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Penalty for late payment of tax. A fund that

If the fund has not received its EIN by the time

Line 5 –Excess of Net

does not pay the tax when due generally may

the return is due, write “Applied for” in the

Short-Term Capital Gain Over

be penalized

of 1% of the unpaid tax for

space for the EIN. See Pub. 583 for details.

Net Long-Term Capital Loss

each month or part of a month the tax is not

Note: The online application process is not yet

paid, up to a maximum of 25% of the unpaid

Enter the excess of net short-term capital gain

available for funds with addresses in foreign

tax. The penalty will not be imposed if the fund

over net long-term capital loss from Schedule

countries or Puerto Rico.

can show that the failure to pay on time was

D (Form 1120), line 12.

Item D – Total Assets

due to reasonable cause.

Note: Every sale or exchange of a capital

Enter the fund’s total assets (as determined by

Trust fund recovery penalty. This penalty

asset must be reported in detail on Schedule D

the accounting method regularly used in

may apply if certain income, social security,

(Form 1120), even though no gain or loss is

keeping the fund’s books and records) at the

and Medicare taxes that must be collected or

indicated.

end of the tax year. If there are no assets at

withheld are not collected or withheld, or these

Line 7 –Other Income

the end of the tax year, enter the total assets

taxes are not paid. These taxes are generally

as of the beginning of the tax year.

reported on Forms 941 or 945 (see Other

Enter any other taxable income not reported on

Forms and Statements That May Be

lines 1 through 6, except net capital gain that is

Item E – Final Return, Name

Required on page 2). The trust fund recovery

reported in Part II. List the type and amount of

Change, Address Change, or

penalty may be imposed on all persons who

income on an attached schedule. If the fund

are determined by the IRS to have been

Amended Return

has only one item of other income, describe it

responsible for collecting, accounting for, and

•

in parentheses on line 7. Examples of other

If the fund ceases to exist, file Form

paying over these taxes, and who acted

income to report on line 7 include:

1120-RIC and check the “Final return” box.

•

willfully in not doing so. The penalty is equal to

•

Gross rents.

If the fund changed its name since it last

•

the unpaid trust fund tax. See the instructions

Recoveries of fees or expenses in

filed a return, check the box for “Name

for Pub. 15 (Circular E), Employer’s Tax

settlement or litigation.

change.” Generally, a fund also must have

•

Guide, for more details, including the definition

The amount of credit for alcohol used as fuel

amended its articles of incorporation and filed

of responsible person.

(determined without regard to the limitation

the amendment with the state in which it was

based on tax) entered on Form 6478, Credit

Other penalties. Other penalties can be

incorporated.

•

for Alcohol Used as Fuel.

imposed for negligence, substantial

If the fund has changed its address since it

•

Refunds of taxes deducted in prior years to

understatement of tax, and fraud. See sections

last filed a return, check the box for “Address

the extent they reduced income subject to tax

6662 and 6663.

change.”

•

in the year deducted (see section 111). Do not

If the fund is amending its return, check the

offset current year taxes against tax refunds.

box for “Amended return,” complete the entire

•

The amount of any deduction previously

return, correct the appropriate lines with the

Specific Instructions

taken under section 179A that is subject to

new information, and refigure the fund’s tax

recapture. The fund must recapture the benefit

liability. Attach a statement that explains the

of any allowable deduction for qualified

reason for the amendments and identifies the

Period Covered

clean-fuel vehicle property (or clean-fuel

lines being changed on the amended return.

vehicle refueling property) if the property, later,

File the 2003 return for calendar year 2003 and

Note: If a change in address occurs after the

ceases to qualify. See Regulations section

fiscal years that begin in 2003 and end in 2004.

return is filed, use Form 8822, Change of

1.179A-1 for details.

For a fiscal year return, fill in the tax year

•

Address, to notify the IRS of the new address.

