Form 8613 (Rev. 10-2016)
Page 2
General Instructions
Section references are to the Internal
Revenue Code.
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.
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.
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, 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 doesn’t
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 $205.
The penalty won’t be imposed if the
fund can show that the failure to file on
time was due to reasonable cause. If the
fund receives a notice about penalties
after it files its return, send the IRS an
explanation and we will determine if the
fund meets the reasonable cause
criteria. Do not attach an explanation
when the return is filed.
Late payment of tax. A fund that
doesn’t 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 won’t 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.
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.