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 1994 or tax year beginning , 1994, 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 1 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 26 or 37 2

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

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

5

Long-Term Capital Gains and Losses—Assets Held More Than 1 Year

6

7

Enter gain from Form 4797, line 8 or 10

7

8

Long-term capital gain from installment sales from Form 6252, line 26 or 37

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

11

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

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

12

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

13 Capital gains tax. Multiply line 11 by 35% (.35). (See instructions.) 13

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 (1994)

©

©

©

(d) Gross

sales price

Amount of undistributed capital gains not designated under section 852(b)(3)(D). Subtract line 11

from line 10. (See instructions.) 12

4 4

10

6

Part III Summary of Parts I and II
Form 2438 (1994) Page 2

For more information on deposits, see

the instructions in the coupon booklet

(Form 8109) and Pub. 583, Taxpayers

Starting a Business. General Instructions

Section references are to the Internal

Revenue Code.

Who Must Sign

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 corporate officer

(such as tax officer) authorized to sign.

Receivers, trustees, or assignees must also

sign and date any return filed on behalf of

a 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

the 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.—File the 1994 return for

calendar year 1994 and fiscal years that

begin in 1994 and end in 1995. 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 (discussed in section 851(h)), 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

Dollars

The fund may show amounts on the return

as whole dollars. 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., 39 min.

If a corporate officer completes Form

2438, the Paid Preparer’s space should

remain blank. Anyone who prepares Form

2438 but does not charge the fund should

not sign the return. Generally, anyone who

is paid to prepare Form 2438 must sign it

and fill in the Paid Preparer’s Use Only

area.

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, Attention: Reports

Clearance Officer, PC:FP, Washington, DC

20224; 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 When and Where To

File below.

A fund that does not file its tax return by

the due date, including extensions, may

have to pay 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 a

return that is more than 60 days late is the

smaller of the tax due or $100. The penalty

will not be imposed if the fund can show

that the failure to file on time was due to

reasonable cause. Funds that file late must

attach a statement explaining the

reasonable cause.

Late Payment of Tax

● Sign the return by hand, in the space

provided for the preparer’s signature

(signature stamps and labels are not

acceptable).

Purpose of Form

Form 2438 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. The term “fund” as

used in these instructions 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 fund has a P.O.

box, show the box number instead of the

street address.

Depositary Method of Tax

Payment

Line 4

Deposit the fund income tax payments

with Form 8109, Federal Tax Deposit

Coupon. Do not send deposits directly to

an IRS office. Mail or deliver the completed

Form 8109 with the payment to a qualified

depositary for Federal taxes or to the

Federal Reserve bank (FRB) servicing the

fund’s geographic area. Make checks or

money orders payable to that depositary or

FRB.

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

gains and losses.

If you have any net short-term capital gain

on line 4, enter it on line 1 of Schedule D

(Form 1120). Report this amount as “Net

short-term capital gain from line 4, Form

2438.” For information on a short-term

capital loss, see the Schedule D (Form When and Where To File 1120) instructions.

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 13

Attach a copy of Form 2438 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

Deposit the tax due by the 30th day after

the end of the fund’s tax year.

A fund that does not pay the tax when due

may have to pay a penalty of 1⁄2 of 1% of

the unpaid tax for each month or part of a

month the tax is not paid, up to a

maximum of 25% of the unpaid tax. This

penalty may also apply to any additional

A penalty may be imposed if the

deposits are mailed or delivered to an IRS

office rather than to an authorized

depositary or FRB.

● Give a copy of Form 2438 to the

taxpayer.

The paid preparer must complete the

required preparer information and:

Enter the amount from line 12 on line 6 of

Schedule D (Form 1120). Report this

amount as “Undistributed capital gains not

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

Form 2438.”

Line 12

To help ensure proper crediting, write

the fund’s employer identification number,

the tax period to which the deposit applies

and “Form 1120,” on the fund’s check or

money order. Be sure to darken the “1120”

box on the coupon. Records of these

deposits will be sent to the IRS.

Printed on recycled paper

undistributed capital gains designated on

line 11 of Form 2438. Copies B and C of

Form 2439 must be provided to the

shareholder by the 60th day after the end

of the fund’s tax year.

tax not paid within 10 days of the date of

the notice and demand for payment. The

penalty will not be imposed if the fund can

show that the failure to pay on time was

due to reasonable cause.