Instructions For Form 1120-Reit - 2011 (Page 3 of 16) in pdf

Extension of Time To File

(other than a REIT or a qualified REIT

additional tax liability), or otherwise

subsidiary) and may provide services to

represent the corporation before the IRS.

File Form 7004, Application for Automatic

the REIT’s tenants without disqualifying

The authorization will automatically

Extension of Time To File Certain

the rent received by the REIT. See

end no later than the due date (without

Business Income Tax, Information, and

section 856(l) for details, including certain

regard to extensions) for filing the REIT’s

Other Returns, to request a 6-month

restrictions on the type of business

2012 tax return. If the REIT wants to

extension of time to file. Generally, file

activities a TRS may perform. Also, not

expand the paid preparer’s authorization,

Form 7004 by the regular due date of the

more than 20% of the fair market value

see Pub. 947, Practice Before the IRS

REIT’s income tax return.

(FMV) of a REIT’s total assets (25% for

and Power of Attorney.

tax years beginning after July 30, 2008)

Who Must Sign

may be securities of one or more TRSs

Assembling the Return

The return must be signed and dated by:

(see section 856(c)(4) for details).

•

To ensure that the REIT’s tax return is

The president, vice president,

Transactions between a TRS and its

correctly processed, attach all schedules

treasurer, assistant treasurer, chief

associated REIT must be at arm’s length.

and other forms after page 4 of Form

accounting officer; or

A REIT may be subject to a 100% tax to

•

1120-REIT, in the following order.

Any other corporate officer (such as a

the extent it improperly allocates income

tax officer) authorized to sign.

1. Schedule N (Form 1120).

and deductions between the REIT and

2. Schedule O (Form 1120).

If a return is filed on behalf of a REIT

the TRS (see section 857(b)(7) for

3. Form 4626.

by a receiver, trustee, or assignee, the

details). Additional limitations on

4. Form 4136.

transactions between a TRS and its

fiduciary must sign the return, instead of

5. Additional schedules in alphabetical

the corporate officer. Returns and forms

associated REIT include:

order.

•

signed by a receiver or trustee in

Limitations on income from a TRS that

6. Additional forms in numerical order.

may be treated as rents from real

bankruptcy on behalf of a REIT must be

property by the REIT (see section

accompanied by a copy of the order or

Complete every applicable entry space

instructions of the court authorizing

856(d)(8)).

on Form 1120-REIT. Do not enter “See

•

Limitations on a TRS’s deduction for

signing of the return or form.

attached” instead of completing the entry

interest paid to its associated REIT (see

spaces. If more space is needed on the

If an employee of the REIT completes

section 163(j)).

forms or schedules, attach separate

Form 1120-REIT, the paid preparer’s

sheets using the same size and format as

To elect to have an eligible corporation

space should remain blank. Anyone who

the printed forms. If there are supporting

treated as a TRS, the corporation and the

prepares Form 1120-REIT but does not

statements and attachments, arrange

REIT must jointly file Form 8875, Taxable

charge the REIT should not complete that

them in the same order as the schedules

REIT Subsidiary Election.

section. Generally, anyone who is paid to

or forms they support and attach them

prepare the return must sign it and fill in

When To File

last. Show the totals on the printed forms.

the “Paid Preparer Use Only” section.

Enter the REIT’s name and EIN on each

Generally, a REIT must file its income tax

The paid preparer must complete the

supporting statement or attachment.

return by the 15th day of the 3rd month

required preparer information and:

•

after the end of its tax year. A new REIT

Sign the return in the space provided

Tax Payments

filing a short period return must generally

for the preparer’s signature; and

•

The REIT must pay the tax due in full no

file by the 15th day of the 3rd month after

Give a copy of the return to the

later than the 15th day of the 3rd month

the short period ends. A REIT that has

taxpayer.

after the end of the tax year.

dissolved must generally file by the 15th

Note. A paid preparer may sign the

day of the 3rd month after the date it

Electronic Deposit Requirement

original or amended returns by rubber

dissolved.

stamp, mechanical device, or computer

REITs must use electronic funds transfers

If the due date falls on a Saturday,

software program.

to make all federal tax deposits (such as

Sunday, or legal holiday, the REIT can file

deposits of employment, excise, and

on the next business day.

Paid Preparer

corporate income tax). Generally,

electronic funds transfers are made using

Private delivery services

Authorization

the Electronic Federal Tax Payment

REITs can use certain private delivery

If the REIT wants to allow the IRS to

System (EFTPS). However, if the REIT

services designated by the IRS to meet

discuss its 2011 tax return with the paid

does not want to use EFTPS, it can

the “timely mailing as timely filing/paying”

preparer who signed it, check the “Yes”

arrange for its tax professional, financial

rule for tax returns and payments.

box in the signature area of the return.

institution, payroll service, or other trusted

These private delivery services include

This authorization applies only to the

third party to make deposits on its behalf.

only the following.

individual whose signature appears in the

Also, it may arrange for its financial

•

DHL Express (DHL): DHL Same Day

institution to initiate a same-day tax wire

“Paid Preparer Use Only” section of the

Service.

REIT’s return. It does not apply to the

payment (discussed below) on its behalf.

•

Federal Express (FedEx): FedEx

firm, if any, shown in that section.

EFTPS is a free service provided by the

Priority Overnight, FedEx Standard

Department of the Treasury. Services

If the “Yes” box is checked, the REIT is

Overnight, FedEx 2Day, FedEx

provided by a tax professional, financial

authorizing the IRS to call the paid

International Priority, and FedEx

institution, payroll service, or other third

preparer to answer any questions that

International First.

party may have a fee.

may arise during the processing of its

•

United Parcel Service (UPS): UPS Next

To get more information about EFTPS

return. The REIT is also authorizing the

Day Air, UPS Next Day Air Saver, UPS

or to enroll in EFTPS, visit ,

paid preparer to:

2nd Day Air, UPS 2nd Day Air A.M., UPS

•

or call 1-800-555-4477. Additional

Give the IRS any information that is

Worldwide Express Plus, and UPS

information about EFTPS is also available

missing from the return,

Worldwide Express.

•

in Pub. 966, The Secure Way to Pay Your

Call the IRS for information about the

Federal Taxes.

The private delivery service can tell

processing of the return or the status of

you how to get written proof of the mailing

any related refund or payment(s), and

Note. Forms 8109 and 8109-B, Federal

•

date.

Respond to certain IRS notices about

Tax Coupon, can no longer be used to

math errors, offsets, and return

make federal tax deposits.

Private delivery services cannot

preparation.

deliver items to P.O. boxes. You

Depositing on time. For deposits made

must use the U.S. Postal Service

The REIT is not authorizing the paid

by EFTPS to be on time, the REIT must

CAUTION

to mail any item to an IRS P.O. box

preparer to receive any refund check,

initiate the deposit by 8 p.m. Eastern time

address.

bind the REIT to anything (including any

the day before the date the deposit is

-3-

Instructions For Form 1120-Reit - 2011 Page 3

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