Looking for a Form 1120 Templates? Download it for free!

•

agreement and/or an annual certification

when the RIC ceases to be an eligible

The 2011 Form 1120-RIC is not

as provided in Regulations section

partner and the partnership’s monthly

available at the time the RIC is required to

1.1503-2(g)(2).

closing election is terminated as of the

file its return.

first day of any month the partnership is

Notice to shareholders. A RIC must

The RIC must show its 2011 tax year

no longer eligible for the election under

notify its shareholders within 60 days after

information on the 2010 Form 1120-RIC

Rev. Proc. 2003-84. For more details, see

the close of its tax year of the distribution

and take into account any tax law

the Revenue Procedure.

made during the tax year that qualifies for

changes that are effective for tax years

the dividends-received deduction under

Annual information statement for

beginning after December 31, 2010.

section 243. For purposes of the

elections under section 108(i). If the

dividends-received deduction, a capital

corporation made an election under

Name and Address

gain dividend received from a RIC is not

section 108(i) to defer income from

treated as a dividend. The capital gain

Enter the RIC’s true name (as set forth in

cancellation of debt (COD) for applicable

dividend is treated as a long-term capital

the charter or other legal document

debt instruments, the corporation must

gain by the shareholder.

creating it), address, and EIN on the

attach a statement to its return beginning

appropriate lines. Enter the address of the

with the tax year following the tax year for

Consent to partnership election to

RIC’s principal office or place of business.

which the corporation made the election,

close its books monthly. Certain

Include the suite, room, or other unit

and ending the first tax year all income

money market funds that obtain an

number after the street address. If the

deferred has been included in income.

interest in an eligible partnership that

post office does not deliver mail to the

The statement must be labeled

invests in assets exempt from taxation

street address and the RIC has a P.O.

‘‘Section108(i) Information Statement’’

under section 103 may be qualified to pay

box, show the box number instead.

and must clearly identify, for each

exempt-interest dividends to their

applicable debt instrument to which an

shareholders. To qualify for payment of

Note. Do not use the address of the

election under section 108(i) applies, the

exempt-interest dividends, a RIC must

registered agent for the state in which the

following.

meet the quarterly net asset value (NAV)

RIC is incorporated. For example, if a

requirements under section 852(b)(5). To

1. Any deferred COD income that is

business is incorporated in Delaware or

maintain the required NAV at the end of

included in income in the current tax year.

Nevada and the RIC’s principal office is

each quarter, the RIC may take into

2. Any deferred COD income that has

located in Little Rock, AR, the RIC should

account on a monthly basis its distributive

been accelerated because of an event

enter the Little Rock address.

share of partnership items if the eligible

described in section 108(i)(5)(D) and

partnership makes a proper election to

If the RIC receives its mail in care of a

must be included in income in the current

close its books at the end of each month.

third party (such as an accountant or an

tax year. Include a description and the

See Rev. Proc. 2003-84 for details.

attorney), enter on the street address line

date of the acceleration event.

“C/O” followed by the third party’s name

3. Any deferred COD income that has

Eligibility. A RIC is entitled to take

and street address or P.O. box.

not been included in income in the current

into account its distributive share of

or prior tax years.

partnership items on a monthly basis if:

Item B. Date RIC Was

•

4. Any deferred original issue discount

The RIC is entitled to hold itself out as

(OID) deduction allowed as a deduction in

a money market fund, or an equivalent of

Established

the current tax year.

a money market fund.

•

5. Any deferred OID deduction that is

If this return is being filed for a series fund

The RIC provides a statement to the

allowed as a deduction in the current tax

(as described in section 851(g)(2)), enter

partnership that it consents to the

year because of an accelerated event

the date the fund was created. Otherwise,

partnership’s election to close its books

described in section 108(i)(5)(D).

enter the date the RIC was incorporated

monthly and that the RIC will include in its

6. Any deferred OID deduction that

or organized.

taxable income its distributive share of

has not been deducted in the current or

partnership items in a manner consistent

prior tax years.

Item C. Employer

with the election. See Rev. Proc. 2003-84

for the required contents of the statement

Identification Number (EIN)

In addition, include a copy of the

of consent.

•

election statement filed to make the

The RIC provides the statement of

Enter the RIC’s EIN. If the RIC does not

election to defer cancellation of debt. For

consent to the custodian or manager of

have an EIN, it must apply for one. An

more information on making the election,

the partnership by the last day of the

EIN may be applied for:

•

see the instructions for line 15. For more

second month after the month in which

Online — Click on the EIN link at

www.

information regarding the annual

the RIC acquires the partnership interest.

irs.gov/businesses/small. The EIN is

•

information statement, see Rev. Proc.

The partnership is eligible under Rev.

issued immediately once the application

2009-37, 2009-36 I.R.B. 309.

Proc. 2003-84 to make the monthly

information is validated.

•

closing election and the election is

By telephone at 1-800-829-4933 from

Other forms and statements. See Pub.

effective by the second month after the

7:00 a.m. to 10:00 p.m. in the RIC’s local

542 for a list of other forms and

month in which the RIC acquires the

time zone.

statements a corporation may need to file

•

partnership interest.

By mailing or faxing Form SS-4,

in addition to the forms and statements

Application for Employer Identification

Statement of consent. The consent to a

discussed throughout these instructions.

Number.

partnership’s monthly closing election is

effective for the month in which the RIC

If the RIC has not received its EIN by

acquires the partnership interest, unless

Specific Instructions

the time the return is due, write “Applied

the RIC requests that the consent be

for” and the date you applied in the space

effective for either of the two immediately

for the EIN. See the Instructions for Form

Period Covered

following calendar months. In addition to

SS-4 for details.

timely providing the partnership with the

File the 2010 return for calendar year

statement of consent, the statement

Item D. Total Assets

2010 and fiscal years that begin in 2010.

should be filed with Form 1120-RIC for

For a fiscal year return, fill in the tax year

the first tax year in which the consent is

Enter the RIC’s total assets (as

space at the top of the form.

effective. The monthly closing consent

determined by the accounting method

(and the partnership’s election) may be

Note. The 2010 Form 1120-RIC may

regularly used in keeping the fund’s

revoked only with the consent of the

also be used if:

books and records) at the end of the tax

•

Commissioner. However, the RIC’s

The RIC has a tax year of less than 12

year. If there are no assets at the end of

consent becomes ineffective on any day

months that begins and ends in 2011; and

the tax year, enter -0-.

-6-

Instructions For Form 1120-Ric - U.s. Income Tax Return For Regulated Investment Companies - Internal Revenue Service - 2010 Page 6

Related Articles

Related forms

Related Categories