Form 1120-RIC U.S. income tax Return for Regulated Investment Companie

Tax Forms & Publications

Work Request Notification
Title: Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies
Tax Year: 2011

Processing Year: 2012

Route to:

Approved:

Section Chief:
Reviewer:
Review Chief:
Branch Chief:

Tuawana Pinkston

Doris Williams
Johnny Cervantes
Curt Freeman

10/27/10

Digitally signed by X9LCB
DN: cn=X9LCB, [email protected]
Date: 2010.10.27 16:30:07 -04'00'

10/27/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.27 19:36:56 -04'00'

10/27/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.27 19:37:05 -04'00'

10/27/10

2010.10.28 00:18:55
-04'00'

10/27/10

Tuawana Pinkston
Doris Williams

Curtis Freeman

Senior Technical Advisor: Curtis Freeman
Initiator (Tax Law Specialist): Emebeth

Date:
Digitally signed by Tuawana Pinkston
DN: cn=Tuawana Pinkston, o=IRS, ou=SE:CAR:MP:
T:T:R, [email protected], c=US
Date: 2010.10.27 15:48:40 -04'00'

Demrew

The information in this document can be used to develop any necessary Work Requests.
This notification is for changes due to:
Legislation or Chief Counsel guidance:
✔ A Program change initiated by: Tax Forms and Publications Product Strategy

The major changes are as follows:
We removed Schedule E, Compensation of Officers, on the second page of Form 1120-RIC. There will be a separate standalone
Form 1125-E for reporting the list of compensation of officers. We also updated the reference to this form on page 1, line 9.

We may need to make further changes that would require a work request.
We do not anticipate the need for any further changes that would require a Work Request.
If you have any questions, please contact:
Name: Emebeth Demrew

Name: Doris Williams

Title:

Title:

Tax Law Specialist

Tax Law Specialist (Reviewer)

Symbols: SE:W:CAR:MP:T:B:C

Symbols: SE:W:CAR:MP:T:B:C

Phone: 202-927-9565

Phone: 202-283-0413

Email: [email protected]

Email: [email protected]

Room: IR-6141

Room: C6-431 (NCFB)

2011

Version A, Cycle 1

attach Form 1125-E
Form

1120-RIC

Department of the Treasury
Internal Revenue Service
A

Year of RIC status
election

B

Date fund was established
(see instructions)

U.S. Income Tax Return for
Regulated Investment Companies

For calendar year 2010 or tax year beginning
▶

Please
type or
print

OMB No. 1545-1010

, 2010, and ending

2010

, 20

See separate instructions.

Name of fund

C Employer identification number

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

D Total assets (see instructions)

2011

City or town, state, and ZIP code
$

E
F

(1)
(2)
(3)
(4)
Check applicable boxes:
Final return
Name change
Address change
Amended return
Check if the fund is a personal holding company (attach Sch. PH) or if the fund is not in compliance with Regs. sec. 1.852-6 for this tax year

▶

Deductions (see instructions)

Income

Part I—Investment Company Taxable Income (see instructions)

Tax and Payments

2010

2012

1
2
3
4
5

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net foreign currency gain or (loss) from section 988 transactions (attach schedule) . . . . .
Payments with respect to securities loans . . . . . . . . . . . . . . . . . .
Excess of net short-term capital gain over net long-term capital loss from Schedule D (Form 1120),
line 12 (attach Schedule D (Form 1120)) . . . . . . . . . . . . . . . . . .

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28a
b
c
e
f
g
h
29
30
31
32

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Compensation of officers (Schedule E, line 2)
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Salaries and wages (less employment credits) . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . .
Depreciation (attach Form 4562) . . . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . .
Registration fees
. . . . . . . . . . . . . . . . . . . .
Insurance . . . . . . . . . . . . . . . . . . . . . . .
Accounting and legal services . . . . . . . . . . . . . . . .
Management and investment advisory fees . . . . . . . . . . . .
Transfer agency, shareholder servicing, and custodian fees and expenses
. .
Reports to shareholders . . . . . . . . . . . . . . . . . .
Other deductions (see instructions—attach schedule) . . . . . . . . .
2011
Total deductions. Add lines 9 through 22
. . . . . . . . . . . .
Taxable income before deduction for dividends paid. Subtract line 23 from line 8
Less: Deduction for dividends paid (Schedule A, line 7a) . . . . . . . .

