Section 31 Other Methods of Allocation and Apportionment

• Library: Tax Law 2009

Section 143.461.2, RSMo 2000, and Compact, Article IV, § 18, each provide for allocation and apportionment of income by methods other than those specifically prescribed in Chapter 143, RSMo, and the Compact. The Compact provides that the Director may require a taxpayer to use a nonstandard method if the Director determines that “the allocation and apportionment provisions of [Article IV] do not fairly represent the extent of the taxpayer’s business activity in this state.” Compact, Article IV, § 18; 12 C.S.R. § 10-2.075(61). No comparable power is granted the Director under Chapter 143, and the Director’s regulations concerning nonstandard methods provide only for taxpayer requests to use these methods. 12 C.S.R. § 10-2.050(5). Nonstandard methods are permitted only when unusual, and ordinarily “unique and nonrecurring,”...