Form 8613 Return of Excise Tax on Undistributed Income of Regulate

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8613, PAGE 1 of 2
PRINTS: HEAD to HEAD
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8613

(Rev. December 2005)

Action

Signature

O.K. to print
Revised proofs
requested

Return of Excise Tax on Undistributed Income of
Regulated Investment Companies

Department of the Treasury
Internal Revenue Service

OMB No. 1545-1016

For calendar year 20
See instructions on back of form.

Name of fund

Please
Type
or
Print

Date

Employer identification number

Number, street, and room or suite no. (If a P.O. box, see instructions.)

City or town, state, and ZIP code

● Election under section 4982(e)(4)—Check this box if the tax year of the regulated investment company ends in November
or December a n d the fund elects to substitute its tax year for the 1-year period ending on October 31 (see
䊳
instructions)

Required Distribution

1a Investment company taxable income under section 852(b)(2) for
the calendar year determined without regard to the dividends
paid deduction and any gain or (loss) from the sale or exchange
of a capital asset (see instructions)
b Multiply line 1a by 98% (.98)

1a
1b

2a Capital gain net income under section 4982(e)(2) for the 1-year
period ending on October 31 of the calendar year (see
instructions)
b Multiply line 2a by 98% (.98)

2a

3a Grossed up required distribution for the previous calendar year.
Add lines 1a and 2a (using amounts for the previous calendar
year) increased by the prior year’s shortfall (if any), as defined in
section 4982(b)(2)
b Distributed amount for the previous calendar year under section
4982(c)
c Subtract line 3b from line 3a. If zero or less, enter -0-

3a

4

2b

3b
3c

Required distribution. Add lines 1b, 2b, and 3c

4

Tax and Payments

Distributed Amount

5

Deduction for dividends paid under section 561 during the calendar year, excluding
exempt-interest dividends (see instructions). Include deficiency dividends as defined in
section 860(f), but only if paid during the calendar year
6 Amount on which tax is imposed under sections 852(b)(1) or 852(b)(3)(A) for any tax year
ending in or with the calendar year (see instructions)
7a Distributed amount for the previous calendar year under section
7a
4982(c). Enter amount from line 3b
b Grossed up required distribution for the previous calendar year.
Enter amount from line 3a
c Subtract line 7b from line 7a. If zero or less, enter -0-

5
6

7b
7c

8

Distributed amount. Add lines 5, 6, and 7c

8

9

Undistributed income. Subtract line 8 from line 4. If zero or less, enter -0-

9

10

Excise tax on undistributed income. Multiply line 9 by 4% (.04)

10

11

Tax paid with extension of time to file (Form 7004)

11

12

Tax due. Subtract line 11 from line 10 (see instructions)

12

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.

䊳

Signature of officer

Date

For Paperwork Reduction Act Notice, see instructions.

䊳

Title
Cat. No. 63985M

Form

8613

(Rev. 12-2005)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8613, PAGE 2 of 2
PRINTS: HEAD to HEAD
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8613 (Rev. 12-2005)

General Instructions
Section references are to the Internal Revenue
Code.

Purpose of Form
Use Form 8613 to figure and pay the excise tax
on undistributed income under section 4982. The
tax is 4% of the excess, if any, of the required
distribution over the distributed amount.
Also use Form 8613 to make the section
4982(e)(4) election.

Who Must File
Any regulated investment company (RIC) that is
liable for the tax on undistributed income or that
makes an election under section 4982(e)(4) must
file Form 8613. A RIC that makes this election
must file the form even if no tax is due.
If a RIC has more than one fund, each fund
files a separate Form 8613. The term “fund”
refers to a series fund as defined in section
851(g) and to any RIC that does not have more
than one portfolio of assets.
Exemption. The tax does not apply to funds in
which all the shareholders during the year were
certain trusts or segregated asset accounts of a
life insurance company. Shares attributable to an
investment of no more than $250,000 made in
connection with the organization of the RIC will
not prevent the RIC from qualifying for this
exemption. See section 4982(f).

When and Where To File
File Form 8613, with the Internal Revenue
Service Center where the fund’s income tax
return is filed, by March 15 following the
calendar year in which the tax liability applies.
Extension of time to file. File Form 7004,
Application for Automatic 6-Month Extension of
Time To File Certain Business Income Tax,
Information, and Other Returns, to request an
extension of time to file. Filing Form 7004 does
not extend the time for payment of tax.

Amended Return
To amend a previously filed Form 8613, file a
corrected Form 8613 and write “Amended” at
the top of the form.

Who Must Sign
Form 8613 must be signed and dated by the
president, vice president, treasurer, assistant
treasurer, chief accounting officer, or by any
other officer (such as tax officer) authorized to
sign. Receivers, trustees, or assignees must also
sign and date any return filed on behalf of a fund.
Note: If this return is being filed for a series fund
(see section 851(g)(2)), the return may be signed
by any officer authorized to sign for the RIC in
which the fund is a series.

Rounding Off to Whole Dollars
The fund may show amounts on the return as
whole dollars. To do so, drop any amount less
than 50 cents and increase any amount from 50
cents through 99 cents to the next higher dollar.

