Form 8612 Return of Excise Tax on Undistributed Income of Real Est

8612

Form
(Rev. December 2008)
Department of the Treasury
Internal Revenue Service

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

Employer identification number

Name of REIT

Please
Type
or
Print

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

City or town, state, and ZIP code

Distributed Amount

Required Distribution

1a Taxable income under section 857(b)(2) for the calendar year
(see instructions)

Tax and Payments

OMB No. 1545-1013

For calendar year 20
See instructions.

1a
1b

b Multiply line 1a by 85% (.85)
2a Capital gain net income under section 4981(e)(2) for the calendar
year (see instructions)
b Multiply line 2a by 95% (.95)

2a

3a Grossed up required distribution for the previous calendar year
(see instructions)

3a

b Distributed amount for the previous calendar year under section
4981(c)
c Subtract line 3b from line 3a. If zero or less, enter -0-

3b

2b

3c

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

6

Amount on which tax is imposed under sections 857(b)(1) or (b)(3)(A) for any tax year ending in
or with the calendar year (see instructions)

6

7a Distributed amount for the previous calendar year under section
4981(c). Enter amount from line 3b above

7a

b Grossed up required distribution for the previous calendar year.
Enter amount from line 3a above

7b
7c

c Subtract line 7b from line 7a. If zero or less, enter -08

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

Sign
Here

Paid
Preparer’s
Use Only

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.

䊳

Date

Signature of officer

Preparer’s
signature

䊳

Firm’s name (or
yours if self-employed),
address, and ZIP code

Date

䊳

Title

Check if
self-employed

䊳

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

EIN

Preparer’s SSN or PTIN
䊳

䊳

Phone no.
Cat. No. 64121U

(

)
Form

8612

(Rev. 12-2008)

Form 8612 (Rev. 12-2008)

General Instructions
Section references are to the Internal
Revenue Code.

Purpose of Form
Form 8612 is used by real estate
investment trusts (REITs) to figure and pay
the excise tax on undistributed income
under section 4981. The excise tax is 4%
of the excess, if any, of the required
distribution over the distributed amount.

Page

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 REIT can
show that the failure to pay on time was
due to reasonable cause.
Other penalties. Other penalties can be
imposed for negligence, substantial
understatements of tax, reportable
transaction understatements, and fraud.
See sections 6662, 6662A, and 6663.

Who Must File

Amended Return

Any REIT that is liable for the excise tax on
undistributed income under section 4981
must file Form 8612.

To amend a previously filed Form 8612, file
a corrected Form 8612 and write
Amended at the top of the form.

When and Where To File

Specific Instructions

File Form 8612 by March 15th following
the calendar year to which the excise tax
liability applies. File it with the Department
of the Treasury, Internal Revenue Service
Center, Cincinnati, OH 45999.
If more time is needed, use Form 7004,
Application for Automatic Extension of
Time To File Certain Business Income Tax,
Information, and Other Returns. However,
Form 7004 does not extend the time for
payment of tax.

Who Must Sign
Form 8612 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 sign and date
any return that they are required to file on
behalf of the REIT.

Rounding Off to Whole Dollars
The REIT 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 REIT
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 part of a month the return
is late up to a maximum of 25% of the
unpaid tax. The penalty will not be
imposed if the REIT can show that the
failure to file on time was due to
reasonable cause. REITs that file late must
attach a statement explaining the
reasonable cause.
Penalty for late payment of tax. A REIT
that does not pay the tax when due may
have to pay a penalty, which is usually 1/2

Period covered. Fill in the space at the
top of the form to show the calendar year
for which this return is filed. The REIT is
required to figure its undistributed income
on a calendar year basis even though it
may file its income tax return and keep 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 REIT has a P.O.
box, show the box number instead.
If the REIT receives its mail in care of a
third party (such as an accountant or an
attorney), enter on the street address line
"C/O" followed by the third party’s name
and street address or P.O. box.
Line 1a. Refigure real estate investment
trust taxable income, treating the calendar
year as the REIT’s tax year. When
refiguring this amount, exclude the
deduction for dividends paid and any gain
or loss from the sale or exchange of a
capital asset. Include adjustments that
result in the distribution of deficiency
dividends (defined in section 860(f)) for the
year in which the dividends are paid. Also,
include the REIT’s share of partnership
ordinary income (loss) and deductions
when they are taken into account by the
partnership. For details and exceptions,
see Rev. Rul. 94-40, 1994-1 C.B. 274, and
Rev. Proc. 94-71, 1994-2 C.B. 810.
Line 2a. To determine capital gain net
income, figure the excess, if any, of the
gains over the losses from the sale or
exchange of capital assets, determined by
treating the calendar year as the REIT’s tax
year. Reduce the result by the REIT’s net
ordinary loss (as defined in section
4981(e)(2)(C)), if any, for the calendar year.
Include adjustments that result in the
distribution of deficiency dividends (defined
in section 860(f)) and that affect capital
gain net income for the year in which the
dividends are paid. Also, include the REIT’s
share of partnership items that affect
capital gain net income when they are
taken into account by the partnership. For
details and exceptions, see Rev. Rul. 94-40
and Rev. Proc. 94-71.
Line 3a. 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 4981(b)(2).

2

Line 5. Enter the deduction for dividends
paid (as defined in section 561) during the
current calendar year figured without
regard to the dividends paid, if any,
attributable to net income from foreclosure
property. Include deficiency dividends
(defined in section 860(f)) paid during the
calendar year. Also, include dividends
declared in October, November, or
December but only if they were actually
paid by the REIT during January of the
following calendar year. (See section
857(b)(9).) Do not include on this line any
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
REIT ending in or with the calendar year
for which this excise tax return is filed.
1. Real estate investment trust taxable
income from Form 1120-REIT, Part I, line
22, and
2. Undistributed capital gains designated
under section 857(b)(3)(D) from Form 2438,
line 11.
Line 12. Full payment of the tax due on
line 12 must accompany the return. Make
the REIT’s check or money order payable
to the United States Treasury.”
Privacy Act and 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. Section 6109
requires return preparers to provide their
identifying numbers on the return.
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., 13 min.
Recordkeeping
Learning about the
1 hr., 47 min.
law or the form
Preparing and
sending the form
1 hr., 58 min.
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-6526; Washington, DC
20224. Do not send the form to this
address. Instead, see When and Where To
File above.