Form 8612 Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts

1. 8612 Return of Excise Tax on Undistributed Income of
Form
Real Estate Investment Trusts OMB No. 1545-1013
(Rev. December 2008)
For calendar year 20
Department of the Treasury
See instructions.
Internal Revenue Service
Employer identification number
Name of REIT
Please
Number, street, and room or suite no. (If a P.O. box, see instructions.)
Type
or
Print
City or town, state, and ZIP code
1a Taxable income under section 857(b)(2) for the calendar year
1a
(see instructions)
1b
b Multiply line 1a by 85% (.85)
Required Distribution
2a Capital gain net income under section 4981(e)(2) for the calendar
2a
year (see instructions)
2b
b Multiply line 2a by 95% (.95)
3a Grossed up required distribution for the previous calendar year
3a
(see instructions)
b Distributed amount for the previous calendar year under section
3b
4981(c)
3c
c Subtract line 3b from line 3a. If zero or less, enter -0-
4 Required distribution. Add lines 1b, 2b, and 3c 4
5
Deduction for dividends paid under section 561 during the calendar year (see instructions)
5
Distributed Amount
6 Amount on which tax is imposed under sections 857(b)(1) or (b)(3)(A) for any tax year ending in
6
or with the calendar year (see instructions)
7a Distributed amount for the previous calendar year under section
7a
4981(c). Enter amount from line 3b above
b Grossed up required distribution for the previous calendar year.
7b
Enter amount from line 3a above
7c
c Subtract line 7b from line 7a. If zero or less, enter -0-
8 Distributed amount. Add lines 5, 6, and 7c 8
9
9 Undistributed income. Subtract line 8 from line 4. If zero or less, enter -0-
Tax and Payments
10
10 Excise tax on undistributed income. Multiply line 9 by 4% (.04)
11
11 Tax paid with extension of time to file (Form 7004)
12
12 Tax due. Subtract line 11 from line 10 (see instructions)
13 Overpayment. Subtract line 10 from line 11 13
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has
any knowledge.
Sign
Here
Signature of officer Date Title
Date Preparer’s SSN or PTIN
Preparer’s Check if
Paid signature self-employed
Preparer’s Firm’s name (or EIN
Use Only yours if self-employed),
Phone no. ( )
address, and ZIP code
8612
For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 64121U Form (Rev. 12-2008)

2. 2
Form 8612 (Rev. 12-2008) Page
of 1% of the unpaid tax for each month or Line 5. Enter the deduction for dividends
General Instructions part of a month the tax is not paid up to a paid (as defined in section 561) during the
Section references are to the Internal maximum of 25% of the unpaid tax. This current calendar year figured without
Revenue Code. penalty will not be imposed if the REIT can regard to the dividends paid, if any,
show that the failure to pay on time was attributable to net income from foreclosure
Purpose of Form
due to reasonable cause. property. Include deficiency dividends
Form 8612 is used by real estate (defined in section 860(f)) paid during the
Other penalties. Other penalties can be
investment trusts (REITs) to figure and pay calendar year. Also, include dividends
imposed for negligence, substantial
the excise tax on undistributed income declared in October, November, or
understatements of tax, reportable
under section 4981. The excise tax is 4% December but only if they were actually
transaction understatements, and fraud.
of the excess, if any, of the required paid by the REIT during January of the
See sections 6662, 6662A, and 6663.
distribution over the distributed amount. following calendar year. (See section
Amended Return 857(b)(9).) Do not include on this line any
Who Must File
other dividends paid after the close of the
To amend a previously filed Form 8612, file
Any REIT that is liable for the excise tax on calendar year.
a corrected Form 8612 and write
undistributed income under section 4981
Amended at the top of the form. Line 6. Line 6 is the total of the following
must file Form 8612.
amounts figured for the tax year of the
Specific Instructions
When and Where To File REIT ending in or with the calendar year
for which this excise tax return is filed.
File Form 8612 by March 15th following
Period covered. Fill in the space at the
the calendar year to which the excise tax 1. Real estate investment trust taxable
top of the form to show the calendar year
liability applies. File it with the Department income from Form 1120-REIT, Part I, line
for which this return is filed. The REIT is
of the Treasury, Internal Revenue Service 22, and
required to figure its undistributed income
Center, Cincinnati, OH 45999.
on a calendar year basis even though it 2. Undistributed capital gains designated
If more time is needed, use Form 7004, may file its income tax return and keep its under section 857(b)(3)(D) from Form 2438,
Application for Automatic Extension of books and records on a fiscal year basis. line 11.
