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These private delivery services include

If the “Yes” box is checked, the RIC is

transaction. These transactions are

only the following.

authorizing the IRS to call the paid preparer

identified by notice, regulation, or other form

•

DHL Express (DHL): DHL Same Day

to answer any questions that may arise

of published guidance as a listed

Service, DHL Next Day 10:30 am, DHL Next

during the processing of its return. The RIC

transaction.

Day 12:00 pm, DHL Next Day 3:00 pm, and

is also authorizing the paid preparer to:

See the instructions for Form 8886 for

•

DHL 2nd Day Service.

Give the IRS any information that is

•

more details on the conditions that apply to

Federal Express (FedEx): FedEx Priority

missing from the return,

•

determine if a RIC participated in a listed

Overnight, FedEx Standard Overnight,

Call the IRS for information about the

transaction.

FedEx 2Day, FedEx International Priority,

processing of the return or the status of any

and FedEx International First.

related refund or payment(s), and

•

Statements

United Parcel Service (UPS): UPS Next

Respond to certain IRS notices about

Day Air, UPS Next Day Air Saver, UPS 2nd

math errors, offsets, and return preparation.

Day Air, UPS 2nd Day Air A.M., UPS

Safe harbor under Temporary

The RIC is not authorizing the paid

Worldwide Express Plus, and UPS

preparer to receive any refund check, bind

Regulations section

Worldwide Express.

the RIC to anything (including any additional

1.67-2T(j)(2)

tax liability), or otherwise represent the RIC

The private delivery service can tell you

Generally, shareholders in a nonpublicly

before the IRS.

how to get written proof of the mailing date.

offered fund that are individuals or

The authorization will automatically end

pass-through entities are treated as having

Private delivery services cannot

no later than the due date (excluding

received a dividend in an amount equal to

deliver items to P.O. boxes. You

extensions) for filing the RIC’s 2006 tax

the shareholder’s allocable share of affected

must use the U.S. Postal Service to

CAUTION

return. If the RIC wants to expand the paid

RIC expenses for the calendar year. They

mail any item to an IRS P.O. box address.

preparer’s authorization or revoke the

are also treated as having paid or incurred

authorization before it ends, see Pub. 947,

Extension of time to file

an expense described in section 212 (and

Practice Before the IRS and Power of

subject to the 2% limitation on

To request an extension, file Form 7004,

Attorney.

miscellaneous itemized deductions) in the

Application for Automatic 6-Month Extension

same amount for the calendar year.

Other Forms That May Be

of Time To File Certain Business Income

Tax, Information, and Other Returns.

Election. A nonpublicly offered fund may

Required

elect to treat its affected RIC expenses for a

Who Must Sign

calendar year as equal to 40% of the

The RIC may have to file some of the

amount determined under Temporary

following forms. Also see Pub. 542,

The return must be signed and dated by:

Regulations section 1.67-2T(j)(1)(i) for that

•

Corporations, for a list of other forms that

The president, vice president, treasurer,

calendar year.

the RIC may be required to file.

assistant treasurer, chief accounting officer

Form 1096, Annual Summary and

To make this election, attach to Form

•

Transmittal of U.S. Information Returns. Use

Any other corporate officer (such as tax

1120-RIC for the tax year that includes the

Form 1096 to transmit Forms 1099, 1098,

last day of the calendar year for which the

officer) authorized to sign.

5498, and W2-G to the Internal Revenue

fund makes the election, a statement that it

If a return is filed on behalf of a RIC by a

Service.

is making an election under Temporary

receiver, trustee or assignee, the fiduciary

Regulations section 1.67-2T(j)(2). Once

Form 1099-DIV, Dividends and

must sign the return, not the corporate

made, the election remains in effect for all

Distributions. Report certain dividends and

officer.

subsequent calendar years and may not be

distributions.

Note. If this return is being filed for a series

revoked without IRS consent. See

Form 1099-INT, Interest Income. Report

fund (as defined in section 851(g)(2)), the

Temporary Regulations section 1.67-2T for

interest income.

return may be signed by any officer

definitions and other details.

Form 2438, Undistributed Capital Gains

authorized to sign for the RIC in which the

Tax Return. If the RIC designates

Notice to shareholders

fund is a series.

undistributed capital gains under section

A RIC must notify its shareholders within 60

If an employee of the RIC completes

852(b)(3)(D), it must file this return and pay

Form 1120-RIC, the paid preparer’s space

days after the close of its tax year of the

tax on the gains designated by the 30th day

should remain blank. Anyone who prepares

distribution made during the tax year that

after the end of the RIC’s tax year. In

Form 1120-RIC but does not charge the RIC

qualifies for the dividends received

addition, a copy of Form 2438 (with Copy A

should not complete that section. Generally,

deduction under section 243. For purposes

of all Forms 2439) must be attached to Form

anyone who is paid to prepare the return

of the dividends-received deduction, a

1120-RIC when filed.

must sign it and fill in the “Paid Preparer’s

capital gain dividend received from a RIC is

Form 2439, Notice to Shareholder of

Use Only” area.

not treated as a dividend.

Undistributed Long-Term Capital Gains. If

The paid preparer must complete the

the RIC filed Form 2438, it must complete

Consent to partnership election

required preparer information and:

Form 2439 for each shareholder for whom it

•

to close its books monthly

Sign the return in the space provided for

paid tax on undistributed capital gains and

the preparer’s signature.

furnish a copy to the shareholder by the

Certain money market funds that obtain an

•

Give a copy of the return to the taxpayer.

60th day after the end of the RIC’s tax year.

interest in an eligible partnership that invests

in assets exempt from taxation under

Form 8613, Return of Excise Tax on

Note. A paid preparer may sign original or

section 103 may be qualified to pay

Undistributed Income of Regulated

amended returns by rubber stamp,

exempt-interest dividends to its

Investment Companies. If the RIC is liable

mechanical device, or computer software

shareholders. To qualify for payment of

for the 4% excise tax on undistributed

program.

exempt-interest dividends, a RIC must meet

income under section 4982 or makes an

the quarterly net asset value (NAV)

Paid Preparer

election under section 4982(e)(4), it must file

requirements under section 852(b)(5). To

this return for the calendar year.

Authorization

maintain the required NAV at the end of

Form 8886, Reportable Transaction

each quarter, the RIC may take into account

If the RIC wants to allow the IRS to discuss

Disclosure Statement. File Form 8886 if the

on a monthly basis its distributive share of

its 2005 tax return with the paid preparer

RIC or an investment vehicle that is at least

partnership items if the eligible partnership

who signed it, check the “Yes” box in the

95% owned by one or more RICs at all

makes a proper election to close its books at

signature area of the return. This

times during the course of a transaction

the end of each month. See Rev. Proc.

authorization applies only to the individual

participated in a listed transaction. Listed

2002-16 for details.

whose signature appears in the “Paid

transactions include transactions that are

Preparer’s Use Only” section of the RIC’s

the same as or substantially similar to one of

Eligibility. A RIC is entitled to take into

return. It does not apply to the firm, if any,

the types of transactions that the IRS has

account its distributive share of partnership

shown in that section.

determined to be a tax avoidance

items on a monthly basis if:

-3-

Instructions For Form 1120-Ric - U.s. Income Tax Return For Regulated Investment Companies - 2005 Page 3

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