Form 2438 (Rev. December 2010) Undistributed Capital Gains Tax Return OMB No. 1545-0144 Department of the Treasury Internal Revenue Service ▶ Attach a copy of this form to Form 1120-RIC or to Form 1120-REIT. For calendar year 20 or tax year beginning , 20 , ending , 20 Name of fund or REIT Employer identification number Please Type Number, street, and room or suite no. (If a P.O. box, see instructions.) or Print City or town, state, and ZIP code Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less (a) Description of property (Example, 100 shares (b) Date acquired (c) Date sold (mo., (d) Sales price (see (e) Cost or other (f) Gain or (loss) basis (see of Z Co.) (mo., day, yr.) day, yr.) instructions) instructions) ((d) less (e)) 1 2 Short-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . 2 3 Unused capital loss carryover (attach computation) . . . . . . . . . . . . . . . . 3 ( ) 4 Net short-term capital gain or (loss). Combine lines 1 through 3. (See instructions.) . . . . . 4 Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year 5 6 Gain from Form 4797, column (g), line 7 or 9 . . . . . . . . . . . . . . . . . . 6 7 Long-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . 7 8 Net long-term capital gain. Combine lines 5 through 7 . . . . . . . . . . . . . . . 8 Part III Summary of Parts I and II 9a Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss (line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a b Capital gain dividends . . . . . . . . . . . . . . . . . . . . . . . . . 9b 10 Undistributed capital gains. Subtract line 9b from line 9a . . . . . . . . . . . . . . 10 11 Amount of undistributed capital gains on line 10 designated under section 852(b)(3)(D) or 857(b)(3)(D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Amount of undistributed capital gains not designated under section 852(b) (3)(D) or 857(b)(3)(D). Subtract line 11 from line 10. (See instructions.) . . 12 13 Capital gains tax. Multiply line 11 by 35% (.35) . . . . . . . . . . . . . . . . . 13 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, Sign correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here ▲ ▲ Signature of officer Date Title Print/Type preparer’s name Preparer's signature Date PTIN Paid Check if self-employed Preparer Use Only Firm’s name ▶ Firm's EIN ▶ Firm's address ▶ Phone no. For Paperwork Reduction Act Notice, see instructions. Cat. No. 11856I Form 2438 (Rev. 12-2010) Form 2438 (Rev. 12-2010) Page 2 General Instructions • The president, vice president, RIC or REIT can show that the treasurer, assistant treasurer, chief failure to pay on time was due to Section references are to the accounting officer or reasonable cause. Internal Revenue Code. • Any other corporate officer (such Electronic Deposit Requirement What's New as tax officer) authorized to sign. Beginning January 1, 2011, all Beginning January 1, 2011, you If a return is filed on behalf of a federal tax deposits (such as must use electronic funds transfers RIC or REIT by a receiver, trustee or deposits of employment tax, excise to make all federal tax deposits assignee, the fiduciary must sign the tax, and corporate income tax) must (such as deposits of employment return, instead of the corporate be made by electronic funds tax, excise tax, and corporate officer. Returns and forms signed by transfers. Forms 8109 and 8109-B income tax). Forms 8109 and 8109- a receiver or trustee in bankruptcy cannot be used after December 31, B, Federal Tax Deposit Coupon, on behalf of a RIC or REIT must be 2010. Generally, electronic fund cannot be used after December 31, accompanied by a copy of the order transfers are made using the 2010. See Electronic Deposit or instructions of the court Electronic Federal Tax Payment Requirement, later, for more authorizing signing of the return or System (EFTPS). However, if you do information. form. not want to use EFTPS, you can For a return that is being filed for a arrange for your tax professional, Who Must File series fund (discussed in section financial institution, payroll service, Regulated investment companies 851(g)), the return may be signed by or other trusted third party to make (RICs) and real estate investment any officer authorized to sign for the deposits on your behalf. Also, you trusts (REITs) file Form 2438 if the RIC in which the fund is a series. may arrange for your financial RIC (defined below) or REIT is institution to initiate a same-day tax If a corporate officer completes wire payment (discussed below) on electing to designate undistributed Form 2438, the Paid Preparer Use capital gains under section 852(b)(3) your behalf. EFTPS is free service Only area should remain blank. provided by the Department of (D) or 857(b)(3)(D). Anyone who prepares Form 2438 Treasury. Services provided by your If a RIC has more than one fund, but does not charge the RIC or REIT tax professional, financial institution, each fund must file a separate Form should not sign the return. Generally, payroll service, or other third party 2438. The term “fund” as used in anyone who is paid to prepare Form may have a fee. these instructions refers to the 2438 must sign it and fill in the Paid definition in section 851(g) and to Preparer Use Only area. For more information about any RIC that does not have more EFTPS, or to enroll in EFTPS, visit Paid preparer. The paid preparer the EFTPS website at than one portfolio of assets. must complete the Paid Preparer www.eftps.gov or call Purpose of Form Use Only area (including signing the 1-800-555-4477. You can also get form in the space provided for the Pub. 966, The Secure Way to Pay Form 2438 is used by RICs or REITs preparer's signature) and give a to figure income tax on undistributed Your Federal Taxes. copy of Form 2438 to the taxpayer. capital gains designated under Depositing on time. For deposits section 852(b)(3)(D) or section Penalty for Late Filing