IRS Form 2438 (Revised December 2010) by theyne


More Info
									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
  Type          Number, street, and room or suite no. (If a P.O. box, see instructions.)
  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))


   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

   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.



               Signature of officer                                                                     Date                                    Title
                  Print/Type preparer’s name                         Preparer's signature                                        Date                                          PTIN
Paid                                                                                                                                                       Check      if
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    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
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.

To top