Mo. Code Regs. tit. 12 § 10-2.035
Current through Register Vol. 49, No.12, June 17, 2024
Section 12 CSR 10-2.035 - Conformity of Missouri With Federal Accounting MethodsPURPOSE: The rule provides that a taxpayer must employ the same method of accounting for Missouri income tax purposes as is used for federal income tax purposes.
(1) A taxpayer must employ the same method of accounting in determining Missouri taxable income as is used for federal income tax purposes. The term method of accounting refers not only to the overall method of accounting (such as cash or accrual) but also to the accounting treatment of particular items of income, gain, loss or deduction, such as depreciation, bad debts, inventory valuation, research and experimental expenditures.(2) If the taxpayer is allowed or is required to change an accounting method for federal income tax purposes, a similar change in the accounting method for Missouri income tax purposes will automatically be made. No application for change of accounting method for Missouri income tax purposes shall be required. AUTHORITY: section 143.961, RSMo 1986.* Regulations 1.281-1 and 1.281-2 were originally filed March 8, 1974, effective March 18, 1974. *Original authority: 143.961, RSMo 1972.