What IRS Form 1120-REIT (2017) Is For

Form 1120-REIT is the federal income tax return used by Real Estate Investment Trusts (REITs) to report income, gains, losses, deductions, credits, and tax liability. Any corporation, trust, or association that elected REIT status for the 2017 tax year—or in prior years without terminating or revoking the election—was required to file this form (IRS Instructions for Form 1120-REIT (2017)).

When You’d Use Form 1120-REIT for 2017 (Late or Amended Filing)

You would file a late 2017 Form 1120-REIT if you never filed by the April 15, 2018 deadline (for calendar-year REITs) and later received IRS notices about unfiled returns. Late filings often occur during compliance reviews or when notices show tax owed. Amended returns may be required to fix income misstatements, dividend deduction errors, or qualification test miscalculations. Refund claims are generally barred after April 15, 2021.

Key Rules Specific to 2017

• The Tax Cuts and Jobs Act (TCJA) required fiscal-year REITs straddling 2017–2018 to blend old graduated rates with the new 21% flat corporate rate.
  
  
• The corporate alternative minimum tax (AMT) was repealed for years beginning after December 31, 2017 but still applied to fiscal-year REITs covering 2017.
  
  
• The minimum late-filing penalty increased to $210 or 100% of unpaid tax, whichever was less, for returns more than 60 days late.
  
  
• REITs continued to meet qualification requirements including the 90% distribution rule, 100-shareholder rule, and asset/income tests.
  
  

Step-by-Step (High Level)

• Gather tax transcripts: Request IRS account transcripts using Form 4506-T or IRS.gov to confirm prior filings, notices, or payments for 2017
• Complete the official 2017 form: Use only the 2017 version of Form 1120-REIT and instructions
• Attach required schedules: Include Schedule A (Dividends Paid Deduction), Schedule J (Tax Computation), Schedule K (Other Information), Schedule L (Balance Sheets), and others like Schedule D for capital gains
• File with the IRS: Mail to the proper service center based on principal office location and asset size—older returns often must be paper filed
• Retain copies: Keep complete copies of the filed return, schedules, and all supporting documentation for at least three years

Common Mistakes and How to Avoid Them

• Using incorrect year forms, which leads to IRS rejection or misapplication of tax rules
  
  
• Miscalculating the dividends paid deduction, which must equal at least 90% of taxable income before the deduction itself
  
  
• Failing REIT qualification tests such as the 100-shareholder requirement, 90% distribution test, or 75% real estate income test
  
  
• Forgetting required schedules or attaching them out of sequence, delaying IRS processing
  
  
• Filing with the wrong service center, resulting in late processing and possible penalties
  
  
• Ignoring reasonable cause documentation for penalty relief when filing very late
  
  

What Happens After You File

The IRS typically takes several weeks to process REIT returns, though older late-filed returns may require months of manual review. You’ll receive IRS notices confirming receipt, showing balances due, or requesting clarifications. Penalties and interest accrue from the original due date until payment is made. Payment plans are available using Form 9465 or IRS online options, and taxpayers maintain appeal rights for disputes.

FAQs

Can I still file my 2017 REIT return even though it’s years late?

Yes. While refund claims are barred due to the statute of limitations, there is no deadline preventing late filing. The IRS strongly encourages filing even very old returns to establish compliance, reduce the risk of enforcement actions, and stop the compounding of failure-to-file penalties that apply until the return is submitted.

What penalties will I face for filing my 2017 return late?

The penalty for late filing is 5% of unpaid tax per month up to 25% maximum. For returns filed more than 60 days late, the penalty is at least $210 or 100% of unpaid tax, whichever is smaller. A separate failure-to-pay penalty of 0.5% per month applies, and interest accrues on both amounts.

How do I get transcripts of my 2017 REIT return if I’m unsure what was filed?

You can request a business tax transcript using Form 4506-T, by calling 800-908-9946, or through your IRS business online account. Specify Form 1120-REIT and the 2017 tax year. Transcripts will show whether a return was filed, any reported balances, and payments applied, helping you avoid duplicate or incorrect submissions.

Is there still time to claim a refund on an amended 2017 return?

Generally no. The three-year statute of limitations for refunds expired April 15, 2021. After this date, you cannot recover refunds for 2017, even if you overpaid. However, amended returns can still be filed to correct compliance issues, report additional tax owed, or demonstrate qualification for REIT status.

Do I need to amend my state REIT returns if I file an amended federal return?

Yes, in most cases. States with corporate income tax systems usually require filing amended state returns when a federal return is amended. Requirements and deadlines vary, so review your state’s tax agency rules to ensure conformity and prevent penalties for underreporting at the state level.

Can I file my 2017 Form 1120-REIT electronically?

Electronic filing is generally unavailable for older returns like 2017. Most filers must submit paper forms using the correct 2017 version mailed to the IRS service center designated for their location and total assets. Always verify mailing addresses in the 2017 instructions to avoid processing delays.

What if I discover I didn’t qualify as a REIT in 2017?

Failure to meet REIT qualification requirements can have serious consequences, including taxation as a regular corporation and imposition of penalty taxes under IRC Section 857. If a REIT fails income, asset, or distribution tests, it may still pay penalty taxes to retain REIT status, but serious failures may disqualify the election entirely.

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