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

Tax Deposit Coupon. If the RIC does not

Form 4466, Corporation Application for

transaction understatements, and fraud.

have a preprinted Form 8109, use Form

Quick Refund of Overpayment of

See sections 6662, 6662A, and 6663.

8109-B to make deposits. You can get

Estimated Tax. The overpayment must be

Accounting Methods

this form by calling 1-800-829-4933 or

at least 10% of the RIC’s expected

visiting an IRS taxpayer assistance

income tax liability and at least $500.

Figure taxable income using the method

center. Have the RIC’s EIN ready when

of accounting regularly used in keeping

For more information, including

you call or visit.

the RIC’s books and records. In all cases,

penalties, see the instructions for line 29,

Do not send deposits directly to an IRS

the method used must clearly reflect

Estimated tax penalty, on page 10.

office; otherwise, the RIC may have to

taxable income.

pay a penalty. Mail or deliver the

Interest and Penalties

Generally, permissible methods

completed Form 8109 with the payment

include:

Interest. Interest is charged on taxes

•

to an authorized depositary (such as a

Cash,

•

paid late even if an extension of time to

commercial bank or other financial

Accrual, or

file is granted. Interest is also charged on

•

institution authorized to accept federal tax

Any other method authorized by the

penalties imposed for failure to file,

deposits). Make checks or money orders

Internal Revenue Code.

negligence, fraud, substantial valuation

payable to the depositary. Records of the

Accrual method. Generally, a RIC must

misstatements, substantial

deposits will be sent to the IRS.

use the accrual method of accounting if

understatements of tax, and reportable

If the RIC prefers, it may mail the

its average annual gross receipts exceed

transaction understatements from the due

coupon and payment to: Financial Agent,

$5 million. See section 448(c).

date (including extensions) to the date of

Federal Tax Deposit Processing, P.O.

Under the accrual method, an amount

payment. The interest charge is figured at

Box 970030, St. Louis, MO 63197. Make

is includible in income when:

a rate determined under section 6621.

the check or money order payable to

1. All the events have occurred that fix

“Financial Agent.”

Late filing of return. A RIC that does

the right to receive the income, which is

not file its tax return by the due date,

The financial agent cannot process

the earliest of the date:

including extensions, may be penalized

foreign checks. If the corporation sends a

a. the required performance takes

5% of the unpaid tax for each month or

check written on a foreign bank to pay a

place,

part of a month the return is late, up to a

federal tax deposit, it may be charged a

b. payment is due, or

maximum of 25% of the unpaid tax. The

deposit penalty.

c. payment is received, and

minimum penalty for a return that is over

To help ensure proper crediting, enter

2. The amount can be determined

60 days late is the smaller of the tax due

the RIC’s EIN, the tax period to which the

with reasonable accuracy.

or $135. The penalty will not be imposed

deposit applies, and “Form 1120-RIC” on

if the RIC can show that the failure to file

the check or money order. On the

See Regulations section 1.451-1(a)

on time was due to reasonable cause.

coupon, darken the “1120” box under

and Pub. 538, Accounting Periods and

RICs that file late should attach a

“Type of Tax” and the appropriate

Methods, for details.

statement explaining the reasonable

“Quarter” box only under “Tax Period.”

Mark-to-market accounting method.

cause.

See the instructions for Form 8109 for

Generally, dealers in securities must use

Late payment of tax. A RIC that does

details on how to complete the

the mark-to-market accounting method

not pay the tax when due generally may

appropriate “Quarter” box for income tax

described in section 475. Under this

be penalized

of 1% of the unpaid tax

deposits.

method, any security that is inventory to

for each month or part of a month the tax

For more information on deposits, see

the dealer must be held at its fair market

is not paid, up to a maximum of 25% of

the instructions for Form 8109 and Pub.

value (FMV).

the unpaid tax. The penalty will not be

15 (Circular E), Employer’s Tax Guide.

Any security held by a dealer that is

imposed if the RIC can show that the

not inventory and held at the close of the

If the RIC owes tax when it files

failure to pay on time was due to

tax year is treated as sold at its FMV on

Form 1120-RIC, do not include the

reasonable cause.

the last business day of the tax year. Any

payment with the tax return.

CAUTION

Trust fund recovery penalty. This

resulting gain or loss must be taken into

Instead, mail or deliver the payment with

penalty may apply if certain excise,

account that year in determining gross

Form 8109 to an authorized depositary or

income, social security, and Medicare

income. The gain or loss taken into

use EFTPS, if applicable.

taxes that must be collected or withheld

account is generally treated as ordinary

are not collected or withheld, or these

Estimated Tax Payments

gain or loss.

taxes are not paid. These taxes are

For details, including exceptions, see

Generally, the following rules apply to the

generally reported on:

section 475, the related regulations, and

•

RIC’s payments of estimated tax.

Form 720, Quarterly Federal Excise

•

Rev. Rul. 97-39, 1997-39 I.R.B, 4.

The RIC must make installment

Tax Return;

•

payments of estimated tax if it expects its

Dealers in commodities and traders in

Form 941, Employer’s QUARTERLY

total tax for the year (less applicable

securities and commodities may elect,

Federal Tax Return;

•

credits) to be $500 or more.

with some exceptions, to use the

Form 944, Employer’s ANNUAL

•

The installments are due by the 15th

mark-to-market accounting method. To

Federal Tax Return; or

•

day of the 4th, 6th, 9th, and 12th months

make the election, the RIC must file a

Form 945, Annual Return of Withheld

of the tax year. If any date falls on a

statement describing the election, the first

Federal Income Tax.

Saturday, Sunday, or legal holiday, the

tax year the election is to be effective,

The trust fund recovery penalty may

installment is due on the next regular

and in the case of an election for traders

be imposed on all persons who are

business day.

in securities or commodities, the trade or

•

determined by the IRS to be responsible

Use Form 1120-W, Estimated Tax for

business for which the election is made.

for collecting, accounting for, and paying

Corporations, as a worksheet to compute

Except for new taxpayers, the statement

over these taxes, and who acted willfully

estimated tax.

must be filed by the due date (not

•

in not doing so. The penalty is equal to

If the RIC does not use EFTPS, use the

including extensions) of the income tax

the full amount of the unpaid trust fund

deposit coupons (Forms 8109) to make

return for the tax year immediately

tax. See the Instructions for Form 720 or

deposits of estimated tax. See the

preceding the election year and attached

Pub. 15 (Circular E), for details, including

instructions for Form 8109 for information

to that return, or if applicable, to a request

the definition of responsible persons.

on completing the coupon for estimated

for an extension of time to file that return.

tax deposits.

Other penalties. Other penalties can be

For more details, see Rev. Proc. 99-17,

•

If the RIC overpaid its estimated tax, it

imposed for negligence, substantial

1999-7 I.R.B. 52, and sections 475(e) and

may be able to get a quick refund by filing

understatement of tax, reportable

(f).

-4-

Instructions For Form 1120-Ric - U.s. Income Tax Return For Regulated Investment Companies - 2009 Page 4

Related Articles

Related forms

Related Categories