Time To File Certain Business Income Tax,
Address. Include the suite, room, or other Line 12. Full payment of the tax due on
Information, and Other Returns. However,
unit number after the street address. If the line 12 must accompany the return. Make
Form 7004 does not extend the time for
Post Office does not deliver mail to the the REIT’s check or money order payable
payment of tax.
street address and the REIT has a P.O. to the United States Treasury.”
Who Must Sign box, show the box number instead.
If the REIT receives its mail in care of a
Form 8612 must be signed and dated by Privacy Act and Paperwork Reduction
third party (such as an accountant or an
the president, vice president, treasurer, Act Notice. We ask for the information on
attorney), enter on the street address line
assistant treasurer, chief accounting this form to carry out the Internal Revenue
quot;C/Oquot; followed by the third party’s name
officer, or by any other officer (such as tax laws of the United States. You are required
and street address or P.O. box.
officer) authorized to sign. Receivers, to give us the information. We need it to
trustees, or assignees must sign and date ensure that you are complying with these
Line 1a. Refigure real estate investment
any return that they are required to file on laws and to allow us to figure and collect
trust taxable income, treating the calendar
behalf of the REIT. the right amount of tax. Section 6109
year as the REIT’s tax year. When
requires return preparers to provide their
refiguring this amount, exclude the
Rounding Off to Whole Dollars identifying numbers on the return.
deduction for dividends paid and any gain
The REIT may show amounts on the return or loss from the sale or exchange of a You are not required to provide the
as whole dollars. To do so, drop any capital asset. Include adjustments that information requested on a form that is
amount less than 50 cents and increase result in the distribution of deficiency subject to the Paperwork Reduction Act
any amount from 50 cents through 99 dividends (defined in section 860(f)) for the unless the form displays a valid OMB
cents to the next higher dollar. year in which the dividends are paid. Also, control number. Books or records relating
include the REIT’s share of partnership to a form or its instructions must be
Interest and Penalties
ordinary income (loss) and deductions retained as long as their contents may
Interest. Interest is charged on taxes paid when they are taken into account by the become material in the administration of
late even if an extension of time to file is partnership. For details and exceptions, any Internal Revenue law. Generally, tax
granted. Interest is also charged on see Rev. Rul. 94-40, 1994-1 C.B. 274, and returns and return information are
penalties imposed for failure to file, Rev. Proc. 94-71, 1994-2 C.B. 810. confidential, as required by section 6103.
negligence, fraud, substantial
Line 2a. To determine capital gain net The time needed to complete and file
understatements of tax, and reportable
income, figure the excess, if any, of the this form will vary depending on individual
transaction understatements from the due
gains over the losses from the sale or circumstances. The estimated average time
date (including extensions) to the date of
exchange of capital assets, determined by is:
payment. The interest charge is figured at
treating the calendar year as the REIT’s tax
a rate determined under section 6621. Recordkeeping 6 hr., 13 min.
year. Reduce the result by the REIT’s net
Penalty for late filing of return. A REIT Learning about the
ordinary loss (as defined in section
that does not file its tax return by the due law or the form 1 hr., 47 min.
4981(e)(2)(C)), if any, for the calendar year.
date, including extensions, may have to Include adjustments that result in the Preparing and
pay a penalty of 5% of the unpaid tax for distribution of deficiency dividends (defined sending the form
each month or part of a month the return in section 860(f)) and that affect capital to the IRS 1 hr., 58 min.
is late up to a maximum of 25% of the gain net income for the year in which the
If you have comments concerning the
unpaid tax. The penalty will not be dividends are paid. Also, include the REIT’s
accuracy of these time estimates or
imposed if the REIT can show that the share of partnership items that affect
suggestions for making this form simpler,
failure to file on time was due to capital gain net income when they are
we would be happy to hear from you. You
reasonable cause. REITs that file late must taken into account by the partnership. For
can write to: Internal Revenue Service; Tax
attach a statement explaining the details and exceptions, see Rev. Rul. 94-40
Products Coordinating Committee;
reasonable cause. and Rev. Proc. 94-71.
SE:W:CAR:MP:T:T:SP; 1111 Constitution
Penalty for late payment of tax. A REIT Line 3a. Add lines 1a and 2a using Ave., NW; IR-6526; Washington, DC
that does not pay the tax when due may amounts for the previous calendar 20224. Do not send the form to this
have to pay a penalty, which is usually 1/2 year,increased by the prior year’s shortfall, address. Instead, see When and Where To
if any, as defined in section 4981(b)(2). File above.