2438 Regulated Investment Company |__OMB No. 1545-0144
Form Undistributed Capital Gains Tax Return
Department of the Treasury | File only if the fund elects to designate undistributed capital gains under section 852(b)(3)(D). 71990
internal Revenue Service > Attach a copy of this form to Form 1120-RIC.
For calendar year 1990 or tax year beginning 1990, ending 119
Name of fund Employer identification number
Pease Number, street, and room or suite no. (If a P.O. box, see Instructions.)

Print | City or town, state, and ZIP code

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

1 Kind of property and description Example, b, Date acquired «. Date sold 4. Gross sales @. Costor other basis, |. Gain (or loss)
(00 shares of Z Company) (mo., day, yt.) (mo., day, yr.) price plus expense of sale (4) less (e))
1
2 Short-term capital gain from installment sales from Form 6252, line22or30 . . . 2... . . L2
3° Unused capital loss carryover (attach computation). ©. 2 6. ee na
4 _Netshort-term capital gain (or loss). (Combine lines lthrough3.) . 2... La
Long-Term Capital Gains and Losses—Assets Held More Than One Year
5 T
6 Entergain from Form4797,line70r9. 2. ww ee ee ee bE
7 Long-term capital gain from installment sales from Form 6252, line220r30. . ........(2
8 Net long-term capital gain. (Combine lines 5through7.) 2. 2 2 6 2 ee ee 8
9a Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss(line4) . | 9a
b Capitalgaindividends . . . 2
10 Undistributed capital gains. (Subtract line 9b from line 9a. ) foe -.... Lo
11 Amount of undistributed capital gains on line 10 designated under section 852(X3XD) . wee Lab
12 Capital gains tax—Enter 34% of line 11. (See instructions.) . . . - 12
‘Under penalties of perury. declare that | have examined this return, Including accompanying schedules and statements, and fo the best of my knowledge and
Please belief, itis 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
Preparer’s Date Check it Preparer’s social security no.
pe are’ signature » self-employed > [_] io
Use Only Jars if cafe oployed) E.LNo. > :
and address ZIP code >

For Paperwork Reduction Act Notice, see instructions on back. Form 2438 (1990)


Form 2438 (1990)

Page 2

General Instructions

(Section references are to the Internal
Revenue Code.)

Paperwork Reduction Act Notice

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 taxpayers are complying with these
laws and to allow us to figure and collect
the right amount of tax.

The time needed to complete and file
this form will vary depending on
individual circumstances. The estimated
average time is:

Recordkeeping . «7 brs., 25 min.
Learning about the

laworthe form . - 35min.
Preparing and sending
theformtoIRS. . . - 45min.

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.

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.

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.

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.

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 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.

Period Covered by Return

File the 1990 return for calendar year
1990 and fiscal years that begin in 1990
and end in 1991. For a fiscal year, fill in
the tax year space at the top of the form.

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.

Late Filing of Return

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. The penalty cannot exceed
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.

Late Payment of Tax

Generally, the penalty for not paying tax
when due is % of 1% of the unpaid
amount for each month or fraction of a
month the tax remains unpaid. The
penalty cannot exceed 25% of the unpaid
amount. The penalty applies to any
unpaid tax shown on a return. It also
applies to any additional tax shown on the
bill not paid within 10 days of the date of
the bill. This penalty is in addition to the
applicable interest charge for late
payments.

Depository Method of Tax
Payment

Deposit fund income tax payments with a
Federal Tax Deposit Coupon (Form
8109). Make these tax deposits with
either a financial institution qualified as a
depositary for Federal taxes or the
Federal Reserve bank or branch servicing
the geographic area where the fund is
located. Records of deposits will be sent
to IRS for crediting to the fund's account.
Darken the boxes on Form 8109 for Form
1120 (type of tax) and 4th quarter (tax
period). See the instructions contained in
the coupon book for more information.

To get more deposit forms, use the
reorder form (Form 8109A) provided in
the coupon book. If you do not have a
Form 81094, please contact your IRS
district office.

Do not submit deposits directly to an
IRS office; otherwise, the fund may be
subject to a penalty.

For more information concerning
deposits, see Pub. 583, Taxpayers
Starting a Business.

Signature

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.

Note: /f 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.

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.

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:

@ Sign it, by hand, in the space provided
for the preparer’s signature. (Signature
stamps or labels are not acceptable.)

@ Give a copy of Form 2438 to the fund
in addition to the copy filed with IRS.

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.

Lines 4 and 10

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 Ill, on the proper lines of Form
1120-RIC.

Line 12

The tax due must be deposited by the
30th day after the end of the fund’s tax
year.

“US. GOVERNMENT PRINTING OFFICE: 1990-26804