Form 2438: Undistributed Capital Gains Tax Return
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Form 2438: Undistributed Capital Gains Tax Return

Form 2438 is used by Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) to figure income tax on undistributed capital gains designated under sections 852(b)(3)(D) or 857(b)(3)(C). This article provides instructions for filing Form 2438 by the required date and location, as well as who must sign the form.

What is Form 2438?

Form 2438 is a form used by Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) to figure income tax on undistributed capital gains designated under sections 852(b)(3)(D) and 857(b)(3)(C). It is filed by the 30th day after the end of the RIC’s or the REIT’s tax year, and must be signed by the president, vice president, treasurer, assistant treasurer, chief accounting officer, and any other corporate officer (such as tax officer) authorized to sign. It must be filed with the Department of the Treasury Internal Revenue Service Center in Kansas City, MO.

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H2-2 IRS Form 2438 – Who Needs to Fill It Out?

Regulated investment companies (RICs) and real estate investment trusts (REITs) must fill out IRS Form 2438 if the RIC or REIT is electing to designate undistributed capital gains under section 852(b)(3)(D) or 857(b)(3)(C). Form 2438 should be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or any other corporate officer authorized to sign. If a fiduciary such as a receiver, trustee, or assignee is filing the return, they should sign the return. Form 2438 should be filed within 30 days after the end of the RIC or REIT’s tax year. Copies of the form should be sent to the IRS in Kansas City and attached to Forms 1120-RIC or Forms 1120-REIT.

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Step-by-Step: Form 2438 Instructions For Filling Out the Document

Form 2438 must be filled in by regulated investment companies (RICs) and real estate investment trusts (REITs) if they are electing to designate undistributed capital gains under section 852(b)(3)(D) or 857(b)(3)(C). The form should be filled out according to the Internal Revenue Code and filed within 30 days after the RIC’s or REIT’s tax year end. Furthermore, it must be signed and dated by an appropriate corporate officer, and an original copy should be filed with the Department of the Treasury’s Internal Revenue Service Center in Kansas City, MO, and a copy should be attached to Form 1120-RIC or Form 1120-REIT. If a corporate officer does not complete the form, then it must be signed and completed by a paid preparer, though if the preparer does not charge the RIC or REIT, they should not sign it.

Below, we present a table that will help you understand how to fill out Form 2438.

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Information Required for Form 2438 Details
Undistributed Capital Gains Election to designate undistributed capital gains under specific sections
Filing Deadline Filing within 30 days after the tax year end

Do You Need to File Form 2438 Each Year?

Yes, if a RIC or REIT is electing to designate undistributed capital gains under section 852(b)(3)(D) or 857(b)(3)(C), then the taxpayer must file a separate Form 2438 by the 30th day after the end of the RIC’s or the REIT’s tax year. The form must be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or any other corporate officer authorized to sign. If a return is being filed for a series fund, it may be signed by any officer authorized to sign for the RIC in which the fund is a series.

Download the official IRS Form 2438 PDF

On the official IRS website, you will find a link to download Form 2438. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 2438

Sources:

https://www.irs.gov/forms-pubs/about-form-2438

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