Instructions For Form 1120-Reit - 2001 (Page 6 of 15) in pdf

business day before the date the deposit

16th day of the 3rd month after the end of

Specific Instructions

is due.

the tax year, but before the REIT files its

income tax return. Do not file Form 4466

Deposits With Form 8109

before the end of the REIT’s tax year.

If the REIT does not use EFTPS, deposit

Period Covered

REIT income tax payments (and

Interest and Penalties

File the 2001 return for calendar year

estimated tax payments) with Form 8109,

2001 and fiscal years that begin in 2001

Interest. Interest is charged on taxes

Federal Tax Deposit Coupon. If you do

and end in 2002. For a fiscal year return,

paid late even if an extension of time to

not have a preprinted Form 8109, use

fill in the tax year space at the top of the

file is granted. Interest is also charged on

Form 8109-B to make deposits. You can

form.

penalties imposed for failure to file,

get this form by calling 1-800-829-1040.

negligence, fraud, gross valuation

Be sure to have your EIN ready when you

Note: The 2001 Form 1120-REIT may

overstatements, and substantial

call.

also be used if:

understatements of tax from the due date

•

Do not send deposits directly to an IRS

The REIT has a tax year of less than

(including extensions) to the date of

office; otherwise, the REIT may have to

12 months that begins and ends in 2002

payment. The interest charge is figured at

pay a penalty. Mail or deliver the

and

a rate determined under section 6621.

•

completed Form 8109 with the payment

The 2002 Form 1120-REIT is not

Penalty for late filing of return. A REIT

to an authorized depositary, i.e., a

available at the time the REIT is required

that does not file its tax return by the due

commercial bank or other financial

to file its return. However, the REIT must

date, including extensions, may be

institution authorized to accept Federal

show its 2002 tax year on the 2001 Form

penalized 5% of the unpaid tax for each

tax deposits. Make checks or money

1120-REIT and incorporate any tax law

month or part of a month the return is

orders payable to the depositary.

changes that are effective for tax years

late, up to a maximum of 25% of the

beginning after December 31, 2001.

To help ensure proper crediting, write

unpaid tax. The minimum penalty for a

the REIT’s EIN, the tax period to which

return that is over 60 days late is the

the deposit applies, and “Form

Name and Address

smaller of the tax due or $100. The

1120-REIT” on the check or money order.

penalty will not be imposed if the REIT

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

Be sure to darken the “1120” box on the

can show that the failure to file on time

forth in the charter or other legal

coupon. Records of these deposits will be

was due to reasonable cause. Attach a

document creating it), and address on the

sent to the IRS.

statement explaining the reasonable

appropriate lines. Include the suite, room,

If you prefer, you may mail your

cause.

or other unit number after the street

coupon and payment to Financial Agent,

address. If the Post Office does not

Penalty for late payment of tax. A REIT

Federal Tax Deposit Processing, P.O.

deliver mail to the street address and the

that does not pay the tax when due

Box 970030, St. Louis, MO 63197. Make

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

generally may be penalized

of 1% of the

check or money order payable to

number instead.

unpaid tax for each month or part of a

“Financial Agent.”

month the tax is not paid, up to a

For more information on deposits, see

Item B. 100%-owned

maximum of 25% of the unpaid tax. The

the instructions in the coupon booklet

penalty will not be imposed if the REIT

Subsidiaries and Personal

(Form 8109) and Pub. 583, Starting a

can show that the failure to pay on time

Business and Keeping Records.

was due to reasonable cause.

Holding Companies

If the REIT owes tax when it files

Trust fund recovery penalty. This

Form 1120-REIT, do not include

REITs with 100%-owned

penalty may apply if certain income,

the payment with the tax return.

CAUTION

social security, and Medicare taxes that

Subsidiaries

Instead, mail or deliver the payment with

must be collected or withheld are not

Check this box if this return is filed for a

Form 8109 to an authorized depositary or

collected or withheld, or these taxes are

REIT with 100% owned REIT subsidiaries

use EFTPS, if applicable.

not paid. These taxes are generally

under section 856(i). These subsidiaries

reported on Forms 941, 943, or 945. See

are not treated as separate corporations.

Other Forms, Returns, Schedules, and

Estimated Tax Payments

Statements That May Be Required on

Note: Do not check this box for a taxable

page 3. The trust fund recovery penalty

Generally, the REIT must make

REIT subsidiary. See Taxable REIT

installment payments of estimated tax if it

may be imposed on all persons who are

Subsidiaries on page 2.

expects its total tax for the year (less

determined by the IRS to have been

Personal Holding Companies

responsible for collecting, accounting for,

applicable credits) to be $500 or more.

and paying over these taxes, and who

Personal holding companies must attach

The installments are due by the 15th day

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

acted willfully in not doing so. The penalty

to Form 1120-REIT a Schedule PH

(Form1120). See the Instructions for

the tax year. If any date falls on a

is equal to the unpaid trust fund tax. See

Pub. 15 (Circular E), Employer’s Tax

Schedule PH (Form 1120) for details.

Saturday, Sunday, or legal holiday, the

installment is due on the next regular

Guide, or Pub. 51 (Circular A),

business day. Use Form 1120-W,

Agricultural Employer’s Tax Guide, for

Item C. Employer

details, including the definition of

Estimated Tax for Corporations, as a

Identification Number (EIN)

worksheet to compute estimated tax. If

responsible persons.

the REIT does not use EFTPS, use the

Penalty for failure to ascertain

Enter the REIT’s EIN. If the REIT does

deposit coupons (Forms 8109) to make

ownership. If a REIT fails to comply with

not have an EIN, it must apply for one on

deposits of estimated tax.

Regulations section 1.857-8 for

Form SS-4, Application for Employer

Identification Number. If the REIT has not

For more information, including

ascertaining ownership and maintaining

factual ownership records for a tax year, it

received its EIN by the time the return is

penalties that apply if the REIT fails to

make required payments, see the

must pay a $25,000 penalty ($50,000 for

due, write “Applied for” in the space for

the EIN. See Pub. 583 for details.

instructions for line 25 on page 10.

intentional disregard) upon notice and

demand by the IRS. If the REIT can show

Overpaid estimated tax. If the REIT

that the failure was due to reasonable

Item D. Date REIT

overpaid estimated tax, it may be able to

cause, the penalty may not be imposed.

get a quick refund by filing Form 4466,

Established

For more information, see section 857(f).

Corporation Application for Quick Refund

of Overpayment of Estimated Tax. The

Other penalties. Other penalties can be

If the REIT is a corporation under state or

overpayment must be at least 10% of the

imposed for negligence, substantial

local law, enter the date incorporated. If it

REIT’s expected income tax liability and

understatement of tax, and fraud. See

is a trust or association, enter the date

at least $500. File Form 4466 before the

sections 6662 and 6663.

organized.

-6-

Instructions For Form 1120-Reit - 2001 Page 6

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