Regulated Investment Company OMB No. 1545-0144

Undistributed Capital Gains Tax Return Form 2438

File only if the fund elects to designate undistributed capital gains under section 852(b)(3)(D). Department of the Treasury

Internal Revenue Service © Attach a copy of this form to Form 1120-RIC.

For calendar year 1991 or tax year beginning , 1991, ending , 19

Name of fund Employer identification number

Please

Type

or

Print

Number, street, and room or suite no. (If a P.O. box, see instructions.)

City or town, state, and ZIP code

Short-Term Capital Gains and Losses—Assets Held One Year or Less

f. Gain or (loss)

((d) less (e))

e. Cost or other

basis, plus

expense of sale

c. Date sold

(mo., day, yr.)

b. Date acquired

(mo., day, yr.)

a. Kind of property and description (Example,

100 shares of Z Company)

1

2 Short-term capital gain from installment sales from Form 6252, line 22 or 30 2

3 ( ) 3 Unused capital loss carryover (attach computation)

4 Net short-term capital gain or (loss). (Combine lines 1 through 3.) 4

Long-Term Capital Gains and Losses—Assets Held More Than One Year

5

6 Enter gain from Form 4797, line 7 or 9 6

7 Long-term capital gain from installment sales from Form 6252, line 22 or 30 7

8 Net long-term capital gain. (Combine lines 5 through 7.) 8

9a

Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss

(line 4)

9a

b Capital gain dividends 9b

10 Undistributed capital gains. (Subtract line 9b from line 9a.) 10

11 Amount of undistributed capital gains on line 10 designated under section 852(b)(3)(D) 11

12 Capital gains tax. Enter 34% of line 11. (See instructions.) 12

Part II

Part I

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge Please 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.

Sign

Here © Signature of officer Date Title

Date Preparer’s social security number Preparer’s

signature

Check if selfemployed ©

Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed)

and address

E.I. No. ©

ZIP code ©

For Paperwork Reduction Act Notice, see instructions on back. Cat. No. 11856I Form 2438 (1991)

©

©

©

d. Gross

sales price
Form 2438 (1991) Page 2

For more information concerning

deposits, see Pub. 583, Taxpayers

Starting a Business.

Long-Term Capital Gains, for each

shareholder for whom the fund paid tax

on the undistributed capital gains

designated on line 11 of Form 2438.

Copies B and C of Form 2439 must be

furnished to the shareholder by the 60th

day after the end of the fund’s tax year.

General Instructions

(Section references are to the Internal

Revenue Code.)

Signature

Paperwork Reduction Act

Notice

Form 2438 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. A receiver,

trustee, or assignee must sign and date

any return that he or she is required to

file on behalf of the fund.

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 this 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.

Period Covered by Return

File the 1991 return for calendar year

1991 and fiscal years that begin in 1991

and end in 1992. For a fiscal year, fill in

the tax year space at the top of the

form.

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is:

Note: If this return is being filed for a

series fund (as defined in section

851(h)(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-Dollar Amounts

Money items may be shown on the

return as whole-dollar amounts. 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.

Recordkeeping 7 hr., 25 min.

If a corporate officer filled in Form

2438, the Paid Preparer’s space under

‘‘signature of officer’’ should remain

blank. If someone fills out Form 2438

and does not charge the fund, that

person should not sign the return.

Certain others who prepare Form 2438

should not sign. For example, a regular,

full-time employee of the fund such as a

clerk, secretary, etc., should not sign.

Learning about the

law or the form 35 min.

Preparing and sending

the form to the IRS 45 min. Late Filing of Return If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form more

simple, we would be happy to hear from

you. You can write to both the Internal

Revenue Service, Washington, DC

20224, Attention: IRS Reports Clearance

Officer, T:FP; and the Office of

Management and Budget, Paperwork

Reduction Project (1545-0144),

Washington, DC 20503. DO NOT send

the tax form to either of these offices.

