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Form 8612 (Rev. 11-2022) Page 2
General Instructions Amended Return Line 12. The REIT must use electronic funds
transfers to make all federal tax deposits (such
Section references are to the Internal Revenue To amend a previously filed Form 8612, file a as deposits of employment tax, excise tax, and
Code. corrected Form 8612 and write “Amended” at the corporate income tax). Generally, electronic
top of the form. funds transfers are made using the Electronic
Purpose of Form Federal Tax Payment System (EFTPS). However,
Form 8612 is used by real estate investment Specific Instructions if you don’t want to use EFTPS, you can arrange
for your tax professional, financial institution,
trusts (REITs) to figure and pay the excise tax on Period covered. Fill in the space at the top of payroll service, or other trusted third party to
undistributed income under section 4981. The the form to show the calendar year for which this make deposits on your behalf. EFTPS is a free
excise tax is 4% of the excess, if any, of the return is filed. The REIT is required to figure its service provided by the Department of the
required distribution over the distributed amount. undistributed income on a calendar year basis Treasury. Services provided by your tax
even though it may file its income tax return and professional, financial institution, payroll service,
Who Must File keep its books and records on a fiscal year basis. or other third party may have a fee.
Any REIT that is liable for the excise tax on Address. Include the suite, room, or other unit For more information about EFTPS, or to enroll
undistributed income under section 4981 must number after the street address. If the Post in EFTPS, visit the EFTPS website at
file Form 8612. Office does not deliver mail to the street address www.eftps.gov or call 800-555-4477. To contact
and the REIT has a P.O. box, show the box EFTPS using Telecommunications Relay
When and Where To File number instead. Services (TRS) for people who are deaf, hard of
File Form 8612 by March 15th following the If the REIT receives its mail in care of a third hearing, or have a speech disability, dial 711 and
calendar year to which the excise tax liability party (such as an accountant or an attorney), then provide the TRS assistant the 800-555-4477
applies. File it with the Department of the enter on the street address line “C/O” followed number above or 800-733-4829.
Treasury, Internal Revenue Service Center, by the third party’s name and street address or Depositing on time. For any deposit made by
Cincinnati, OH 45999. P.O. box. EFTPS to be on time, the REIT must submit the
If more time is needed, use Form 7004, Line 1a. Refigure real estate investment trust deposit by 8 p.m. Eastern time on the day before
Application for Automatic Extension of Time To taxable income, treating the calendar year as the the date the deposit is due. If the REIT uses a
File Certain Business Income Tax, Information, REIT’s tax year. When refiguring this amount, third party to make the deposits on its behalf,
and Other Returns. However, Form 7004 does exclude the deduction for dividends paid and any they may have different cutoff times.
not extend the time for payment of tax. gain or loss from the sale or exchange of a
capital asset. Include adjustments that result in Paperwork Reduction Act Notice. We ask for
Who Must Sign the distribution of deficiency dividends (defined the information on this form to carry out the
Form 8612 must be signed and dated by the in section 860(f)) for the year in which the Internal Revenue laws of the United States. You
president, vice president, treasurer, assistant dividends are paid. Also, include the REIT’s are required to give us the information. We need
treasurer, or chief accounting officer, or by any share of partnership ordinary income (loss) and it to ensure that you are complying with these
other officer (such as tax officer) authorized to deductions when they are taken into account by laws and to allow us to figure and collect the
sign. Receivers, trustees, or assignees must sign the partnership. For details and exceptions, see right amount of tax.
and date any return that they are required to file Rev. Rul. 94-40, 1994-1 C.B. 274; and Rev. Proc. You are not required to provide the
on behalf of the REIT. 94-71, 1994-2 C.B. 810. information requested on a form that is subject
Line 2a. To determine capital gain net income, to the Paperwork Reduction Act unless the form
Rounding Off to Whole Dollars figure the excess, if any, of the gains over the displays a valid OMB control number. Books or
The REIT may show amounts on the return as losses from the sale or exchange of capital records relating to a form or its instructions must
whole dollars. To do so, drop any amount less assets, determined by treating the calendar year be retained as long as their contents may
than 50 cents and increase any amount from 50 as the REIT’s tax year. Reduce the result by the become material in the administration of any
cents through 99 cents to the next dollar. REIT’s net ordinary loss (as defined in section Internal Revenue law. Generally, tax returns and
4981(e)(2)(C)), if any, for the calendar year. return information are confidential, as required by
Interest and Penalties Include adjustments that result in the distribution section 6103.
of deficiency dividends (defined in section 860(f))
Interest. Interest is charged on taxes paid late and that affect capital gain net income for the The time needed to complete and file this form
even if an extension of time to file is granted. year in which the dividends are paid. Also, will vary depending on individual circumstances.
Interest is also charged on penalties imposed for include the REIT’s share of partnership items that The estimated average time is:
failure to file, negligence, fraud, and substantial affect capital gain net income when they are Recordkeeping . . . . . 6 hr., 13 min.
understatements of tax from the due date taken into account by the partnership. For details Learning about the
(including extensions) to the date of payment. and exceptions, see Rev. Rul. 94-40 and Rev. law or the form . . . . . . 1 hr., 40 min.
The interest charge is figured at a rate Proc. 94-71.
Preparing and
determined under section 6621. Line 3a. Add lines 1a and 2a using amounts for sending the form
Late payment of tax. A REIT that doesn’t pay the previous calendar year, increased by the to the IRS . . . . . . 1 hr., 52 min.
the tax when due may be charged a penalty for prior year’s shortfall, if any, as defined in section
the failure to pay tax. The amount of the penalty 4981(b)(2). If you have comments concerning the
accuracy of these time estimates or suggestions
is ½ of 1% of the unpaid tax for each month or Line 5. Enter the deduction for dividends paid (as for making this form simpler, we would be happy
part of the month the tax is not paid, up to a defined in section 561) during the current to hear from you. You can send us comments
maximum of 25% of the unpaid tax. This penalty calendar year figured without regard to the from www.irs.gov/FormComments. Or you can
won’t be imposed if the REIT can show that the dividends paid, if any, attributable to net income write to the Internal Revenue Service, Tax Forms
failure to pay on time was due to reasonable from foreclosure property. Include deficiency and Publications, 1111 Constitution Ave. NW,
cause. dividends (defined in section 860(f)) paid during IR-6526, Washington, DC 20224. Do not send
Late filing of return. A REIT that doesn’t file its the calendar year. Also, include dividends the form to this address. Instead, see When and
tax return by the due date, including extensions, declared in October, November, or December Where To File, earlier.
may be penalized 5% of the unpaid tax for each but only if they were actually paid by the REIT
month or part of a month the return is late, up to during January of the following calendar year.
a maximum of 25% of the unpaid tax. The See section 857(b)(9). Do not include on this line
penalty won’t be imposed if the REIT can show any other dividends paid after the close of the
that the failure to file on time was due to calendar year.
reasonable cause. REITs that file late should Line 6. Line 6 is the total of the following
send an explanation of reasonable cause after amounts figured for the tax year of the REIT
receiving a notice from the IRS. Do not attach an ending in or with the calendar year for which this
explanation when the return is filed. excise tax return is filed.
Other penalties.Other penalties can be 1. Real estate investment trust taxable income
imposed for negligence, substantial from Form 1120-REIT, Part I, line 22.
understatements of tax, reportable transaction
understatements, and fraud. See sections 6662, 2. Undistributed capital gains designated
6662A, and 6663. under section 857(b)(3)(D) from Form 2438, line
11.
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