of Return made by EFTPS to be on time, the 857(b)(3)(D). A RIC or REIT that does not file its RIC or REIT must initiate the deposit See the instructions for Schedule tax return by the due date, including by 8 p.m. Eastern time on the day D (Form 1120) for a definition of extensions, may be penalized 5% of before the date the deposit is due. If capital assets and information on the unpaid tax for each month or the RIC or REIT uses a third party to figuring and reporting capital gains part of a month the return is late, up make the deposits on its behalf, they and losses. to a maximum of 25% of the unpaid may have different cutoff times. tax. The minimum penalty for a Same-day wire payment option. If When To File return that is more than 60 days late the RIC or REIT fails to initiate a File Form 2438 by the 30th day after is the smaller of the tax due or $135. deposit transaction on EFTPS by the end of the RIC’s or the REIT’s The penalty will not be imposed if 8 p.m. Eastern time the day before tax year. the RIC or REIT can show that the the date a deposit is due, it can still failure to file on time was due to make the deposit on time by using Where To File reasonable cause. RICs or REITs the Federal Tax Application (FTA). File the original form with the: that file late must attach a statement Before using the same-day wire Internal Revenue Service Center explaining the reasonable cause. payment option, the RIC or REIT will 201 W. Rivercenter Blvd. need to make arrangements with its Penalty for Late Payment of Tax financial institution ahead of time. Covington, KY 41011 A RIC or REIT that does not pay the Please check with the financial In addition, attach a copy of Form tax when due generally may be institution regarding availability, 2438 to Form 1120-RIC or Form penalized 1/2 of 1% of the unpaid tax deadlines, and costs. To learn more 1120-REIT. for each month or part of a month about making a same-day wire Who Must Sign the tax is not paid, up to a maximum payment and to download the of 25% of the unpaid tax. The Same-Day Payment Worksheet, visit Form 2438 must be signed and penalty will not be imposed if the www.eftps.gov. dated by: Form 2438 (Rev. 12-2010) Page 3 Specific Instructions Line 4 You are not required to provide the information requested on a form Period covered. Fill in the tax year Enter any net short-term capital gain that is subject to the Paperwork space at the top of the form. from line 4 on line 1 of Schedule D Reduction Act unless the form Address. Include the suite, room, or (Form 1120) as “Net short-term displays a valid OMB control other unit number after the street capital gain from line 4, Form 2438.” number. Books or records relating to address. If the Post Office does not Line 12 a form or its instructions must be deliver mail to the street address retained as long as their contents and the RIC or REIT has a P.O. box, Enter the amount from line 12 on may become material in the show the box number instead of the line 6 of Schedule D (Form 1120) as administration of any Internal street address. “Undistributed capital gains not Revenue law. Generally, tax returns designated (from Form 2438).” and return information are Lines 1 and 5 confidential, as required by section Column (b)—Date acquired. A Line 13 6103. RIC’s or REIT’s acquisition date for Deposit the tax due by the 30th day The time needed to complete and an asset it held on January 1, 2001, after the end of the tax year. file this form will vary depending on for which it made an election to individual circumstances. The recognize any gain (under section Note. If the RIC or REIT received a estimated average time is: 311 of the Taxpayer Relief Act of distributive share of a qualified 1997) is the date of the deemed sale timber gain (as defined in section Recordkeeping . . 8 hr., 36 min. and reacquisition. 1201(b)(2)) from a partnership for the Learning about the period that began before May 23, law or the form . . . . 30 min. Column (d). Enter either gross sales 2009, the RIC or REIT may be price or net sales price. If net sales eligible for an alternative tax rate Preparing and sending price is entered, do not increase the under section 1201(b)(1) for the the form to the IRS . . . 39 min. cost or other basis in column (e) by portion on line 11 that is attributable If you have comments concerning any expenses reflected in the net to the qualified timber gain. Enter the the accuracy of these time estimates sales price. alternative tax, if any, on line 13 and or suggestions for making this form Column (e). If gross sales price is attach a statement showing the simpler, we would be happy to hear reported in column (d), increase the computation. The RIC or REIT may from you. You can write to the cost or other basis by any expense use the format of the December Internal Revenue Service; Tax of sale such as broker’s fees, 2008 revision of Form 2438, Part III, Products Coordinating Committee; commissions, or option premiums as a guide. SE:W:CAR:MP:T:T:SP; 1111 before entering an amount in column Constitution Ave. NW, IR-6526; (e). Paperwork Reduction Act Notice. Washington, DC 20224. A RIC’s or REIT’s basis in an asset We ask for the information on this Do not send the tax form to this it held on January 1, 2001, for which form to carry out the Internal office. Instead, see Where To File. the RIC or REIT made an election to Revenue laws of the United States. recognize any gain (under section You are required to give us the 311 of the Taxpayer Relief Act of information. We need it to ensure 1997) is the asset’s closing market that you are complying with these price or fair market value, whichever laws and to allow us to figure and applies, on the date of the deemed collect the right amount of tax. sale and reacquisition, whether the deemed sale resulted in a gain or unallowed loss.
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