Instructions For Form 1120-Reit - 2016 (Page 4 of 19) in pdf

Give a copy of the return to the

spaces. If more space is needed on the

provide its financial institution to make a

taxpayer.

forms or schedules, attach separate

same-day wire payment, visit the IRS

sheets using the same size and format as

website at

and

A paid preparer may sign the

the printed forms.

click on “Same-day wire.”

original or amended returns by

TIP

rubber stamp, mechanical device,

Estimated Tax Payments

If there are supporting statements and

or computer software program.

attachments, arrange them in the same

Generally, the following rules apply to the

order as the schedules or forms they

REIT's payments of estimated tax.

Paid Preparer

support and attach them last. Show the

The REIT must make installment

totals on the printed forms. Enter the

Authorization

payments of estimated tax if it expects its

REIT's name and EIN on each supporting

total tax for the year (less applicable

If the REIT wants to allow the IRS to

statement or attachment.

credits) to be $500 or more.

discuss its 2016 tax return with the paid

The REIT must use electronic funds

Tax Payments

preparer who signed it, check the “Yes”

transfer to make installment payments of

box in the signature area of the return.

Generally, the REIT must pay the tax due

estimated tax.

This authorization applies only to the

in full no later than the due date for filing its

The installments are due by the 15th

individual whose signature appears in the

tax return ( not including extensions). See

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

“Paid Preparer Use Only” section of the

the instructions for line 26. If the due date

of the tax year. If any date falls on a

REIT's return. It does not apply to the firm,

falls on a Saturday, Sunday, or legal

Saturday, Sunday, or legal holiday, the

if any, shown in that section.

holiday, the payment is due on the next

installment is due on the next regular

day that isn't a Saturday, Sunday, or legal

business day.

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

holiday.

Use Form 1120-W, Estimated Tax for

authorizing the IRS to call the paid

preparer to answer any questions that

Corporations, as a worksheet to compute

Electronic Deposit

may arise during the processing of its

estimated tax. See the Instructions for

Requirement

return. The REIT is also authorizing the

Form 1120-W.

REITs must use electronic funds transfer

If the REIT overpaid its estimated tax, it

paid preparer to:

to make all federal tax deposits (such as

may be able to get a quick refund by filing

Give the IRS any information that is

deposits of employment, excise, and

missing from the return,

Form 4466, Corporation Application for

corporate income tax). Generally,

Call the IRS for information about the

Quick Refund of Overpayment of

processing of the return or the status of

electronic funds transfers are made using

Estimated Tax. The overpayment must be

the Electronic Federal Tax Payment

at least 10% of the REIT's expected

any related refund or payment(s), and

System (EFTPS). However, if the REIT

Respond to certain IRS notices about

income tax liability and at least $500.

does not want to use EFTPS, it can

math errors, offsets, and return

For more information, including

preparation.

arrange for its tax professional, financial

penalties, see the Line 25. Estimated Tax

institution, payroll service, or other trusted

Penalty instructions.

The REIT is not authorizing the paid

third party to make deposits on its behalf.

preparer to receive any refund check, bind

Also, it may arrange for its financial

Interest and Penalties

the REIT to anything (including any

institution to submit a same-day tax wire

additional tax liability), or otherwise

payment (discussed below) on its behalf.

Interest. Interest is charged on taxes

represent the corporation before the IRS.

EFTPS is a free service provided by the

paid late even if an extension of time to file

Department of the Treasury. Services

is granted. Interest is also charged on

The authorization will automatically end

provided by a tax professional, financial

penalties imposed for failure to file,

no later than the due date (without regard

institution, payroll service, or other third

negligence, fraud, substantial valuation

to extensions) for filing the REIT's 2017

party may have a fee.

misstatements, and substantial

tax return. If the REIT wants to expand the

understatements of tax from the due date

paid preparer's authorization, see Pub.

To get more information about EFTPS

(including extensions) to the date of

947, Practice Before the IRS and Power of

or to enroll in EFTPS, visit

payment. The interest charge is figured at

Attorney.

or call 1-800-555-4477 (TTY/TDD

a rate determined under section 6621.

1-800-733-4829).

Assembling the Return

Late filing of return. A REIT that does

Depositing on time. For any deposit

To ensure that the REIT's tax return is

not file its tax return by the due date,

made by EFTPS to be on time, the REIT

correctly processed, attach all schedules

including extensions, may be penalized

must submit the deposit by 8 p.m. Eastern

and other forms after page 4 of Form

5% of the unpaid tax for each month or

time the day before the date the deposit is

1120-REIT, in the following order.

part of a month the return is late, up to a

due. If the REIT uses a third party to make

maximum of 25% of the unpaid tax. The

1. Schedule N (Form 1120).

deposits on its behalf, they may have

minimum penalty for a return that is over

different cutoff times.

2. Schedule D (Form 1120).

60 days late is the smaller of the tax due

3. Schedule O (Form 1120).

Same-day wire payment option. If the

or $205. The penalty will not be imposed if

REIT fails to submit a deposit transaction

the REIT can show that the failure to file

4. Form 4626.

on EFTPS by 8 p.m. Eastern time on the

on time was due to reasonable cause.

5. Form 4136.

day before the date a deposit is due, it can

Late payment of tax. A REIT that does

6. Additional schedules in

still make its deposit on time by using the

not pay the tax when due generally may

alphabetical order.

Federal Tax Collection Service (FTCS).

be charged a penalty for the failure to pay

To use the same-day payment method,

7. Additional forms in numerical order.

tax. The amount of the penalty is

of 1%

the REIT will need to make arrangements

8. Supporting statements and

of the unpaid tax for each month or part of

with its financial institution ahead of time

attachments.

a month the tax is not paid, up to a

regarding availability, deadlines and costs.

maximum of 25% of the unpaid tax. The

Complete every applicable entry space

Financial institutions may charge a fee for

penalty will not be imposed if the REIT can

on Form 1120-REIT. Do not enter “See

payments made this way. To learn more

attached” instead of completing the entry

about the information the REIT will need to

-4-

Instructions For Form 1120-Reit - 2016 Page 4

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