Rounding Off to Whole Dollars

The RIC may enter decimal points and cents when completing its return. However, the RIC should round off cents to whole dollars on its return, forms, and schedules to make completing its return easier. The RIC must either round off all amounts on its return to whole dollars, or use cents for all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $8.40 rounds to $8 and $8.50 rounds to $9.

6 Instructions for Form 1120-RIC (2025)

section 4982 or makes an election under section 4982(e) (4), it must file this return for the calendar year.

Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. Use Form 8621 if the RIC is a direct or indirect shareholder of a passive foreign investment company, as defined in section 1297(a).

Form 8927, Determination Under Section 860(e)(4) by a Qualified Investment Entity. Use Form 8927 to make a determination under section 860(e)(4) for purposes of paying deficiency dividends.

Form 8975, Country-by-Country Report. Certain U.S. persons that are the ultimate parent entity of a U.S. multinational enterprise group with annual revenue for the preceding reporting period of $850 million or more are required to file Form 8975. Form 8975 and Schedule A (Form 8975) must be filed with the income tax return of the ultimate parent entity of a U.S. multinational enterprise group for the tax year in or within which the reporting period covered by Form 8975 ends. For more information, see Form 8975, Schedule A (Form 8975) and the Instructions for Form 8975 and Schedule A (Form 8975).

Form 8990, Limitation on Business Interest Expense Under Section 163(j). Use Form 8990 to calculate the amount of business interest expense the RIC can deduct and the amount to carry forward to the next year.

Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI). Use Form 8992 to figure the domestic corporation’s GILTI under section 951A and attach it to Form 1120-RIC.

Form 8996, Qualified Opportunity Fund. Use Form 8996 to certify that the RIC is organized as a qualified opportunity fund (QOF) to invest in qualified opportunity zone property. In addition, a QOF RIC files Form 8996 annually to report that it meets the 90% investment standard of section 1400Z-2 or to compute the penalty if it fails to meet the investment standard.

Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. Use Form 8997 to report investments in one or more QOFs. Report the amount of deferred gains invested in QOFs at the beginning of the current tax year, transactions related to investments in QOFs for the current tax year, which include capital gains deferred and invested in QOFs and dispositions of investments in QOFs, and the amount of deferred gains invested in QOFs at the end of the current tax year.