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Form 8612 (Rev. 11-2016) Page 2
General Instructions paid, up to a maximum of 25% of the unpaid deficiency dividends(defined in section 860(f))
tax. This penalty won’t be imposed if the REIT paid during the calendar year. Also, include
Section references are to the Internal can show that the failure to pay on time was dividendsdeclared in October, November, or
Revenue Code. due to reasonable cause. December but only if they were actuallypaid
Purpose of Form Other penalties. Other penalties can be by the REIT during January of thefollowing
imposed for negligence, substantial calendar year. See section857(b)(9). Do not
Form 8612 is used by real estate investment understatements of tax, reportable include on this line any other dividends paid
trusts (REITs) to figure and pay the excise tax transaction understatements, and fraud. See after the close of thecalendar year.
on undistributed income under section 4981. sections 6662, 6662A, and 6663. Line 6. Line 6 is the total of the following
The excise tax is 4% of the excess, if any, of amounts figured for the tax year of the REIT
the required distribution over the distributed Amended Return ending in or with the calendar year for which
amount. this excise tax return is filed.
To amend a previously filed Form 8612, file a
Who Must File corrected Form 8612 and write “Amended” at 1. Real estate investment trust taxable
the top of the form. income from Form 1120-REIT, Part I, line 22,
Any REIT that is liable for the excise tax on
and
undistributed income under section 4981
must file Form 8612. Specific Instructions 2. Undistributed capital gains designated
Period covered. Fill in the space at the top under section 857(b)(3)(D) from Form 2438,
When and Where To File of the form to show the calendar year for line 11.
File Form 8612 by March 15th following the which this return is filed. The REIT is required Line 12. Full payment of the tax due on line
calendar year to which the excise tax liability to figure its undistributed incomeon a 12 must accompany the return. Makethe
applies. File it with the Department of the calendar year basis even though it may file its REIT’s check or money order payable to the
Treasury, Internal Revenue Service Center, income tax return and keep itsbooks and “United States Treasury.”
Cincinnati, OH 45999. records on a fiscal year basis. The REIT can pay the tax electronically
If more time is needed, use Form 7004, Address. Include the suite, room, or other itself or arrange for an electronic funds
Application for Automatic Extension of Time unit number after the street address. If the transfer through a trusted third party.
To File Certain Business Income Tax, Post Office does not deliver mail to thestreet Generally, electronic funds transfers are made
Information, and Other Returns. However, address and the REIT has a P.O.box, show using the Electronic Federal Tax Payment
Form 7004 does not extend the time for the box number instead. System (EFTPS). To get more information
payment of tax. If the REIT receives its mail in care of a about EFTPS or to enroll in EFTPS, visit
third party (such as an accountant or an www.eftps.gov, or call 1-800-555-4477
Who Must Sign attorney), enter on the street address line (TTY/TDD 1-800-733-4829).
Form 8612 must be signed and dated by the “C/O” followed by the third party’s name and
president, vice president, treasurer, assistant street address or P.O. box. Paperwork Reduction Act Notice. We ask
treasurer, chief accounting officer, or by any Line 1a. Refigure real estate investmenttrust for the information on this form to carry out
other officer (such as tax officer) authorized to taxable income, treating the calendar year as the Internal Revenue laws of the United
sign. Receivers, trustees, or assignees must the REIT’s tax year. Whenrefiguring this States. You are required to give us the
sign and date any return that they are amount, exclude thededuction for dividends information. We need it to ensure that you are
required to file on behalf of the REIT. paid and any gain or loss from the sale or complying with these laws and to allow us to
exchange of a capital asset. Include figure and collect the right amount of tax.
Rounding Off to Whole Dollars adjustments that result in the distribution of You are not required to provide the
The REIT may show amounts on the return as deficiency dividends (defined in section 860(f)) information requested on a form that is
whole dollars. To do so, drop any amount less for the year in which the dividends are paid. subject to the Paperwork Reduction Act
than 50 cents and increase any amount from Also, include the REIT’s share of partnership unless the form displays a valid OMB control
50 cents through 99 cents to the next higher ordinary income (loss) and deductions when number. Books or records relating to a form
dollar. they are taken into account by the or its instructions must be retained as long as
partnership. For details and exceptions, see their contents may become material in the
Interest and Penalties Rev. Rul. 94-40, 1994-1 C.B. 274, andRev. administration of any Internal Revenue law.
Interest. Interest is charged on taxes paid Proc. 94-71, 1994-2 C.B. 810. Generally, tax returns and return information
late even if an extension of time to file is Line 2a. To determine capital gain net are confidential, as required by section 6103.
granted. Interest is also charged onpenalties income, figure the excess, if any, of thegains The time needed to complete and file this
imposed for failure to file, negligence, fraud, over the losses from the sale orexchange of form will vary depending on individual
and substantial understatements of tax from capital assets, determined bytreating the circumstances. The estimated average time
the duedate (including extensions) to the date calendar year as the REIT’s tax year. Reduce is:
ofpayment. The interest charge is figured at the result by the REIT’s netordinary loss (as Recordkeeping . . . . 6 hr., 13 min.
a rate determined under section 6621. defined in section 4981(e)(2)(C)), if any, for the
Late filing of return. A REITthat doesn’t file calendar year. Include adjustments that result Learning about the
its tax return by the duedate, including in thedistribution of deficiency dividends law or the form . . . . 1 hr., 40 min.
extensions, may be penalized 5% of the (definedin section 860(f)) and that affect Preparing and
unpaid tax for each month or part of a month capitalgain net income for the year in which sending the form
the return is late, up to a maximum of 25% of the dividends are paid. Also, include the to the IRS . . . . . . 1 hr., 52 min.
the unpaid tax. The minimum penalty for a REIT’s share of partnership items that affect If you have comments concerning the
return that is over 60 days late is the smaller capital gain net income when they are taken accuracy of these time estimates or
of the tax due or $205. The penalty won’t be into account by the partnership. For details suggestions for making this form simpler, we
imposed if the REIT can show that thefailure and exceptions, see Rev. Rul. 94-40 and Rev. would be happy to hear from you. You can
to file on time was due toreasonable cause. Proc. 94-71. send us comments from www.irs.gov/
REITs that file late should send an explanation Line 3a. Add lines 1a and 2a usingamounts formspubs/. Click on “More Information” and
of reasonable cause after receiving a notice for the previous calendaryear, increased by then on “Give us feedback.” Or you can write
from the IRS. Do not attach an explanation the prior year’s shortfall,if any, as defined in to: Internal Revenue Service; Tax Forms and
when the return is filed. section 4981(b)(2). Publications Division; 1111 Constitution Ave.
Late payment of tax. A REITthat doesn’t pay Line 5. Enter the deduction for dividends paid NW; IR-6526; Washington, DC 20224. Do not
the tax when due may be charged a penalty (as defined in section 561) during the current send the form to this address. Instead, see
for the failure to pay tax. The amount of the calendar year figured without regard to the When and Where ToFile, earlier.
penalty is ½ of 1% of the unpaid tax for each dividends paid, if any,attributable to net
month or part of the month the tax is not income from foreclosureproperty. Include
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