Form 8613 Return of Excise Tax on Undistributed Income of Regulate

8613

Return of Excise Tax on Undistributed Income of
Regulated Investment Companies

Form
(Rev. March 2012)
Department of the Treasury
Internal Revenue Service

Employer identification number

Name of fund

Please
Type
or
Print

OMB No. 1545-1016

For calendar year 20
▶ See instructions.

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 and the fund elects to substitute its tax year for the 1-year period ending on October 31 (see
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) . . . . . . . . . . .

1a
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the 1-year
year (see
. . . .
2a
b Multiply line 2a by 98.2% (.982) . . . . . . . . . . . . . . .
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) . . . . . . . . . . . . . . . .
3a
b Distributed amount for the previous calendar year under section
4982(c) . . . . . . . . . . . . . . . . . . . .
3b
c Subtract line 3b from line 3a. If zero or less, enter -0- . . . . . . .
b Multiply line 1a by 98% (.98) . . . . . . . . .
2a Capital gain net income under section 4982(e)(2) for
period ending on October 31 of the calendar
instructions) . . . . . . . . . . . . . .

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1b

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2b

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3c

Required distribution. Add lines 1b, 2b, and 3c . . . . . . . . . . . . . . .
Deduction for dividends paid under section 561 during the calendar year, excluding exemptinterest 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
4982(c). Enter amount from line 3b . . . . . . . . . . .
7a
b Grossed up required distribution for the previous calendar year.
Enter amount from line 3a
. . . . . . . . . . . . .
7b
c Subtract line 7b from line 7a. If zero or less, enter -0- . . . . . . . . . . . . .

4

7c

8
Tax and Payments

Distributed Amount

4
5

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

5
6

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8

9
10
11
12

Undistributed income. Subtract line 8 from line 4. If zero or less, enter -0Excise tax on undistributed income. Multiply line 9 by 4% (.04) . . . .
Tax paid with extension of time to file (Form 7004) . . . . . . . .
Tax due. Subtract line 11 from line 10 (see instructions) . . . . . . .

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9
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13

Overpayment. Subtract line 10 from line 11

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13

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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.

Paid
Preparer
Use Only

Print/Type preparer’s name

Preparer's signature

▲

▲

Date

Signature of officer

Title
Date

Check
if
self-employed

Firm’s name

▶

Firm's EIN

Firm's address

▶

Phone no.

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 63985M

PTIN

▶

Form

8613 (Rev. 03-2012)

Page 2

Form 8613 (Rev. 03-2012)

General Instructions
Section references are to the Internal
Revenue Code.

What's New

Extension of time to file. File Form
7004, Application for Automatic
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.

Capital gain net income. For calendar
years beginning after December 22,
2010, the required distribution
percentage for capital gain net income
has been increased to 98.2%.

Amended Return

Election to defer certain net ordinary
losses. For calendar years beginning
after December 22, 2010, RICs may
elect to defer certain net ordinary losses
under section 4982(e)(7).

Who Must Sign

Future developments. The IRS has
created a page on IRS.gov for
information about Form 8613, at
www.irs.gov/form8613. Information
about any future developments affecting
Form 8613 such as legislation enacted
after we release it will be posted on that
page.

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.

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

Late payment of tax. A fund that does
not pay the tax when due may be
penalized ½ 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, and fraud. See
sections 6662, 6662A, and 6663.

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.

Specific Instructions

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.

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.

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, and substantial
understatements of tax from the due
date (including extensions) to the date
of payment. The interest charge is
figured at a rate determined under
section 6621.
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 part of a month the return is
late, up to a maximum of 25% of the
unpaid tax. The minimum penalty for a
return that is over 60 days late is the
smaller of the tax due or $135.
The penalty will not be imposed if the
fund can show that the failure to file on
time was due to reasonable cause.
Funds that file late must attach a
statement explaining the reasonable
cause.

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.

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.

Page 3

Form 8613 (Rev. 03-2012)

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.
Election to defer certain ordinary
losses. For calendar years beginning
after December 31, 2010, a RIC may
elect under section 4982(e)(7) to
determine its ordinary income for the
calendar year by deferring its net
ordinary loss (figured without regard to
specified gains and losses taken into
account under section 4982(e)(5))
attributable to the portion of the calendar
year that begins after the tax year. If this
election is made, any amount of the net
ordinary loss not taken for a calendar
year will be treated as arising on the first
day of the following calendar year. For
more information, see section 4982(e)(7).
To make the election, attach a
statement to the return for the year in
which the election will apply indicating
the RIC is electing to defer its net
ordinary loss under section 4982(e)(7)
and specifying the amount of the net
ordinary loss that the RIC is electing to
defer.
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.
If the RIC does not make the section
4982(e)(4) election, capital gain net
income is figured on the basis of a 1year 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 1120RIC, 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.

Learning about the
law or the form . .

Recordkeeping .

.

. 2 hr., 28 min.

Preparing and sending
the form to the IRS . . 2 hr., 42 min.
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:M:S, 1111 Constitution
Ave. NW, IR-6526, Washington, DC
20224. Do not send the form to this
office. Instead, see When and Where To
File above.