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▶

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

DRAFT AS OF
September 17, 2010
▶

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Investment company taxable income. Subtract line 25 from line 24 . . . . . . . . .
Total tax (Schedule J, line 7) . . . . . . . . . . . . . . . . . . . . . .
2009 overpayment credited to 2010 .
28a
2010 estimated tax payments . .
28b
) dBal ▶ 28d
Less 2010 refund applied for on Form 4466 28c (
Tax deposited with Form 7004 . . . . . . . . . . . . .
28e
Credit for tax paid on undistributed capital gains (attach Form 2439) .
28f
Credit for federal tax paid on fuels (attach Form 4136) . . . . . .
28g
Refundable credits from Form 3800, line 19c, and Form 8827, line 8c .
28h
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . ▶
Amount owed. If line 28i is smaller than the total of lines 27 and 29, enter amount owed . . .
Overpayment. If line 28i is larger than the total of lines 27 and 29, enter amount overpaid . . .
Enter amount from line 31: Credited to 2011 estimated tax ▶
Refunded ▶

28i
29
30
31
32

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.

Signature of officer

Paid
Preparer
Use Only

Date

Print/Type preparer’s name
Firm’s name

▲

▲

Sign
Here

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see instructions—attach schedule) . . . . . .
Total income. Add lines 1 through 7 . . . . . . . . . .

1
2
3
4

May the IRS discuss this return
with the preparer shown below
Yes No
(see instructions)?

Title

Preparer’s signature

Date

▶

PTIN

Firm's EIN ▶

Firm’s address ▶

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

Check
if
self-employed
Phone no.

Cat. No. 64140B

Form 1120-RIC (2010)

2011

2011

Version A, Cycle 1

Delete the entire section
of Schedule E.

Form 1120-RIC (2010)

Page 2

Part II—Tax on Undistributed Net Capital Gain Not Designated Under Section 852(b)(3)(D)
1
2
3
4

Net capital gain from Schedule D (Form 1120), line 13 (attach Schedule D (Form 1120)) .
Capital gain dividends from Schedule A, line 7b . . . . . . . . . . . . .
Amount subject to tax. Subtract line 2 from line 1
. . . . . . . . . . . .
Capital gains tax. Multiply line 3 by 35% (.35). Enter tax here and on line 2b, Schedule J

1

Dividends paid (other than dividends paid after the end of the tax year). Do
not include dividends deemed paid in the preceding tax year under section
852(b)(7) or 855(a), or deficiency dividends as defined in section 860(f) . .

1

2

Dividends paid in the 12-month period following the close of the tax year that
the fund elects to treat as paid during the tax year under section 855(a) . .

2

3

Dividends declared in October, November, or December and deemed
paid on December 31 under section 852(b)(7) . . . . . . . . .

4
5
6
7

Consent dividends (section 565) (attach Forms 972 and 973) . . . .
Foreign tax paid deduction (section 853(b)(1)(B)), if applicable . . . .
Credits from tax credit bonds distributed to shareholders (see instructions) .
Deduction for dividends paid:
Ordinary dividends. Add lines 1 through 6 of column (a). Enter here and on line 25, Part I
Capital gain dividends. Add lines 1 through 4 of column (b). Enter here
and on line 2, Part II, above . . . . . . . . . . . . . .

Schedule A

a
b

Schedule B
1
2
3
4
5

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1
2
3
4

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Deduction for Dividends Paid (Do not include exempt-interest dividends or capital gain dividends
reported on Form 2438, line 9b; see instructions.)
(a) Ordinary dividends

(b) Capital gain dividends

3
4
5
6
7a
7b

Information Required With Respect to Income From Tax-Exempt Obligations

Did the fund qualify under section 852(b)(5) to pay exempt-interest dividends for 2009?
If “Yes,” complete lines 2 through 5.
Amount of interest excludible from gross income under section 103(a) . . . . . .
Amounts disallowed as deductions under sections 265 and 171(a)(2) . . . . . .
Net income from tax-exempt obligations. Subtract line 3 from line 2 . . . . . . .
Amount of line 4 designated as exempt-interest dividends . . . . . . . . . .

