Instructions For Form 1120-Reit - 2004 (Page 5 of 13) in pdf

If the REIT is required to use EFTPS and

File Form 4466 after the end of the REIT’s

Specific Instructions

fails to do so, it may be subject to a 10%

tax year, and no later than the 15th day of the

penalty. If the REIT is not required to use

third month after the end of the tax year. Form

EFTPS, it may participate voluntarily. To enroll

4466 must be filed before the REIT files its tax

Period Covered

in or get more information about EFTPS, call

return.

1-800-555-4477 or 1-800-945-8400. To enroll

File the 2004 return for calendar year 2004 and

online, visit

fiscal years that begin in 2004 and end in 2005.

Interest and Penalties

For a fiscal year return, fill in the tax year

Depositing on time. For EFTPS deposits to

space at the top of the form.

be made timely, the REIT must initiate the

Interest

transaction at least 1 business day before the

Note. The 2004 Form 1120-REIT can also be

date the deposit is due.

Interest is charged on taxes paid late even if an

used if:

•

extension of time to file is granted. Interest is

Deposits With Form 8109

The REIT has a tax year of less than 12

also charged on penalties imposed for failure

months that begins and ends in 2005 and

If the REIT does not use EFTPS, deposit REIT

•

to file, negligence, fraud, substantial valuation

The 2005 Form 1120-REIT is not available

income tax payments (and estimated tax

misstatements, and substantial

at the time the REIT is required to file its return.

payments) with Form 8109, Federal Tax

understatements of tax from the due date

Deposit Coupon. If you do not have a

The REIT must show its 2005 tax year on

(including extensions) to the date of payment.

preprinted Form 8109, use Form 8109-B to

the 2004 Form 1120-REIT and take into

The interest charge is figured at a rate

make deposits. You can get this form by calling

account any tax law changes that are effective

determined under section 6621.

1-800-829-4933. Be sure to have your EIN

for tax years beginning after December 31,

ready when you call.

2004.

Penalty for late filing of return

Do not send deposits directly to an IRS

Name and Address

A REIT that does not file its tax return by the

office; otherwise, the REIT may have to pay a

due date, including extensions, may be

penalty. Mail or deliver the completed Form

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

penalized 5% of the unpaid tax for each month

8109 with the payment to an authorized

in the charter or other legal document creating

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

depositary (i.e., a commercial bank or other

it) and address on the appropriate lines.

maximum of 25% of the unpaid tax. The

financial institution authorized to accept federal

Include the suite, room, or other unit number

minimum penalty for a return that is over 60

tax deposits). Make checks or money orders

after the street address. If the Post Office does

days late is the smaller of the tax due or $100.

payable to the depositary.

not deliver mail to the street address and the

The penalty will not be imposed if the REIT can

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

If the REIT prefers, it can mail the coupon

show that the failure to file on time was due to

instead.

and payment to Financial Agent, Federal Tax

reasonable cause. REITs that file late must

Deposit Processing, P.O. Box 970030, St.

If the REIT receives its mail in care of a

attach a statement explaining the reasonable

Louis, MO 63197. Make the check or money

third party (such as an accountant or an

cause.

order payable to “Financial Agent.”

attorney), enter on the street address line

To help ensure proper crediting, enter the

“C/O” followed by the third party’s name and

Penalty for late payment of tax

REIT’s EIN, the tax period to which the deposit

street address or P.O. box.

A REIT that does not pay the tax when due

applies, and “Form 1120-REIT” on the check or

generally may be penalized

of 1% of the

money order. Be sure to darken the “1120” box

Item B. 100%-owned

unpaid tax for each month or part of a month

under “Type of Tax” and the appropriate

Subsidiaries and Personal

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

“Quarter” box under “Tax Period” on the

the unpaid tax. The penalty will not be imposed

coupon. Records of these deposits will be sent

Holding Companies

if the REIT can show that the failure to pay on

to the IRS.

time was due to reasonable cause.

