Instructions For Form 1120-Reit - 2010 (Page 3 of 17) in pdf

Extension of Time To File

subsidiary) and may provide services to

additional tax liability), or otherwise

the REIT’s tenants without disqualifying

represent the corporation before the IRS.

File Form 7004, Application for Automatic

the rent received by the REIT. See

The authorization will automatically

Extension of Time To File Certain

section 856(l) for details, including certain

end no later than the due date (without

Business Income Tax, Information, and

restrictions on the type of business

regard to extensions) for filing the REIT’s

Other Returns, to request a 6-month

activities a TRS may perform. Also, not

2011 tax return. If the REIT wants to

extension of time to file. Generally, file

more than 20% of the fair market value

expand the paid preparer’s authorization,

Form 7004 by the regular due date of the

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

see Pub. 947, Practice Before the IRS

REIT’s income tax return.

tax years beginning after July 30, 2008)

and Power of Attorney.

may be securities of one or more TRSs

Who Must Sign

Assembling the Return

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

The return must be signed and dated by:

Transactions between a TRS and its

•

To ensure that the REIT’s tax return is

The president, vice president,

associated REIT must be at arm’s length.

correctly processed, attach all schedules

treasurer, assistant treasurer, chief

A REIT may be subject to a 100% tax to

and other forms after page 4, Form

accounting officer; or

the extent it improperly allocates income

•

1120-REIT, and in the following order.

Any other corporate officer (such as a

and deductions between the REIT and

tax officer) authorized to sign.

1. Schedule N (Form 1120).

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

2. Schedule O (Form 1120).

If a return is filed on behalf of a REIT

details). Additional limitations on

3. Form 4626.

by a receiver, trustee, or assignee, the

transactions between a TRS and its

4. Form 4136.

fiduciary must sign the return, instead of

associated REIT include:

5. Additional schedules in alphabetical

the corporate officer. Returns and forms

•

Limitations on income from a TRS that

order.

signed by a receiver or trustee in

may be treated as rents from real

6. Additional forms in numerical order.

bankruptcy on behalf of a REIT must be

property by the REIT (see section

accompanied by a copy of the order or

856(d)(8)).

Complete every applicable entry space

instructions of the court authorizing

•

Limitations on a TRS’s deduction for

on Form 1120-REIT. Do not enter “See

signing of the return or form.

interest paid to its associated REIT (see

attached” instead of completing the entry

If an employee of the REIT completes

section 163(j)).

spaces. If more space is needed on the

Form 1120-REIT, the paid preparer’s

To elect to have an eligible corporation

forms or schedules, attach separate

space should remain blank. Anyone who

treated as a TRS, the corporation and the

sheets using the same size and format as

prepares Form 1120-REIT but does not

REIT must jointly file Form 8875, Taxable

the printed forms. If there are supporting

charge the REIT should not complete that

REIT Subsidiary Election.

statements and attachments, arrange

section. Generally, anyone who is paid to

them in the same order as the schedules

When To File

prepare the return must sign it and fill in

or forms they support and attach them

the “Paid Preparer Use Only” section.

last. Show the totals on the printed forms.

Generally, a REIT must file its income tax

The paid preparer must complete the

Enter the REIT’s name and EIN on each

return by the 15th day of the 3rd month

required preparer information and:

supporting statement or attachment.

after the end of its tax year. A new REIT

•

Sign the return in the space provided

filing a short period return must generally

Tax Payments

for the preparer’s signature; and

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

•

Give a copy of the return to the

the short period ends. A REIT that has

The REIT must pay the tax due in full no

taxpayer.

dissolved must generally file by the 15th

later than the 15th day of the 3rd month

Note. A paid preparer may sign the

day of the 3rd month after the date it

after the end of the tax year.

original or amended returns by rubber

dissolved.

Electronic Deposit Requirement

stamp, mechanical device, or computer

If the due date falls on a Saturday,

software program.

Beginning January 1, 2011, REITs must

Sunday, or legal holiday, the REIT can file

use electronic funds transfers to make all

on the next business day.

Paid Preparer

federal tax deposits (such as deposits of

Private delivery services

employment, excise, and corporate

Authorization

income tax). Forms 8109 and 8109-B,

REITs can use certain private delivery

If the REIT wants to allow the IRS to

Federal Tax Deposit Coupon, cannot be

services designated by the IRS to meet

discuss its 2010 tax return with the paid

used after December 31, 2010. Generally,

the “timely mailing as timely filing/paying”

preparer who signed it, check the “Yes”

electronic funds transfers are made using

rule for tax returns and payments.

box in the signature area of the return.

the Electronic Federal Tax Payment

These private delivery services include

This authorization applies only to the

System (EFTPS). However, if the REIT

only the following.

individual whose signature appears in the

does not want to use EFTPS, it can

•

DHL Express (DHL): DHL Same Day

“Paid Preparer Use Only” section of the

arrange for its tax professional, financial

Service.

REIT’s return. It does not apply to the

institution, payroll service, or other trusted

•

Federal Express (FedEx): FedEx

firm, if any, shown in that section.

third party to make deposits on its behalf.

Priority Overnight, FedEx Standard

Also, it may arrange for its financial

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

Overnight, FedEx 2Day, FedEx

institution to initiate a same-day tax wire

authorizing the IRS to call the paid

International Priority, and FedEx

payment (discussed below) on its behalf.

preparer to answer any questions that

International First.

EFTPS is a free service provided by the

may arise during the processing of its

•

United Parcel Service (UPS): UPS Next

Department of the Treasury. Services

return. The REIT is also authorizing the

Day Air, UPS Next Day Air Saver, UPS

provided by a tax professional, financial

paid preparer to:

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

•

institution, payroll service, or other third

Give the IRS any information that is

Worldwide Express Plus, and UPS

party may have a fee.

missing from the return,

Worldwide Express.

•

Call the IRS for information about the

To get more information about EFTPS

The private delivery service can tell

processing of the return or the status of

or to enroll in EFTPS, visit

you how to get written proof of the mailing

any related refund or payment(s), and

or call 1-800-555-4477. Additional

date.

•

Respond to certain IRS notices about

information about EFTPS is also available

math errors, offsets, and return

in Pub. 966, The Secure Way to Pay Your

Private delivery services cannot

preparation.

Federal Taxes.

deliver items to P.O. boxes. You

must use the U.S. Postal Service

The REIT is not authorizing the paid

Depositing on time. For deposits made

CAUTION

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

preparer to receive any refund check,

by EFTPS to be on time, the REIT must

address.

bind the REIT to anything (including any

initiate the deposit by 8 p.m. Eastern time

-3-

Instructions For Form 1120-Reit - 2010 Page 3

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