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

Form 2438 (Rev. 12-2012)

Page

General Instructions

In addition, attach a copy of Form

penalized

of 1% of the unpaid tax

2438 to Form 1120-RIC or Form

for each month or part of a month

Section references are to the

1120-REIT.

the tax is not paid, up to a maximum

Internal Revenue Code.

of 25% of the unpaid tax. The

Who Must Sign

penalty will not be imposed if the

Future Developments

RIC or REIT can show that the

Form 2438 must be signed and

For the latest information about

failure to pay on time was due to

dated by:

developments related to Form 2438

reasonable cause.

• The president, vice president,

and its instructions, such as

Reasonable cause determinations.

treasurer, assistant treasurer, chief

legislation enacted after they were

If the RIC or REIT receives a notice

accounting officer or

published, go to

about penalties after it files its return,

• Any other corporate officer (such

send the IRS an explanation and we

as tax officer) authorized to sign.

What's New

will determine if the RIC or REIT

If a return is filed on behalf of a

meets the reasonable cause criteria.

A RIC or REIT will now have to enter

RIC or REIT by a receiver, trustee or

Do not attach an explanation when

the net short-term capital gain from

assignee, the fiduciary must sign the

the RIC's or REIT's return is filed.

line 4 and the undistributed capital

return, instead of the corporate

gains not designated under section

Electronic Deposit Requirement

officer. Returns and forms signed by

852(b)(3)(D) or 857(b)(3)(D) from line

a receiver or trustee in bankruptcy

RICs and REITs must use electronic

12 on Form 8949, Sales and Other

on behalf of a RIC or REIT must be

funds transfers to make all federal

Dispositions of Capital Assets. See

accompanied by a copy of the order

tax deposits (such as deposits of

the instructions for lines 4 and 12.

or instructions of the court

employment tax, excise tax, and

authorizing signing of the return or

Who Must File

corporate income tax). Generally,

form.

electronic fund transfers are made

Regulated investment companies

using the Electronic Federal Tax

For a return that is being filed for a

(RICs) and real estate investment

Payment System (EFTPS). However,

series fund (discussed in section

trusts (REITs) file Form 2438 if the

if you do not want to use EFTPS,

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

RIC (defined below) or REIT is

you can arrange for your tax

any officer authorized to sign for the

electing to designate undistributed

professional, financial institution,

RIC in which the fund is a series.

capital gains under section 852(b)(3)

payroll service, or other trusted third

If a corporate officer completes

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

party to make deposits on your

Form 2438, the Paid Preparer Use

If a RIC has more than one fund,

behalf. Also, you may arrange for

Only area should remain blank.

each fund must file a separate Form

your financial institution to initiate a

Anyone who prepares Form 2438

2438. The term “fund” as used in

same-day tax wire payment

but does not charge the RIC or REIT

these instructions refers to the

(discussed below) on your behalf.

should not sign the return. Generally,

definition in section 851(g) and to

EFTPS is a free service provided by

anyone who is paid to prepare Form

any RIC that does not have more

the Department of Treasury.

2438 must sign it and fill in the Paid

than one portfolio of assets.

Services provided by your tax

Preparer Use Only area.

professional, financial institution,

Purpose of Form

Paid preparer. The paid preparer

payroll service, or other third party

must complete the Paid Preparer

may have a fee.

Form 2438 is used by RICs or REITs

Use Only area (including signing the

to figure income tax on undistributed

For more information about

form in the space provided for the

capital gains designated under

EFTPS, or to enroll in EFTPS, visit

preparer's signature) and give a

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

the EFTPS website at

copy of Form 2438 to the taxpayer.

857(b)(3)(D).

or call

Penalty for Late Filing of Return

1-800-555-4477. You can also get

See the instructions for Schedule

Pub. 966, Electronic Federal Tax

D (Form 1120) for a definition of

A RIC or REIT that does not file its

Payment System: A Guide to Getting

capital assets and information on

tax return by the due date, including

Started.

figuring and reporting capital gains

extensions, may be penalized 5% of

and losses.

Note. Forms 8109 and 8109-B,

the unpaid tax for each month or

Federal Tax Deposit Coupon, can no

part of a month the return is late, up

When To File

longer be used to make federal tax

to a maximum of 25% of the unpaid

File Form 2438 by the 30th day after

deposits.

tax. The minimum penalty for a

the end of the RIC’s or the REIT’s

return that is more than 60 days late

Depositing on time. For deposits

tax year.

is the smaller of the tax due or $135.

made by EFTPS to be on time, the

The penalty will not be imposed if

Where To File

RIC or REIT must initiate the deposit

the RIC or REIT can show that the

by 8 p.m. Eastern time on the day

File the original form with the:

failure to file on time was due to

before the date the deposit is due. If

Internal Revenue Service Center

reasonable cause.

the RIC or REIT uses a third party to

201 W. Rivercenter Blvd.

make the deposits on its behalf, they

Penalty for Late Payment of Tax

Covington, KY 41011

may have different cutoff times.

A RIC or REIT that does not pay the

tax when due generally may be

Form 2438 - Undistributed Capital Gains Tax Return Page 3

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