For more information on deposits, see the

REITs with 100%-owned

instructions in the coupon booklet (Form 8109)

Subsidiaries

Trust fund recovery penalty

and Pub. 583, Starting a Business and

Keeping Records.

Check this box if this return is filed for a REIT

This penalty may apply if certain excise,

with 100%-owned REIT subsidiaries under

income, social security, and Medicare taxes

If the REIT owes tax when it files Form

section 856(i). These subsidiaries are not

that must be collected or withheld are not

1120-REIT, do not include the payment

treated as separate corporations.

collected or withheld, or these taxes are not

with the tax return. Instead, mail or

CAUTION

paid. These taxes are generally reported on

Do not check this box for a taxable REIT

deliver the payment with Form 8109 to an

Forms 720, Quarterly Federal Excise Tax

subsidiary. See Taxable REIT Subsidiaries on

authorized depositary or use EFTPS, if

Return, 941, Employer’s Quarterly Federal Tax

page 2.

applicable.

Return, 943, Employers Annual Federal Tax

Personal Holding Companies

Return for Agricultural Employees, or 945,

Estimated Tax Payments

Annual Return of Withheld Federal Income Tax

Personal holding companies must attach to

Generally, the following rules apply to the

. The trust fund recovery penalty may be

Form 1120-REIT a Schedule PH (Form 1120),

REIT’s payments of estimated tax.

imposed on all persons who are determined by

•

U.S. Personal Holding Company (PHC) Tax.

The REIT must make installment payments

the IRS to have been responsible for collecting,

See the instructions for that form for details.

of estimated tax if it expects its total tax for the

accounting for, and paying over these taxes,

year (less applicable credits) to be $500 or

and who acted willfully in not doing so. The

Item C. Employer

more.

penalty is equal to the unpaid trust fund tax.

•

The installments are due by the 15th day of

Identification Number (EIN)

See the Instructions for Form 720, Pub. 15

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

(Circular E), Employer’s Tax Guide, or Pub. 51

Enter the REIT’s EIN. If the REIT does not

year. If any date falls on a Saturday, Sunday,

(Circular A), Agricultural Employer’s Tax

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

or legal holiday, the installment is due on the

Guide, for details, including the definition of

be applied for:

next regular business day.

•

responsible persons.

Online — Click on the EIN link at

Use Form 1120-W, Estimated Tax for

The EIN is

Corporations, as a worksheet to compute

Penalty for failure to ascertain

issued immediately once the application

estimated tax.

•

information is validated.

If the REIT does not use EFTPS, use the

ownership

•

By telephone at 1-800-829-4933 from 7:00

deposit coupons (Forms 8109) to make

If a REIT fails to comply with Regulations

a.m. to 10:00 p.m. in the REIT’s local time

deposits of estimated tax.

section 1.857-8 for ascertaining ownership and

zone.

•

For more information, including penalties

maintaining factual ownership records for a tax

By mailing or faxing Form SS-4, Application

that apply if the REIT fails to make required

year, it must pay a $25,000 penalty ($50,000

for Employer Identification Number.

payments, see the Line 25. Estimated Tax

for intentional disregard) upon notice and

If the REIT has not received its EIN by the

Penalty instructions.

demand by the IRS. If the REIT can show that

time the return is due, enter “Applied for” in the

the failure was due to reasonable cause, the

Overpaid estimated tax

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

penalty may not be imposed. For more

If the REIT overpaid estimated tax, it may be

information, see section 857(f).

Item D. Date REIT

able to get a quick refund by filing Form 4466,

Corporation Application for Quick Refund of

Established

Other penalties

Overpayment of Estimated Tax. The

Other penalties can be imposed for negligence,

overpayment must be at least 10% of the

If the REIT is a corporation under state or local

substantial understatement of tax, and fraud.

REIT’s expected income tax liability and at

law, enter the date incorporated. If it is a trust

See sections 6662 and 6663.

least $500.

or association, enter the date organized.

-5-

Instructions For Form 1120-Reit - 2004 Page 5

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