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Yes

No

DRAFT AS OF
September 17, 2010
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2
3
4
5

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Schedule E
Compensation of Officers (see instructions for line 9, Part I)
Note. Complete Schedule E only if total receipts (line 8, Part I, plus net capital gain from line 1, Part II, and line 9a, Form
2438) are $500,000 or more.
(a) Name of officer

1

(b) Social security
number

(c) Percent of time
devoted to business

(d) Percent of fund
stock owned

%
%

(e) Amount of
compensation

%
%
2

2

Total compensation of officers. Enter here and on line 9, Part I

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1
2a
b
c
d
3a
b
c
d
e
4
5
6
7

Check if the fund is a member of a controlled group (attach Schedule O (Form 1120)) .
Tax on investment company taxable income . . . . . . . . .
2a
Tax on undistributed net capital gain (from Part II, line 8) . . . . .
2b
Alternative minimum tax (attach Form 4626) . . . . . . . . .
2c
Income tax. Add lines 2a through 2c . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118) . . . . . . . . . . .
3a
Credit from Form 8834, line 29 . . . . . . . . . . . . .
3b
General business credit (attach Form 3800) . . . . . . . . .
3c
Other credits (attach schedule—see instructions)
. . . . . . .
3d
Total credits. Add lines 3a through 3d . . . . . . . . . . . . . . . .
Subtract line 3e from line 2d . . . . . . . . . . . . . . . . . . .
Personal holding company tax (attach Schedule PH (Form 1120))
. . . . . . .
Other taxes. Check if from:
Form 4255
Other (attach schedule)
Total tax. Add lines 4 through 6. Enter here and on page 1, line 27 . . . . . . .

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2d

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3e
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6
7

Schedule J

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Tax Computation (see instructions)

Form 1120-RIC (2010)

2011

Version A, Cycle 1

2011

Page 3

Form 1120-RIC (2010)

Schedule K
1
a
b
c

Other Information (see instructions)

Yes No

Check method of accounting:
Cash
Accrual
Other (specify) ▶

2

At the end of the tax year, did the RIC own, directly or indirectly, 50% or more of the voting stock of a domestic corporation?
(For rules of attribution, see section 267(c).)
If “Yes,” attach a schedule showing (a) name and identification number, (b) percentage owned, and (c) taxable income or
(loss) before a net operating loss (NOL) and special deductions of such corporation for the tax year ending with or within your
tax year.

3

Is the RIC a subsidiary in a parent-subsidiary controlled group? .

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If “Yes,” enter the employer identification number and the name of the parent corporation

4

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At the end of the tax year, did any individual, partnership, corporation, estate, or trust own, directly or indirectly, 50% or
more of the RIC’s voting stock? (For rules of attribution, see section 267(c).) . . . . . . . . . . . . . . .
If “Yes,” attach a schedule showing name and identification number. (Do not include any information already entered in 3
above.) Enter percentage owned ▶

5

At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of:
a The total voting power of all classes of stock of the fund entitled to vote or
b The total value of all classes of stock of the fund? . . . . . . . . . . . . . . .
If “Yes,” enter:
(1) Percentage owned ▶
(2) Owner’s country ▶
The fund may have to file Form 5472. Enter number of Forms 5472 attached ▶

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DRAFT AS OF
September 17, 2010

6

During this tax year, did the fund pay dividends (other than stock dividends and distributions in exchange for stock) in excess
of the fund’s current and accumulated earnings and profits? (see sections 301 and 316) . . . . . . . . . . .
If “Yes,” file Form 5452.

7

Check this box if the fund issued publicly offered debt instruments with original issue discount
If checked, the fund may have to file Form 8281.

8

Enter the amount of tax-exempt interest received or accrued during the tax year.

