
partnership or S corporation has not successfully designated a person as an
affected business entity representative for that tax year at or before the time
the partnership or S corporation attempts to make such election. For an
election to be effective, the affected business entity tax return (Form MO-PTE)
on which the election is made must include the signatures of either-
(A) Each member of the electing entity who is
a member at the time the affected business entity tax return is filed;
or
(B) An officer, manager, or
member of the electing entity who is authorized to make the election and who
attests to having such authorization under penalty of perjury.
(3) The deadline for making an
election to become an affected business entity for a tax year is the filing
deadline for the affected business entity tax return (Form MO-PTE). No election
can be made after the deadline, including any approved extension.
(4) If an election to become an affected
business entity has been made for a tax year, the election cannot be revoked
for that tax year.
(5) At or before
the time that a partnership or S corporation files its affected business entity
tax return (Form MO-PTE) on which the election is made, the partnership or S
corporation shall designate an affected business entity representative for that
tax year. Only one natural person may serve as an affected business entity
representative for a tax year.
(A) To
designate a person as an affected business entity representative, the
partnership or S corporation must file with the department a Power of Attorney
(Form 2827) designating that person as an appointed representative and giving
that person the title of "Affected Business Entity Representative."
(B) The Power of Attorney (Form 2827) must
include the signature of an officer, manager, or member of the partnership or S
corporation who is authorized to designate an affected business entity
representative and who attests to having such authorization under penalty of
perjury. Alternatively, the Power of Attorney (Form 2827) must include the
signatures of partners or shareholders who together hold the majority of the
voting power of the partnership or S corporation. In lieu of adding
signature(s) in the signature box of the Power of Attorney (Form 2827), an
attachment shall be included with the filing of the Power of Attorney (Form
2827), containing such signature(s) under the following statement: "Under
penalties of perjury, I (we) hereby certify that I (we) am (are) members of, or
an officer or manager of, the taxpayer named on this Form 2827, and that I (we
together) am (are) authorized to designate an affected business entity
representative for the taxpayer."
(C) As necessary qualifications to be
designated as an affected business entity representative for a tax year, a
person must have a working email address, telephone number, and physical
address at which to receive mail.
(D) The Power of Attorney (Form 2827) must
include a current working email address, telephone number, and physical mailing
address of the person to be designated as the affected business entity
representative. A filing lacking any information required by subsections (B) or
(D) of this section will be ineffective to designate a person as an affected
business entity representative.
(E)
If a Power of Attorney (Form 2827) is filed with the signatures required by
subsection (B) above, but the filing lacks one (1) or more items of information
required by subsection (D) above, or the person who would otherwise serve as
affected business entity representative lacks one (1) of the qualifications
required by subsection (C) above, that person shall nevertheless be considered
an authorized representative of the partnership or S corporation for purposes
of receiving and discussing the partnership or S corporation's confidential tax
information otherwise protected by section
32.057, RSMo. By way of example,
the department may communicate with that person to share what items or
qualifications were lacking in the attempt to make that person an affected
business entity representative.
(F)
If a person has already been designated as an affected business entity
representative for an affected business entity's prior tax year, in lieu of the
other requirements of this section, that person may be re-designated as an
affected business entity representative for a later tax year by the filing of
that tax year's affected business entity tax return (Form MO-PTE) and the
checking of a box on that return indicating the affected business entity's
intent to re-designate that representative.
(6) An affected business entity
representative may be removed from the role of affected business entity
representative for a tax year if the partnership or S corporation designates a
new affected business entity representative for that tax year. The removal of
an affected business entity representative does not change the binding effect
of any prior actions taken by that affected business entity
representative.
(7) An affected
business entity is not subject to an estimated income tax declaration filing
requirement, or an estimated income tax payment requirement. An affected
business entity may choose to make an early payment of its anticipated tax
liability for a tax year, even if the tax year is not yet complete.
(8) The election to become an affected
business entity does not relieve a partnership or S corporation of its
withholding obligations under section 143.411.5, RSMo, or section 143.471.6,
RSMo, respectively.
(9) The
affected business entity's tax under section
143.436, RSMo, is due at the
same time the affected business entity's return is due, that is, by the
fifteenth day of the fourth month following the end of the partnership or S
corporation's tax year. By this same date, the affected business entity shall
file an affected business entity tax return (Form MO-PTE) unless a filing
extension is approved by the department. If an affected business entity is
approved for a filing extension of the affected business entity tax return
(Form MO-PTE), the affected business entity is likewise granted an equal
extension of time for the payment of the tax due under section
143.436, RSMo. Pursuant to
section 143.731.2, RSMo, interest on this tax will continue to accrue
regardless of any extension of time for payment.
(10) If a partnership or S corporation has
received a federal extension for filing its annual partnership or S corporation
federal return, that partnership or S corporation is hereby granted an equal
extension of time for filing its affected business entity tax return (Form
MO-PTE), except that this extension will be no longer than six (6) months. The
partnership or S corporation must attach a copy of the approved federal
extension to its affected business entity tax return (Form MO-PTE). This
section applies only to partnerships or S corporations that have an original
affected business entity tax return due date that matches the original due date
of their annual partnership or S corporation federal return.
(11) The tax credits granted to a member of
an affected business entity by sections 143.436.8 and 143.436.10, RSMo, shall
be computed based on the member's direct and indirect pro rata share of the tax
actually paid pursuant to section
143.436, RSMo, by any affected
business entity of which such member is directly or indirectly a member. If an
affected business entity reduces its tax liability under section
143.436, RSMo, by use of tax
credits, other than a credit for payment or overpayment of this tax, the
affected business entity's tax actually paid will generally be
reduced.
Notes
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