What IRS Form 1120-REIT (2015) Is For

IRS Form 1120-REIT (2015) is the U.S. Income Tax Return for Real Estate Investment Trusts for the 2015 tax year. A corporation, trust, or association that elects to be treated as a REIT must file this form to report income, deductions, credits, penalties, and to calculate tax liability.

When You’d Use Form 1120-REIT for 2015 (Late or Amended Filing)

You would file Form 1120-REIT (2015) late if you missed the March 15, 2016 deadline and received IRS notices demanding a return. Amended returns are filed to correct errors such as misclassified income or dividends paid deduction miscalculations. Refund claims had to be filed by March 15, 2019, but filing late still helps establish compliance.

Key Rules Specific to 2015

• PATH Act restrictions applied to certain REIT spinoffs after December 6, 2015
  
  
• Built-in gains tax recognition period shortened to 5 years permanently
  
  
• REITs had to meet qualification tests: 75% income from real estate, 95% from passive sources, 90% of taxable income distributed
  
  
• Electronic payment requirements fully in effect through EFTPS for all deposits
  
  
• REIT election carried forward unless terminated or revoked
  
  

Step-by-Step (High Level)

• Gather transcripts and financial records, including balance sheets and dividend distributions
• Use the 2015 version of Form 1120-REIT and instructions from IRS.gov
• Attach required schedules: Schedule D, Schedule K, Schedule L, and others as needed
• File with the correct IRS service center based on business location
• Keep filed copies, supporting documentation, and proof of submission for at least three years

Common Mistakes and How to Avoid Them

• Miscalculating REIT qualification tests such as the 75% and 95% thresholds
  
  
• Errors in the dividends paid deduction—must be at least 90% of taxable income
  
  
• Missing electronic payment requirements for estimated tax deposits
  
  
• Failing to disclose taxable REIT subsidiaries on Form 8875
  
  
• Improperly assembling schedules, which delays processing
  
  
• Claiming reasonable cause incorrectly—wait for IRS penalty notices before submitting explanations
  
  

What Happens After You File

Processing late-filed 2015 returns may take 16–20 weeks. The IRS will assess failure-to-file penalties (5% per month, up to 25%) and failure-to-pay penalties (0.5% per month) plus interest from March 15, 2016. Notices confirm receipt and assessments. If you owe tax, installment agreements using Form 9465 are available. Appeals can be filed with the IRS Appeals Office.

FAQs

What penalties apply to my late-filed 2015 Form 1120-REIT?

Penalties include 5% of unpaid tax per month for late filing, capped at 25%. If the return was more than 60 days late, the minimum penalty is $135 or the tax due, whichever is smaller. Interest also accrues on both taxes and penalties beginning from March 15, 2016 until full payment is made.

Can I still get a refund from amending my 2015 REIT return?

No. The three-year refund statute under Internal Revenue Code Section 6511 expired on March 15, 2019. While refunds are unavailable, filing remains important to establish compliance, correct tax records, and stop additional penalties or interest from accruing on any unpaid 2015 tax liabilities associated with your REIT return.

Do I need to obtain tax transcripts before filing my late 2015 return?

Yes. Obtaining your 2015 tax account transcript from IRS.gov or through Form 4506-T ensures you know what information the IRS has on file. This helps identify previously reported income, payments, or filings, reducing the risk of mismatched data and delays when you prepare and submit your late or amended REIT return.

Should I also amend my state REIT returns for 2015?

Most states require amended returns if your federal return changes taxable income. If you file a federal amended Form 1120-REIT, check with your state’s tax authority for specific filing requirements and deadlines. State statutes of limitations often differ from federal rules, so acting quickly ensures compliance and helps avoid additional state penalties.

What if I discover additional errors after filing my late 2015 return?

You may file another amended return using Form 1120X. Ensure all corrections are clearly documented, and include updated schedules and supporting statements. Consider whether the corrections are significant enough to justify amendment, as multiple amended returns can draw IRS attention. Material errors, however, should always be corrected to maintain compliance.

How do I prove reasonable cause for late filing to avoid penalties?

Reasonable cause may include natural disasters, serious illness, or events outside your control. Keep documentation of these events, such as medical records or official notices. The IRS considers penalty abatement requests only after the return is filed. Do not attach explanations with the return unless specifically requested—wait for a penalty notice.

Can I electronically file my 2015 Form 1120-REIT now?

Electronic filing options for prior-year REIT returns are limited. In most cases, the IRS requires very late returns to be filed by mail. Contact the IRS or your tax software provider to confirm if e-filing is still supported. Paper filing with proper attachments remains the safest option for 2015 returns.

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