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

Form 2438 (Rev. 12-2013)

Page

General Instructions

• The president, vice president,

the tax is not paid, up to a maximum

treasurer, assistant treasurer, chief

of 25% of the unpaid tax. The

Section references are to the

accounting officer or

penalty will not be imposed if the

Internal Revenue Code.

RIC or REIT can show that the

• Any other corporate officer (such

failure to pay on time was due to

Future Developments

as tax officer) authorized to sign.

reasonable cause.

If a return is filed on behalf of a

For the latest information about

Reasonable cause determinations.

RIC or REIT by a receiver, trustee or

developments related to Form 2438

If the RIC or REIT receives a notice

assignee, the fiduciary must sign the

and its instructions, such as

about penalties after it files its return,

return, instead of the corporate

legislation enacted after they were

send the IRS an explanation and we

officer. Returns and forms signed by

published, go to

will determine if the RIC or REIT

a receiver or trustee in bankruptcy

meets the reasonable cause criteria.

on behalf of a RIC or REIT must be

Who Must File

Do not attach an explanation when

accompanied by a copy of the order

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

or instructions of the court

Regulated investment companies

authorizing signing of the return or

(RICs) and real estate investment

Electronic Deposit Requirement

form.

trusts (REITs) file Form 2438 if the

RICs and REITs must use electronic

RIC (defined below) or REIT is

For a return that is being filed for a

funds transfers to make all federal

electing to designate undistributed

series fund (discussed in section

tax deposits (such as deposits of

capital gains under section 852(b)(3)

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

employment tax, excise tax, and

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

any officer authorized to sign for the

corporate income tax). Generally,

RIC in which the fund is a series.

If a RIC has more than one fund,

electronic fund transfers are made

each fund must file a separate Form

If a corporate officer completes

using the Electronic Federal Tax

2438. The term “fund” as used in

Form 2438, the Paid Preparer Use

Payment System (EFTPS). However,

these instructions refers to the

Only area should remain blank.

if you do not want to use EFTPS,

definition in section 851(g) and to

Anyone who prepares Form 2438

you can arrange for your tax

any RIC that does not have more

but does not charge the RIC or REIT

professional, financial institution,

than one portfolio of assets.

should not sign the return. Generally,

payroll service, or other trusted third

anyone who is paid to prepare Form

party to make deposits on your

Purpose of Form

2438 must sign it and fill in the Paid

behalf. Also, you may arrange for

Form 2438 is used by RICs or REITs

Preparer Use Only area.

your financial institution to initiate a

to figure income tax on undistributed

same-day tax wire payment

Paid preparer. The paid preparer

capital gains designated under

(discussed below) on your behalf.

must complete the Paid Preparer

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

EFTPS is a free service provided by

Use Only area (including signing the

857(b)(3)(D).

the Department of Treasury.

form in the space provided for the

Services provided by your tax

See the instructions for Schedule

preparer's signature) and give a

professional, financial institution,

D (Form 1120) and Form 8949 for a

copy of Form 2438 to the taxpayer.

payroll service, or other third party

definition of capital assets and

Penalty for Late Filing of Return

may have a fee.

information on figuring and

reporting capital gains and losses.

A RIC or REIT that does not file its

For more information about

tax return by the due date, including

EFTPS, or to enroll in EFTPS, visit

When To File

extensions, may be penalized 5% of

the EFTPS website at

the unpaid tax for each month or

File Form 2438 by the 30th day after

or call

part of a month the return is late, up

the end of the RIC’s or the REIT’s

1-800-555-4477.

to a maximum of 25% of the unpaid

tax year.

Depositing on time. For deposits

tax. The minimum penalty for a

made by EFTPS to be on time, the

Where To File

return that is more than 60 days late

RIC or REIT must initiate the deposit

is the smaller of the tax due or $135.

File the original form with the:

by 8 p.m. Eastern time on the day

The penalty will not be imposed if

Internal Revenue Service Center

before the date the deposit is due. If

the RIC or REIT can show that the

201 W. Rivercenter Blvd.

the RIC or REIT uses a third party to

failure to file on time was due to

Covington, KY 41011

make the deposits on its behalf, they

reasonable cause.

may have different cutoff times.

In addition, attach a copy of Form

Penalty for Late Payment of Tax

2438 to Form 1120-RIC or Form

1120-REIT.

A RIC or REIT that does not pay the

Who Must Sign

tax when due generally may be

penalized

of 1% of the unpaid tax

Form 2438 must be signed and

for each month or part of a month

dated by:

Form 2438 - Undistributed Capital Gains Tax Return Page 3

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