What IRS Form 1120-REIT (2022) Is For
IRS Form 1120-REIT (2022) is the income tax return used by real estate investment trusts to report income, deductions, credits, and overall tax liability for the year. A real estate investment trust files this form when it has elected REIT status and continues to meet federal tax obligations. The form helps the entity report income from rents, interest, capital gains, and ordinary dividends paid to shareholders.
A REIT must also show that it met the rule requiring it to distribute at least 90% of its taxable income each year. Form 1120-REIT supports this review and ensures the entity continues to qualify for REIT treatment under federal tax laws. Find the IRS forms, schedules, and instructions that help your Form 1120-REIT filing or amendment.
When You’d Use IRS Form 1120-REIT for 2022
A real estate investment trust files IRS Form 1120-REIT 2022 when it needs to submit its income tax return for the 2022 tax year and has not met the original deadline. You may also use the form when updating information already sent to the Internal Revenue Service.
You’d file this form when:
- The REIT missed the April 17, 2023, due date: You may need this form if the entity discovers unfiled returns or incomplete records and must file late.
- You need to submit an amended return: This form is required when the REIT must correct income, deductions, credits, or other reporting details.
- You receive an IRS notice: The form may be needed if the notice addresses missing filings, balance discrepancies, or questions about taxable income.
Refund timing
A REIT can still claim a refund for 2022 if the filing reaches the IRS by April 17, 2026. This three-year window applies even when the entity files late or amends its return.
Fiscal-year REITs
Entities with a fiscal year ending June 30 follow separate filing dates. These REITs must use the schedule that applies to their year-end, even when filing a late or amended return. Submitting Form 1120-REIT on time or correcting it promptly helps safeguard the REIT's status and ensures the entity remains in compliance with its federal tax obligations.
Learn how the IRS reviews late or amended corporate returns and what happens when a REIT has unfiled tax years.
Key Rules or Details for the 2022 Tax Year
Several rules apply to IRS Form 1120-REIT 2022, and each one affects how a real estate investment trust prepares its income tax return for the year. These details enable the entity to calculate its tax liability, fulfill federal tax obligations, and maintain its REIT status.
Essential points for 2022 include:
- Higher late-filing penalty: The minimum penalty increased to $450 when the return is more than 60 days past the due date.
- Payroll credit reporting: Some COVID-related payroll credits tied to earlier periods could still appear in 2022. REITs needed to follow the instructions closely to avoid duplicate reporting.
- Income and asset test compliance: A REIT must show that it met its annual tests based on taxable income, assets, and sources of revenue. Access IRS instructions, corporate tax forms, and schedules you may need when preparing or amending Form 1120-REIT.
- Schedules and disclosures: Items such as Schedule J and Schedule M-3 may apply, depending on the entity’s size and accounts. These schedules help the IRS review deductions, expenses, credits, and related details.
Step-by-Step (High Level)
Filing IRS Form 1120-REIT 2022 is easier to manage if you follow a straightforward process. These steps apply whether you e-file or mail a paper PDF to the Internal Revenue Service.
1. Review IRS records
Begin by requesting accounts or transcripts from IRS.gov or by contacting the IRS directly. This helps you match prior forms, payments, and any notices on file before you complete the tax return for real estate investment trusts.
2. Complete the form and schedules
Fill out Form 1120 REIT and any applicable schedules, such as Schedule D, Schedule K, Schedule J, or Schedule M-3. Make sure income, deductions, credits, taxable income, and penalties are accurate for the tax year.
3. Verify signatures and attachments
Ensure that the completed form is signed by an individual authorized to act on behalf of the entity. Attach all required schedules and supporting details, including statements about ordinary dividends, expenses, and credits.
4. File electronically or by mail
You can e-file through approved providers or mail the return to the appropriate IRS address listed in the instructions. Ensure you retain proof of filing and a complete copy of the return in your records.
5. Arrange payment or refund
If you owe money, pay tax by the due date using electronic payment options, bank accounts, or other banking services. If you are due a refund, you can choose direct deposit to a checking or savings account, which typically accelerates the refund process and provides faster access to funds.
Common Mistakes and How to Avoid Them
- Missing the 90% distribution calculation: Review shareholder records, ordinary dividends, and year-end accounts before filing.
- Incorrect treatment of income test failures: Use the correct part of the form and attach any required statements.
- Leaving out Schedule J disclosures: Confirm that all required lines, amounts, and explanations are complete.
- Ignoring Schedule M-3 rules for large entities: Check asset thresholds and attach Schedule M-3 when required.
- Incorrect EIN or missing attachments: Verify the EIN, sign the completed form, and assemble all schedules before you file.
Understand options for lowering or removing penalties when a REIT files its 2022 return late or corrects filing errors.
What Happens After You File
The Internal Revenue Service reviews your IRS Form 1120-REIT 2022 and issues a notice if it needs more details or corrections. Electronic filings typically move faster, while mailed returns tend to take longer. If you owe a balance, interest and penalties continue until the amount is paid. If you expect a refund, you can choose direct deposit for quicker access to the funds.
Frequently Asked Questions (FAQs)
What if I file my 2022 Form 1120-REIT late without receiving an IRS notice?
You can still file. Submitting the income tax return as soon as possible helps limit penalties and supports continued REIT status. The IRS does not require a notice before you send a late return.
What penalties apply if my 2022 Form 1120-REIT is more than 60 days late?
The IRS may charge a $450 minimum penalty or a percentage of your unpaid tax liability, whichever is smaller. Interest continues until the balance is paid in full.
How can I get IRS transcripts before preparing a late return?
You can request transcripts through IRS.gov, by phone, or by using Form 4506-T. These records help confirm prior forms, payments, and accounts linked to the REIT.
Is it still possible to claim a refund for the 2022 tax year?
Yes, a REIT may still claim a refund if the IRS receives the return by April 17, 2026. After that date, any refund expires under federal tax laws.
Should I amend my state return after amending my federal 1120-REIT?
Many states require updated filings when you submit an amended return to the IRS. State deadlines can vary, so review the rules for your state or contact its tax agency to confirm the correct process.
