Instructions for Form 8612

Instructions for Form 8612

(Rev. December 2025)

Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts

General Instructions

(including extensions) to the date of payment. The interest

charge is figured at a rate determined under section 6621.

Future Developments

Late payment of tax. A REIT that doesn’t pay the tax when due

may be charged a penalty for the failure to pay tax. The amount

of the penalty is ½ of 1% of the unpaid tax for each month or part

of the month the tax is not paid, up to a maximum of 25% of the

unpaid tax. This penalty won’t be imposed if the REIT can show

that the failure to pay on time was due to reasonable cause.

For the latest information about developments related to Form

8612 and its instructions, such as legislation enacted after they

were published, go to IRS.gov/Form8612.

What’s New

Electronic payments. If the REIT has access to U.S. banking

services or electronic payment systems, it should use direct

deposit for any refunds and pay electronically for any payments,

whenever possible.

Direct deposit. Direct deposit fields have been added to this

form on lines 13b, 13c, and 13d. If there is an overpayment on

line 13a, enter the REIT’s direct deposit information on lines 13b,

13c, and 13d. See Line 13a. Overpayment, later.

Making a payment. If there is a balance due on line 12, go to

IRS.gov/Payments for information on how to make a payment.

See the instructions for Line 12. Tax due, later, for more details.

Purpose of Form

Form 8612 is used by real estate investment trusts (REITs) to

figure and pay the excise tax on undistributed income under

section 4981. The excise tax is 4% of the excess, if any, of the

required distribution over the distributed amount.

Who Must File

Any REIT that is liable for the excise tax on undistributed income

under section 4981 must file Form 8612.

When and Where To File

File Form 8612 by March 15 following the calendar year to which

the excise tax liability applies. File it with the Department of the

Treasury, Internal Revenue Service Center, Cincinnati, OH

45999.

If more time is needed, use Form 7004, Application for

Automatic Extension of Time To File Certain Business Income

Tax, Information, and Other Returns. However, Form 7004 does

not extend the time for payment of tax.

Who Must Sign

Form 8612 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.

Receivers, trustees, or assignees must sign and date any return

that they are required to file on behalf of the REIT.

Rounding Off to Whole Dollars

The REIT 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 to 99 cents to the next dollar.

Interest and Penalties

Interest. Interest is charged on taxes paid late even if an

extension of time to file is granted. Interest is also charged on

penalties imposed for failure to file, negligence, fraud, and

substantial understatements of tax from the due date

Jan 22, 2026

Late filing of return. A REIT that doesn’t file its tax return by

the due date, including extensions, may be penalized 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 penalty won’t be

imposed if the REIT can show that the failure to file on time was

due to reasonable cause. REITs that file late should send an

explanation of reasonable cause after receiving a notice from the

IRS. Do not attach an explanation when the return is filed.

Other penalties. Other penalties can be imposed for

negligence, substantial understatements of tax, reportable

transaction understatements, and fraud. See sections 6662,

6662A, and 6663.

Amended Return

To amend a previously filed Form 8612, file a corrected Form

8612 and write “Amended” at the top of the form.

Specific Instructions

Period covered. Fill in the space at the top of the form to show

the calendar year for which this return is filed. The REIT is

required to figure its undistributed income on a calendar year

basis even though it may file its income tax return and keep its

books and records on a fiscal year basis.

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 REIT has a P.O. box, show the box

number instead.

If the REIT receives its mail in care of a third party (such as an

accountant or an attorney), enter on the street address line “C/O”

followed by the third party’s name and street address or P.O. box.

Line 1a. Refigure real estate investment trust taxable income,

treating the calendar year as the REIT’s tax year. When

refiguring this amount, exclude the deduction for dividends paid

and any gain or loss from the sale or exchange of a capital asset.

Include adjustments that result in the distribution of deficiency

dividends (defined in section 860(f)) for the year in which the

dividends are paid. Also, include the REIT’s share of partnership

ordinary income (loss) and deductions when they are taken into

account by the partnership. For details and exceptions, see Rev.

Rul. 94-40, 1994-1 C.B. 274; and Rev. Proc. 94-71, 1994-2 C.B.

810.

Line 2a. To determine capital gain net income, figure the

excess, if any, of the gains over the losses from the sale or

exchange of capital assets, determined by treating the calendar

year as the REIT’s tax year. Reduce the result by the REIT’s net

ordinary loss (as defined in section 4981(e)(2)(C)), if any, for the

calendar year. Include adjustments that result in the distribution

of deficiency dividends (defined in section 860(f)) and that affect

capital gain net income for the year in which the dividends are

Instructions for Form 8612 (Rev. 12-2025) Catalog Number 95866M

Department of the Treasury Internal Revenue Service www.irs.gov

paid. Also, include the REIT’s share of partnership items that

affect capital gain net income when they are taken into account

by the partnership. For details and exceptions, see Rev. Rul.

94-40 and Rev. Proc. 94-71.

Line 3a. Add lines 1a and 2a using amounts for the previous

calendar year, increased by the prior year’s shortfall, if any, as

defined in section 4981(b)(2).

Line 5. Enter the deduction for dividends paid (as defined in

section 561) during the current calendar year figured without

regard to the dividends paid, if any, attributable to net income

from foreclosure property. Include deficiency dividends (defined

in section 860(f)) paid during the calendar year. Also, include

dividends declared in October, November, or December, but

only if they were actually paid by the REIT during January of the

following calendar year. See section 857(b)(9). Do not include on

this line any other dividends paid after the close of the calendar

year.

