List of Records Examined During An Audit

The following records will be requested for examination, to the extent they apply. The list should not be considered all-inclusive and does not limit the Department of Revenue auditor from requesting additional records.

Sales/Use/Withholding Tax Records

• Copies of Missouri sales and use tax returns including any supporting worksheets
• Sales journals, general ledgers or any and all other source documents used to complete the sales/use tax returns
• Copies of Federal and Missouri income tax returns filed
• Missouri sales invoices
• Exemption certificates, exemption letters or other proof of exemption for all sales claimed to be exempt from Missouri sales or use tax
• Purchase invoices for expense items and fixed assets
• Detailed depreciation schedule or fixed asset listing
• Check register, purchases journal or disbursement journal
• Chart of accounts
• Customer listings
• Copies of Missouri withholding tax returns (MO 941's)
• Payroll registers and/or disbursement journals
• Copies of W-2's &1099's for the audit period
• Depending on the format of the business records, a request may be made to obtain the sales, use and payroll information in an electronic format.

Corporate Tax Records

• Federal 1120 Returns and Schedules (Consolidated, if applicable)
• Federal 1065 Partnership/LLC Returns, K-1s and Schedules
• Federal Agent Reports (including explanation of changes)
• Federal Amended Returns and Federal 1139 (including explanation of changes)
• Missouri Corporate Income/Franchise Tax Returns (including Amended)
• State Tax Returns filed in other states
• Net Operating Loss Carryforward
• Taxes reported on Federal 1120, Line 17
• Taxes reported on Federal 1065, Line 14
• Municipal Bond Interest excluded from Federal Taxable Income (Federal M-1 Adjustment)
• Depreciation – Bonus Basis Adjustments
• Interest from exempt Federal Obligations (supported by documentation type)
• Under three factor method of apportionment:
  • Schedule of beginning and ending property balances by location detailing:
    • Land
    • Depreciable Assets
    • Inventory
  • Schedule of rent expense and equipment rental by location
  • Federal and Missouri unemployment returns
  • Schedule of sales by state showing destination points by location
  • Schedule of other receipts by location [interest, rents, royalties, capital gains, Net gains and other income].
  • Ending Balance of Rental Expense, by state
• Under single factor method of apportionment:
  • Schedule of sales by state showing origin and destination points by location
  • Schedule of non-Missouri source income and related expenses

Franchise Tax Records

• Accounts Receivable by state or computation, pursuant to Missouri destination sales percentage
• Inventory by state
• Land and Fixed Assets at net book value by state (including construction in progress and Capital Lease Assets at net book value)
• Investments in and Advances to Subsidiaries (identify subsidiary(s) and amount).