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If you need more time to file a REMIC

Generally, an accrual basis taxpayer

to be treated as a small REMIC, the

return, get Form 8736, Application for

can deduct accrued expenses in the tax

amended return will be a request for

Automatic Extension of Time To File U.S.

year when:

administrative adjustment, and Form

•

Return for a Partnership, REMIC, or for

All events that determine the liability

8082, Notice of Inconsistent Treatment or

Certain Trusts, to request an automatic

have occurred,

Administrative Adjustment Request

•

3-month extension. You must file Form

The amount of the liability can be

(AAR), must be filed by the Tax Matters

8736 by the regular due date of the

figured with reasonable accuracy, and

Person. See sections 860F(e) and 6227

•

REMIC return.

Economic performance takes place

for more information.

with respect to the expense.

If the REMIC’s Federal return is

If you have filed Form 8736 and you

There are exceptions to the economic

changed for any reason, it may affect its

still need more time to file the REMIC

performance rule for certain items,

state return. This would include changes

return, get Form 8800, Application for

including recurring expenses. See section

made as a result of an examination of the

Additional Extension of Time To File U.S.

461(h) and the related regulations for the

REMIC return by the IRS. Contact the

Return for a Partnership, REMIC, or for

rules for determining when economic

state tax agency where the state return is

Certain Trusts, to request an additional

performance takes place.

filed for more information.

extension of up to 3 months. The REMIC

Rounding Off to Whole Dollars

must provide a full explanation of the

Assembling the Return

You may round off cents to whole dollars

reasons for requesting the extension in

If you need more space on the forms or

on the return and schedules. To do so,

order to get this additional extension. Ask

schedules, attach separate sheets. Use

for the additional extension early so that if

drop amounts less than 50 cents and

the same size and format as on the

it is denied, the return can still be filed on

increase amounts from 50 cents through

printed forms. But show the totals on

99 cents to the next higher dollar.

time.

the printed forms. Be sure to put the

Recordkeeping

REMIC’s name and employer

Period Covered

identification number on each sheet.

The REMIC records must be kept as long

File the 2002 return for:

as their contents may be material in the

You must complete every applicable

1. Calendar year 2002,

administration of any Internal Revenue

entry space on Form 1066. If you attach

2. Short tax years beginning and

law. Copies of the filed tax returns should

statements, do not write “See Attached”

ending in 2002, or

also be kept as part of the REMIC’s

instead of completing the entry spaces on

3. Short tax years beginning and

records. See Pub. 583, Starting a

this form.

ending in 2003, if the 2003 Form 1066 is

Business and Keeping Records, for more

Other Forms and Returns That

not available by the time the REMIC is

information.

May Be Required

required to file its return. However, the

Final Return

REMIC must show its 2003 tax year on

Form 1096, Annual Summary and

If the REMIC ceases to exist during the

the 2002 Form 1066 and incorporate any

Transmittal of U.S. Information Returns.

year, check the box at item D(1), page 1,

tax law changes that are effective for tax

Use this form to summarize and send

Form 1066.

years beginning after December 31,

information returns to the Internal

2002.

The item E(1) box of Schedule Q

Revenue Service Center.

(Form 1066) should also be checked to

Form 1098, Mortgage Interest

indicate when the schedule is for the final

Note: In the case of 2 or 3 above, fill in

Statement. This form is used to report the

quarter of the year.

the tax year space at the top of the form.

receipt from any individual of $600 or

Amended Return

more of mortgage interest and points in

Accounting Method

the course of the REMIC’s trade or

If the REMIC files its return and later

A REMIC must compute its taxable

business.

becomes aware of changes it must make

income (or net loss) using the accrual

to income, deductions, etc., the REMIC

Forms 1099-A, B, C, INT, LTC, MISC,

method of accounting. See section

should then file an amended:

MSA, OID, R, and S. Use these

860C(b).

•

Form 1066 and check the box at item

information returns to report acquisitions

D(4), page 1.

Under the accrual method, an amount

or abandonments of secured property;

•

Schedule Q (Form 1066), for each

is includible in income when:

proceeds from broker and barter

•

residual interest holder, and check the

All the events have occurred that fix the

exchange transactions; cancellation of a

box at item E(2). Give corrected

right to receive the income, which is the

debt; interest income; certain payments

Schedules Q (Form 1066) to each

earliest of the date: (a) the required

made under a long-term insurance

residual interest holder.

performance takes place, (b) payment is

contract and certain accelerated death

due, or (c) payment is received and

benefits; miscellaneous income

Note: If a REMIC does not meet the

•

payments; distributions from an Archer

The amount can be determined with

small REMIC exception under sections

reasonable accuracy.

MSA or Medicare+Choice MSA; original

860F(e) and 6231, and related

issue discount; distributions from

See Regulations section 1.451-1(a) for

regulations, or makes the election

pensions, annuities, retirement or

details.

described in section 6231(a)(1)(B)(ii) not

profit-sharing plans, IRAs, insurance

contracts, etc.; and proceeds from real

Where To File

estate transactions. Also, use these

returns to report amounts that were

File Form 1066 at the applicable IRS address listed below.

received as a nominee on behalf of

If the REMIC’s principal business, office, or Use the following Internal Revenue Service

another person.

agency is located in:

Center address:

For more details, see the Instructions

The United States

Ogden, UT 84201-0007

for Forms 1099, 1098, 5498, and W-2G.

Note: Generally, a REMIC must file

A foreign country or U.S. possession

Philadelphia, PA 19255

Forms 1099-INT and 1099-OID, as

-2-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2002 Page 2

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