Instructions For Form 1120-Reit - 2009 (Page 3 of 17) in pdf

files its income tax return. The statement

Private delivery services

Paid Preparer

must be filed on or before the 90th day

REITs can use certain private delivery

Authorization

after the 1st day of the tax year for which

services designated by the IRS to meet

the revocation is to be effective. The

the “timely mailing as timely filing/paying”

If the REIT wants to allow the IRS to

statement must include the following:

rule for tax returns and payments.

discuss its 2009 tax return with the paid

•

The name, address, and employer

preparer who signed it, check the “Yes”

These private delivery services include

identification number of the organization;

box in the signature area of the return.

•

only the following.

The tax year for which the election was

This authorization applies only to the

•

DHL Express (DHL): DHL Same Day

made;

individual whose signature appears in the

•

Service.

A statement that the organization

“Paid Preparer’s Use Only” section of the

•

Federal Express (FedEx): FedEx

(according to section 856(g)(2)) revokes

REIT’s return. It does not apply to the

Priority Overnight, FedEx Standard

its election under section 856(c)(1) to be

firm, if any, shown in that section.

Overnight, FedEx 2Day, FedEx

a REIT; and

•

If the “Yes” box is checked, the REIT is

International Priority, and FedEx

The signature of an official authorized

authorizing the IRS to call the paid

International First.

to sign the income tax return of the

•

preparer to answer any questions that

United Parcel Service (UPS): UPS Next

organization.

may arise during the processing of its

Day Air, UPS Next Day Air Saver, UPS

The organization may not make a new

2nd Day Air, UPS 2nd Day Air A.M., UPS

return. The REIT is also authorizing the

election to be taxed as a REIT during the

Worldwide Express Plus, and UPS

paid preparer to:

4 years following the 1st year for which

•

Worldwide Express.

Give the IRS any information that is

the termination or revocation is effective.

missing from the return,

See section 856(g)(4) for exceptions.

The private delivery service can tell

•

Call the IRS for information about the

you how to get written proof of the mailing

processing of the return or the status of

Taxable REIT Subsidiaries

date.

any related refund or payment(s), and

•

(TRS)

Respond to certain IRS notices about

Private delivery services cannot

math errors, offsets, and return

deliver items to P.O. boxes. You

A REIT may own up to 100% of the stock

preparation.

must use the U.S. Postal Service

in one or more taxable REIT subsidiaries

CAUTION

to mail any item to an IRS P.O. box

(TRS). A TRS must be a corporation

The REIT is not authorizing the paid

address.

(other than a REIT or a qualified REIT

preparer to receive any refund check,

subsidiary) and may provide services to

bind the REIT to anything (including any

Extension of Time To File

the REIT’s tenants without disqualifying

additional tax liability), or otherwise

File Form 7004, Application for Automatic

the rent received by the REIT. See

represent the corporation before the IRS.

Extension of Time To File Certain

section 856(l) for details, including certain

The authorization will automatically

Business Income Tax, Information, and

restrictions on the type of business

end no later than the due date (without

Other Returns, to request a 6-month

activities a TRS may perform. Also, not

regard to extensions) for filing the REIT’s

extension of time to file. Generally, file

more than 20% of the fair market value

2010 tax return. If the REIT wants to

Form 7004 by the regular due date of the

(FMV) of a REIT’s total assets (25% for

expand the paid preparer’s authorization,

REIT’s income tax return.

tax years beginning after July 30, 2008)

see Pub. 947, Practice Before the IRS

may be securities of one or more TRSs

and Power of Attorney.

Who Must Sign

(see section 856(c)(4) for details).

Transactions between a TRS and its

The return must be signed and dated by:

Assembling the Return

•

associated REIT must be at arm’s length.

The president, vice president,

To ensure that the REIT’s tax return is

A REIT may be subject to a 100% tax to

treasurer, assistant treasurer, chief

correctly processed, attach all schedules

the extent it improperly allocates income

accounting officer; or

•

and other forms after page 4, Form

and deductions between the REIT and

Any other corporate officer (such as a

1120-REIT, and in the following order.

the TRS (see section 857(b)(7) for

tax officer) authorized to sign.

1. Schedule N (Form 1120).

details). Additional limitations on

If a return is filed on behalf of a REIT

2. Schedule O (Form 1120).

transactions between a TRS and its

by a receiver, trustee, or assignee, the

3. Form 4626.

associated REIT include:

fiduciary must sign the return, instead of

•

4. Form 4136.

Limitations on income from a TRS that

the corporate officer. Returns and forms

5. Additional schedules in alphabetical

may be treated as rents from real

signed by a receiver or trustee in

order.

property by the REIT (see section

bankruptcy on behalf of a REIT must be

6. Additional forms in numerical order.

856(d)(8)).

accompanied by a copy of the order or

•

Limitations on a TRS’s deduction for

instructions of the court authorizing

Complete every applicable entry space

interest paid to its associated REIT (see

signing of the return or form.

on Form 1120-REIT. Do not enter “See

section 163(j)).

attached” instead of completing the entry

If an employee of the REIT completes

To elect to have an eligible corporation

spaces. If more space is needed on the

Form 1120-REIT, the paid preparer’s

treated as a TRS, the corporation and the

forms or schedules, attach separate

space should remain blank. Anyone who

REIT must jointly file Form 8875, Taxable

sheets using the same size and format as

prepares Form 1120-REIT but does not

REIT Subsidiary Election.

the printed forms. If there are supporting

charge the REIT should not complete that

statements and attachments, arrange

section. Generally, anyone who is paid to

When To File

them in the same order as the schedules

prepare the return must sign it and fill in

Generally, a REIT must file its income tax

or forms they support and attach them

the “Paid Preparer’s Use Only” area.

return by the 15th day of the 3rd month

last. Show the totals on the printed forms.

The paid preparer must complete the

after the end of its tax year. A new REIT

Enter the REIT’s name and EIN on each

required preparer information and:

filing a short period return must generally

supporting statement or attachment.

•

Sign the return in the space provided

file by the 15th day of the 3rd month after

for the preparer’s signature; and

the short period ends. A REIT that has

Depository Methods

•

Give a copy of the return to the

dissolved must generally file by the 15th

of Tax Payment

taxpayer.

day of the 3rd month after the date it

dissolved.

Note. A paid preparer may sign the

The REIT must pay the tax due in full no

If the due date falls on a Saturday,

original or amended returns by rubber

later than the 15th day of the 3rd month

Sunday, or legal holiday, the REIT can file

stamp, mechanical device, or computer

after the end of the tax year. Generally,

on the next business day.

software program.

this date falls on March 15th after the

-3-

Instructions For Form 1120-Reit - 2009 Page 3

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