Looking for a U.s. Department Of The Treasury Forms And Templates? Download it for free!

•

about EFTPS, call 1-800-555-4477. To

If the RIC does not use EFTPS, use the

Other penalties. Other penalties can be

enroll online, visit

deposit coupons (Forms 8109) to make

imposed for negligence, substantial

deposits of estimated tax.

understatement of tax, reportable

Depositing on time. For EFTPS

•

If the RIC overpaid its estimated tax, it

transaction understatements, and fraud.

deposits to be made timely, the RIC must

may be able to get a quick refund by filing

See sections 6662, 6662A, and 6663.

initiate the transaction at least 1 business

Form 4466, Corporation Application for

day before the date the deposit is due.

Accounting Methods

Quick Refund of Overpayment of

Deposits With Form 8109

Estimated Tax. The overpayment must be

Figure taxable income using the method

at least 10% of the RIC’s expected

If the RIC does not use EFTPS, deposit

of accounting regularly used in keeping

income tax liability and at least $500.

RIC income tax payments (and estimated

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

tax payments) with Form 8109, Federal

the method used must clearly reflect

For more information, including

Tax Deposit Coupon. If the RIC does not

taxable income.

penalties, see the instructions for line 29,

have a preprinted Form 8109, use Form

Estimated tax penalty, on page 10.

Generally, permissible methods

8109-B to make deposits. You can get

include:

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

Interest and Penalties

•

Cash,

visiting an IRS taxpayer assistance

•

Accrual, or

Interest. Interest is charged on taxes

center. Have the RIC’s EIN ready when

•

Any other method authorized by the

paid late even if an extension of time to

you call or visit.

Internal Revenue Code.

file is granted. Interest is also charged on

Do not send deposits directly to an IRS

Accrual method. Generally, a RIC must

penalties imposed for failure to file,

office; otherwise, the RIC may have to

use the accrual method of accounting if

negligence, fraud, substantial valuation

pay a penalty. Mail or deliver the

its average annual gross receipts exceed

misstatements, substantial

completed Form 8109 with the payment

$5 million. See section 448(c).

understatements of tax, and reportable

to an authorized depositary (such as a

transaction understatements from the due

Under the accrual method, an amount

commercial bank or other financial

date (including extensions) to the date of

is includible in income when:

institution authorized to accept federal tax

payment. The interest charge is figured at

1. All the events have occurred that fix

deposits). Make checks or money orders

a rate determined under section 6621.

the right to receive the income, which is

payable to the depositary.

Late filing of return. A RIC that does

the earliest of the date:

If the RIC prefers, it may mail the

not file its tax return by the due date,

a. the required performance takes

coupon and payment to: Financial Agent,

including extensions, may be penalized

place,

Federal Tax Deposit Processing, P.O.

5% of the unpaid tax for each month or

b. payment is due, or

Box 970030, St. Louis, MO 63197. Make

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

c. payment is received, and

the check or money order payable to

maximum of 25% of the unpaid tax. The

2. The amount can be determined

“Financial Agent.”

minimum penalty for a return that is over

with reasonable accuracy.

To help ensure proper crediting, enter:

60 days late is the smaller of the tax due

•

the RIC’s EIN,

or $135. The penalty will not be imposed

See Regulations section 1.451-1(a)

•

the tax period to which the deposit

if the RIC can show that the failure to file

and Pub. 538, Accounting Periods and

applies, and

on time was due to reasonable cause.

Methods, for details.

•

“Form 1120-RIC” on the check or

RICs that file late should attach a

Mark-to-market accounting method.

money order.

statement explaining the reasonable

Generally, dealers in securities must use

Darken the “1120” box under “Type of

cause.

the mark-to-market accounting method

Tax” and the appropriate “Quarter” box

described in section 475. Under this

Late payment of tax. A RIC that does

under “Tax Period” on the coupon.

method, any security that is inventory to

not pay the tax when due generally may

Records of these deposits will be sent to

the dealer must be held at its fair market

be penalized

of 1% of the unpaid tax

the IRS. For more information, see

value (FMV).

for each month or part of a month the tax

“Marking the Proper Tax Period” in the

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

Any security held by a dealer that is

Instructions for Form 8109.

the unpaid tax. The penalty will not be

not inventory and held at the close of the

For more information on deposits, see

imposed if the RIC can show that the

tax year is treated as sold at its FMV on

the instructions in the coupon booklet

failure to pay on time was due to

the last business day of the tax year. Any

(Form 8109) and Pub. 583, Starting a

reasonable cause.

resulting gain or loss must be taken into

Business and Keeping Records.

account that year in determining gross

Trust fund recovery penalty. This

income. The gain or loss taken into

If the RIC owes tax when it files

penalty may apply if certain excise,

account is generally treated as ordinary

Form 1120-RIC, do not include the

income, social security, and Medicare

gain or loss.

payment with the tax return.

taxes that must be collected or withheld

CAUTION

Instead, mail or deliver the payment with

are not collected or withheld, or these

For details, including exceptions, see

Form 8109 to an authorized depositary or

taxes are not paid. These taxes are

section 475, the related regulations, and

use EFTPS, if applicable.

generally reported on:

Rev. Rul. 94-7, 1994-1 C.B. 151.

•

Form 720, Quarterly Federal Excise

Dealers in commodities and traders in

Estimated Tax Payments

Tax Return;

securities and commodities may elect,

•

Form 941, Employer’s Quarterly

Generally, the following rules apply to the

with some exceptions, to use the

Federal Tax Return; or

RIC’s payments of estimated tax.

mark-to-market accounting method. To

•

Form 945, Annual Return of Withheld

The RIC must make installment

make the election, the RIC must file a

Federal Income Tax.

payments of estimated tax if it expects its

statement describing the election, the first

total tax for the year (less applicable

The trust fund recovery penalty may

tax year the election is to be effective,

credits) to be $500 or more.

be imposed on all persons who are

and in the case of an election for traders

•

The installments are due by the 15th

determined by the IRS to have been

in securities or commodities, the trade or

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

responsible for collecting, accounting for,

business for which the election is made.

of the tax year. If any date falls on a

and paying over these taxes, and who

Except for new taxpayers, the statement

Saturday, Sunday, or legal holiday, the

acted willfully in not doing so. The penalty

must be filed by the due date (not

installment is due on the next regular

is equal to the unpaid trust fund tax. See

including extensions) of the income tax

business day.

the Instructions for Form 720, or Pub. 15

return for the tax year immediately

•

Use Form 1120-W, Estimated Tax for

(Circular E), Employer’s Tax Guide, for

preceding the election year and attached

Corporations, as a worksheet to compute

details, including the definition of

to that return, or if applicable, to a request

estimated tax.

responsible persons.

for an extension of time to file that return.

-4-

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

Related Articles

Related forms

Related Categories