Fillable Form 2438 - Undistributed Capital Gains Tax Return (Page 3 of 4) in pdf

Form 2438 (Rev. 12-2017)

Page

General Instructions

Who Must Sign

Penalty for Late Payment of

Tax

Form 2438 must be signed and

Section references are to the

dated by:

Internal Revenue Code.

A RIC or REIT that doesn’t pay the

tax when due generally may be

• The president, vice president,

Future Developments

penalized

of 1% of the unpaid tax

treasurer, assistant treasurer, chief

for each month or part of a month

For the latest information about

accounting officer, or

the tax is not paid, up to a maximum

developments related to Form 2438

• Any other corporate officer (such

of 25% of the unpaid tax. The

and its instructions, such as

as tax officer) authorized to sign.

penalty won’t be imposed if the RIC

legislation enacted after they were

If a return is filed on behalf of a RIC

or REIT can show that the failure to

published, go to

or REIT by a receiver, trustee, or

pay on time was due to reasonable

assignee, the fiduciary must sign the

cause.

Who Must File

return, instead of the corporate

Reasonable cause determinations.

officer. Returns and forms signed by

Regulated investment companies

If the RIC or REIT receives a notice

a receiver or trustee in bankruptcy on

(RICs) and real estate investment

about penalties after it files its return,

behalf of a RIC or REIT must be

trusts (REITs) file Form 2438 if the

send the IRS an explanation and we

accompanied by a copy of the order

RIC or REIT is electing to designate

will determine if the RIC or REIT

or instructions of the court authorizing

undistributed capital gains under

meets the reasonable cause criteria.

signing of the return or form.

section 852(b)(3)(D) or 857(b)(3)(D).

Do not attach an explanation when

For a return that is being filed for a

the RIC’s or REIT’s return is filed.

If a RIC has more than one fund,

series fund (discussed in section

each fund must file a separate Form

Electronic Deposit

851(g)), the return may be signed by

2438. The term “fund” as used in

Requirement

any officer authorized to sign for the

these instructions refers to the

RIC in which the fund is a series.

RICs and REITs must use electronic

definition in section 851(g) and to

If a corporate officer completes

funds transfers to make all federal

any RIC that does not have more

Form 2438, the paid preparer space

tax deposits (such as deposits of

than one portfolio of assets.

should remain blank. Anyone who

employment tax, excise tax, and

Purpose of Form

prepares Form 2438 but doesn’t

corporate income tax). Generally,

charge the RIC or REIT shouldn’t

electronic fund transfers are made

Form 2438 is used by RICs or REITs

sign the return. Generally, anyone

using the Electronic Federal Tax

to figure income tax on undistributed

who is paid to prepare Form 2438

Payment System (EFTPS). However,

capital gains designated under

must sign it and fill in the Paid

if you don’t want to use EFTPS, you

section 852(b)(3)(D) or section

Preparer Use Only area.

can arrange for your tax

857(b)(3)(D).

professional, financial institution,

Paid preparer. The paid preparer

See the instructions for Schedule

payroll service, or other trusted third

must complete the Paid Preparer

D (Form 1120) and Form 8949 for a

party to make deposits on your

Use Only area (including signing the

definition of capital assets and

behalf. Also, you may arrange for

form in the space provided for the

information on figuring and reporting

your financial institution to submit a

preparer’s signature) and give a

capital gains and losses.

same-day tax wire payment

copy of Form 2438 to the taxpayer.

When To File

(discussed below) on your behalf.

Penalty for Late Filing of

EFTPS is a free service provided by

File Form 2438 by the 30th day after

Return

the Department of Treasury.

the end of the RIC’s or the REIT’s

Services provided by your tax

A RIC or REIT that doesn’t file its tax

tax year.

professional, financial institution,

return by the due date, including

payroll service, or other third party

Where To File

extensions, may be penalized 5% of

may have a fee.

the unpaid tax for each month or

File the original form with the:

For more information about

part of the month the return is late,

Internal Revenue Service Center

EFTPS, or to enroll in EFTPS, visit

up to a maximum of 25% of the

201 W. Rivercenter Blvd.

the EFTPS website at

unpaid tax. The minimum penalty for

Covington, KY 41011

or call

a return that is more than 60 days

1-800-555-4477 (TTY/TDD

In addition, attach a copy of Form

late is the smaller of the tax due or

1-800-733-4829).

2438 to Form 1120-RIC or Form

$210. For tax years beginning in

1120-REIT.

2017, the penalty won’t be imposed

Depositing on time. For any deposit

if the RIC or REIT can show that the

made by EFTPS to be on time, the

failure to file on time was due to

RIC or REIT must submit the deposit

reasonable cause.

by 8 p.m. Eastern time on the day

before the date the deposit is due. If

Note. The minimum penalty amount

the RIC or REIT uses a third party to

may be adjusted for inflation. See

make the deposits on its behalf, they

the instructions for your applicable

may have different cutoff times.

income tax return for the minimum

penalty amount for the current tax

year.

Form 2438 - Undistributed Capital Gains Tax Return Page 3

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