Ordinary income from trade or business

space at the top of the form.

activities of a partnership (from Schedule K-1

Note: The 2003 Form 1120-RIC may also be

(Form 1065 or 1065-B)). Do not offset ordinary

used by the fund if:

Part I—Investment

•

losses against ordinary income. Instead,

The fund has a tax year of less than 12

include the losses on line 22, Form 1120-RIC.

Company Taxable Income

months that begins and ends in 2004 and

•

Show the partnership’s name, address, and

The 2004 Form 1120-RIC is not available at

EIN on a separate statement attached to this

the time the fund is required to file its return.

Income

return. If the amount entered is from more than

The fund must show its 2004 tax year on the

one partnership, identify the amount from each

2003 Form 1120-RIC and take into account

Line 1 –Dividends

partnership.

any tax law changes that are effective for tax

A fund that is the holder of record of any share

years beginning after December 31, 2003.

Deductions

of stock on the record date for a dividend

payable on that stock must include the

Name and Address

Limitations on Deductions

dividend in gross income by the later of (a) the

date the share became an ex-dividend or (b)

Type or print the RIC’s true name (as set forth

Direct and indirect costs (including taxes)

the date the company acquired the share.

in the charter or other legal document creating

allocable to real or tangible personal

it) and address on the appropriate lines.

property constructed or improved by the

Line 2 –Interest

Include the suite, room, or other unit number

taxpayer. Such costs must be capitalized in

Enter taxable interest on U.S. obligations and

after the street address. If the Post Office does

accordance with section 263A.

on loans, notes, mortgages, bonds, bank

not deliver mail to the street address and the

Transactions between related taxpayers.

deposits, corporate bonds, tax refunds, etc.

fund has a P.O. box, show the box number

Generally, an accrual basis taxpayer may only

instead.

Do not offset interest expense against

deduct business expenses and interest owed

interest income.

to a related party in the year the payment is

Item B –Date Fund Was

Special rules apply to interest income from

included in the income of the related party. See

Established

certain below-market-rate loans. See section

sections 163(e)(3), 163(j), and 267 for

7872 for more information.

limitations on deductions for unpaid interest

If this return is being filed for a series fund (as

and expenses.

described in section 851(g)(2)), enter the date

Line 3 –Net Foreign

Golden parachute payments. A portion of

the fund was created. Otherwise, enter the

Currency Gain or (Loss)

the payments made by a fund to key personnel

date the RIC was incorporated or organized.

From Section 988 Transactions

that exceeds their usual compensation may not

Item C –Employer

be deductible. This occurs when the fund has

Enter the net foreign currency gain or (loss)

an agreement (golden parachute) with these

Identification Number (EIN)

from section 988 transactions that is treated as

key employees to pay them these excessive

ordinary income or loss under section

Enter the fund’s EIN. If the fund does not have

amounts if control of the fund changes. See

988(a)(1)(A). Attach a schedule detailing each

an EIN, it must apply for one. An EIN may be

section 280G.

separate transaction.

applied for:

•

Business startup expenses. Business

Online — Click on the EIN link at

Line 4 –Payments With

startup expenses must be capitalized unless

The EIN is

Respect to Securities Loans

an election is made to amortize them over a

issued immediately once the application

period of 60 months. See section 195 and

information is validated.

Enter the amount received or accrued from a

•

Regulations section 1.195-1.

By telephone at 1-800-829-4933 from 7:30

broker as compensation for securities loaned

a.m. to 5:30 p.m. in the fund’s local time zone.

by the fund to the broker for use in completing

Section 265(a)(3) limitation. If the fund paid

•

By mailing or faxing Form SS-4, Application

market transactions. The payments must meet

exempt-interest dividends during the tax year

for Employer Identification Number.

the requirements of section 512(a)(5).

(including those dividends deemed paid under

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Instructions For Form 1120-Ric - U.s. Income Tax Return For Regulated Investment Companies - 2003 Page 6

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