9

If this return is being filed for a series fund (as defined in section 851(g)(2)), enter
The name of the regulated investment company in which the fund is a series ▶
The date the regulated investment company was incorporated or organized ▶

a
b

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$

10

Section 853 election. Check this box if the fund meets the requirements of section 853(a) and section 901(k) and elects
to pass through the deduction or credit for foreign taxes it paid to its shareholders. See the instructions for additional
details and requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

11

Section 853A election. Check this box if the fund elects under section 853A to pass through credits from tax credit
bonds to its shareholders (see instructions) . . . . . . . . . . . . . . . . . . . . . . . ▶

12

Regulations section 1.852-11 election. Check this box if, for purposes of computing taxable income, the fund elects
under Regulations section 1.852-11(f)(1) to defer all or part of its post-October capital loss or post-October currency loss
for this tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
a
b

If the election is made, enter the amounts deferred:
Post-October capital loss ▶
Post-October currency loss ▶
Form 1120-RIC (2010)

2011

2011

Version A, Cycle 1
Page 4

Form 1120-RIC (2010)

Schedule L Balance Sheets per Books

Beginning of tax year

Assets

1
2a
b
3
4
5
6
7
8
9a
b
10
11a
b
12
13

(a)

Cash . . . . . . . . . . .
Trade notes and accounts receivable .
Less allowance for bad debts . . . .
U.S. government obligations . . . .
Tax-exempt securities (see instructions)
Other current assets (attach schedule) .
Loans to shareholders . . . . . .
Mortgage and real estate loans . . .
Other investments (attach schedule) . .
Buildings and other fixed depreciable assets
Less accumulated depreciation . . .
Land (net of any amortization) . . . .
Intangible assets (amortizable only) . .
Less accumulated amortization . . .
Other assets (attach schedule) . . .
Total assets . . . . . . . . .

End of tax year
(b)

(c)

(d)

(

)

(

)

(

)

(

)

(

)

(

)

Liabilities and Shareholder's Equity

14
15
16
17
18
19
20
21
22
23
24
25
26

Accounts payable . . . . . . .
Mortgages, notes, bonds payable in less than 1 year.
Other current liabilities (attach schedule)
Loans from shareholders . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach schedule) . . .
Capital stock . . . . . . . . .
Additional paid-in capital . . . . .
Retained earnings - Appropriated (attach schedule)
Retained earnings - Unappropriated . .
Adjustments to shareholders' equity (attach schedule)
Less cost of treasury stock . . . .
Total liabilities and shareholders' equity

DRAFT AS OF
September 17, 2010
(

)

(

)

Note: The fund is not required to complete Schedules M-1 and M-2 if the total assets on Schedule L, line 13, column (d), are less than $25,000.

Schedule M-1
1
2
3
4

Reconciliation of Income (Loss) per Books With Income per Return (see instructions)

Net income (loss) per books . . . .
Federal income tax (less built-in gains tax)
Excess of capital losses over capital gain
Income subject to tax not recorded on
books this year (itemize):

5

7

Income recorded on books this year
not included on this return (itemize):
Tax exempt interest

8

Deductions on this return not charged
against book income this year (itemized):
a
b

Expenses recorded on books this year not
deducted on this return (itemize):
a
b
c
d

6

$
Depreciation . . .
Expenses allocable to tax-exempt interest
income . . . . .
$
$
Section 4982 tax . .
Travel and entertainment $

Add lines 1 through 5

Schedule M-2
1
2
3

4

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$

Depreciation . . . $
Deduction for dividends
paid (line 25, Part I) . $

9
10

Net capital gain from Form 2438, line 9a
If the fund did not file Form 2438, enter
the net capital gain from Schedule D
(Form 1120), line 13. Otherwise, enter -0-

11
12

Add line 7 through 10 . . . .
Investment company taxable income
(line 26, Part I)-line 6 less line 11 .

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Analysis of Unappropriated Retained Earnings per Books (Schedule L, line 23)

Balance at beginning of year .
Net income (loss) per books .
Other increases (itemize):

Add lines 1, 2, and 3 .

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5

6

a Cash . .
b Stock . .
c Property .
Other decreases (itemize):

7
8

Add lines 5 and 6 . . . . .
Balance at end of year (line 4 less line 7)

Distributions:

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Form 1120-RIC (2010)

2011