Interest and Penalties
Interest. Interest is charged on taxes paid late
even if an extension of time to file is granted.
Interest is also charged on penalties imposed for
failure to file, negligence, fraud, substantial
understatements of tax, and reportable
transaction understatements from the due date
(including extensions) to the date of payment.
The interest charge is figured at a rate
determined under section 6621.
Penalty for late filing of return. A fund that
does not file its tax return by the due date,
including extensions, may have to pay a penalty
of 5% of the unpaid tax for each month or partof
a month the return is late, up to a maximum of
25% of the unpaid tax. The penalty will not be
imposed if the fund can show that the failure to

Page

file on time was due to reasonable cause. Funds
that file late must attach a statement explaining
the reasonable cause.
Penalty for late payment of tax. A fund that
does not pay the tax when due may be penalized
1
⁄2 of 1% of the unpaid tax for each month or part
of a month the tax is not paid, up to a maximum
of 25% of the unpaid tax. This penalty will not be
imposed if the fund can show that the failure to
pay on time was due to reasonable cause.
Other penalties. Other penalties can be
imposed for negligence, substantial
understatement of tax, reportable transaction
understatements, and fraud. See sections 6662,
6662A, and 6663.

Specific Instructions
Period covered. Show the calendar year for
which the return is filed at the top of the form.
Figure income on a calendar year basis even if
the fund files its income tax return and keeps its
books and records on a fiscal year basis.
Address. Include the suite, room, or other unit
number after the street address. If the Post
Office does not deliver mail to the street address
and the fund has a P.O. box, show the box
number instead.
Election under section 4982(e)(4). This election
is available to funds whose tax years end in
November or December. If the fund qualifies, it
may substitute its tax year for the 1-year period
ending on October 31.
If the RIC makes the election, Form 8613
must be filed even if no tax is due. The election
is made no later than the time for filing Form
8613 (including extensions) for the year in which
the election will apply. Once made, the election
is revocable only with IRS consent.

Required Distribution
Line 1a. Include on this line the following types
of income.
1. Adjustments that result in the distribution of
deficiency dividends under section 860(f) for the
year in which the dividends are paid.
2. If a RIC is a partner in a partnership,
recognize the fund’s share of partnership ordinary
income (loss) and deductions at the same time
they are taken into account by the partnership,
regardless of the fund’s tax year or the tax year
of the partnership in which the fund is a partner.
See Rev. Rul. 94-40, 1994-1 C.B. 274.
Also see Rev. Proc. 94-71, 1994-2 C.B. 810,
for the circumstances under which the IRS will
not challenge the method used by a fund to
account for partnership items when its required
distribution is determined under section 4982.
3. Any foreign currency gain or loss
attributable to a section 988 transaction that
would be properly taken into account for the part
of the calendar year after October 31 is taken
into account in the following year. If the RIC
makes an election under section 4982(e)(4), the
last day of the fund’s tax year is substituted for
October 31.
4. Ordinary gain or loss from a disposition of
stock in a passive foreign investment company is
determined as if the fund’s calendar year tax year
ended on October 31. Gain or loss for the part of
the calendar year after October 31 is taken into
account in the following year. If the section
4982(e)(4) election is made, the last day of the
fund’s tax year is substituted for October 31.
Line 2a. Include on this line the following items.
1. Capital gain net income from deficiency
dividends referred to in line 1a above.
2. The fund’s share of partnership capital gain
net income taken into account at the same time
as it is taken into account by the partnership,
regardless of the fund’s tax year or the tax year
of the partnership in which the fund is a partner.

2

If the RIC does not make the section
4982(e)(4) election, capital gain net income is
figured on the basis of a 1-year period ending on
October 31 of the calendar year.
If the RIC makes the election under section
4982(e)(4), substitute the fund’s tax year for the
1-year period ending on October 31. A special
rule applies, however, to the first year the fund
makes the election if that year is not the first
year the fund is subject to the tax under section
4982. For that year, capital gain net income is
figured for the period beginning on November 1
of the year immediately preceding the election
year and ending on the last day of the first tax
year for which the election was made.

Distributed Amount
Line 5. Enter dividends paid during the calendar
year. Include dividends declared in October,
November, or December of that calendar year
that are payable to shareholders of record on a
specified date in one of these months, but only if
actually paid by the fund during January of the
following calendar year. See section 852(b)(7).
Do not include other dividends paid after the
close of the calendar year.
Line 6. Line 6 is the total of the following amounts
figured for the tax year of the fund ending in or
with the calendar year for which this return is filed.
1. Taxable income from Form 1120-RIC, Part
I, line 26, and the amount subject to tax on Form
1120-RIC, Part II, line 3; and
2. Undistributed capital gains designated under
section 852(b)(3)(D) from Form 2438, line 11.

Tax and Payments
Line 12. Full payment of the tax due on line 12
must be attached to this return. Make the RIC’s
check or money order payable to the “United
States Treasury.”
Paperwork Reduction Act Notice. We ask for
the information on this form to carry out the
Internal Revenue laws of the United States. You
are required to give us the information. We need
it to ensure that you are complying with these
laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the
information requested on a form that is subject
to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or
records relating to a form or its instructions must
be retained as long as their contents may
become material in the administration of any
Internal Revenue law. Generally, tax returns and
return information are confidential, as required
by section 6103.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time is:
6 hr., 42 min.
Recordkeeping
Learning about the
2 hr., 28 min.
law or the form
Preparing and sending
2 hr., 42 min.
the form to the IRS
If you have comments concerning the
accuracy of these time estimates or suggestions
for making this form simpler, we would be happy
to hear from you. You can write to Internal
Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6406, Washington, DC
20224. Do Not send the form to this office.
Instead, see When and Where To File above.