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Address

of Estimated Tax. The overpayment must be at

Line 3 –Net Foreign

least 10% of the expected income tax liability

Currency Gain or (Loss)

Include the suite, room, or other unit number

and at least $500. To apply for a quick refund,

after the street address.

From Section 988 Transactions

file Form 4466 before the 16th day of the 3rd

If the Post Office does not deliver mail to

month after the end of the tax year, but before

Enter the net foreign currency gain or (loss)

the street address and the fund has a P.O.

the fund files its income tax return. Do not file

from section 988 transactions that is treated as

box, show the box number instead.

Form 4466 before the end of the fund’s tax

ordinary income or loss under section

year.

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

Item B – Date Fund Was

separate transaction.

Established

Interest and Penalties

Line 4 –Payments With

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

Interest. Interest is charged on taxes paid late

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

Respect to Securities Loans

even if an extension of time to file is granted.

the fund was created. Otherwise, enter the

Enter the amount received or accrued from a

Interest is also charged on penalties imposed

date the RIC was incorporated or organized.

broker as compensation for securities loaned

for failure to file, negligence, fraud, gross

by the fund to the broker for use in completing

valuation overstatements, and substantial

Item C – Employer

market transactions. The payments must meet

understatements of tax from the due date

Identification Number (EIN)

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

(including extensions) to the date of payment.

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

The interest charge is figured at a rate

Line 5 –Excess of Net

an EIN, it must apply for one on Form SS-4,

determined under section 6621.

Application for Employer Identification Number.

Short-Term Capital Gain Over

Penalty for late filing of return. A fund that

If the fund has not received its EIN by the time

Net Long-Term Capital Loss

does not file its tax return by the due date,

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

including extensions, may be penalized 5% of

Enter the excess of net short-term capital gain

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

the unpaid tax for each month or part of a

over net long-term capital loss from Schedule

month the return is late, up to a maximum of

Item D – Total Assets

D (Form 1120), line 12.

25% of the unpaid tax. The minimum penalty

Enter the fund’s total assets (as determined by

Note: Every sale or exchange of a capital

for a return that is over 60 days late is the

the accounting method regularly used in

asset must be reported in detail on Schedule D

smaller of the tax due or $100. The penalty will

keeping the fund’s books and records) at the

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

not be imposed if the fund can show that the

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

indicated.

failure to file on time was due to reasonable

the end of the tax year, enter the total assets

cause. Funds that file late must attach a

as of the beginning of the tax year.

Line 7 –Other Income

statement explaining the reasonable cause.

Enter any other taxable income not reported on

Item E – Final Return, Name

Penalty for late payment of tax. A fund that

lines 1 through 6, except net capital gain that is

Change, Address Change, or

does not pay the tax when due generally may

reported in Part II. List the type and amount of

be penalized

of 1% of the unpaid tax for

Amended Return

income on an attached schedule. If the fund

each month or part of a month the tax is not

•

has only one item of other income, describe it

If the fund ceases to exist, file Form

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

in parentheses on line 7. Examples of other

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

tax. The penalty will not be imposed if the fund

•

income to report on line 7 are:

If the fund changed its name since it last

•

can show that the failure to pay on time was

Gross rents.

filed a return, check the box for “Name

•

due to reasonable cause.

Recoveries of fees or expenses in

change.” Generally, a fund also must have

settlement or litigation.

Trust fund recovery penalty. This penalty

amended its articles of incorporation and filed

•

The amount of credit for alcohol used as fuel

may apply if certain income, social security,

the amendment with the state in which it was

(determined without regard to the limitation

and Medicare taxes that must be collected or

incorporated.

•

based on tax) entered on Form 6478, Credit

withheld are not collected or withheld, or these

If the fund has changed its address since it

for Alcohol Used as Fuel.

taxes are not paid. These taxes are generally

last filed a return, check the box for “Address

•

Refunds of taxes deducted in prior years to

reported on Forms 941 or 945 (see Other

change.”

•

the extent they reduced income subject to tax

Forms, Returns, Schedules and Statements

If the fund is amending its return, check the

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

That May Be Required on page 2). The trust

box for “Amended return,” complete the entire

offset current year taxes against tax refunds.

fund recovery penalty may be imposed on all

return, correct the appropriate lines with the

•

The amount of any deduction previously

persons who are determined by the IRS to

new information, and refigure the fund’s tax

taken under section 179A that is subject to

have been responsible for collecting,

liability. Attach a statement that explains the

recapture. The fund must recapture the benefit

accounting for, and paying over these taxes,

reason for the amendments and identifies the

of any allowable deduction for qualified

and who acted willfully in not doing so. The

lines being changed on the amended return.

clean-fuel vehicle property (or clean-fuel

penalty is equal to the unpaid trust fund tax.

Note: If a change in address occurs after the

vehicle refueling property) if the property, later,

See the instructions for Pub. 15 (Circular E),

return is filed, use Form 8822, Change of

ceases to qualify. See Regulations section

Employer’s Tax Guide, for more details,

Address, to notify the IRS of the new address.

1.179A-1 for details.

including the definition of responsible person.

•

Ordinary income from trade or business

Other penalties. Other penalties can be

activities of a partnership (from Schedule K-1

imposed for negligence, substantial

Part I—Investment

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

understatement of tax, and fraud. See sections

losses against ordinary income. Instead,

Company Taxable Income

6662 and 6663.

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

Show the partnership’s name, address and EIN

Income

on a separate statement attached to this

return. If the amount entered is from more than

Specific Instructions

Line 1 –Dividends

one partnership, identify the amount from each

partnership.

A fund that is the holder of record of any share

Period Covered

of stock on the record date for a dividend

Deductions

payable on that stock must include the

File the 2002 return for calendar year 2002 and

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

fiscal years that begin in 2002 and end in 2003.

Limitations on Deductions

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

For a fiscal year return, fill in the tax year

the date the company acquired the share.

space at the top of the form.

Transactions between related taxpayers.

Generally, an accrual basis taxpayer may only

Note: The 2002 Form 1120-RIC may also be

Line 2 –Interest

deduct business expenses and interest owed

used by the fund if:

Enter taxable interest on U.S. obligations and

•

to a related party in the year the payment is

The fund has a tax year of less than 12

on loans, notes, mortgages, bonds, bank

included in the income of the related party. See

months that begins and ends in 2003 and

deposits, corporate bonds, tax refunds, etc.

•

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

The 2003 Form 1120-RIC is not available at

limitations on deductions for unpaid interest

Do not offset interest expense against

the time the fund is required to file its return.

and expenses.

interest income.

The fund must show its 2003 tax year on the

2002 Form 1120-RIC and take into account

Special rules apply to interest income from

Direct and indirect costs (including taxes)

any tax law changes that are effective for tax

certain below-market-rate loans. See section

allocable to real or tangible personal

years beginning after December 31, 2002.

7872 for more information.

property constructed or improved by the

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Instructions For Form 1120-Ric - U.s. Income Tax Return For Regulated Investment Companies - 2002 Page 6

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