Instead, see the instructions below for

information on where to file.

A fund that fails to file Form 2438 when

due (including extensions) may be

subject to 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 failure to file Form 2438

within 60 days of the due date (including

extensions) is the lesser of the

underpayment of tax or $100. This

penalty will not be imposed if the fund

can show that not filing timely was due

to reasonable cause and not willful

neglect.

Late Payment of Tax

● Sign it, by hand, in the space provided

for the preparer’s signature. (Signature

stamps or labels are not acceptable.)

Purpose of Form

Form 2438, Regulated Investment

Company Undistributed Capital Gains

Tax Return, is used by regulated

investment companies (RICs) to figure

income tax on undistributed capital

gains designated under section

852(b)(3)(D). If a RIC has more than one

fund, each fund must file a separate

Form 2438. As used in these

instructions, the term “fund” refers to

the definition in section 851(h) and to

any RIC that does not have more than

one portfolio of assets.

Specific Instructions

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 corporation has a P.O. box, show the

P.O. box number instead of the street

address.

Depositary Method of Tax

Payment

Lines 4 and 10

Deposit fund income tax payments with

a Federal Tax Deposit Coupon (Form

8109). Do not submit deposits directly to

an IRS office. Mail or deliver the

completed Federal Tax Deposit Coupon

(Form 8109) and the payment to a

qualified depositary for Federal taxes or

to the Federal Reserve bank (FRB)

servicing your geographic area. Make

checks or money orders payable to that

depositary or FRB. To help ensure

proper crediting to your account, write

your employer identification number,

“Form 1120,” and the tax period to

which the deposit applies on your check

or money order. Be sure to darken the

“1120” box on the coupon. Records of

deposits will be sent to IRS for crediting

to the fund’s account.

Undistributed capital gains designated

under section 852(b)(3)(D) are taxed at a

34% rate and are treated as

constructively distributed to

shareholders at year end. See the

instructions for Schedule D (Form

1120), Capital Gains and Losses, for a

definition of capital assets and other

details on figuring and reporting capital

gain transactions.

Report on line 1, Schedule D (Form

1120) any net short-term capital gain

shown on line 4 as “Net short-term

capital gain from line 4, Form 2438.”

Report on line 5, Schedule D (Form

1120) the excess of the amount on line

10 over the amount on line 11 as

“Undistributed net capital gain not

designated under section 852(b)(3)(D)

from Form 2438.” Attach Schedule D

(Form 1120) to the Form 1120-RIC you

file and report the gains from Schedule

D, Part III, on the proper lines of Form

1120-RIC.

When and Where To File

File the original of this form by the 30th

day after the end of the fund’s tax year

with the Internal Revenue service center

where the fund will file its Form 1120-

RIC, U.S. Income Tax Return for

Regulated Investment Companies.

Line 12 Attach a copy of this form to the

fund’s Form 1120-RIC. Also attach to

Form 1120-RIC, Copy A of Form 2439,

Notice to Shareholder of Undistributed

Deposit the tax due by the 30th day

after the end of the fund’s tax year.

Generally, anyone who is paid to

prepare Form 2438 must sign the return

and fill in the other blanks in the Paid

Preparer’s Use Only area of the return.

The preparer required to sign the return

MUST complete the required preparer

information and: The penalty for late payment of taxes is

usually 1⁄2 of 1% of the unpaid tax for

each month or part of a month the tax is

unpaid. The penalty cannot exceed 25%

of the amount due. This penalty may

also apply to any additional tax not paid

within 10 days of the date of the notice

and demand for payment. This penalty

will not be imposed if the fund can show

that not paying timely was due to

reasonable cause and not willful neglect.

A penalty may be imposed for failure

to deposit the required amount of tax.

See section 6656. This penalty may also

apply if you mail or deliver deposits to

IRS offices rather than to authorized

depositaries or FRBs.

● Give a copy of Form 2438 to the fund

in addition to the copy filed with IRS.