IRS Form 1120-RIC U.S. Income Tax Return for Regulated Investment Companies

Form 1120-RIC Instructions

The Form 1120-RIC Instructions are as follows:

1. Specify the tax period you are describing in writing. State when you elected to be treated as a regulated investment company for the purposes of taxation and when your company was created. Write down the name of your fund, its mailing address, taxpayer identification number, and the value of assets. Check the appropriate box to confirm whether you are changing the name or address of your corporation, submitting a modified statement, or this is the final document you will file with the IRS.

2. Record the income of your company - include all the dividends, interest, loan payments, and other types of income you have received. Apply deductions whenever necessary and calculate the income subject to tax. Indicate the amount of tax you must pay and ask for a refund if your computations certify your right to acquire it. Sign and date the document verifying the accuracy of your statements - a tax professional you hire to help you out with the instrument is obliged to certify the form as well.

3. Fill out schedules featured on the form - some of them may or may not apply to your corporation. You are supposed to elaborate on the amount of dividends you paid and declared, list the dividends that will not be subject to tax, calculate the tax you are expected to pay in line with the income your company generated, explain how the accounting works in your corporation, provide information about your liabilities and assets both at the start of the tax period covered in the form and at its end, reconcile your books to ensure the details are reported without an error, and clarify how many profits you retained without setting them aside for a specific purpose.