Line 6. Line 6 is the total of the following amounts figured for the

tax year of the REIT ending in or with the calendar year for which

this excise tax return is filed.

1. Real estate investment trust taxable income from Form

1120-REIT, Part I, line 23.

2. Undistributed capital gains designated under section

857(b)(3)(C) from Form 2438, line 11.

Line 12. Tax due. All payments made to the federal government

are to be processed electronically. Go to IRS.gov/Payments for

more information on using any of the payment options below.

Electronic Federal Tax Payment System (EFTPS). The

REIT must use electronic funds transfer (EFT) to make all federal

tax deposits (such as deposits of employment tax, excise tax,

and corporate income tax). An EFT can be made using the

Electronic Federal Tax Payment System (EFTPS). However, if

the REIT does not want to use EFTPS, it can arrange for its tax

professional, financial institution, payroll service, or other trusted

third party to make deposits on its behalf. Also, it may arrange for

its financial institution to submit a same-day payment (discussed

below) on its behalf. EFTPS is a free service provided by the

Department of the Treasury. Services provided by your tax

professional, financial institution, payroll service, or other third

party may have a fee.

To get more information about EFTPS, or to enroll in EFTPS,

visit the EFTPS website at EFTPS.gov or call 800-555-4477. To

contact EFTPS using Telecommunications Relay Services (TRS)

for people who are deaf, hard of hearing, or have a speech

disability, dial 711 and provide the TRS assistant the

800-555-4477 number above or 800-733-4829.

Depositing on time. EFTPS accepts same day payments of

$1 million or less if the payment is submitted before 3:00 p.m.

Eastern time on a business day. If the REIT’s payment is more

than $1 million, the REIT must submit the deposit by 8:00 p.m.

Eastern time the day before the date the deposit is due. If the

REIT uses a third party to make deposits on its behalf, they may

have different cutoff times.

Same-day wire payment option. If the REIT fails to submit a

deposit transaction on EFTPS, it can still make its deposit on

time by using the Federal Tax Collection Service (FCTS). To use

the same-day wire payment method, the REIT will need to make

arrangements with its financial institution ahead of time

regarding availability, deadlines, and cost. Financial institutions

may charge a fee for payments made this way. To learn more

about the information the REIT will need to provide to its financial

institution to make a same-day wire payment, go to IRS.gov/

SameDayWire.

Line 13a. Overpayment. If the REIT has access to U.S.

banking services, it should use direct deposit for any refunds,

whenever possible. The benefits of a direct deposit include a

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faster refund, the added security of a paperless payment, and

the savings of the tax dollars associated with the reduced

processing costs.

If the REIT wants its refund directly deposited into its

checking or savings account at any U.S. bank or other financial

institution, complete lines 13b through 13d. See the instructions

for lines 13b, 13c, and 13d, later.

The REIT is not eligible to request a direct deposit if:

• The receiving financial institution is a foreign bank or a foreign

branch of a U.S. bank, or

• The REIT has applied for an EIN but is filing its tax return

before receiving one.

Line 13b. Routing number. The routing number must be nine

digits. The first two digits must be between 01 and 12 or 21

through 32. Ask the REIT’s financial institution for the correct

routing number to enter on line 13b if:

• The routing number on a deposit slip is different from the

routing number on the REIT’s checks,

• The deposit is to a savings account that does not allow the

REIT to write a check, or

• The REIT’s checks state that they are payable through a

financial institution different from the one at which the REIT has

its checking account.

Line 13c. Type of account. Check the appropriate box for the

type of account. Don’t check more than one box. The REIT must

check the correct box to ensure the deposit is accepted.

Line 13d. Account number. The account number can be up to

17 characters (both numbers and letters). Include hyphens but

omit spaces and special symbols. Enter the number from left to

right and leave any unused boxes blank. Don’t include the check

number.

If the direct deposit to the REIT’s account is different from the

amount it expected, the REIT will receive an explanation in the

mail about 2 weeks after the refund is deposited.

Conditions resulting in a refund by check. If the IRS is

unable to process the request for a direct deposit, a refund by

check will be generated instead. Reasons for not processing a

request include:

• The name of the REIT on the tax return does not match the

name on the account.

• The financial institution rejects the direct deposit because of

an incorrect routing or account number.

• The REIT fails to indicate the type of account the deposit is to

be made to (that is, checking or savings).

Note: The IRS isn’t responsible for a lost refund if the REIT

enters the wrong account information. Check with the REIT’s

financial institution to get the correct routing and account

numbers and to make sure the direct deposit will be accepted.

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 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.

You are not required to provide the information requested on

a form that is subject to the Paperwork Reduction Act unless the

form displays a valid OMB control number. Books or records

relating to a form or its instructions must be retained as long as

their contents may become material in the administration of any

Internal Revenue law. Generally, tax returns and return

information are confidential, as required by section 6103.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated average

time is:

Instructions for Form 8612 (Rev. 12-2025)

Recordkeeping . . . . . . . . . . . . . . . . .

Learning about the law or the form . .

Preparing and sending the form to the

IRS . . . . . . . . . . . . . . . . . . . . . . . . . .

6 hr., 13 min.

1 hr., 40 min.

1 hr., 52 min.

be happy to hear from you. You can send us comments from

IRS.gov/FormComments. Or, you can write to the Internal

Revenue Service, Tax Forms and Publications, 1111

Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not

send the form to this address. Instead, see When and Where To

File, earlier.

If you have comments concerning the accuracy of these time

estimates or suggestions for making this form simpler, we would

Instructions for Form 8612 (Rev. 12-2025)

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