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Line 2 — Accrued market discount

employer identification number of the

wants to expand the paid preparer’s

under section 860C(b)(1)(B). Enter the

REMIC;

authorization, see Pub. 947, Practice

•

amount of market discount attributable to

After the facsimile signature is affixed,

Before the IRS and Power of Attorney.

the current tax year determined on the

no entries on the return may be altered

The authorization cannot be revoked.

basis of a constant interest rate under the

other than to correct discernible arithmetic

However, the authorization will

rules of section 1276(b)(2).

errors;

automatically end no later than the due

•

A manually signed copy of the letter

Line 3 — Capital gain (loss). Enter the

date (excluding extensions) for filing the

submitted to the IRS with the returns, as

amount shown on line 12 or 13 (if any),

2003 tax return.

well as a record of any arithmetic errors

from Schedule D, page 2.

corrected, must be retained on behalf of

Line 4 — Ordinary gain (loss). Enter the

the REMICs listed in the letter and must

Specific Instructions

net gain (loss) from Part II, Form 4797,

be available for inspection by the IRS.

Sales of Business Property.

Paid preparer’s information. If

General Information

Line 5 — Other income. Attach a

someone prepares the return and does

schedule, listing by type and amount, any

Name, address, and employer

not charge the REMIC, that person

other taxable income not reported on

identification number. Print or type the

should not sign the return.

lines 1 – 4. If there is only one item of

REMIC’s legal name and address on the

Generally, anyone who is paid to

other income, describe it in parentheses

appropriate lines. Include the suite, room,

prepare the REMIC return must sign the

to the left of the entry space on line 5

or other unit number after the street

return and fill in the “Paid Preparer’s Use

instead of attaching a schedule. If the

address. If the Post Office does not

Only” area of the return.

REMIC issued regular interests at a

deliver mail to the street address and the

The preparer required to sign the

premium, the net amount of the premium

REMIC has a P.O. box, show the box

REMIC’s return must complete the

is income that must be prorated over the

number instead of the street address.

required preparer information and:

term of these interests. Include this

•

Note: Each REMIC must have its own

income on line 5.

employer identification number (EIN).

preparer’s signature. A facsimile

Deductions — (Lines 7 – 14). Include

signature is acceptable if the conditions

Show the EIN in item A on page 1 of

only deductible amounts on lines 7 – 14. A

under Regulations section

Form 1066. If the REMIC does not have

REMIC is not allowed any of the following

1.6695-1(b)(4)(iv) are met.

an EIN, get Form SS-4, Application for

deductions in computing its taxable

Note: While the cite addresses use of a

Employer Identification Number, for

income:

details on how to obtain an EIN

facsimile signature by a preparer of a

•

The net operating loss deduction,

immediately by telephone. If the REMIC

•

fiduciary return, a preparer of a REMIC

The deduction for taxes paid or

has previously applied for an EIN, but has

return may also use a facsimile signature

accrued to foreign countries and U.S.

if those same conditions are met.

not received it by the time the return is

possessions,

•

due, write “Applied for” in the space for

•

Give the REMIC a copy of the return in

The deduction for charitable

the EIN. Do not apply for an EIN more

addition to the copy to be filed with the

contributions,

than once. See Pub. 583 for details.

•

IRS.

The deduction for depletion under

Item B — Date REMIC started. Enter the

section 611 for oil and gas wells, and

Paid Preparer Authorization

•

“startup day” selected by the REMIC.

Losses or deductions allocable to

If the REMIC wants to allow the IRS to

prohibited transactions.

The startup day is the day on which

discuss its 2002 tax return with the paid

Line 9 — Amount accrued to regular

the REMIC issued all of its regular and

preparer who signed it, check the ‘‘Yes’’

interest holders in the REMIC that is

residual interests. However, a sponsor

box in the signature area of the return.

may contribute property to a REMIC in

deductible as interest. Regular interests

This authorization applies only to the

in the REMIC are treated as indebtedness

exchange for regular and residual

individual whose signature appears in the

for Federal income tax purposes. Enter

interests over any period of 10

‘‘Paid Preparer’s Use Only’’ section of the

the amount of interest, including original

consecutive days and the REMIC may

return. It does not apply to the firm, if any,

designate any one of those 10 days as

issue discount, accruing to regular

shown in that section.

interest holders for the tax year. Do not

the startup day. The day so designated is

If the ‘‘Yes’’ box is checked, the

deduct any amounts paid or accrued for

then the startup day, and all interests are

REMIC is authorizing the IRS to call the

residual interests in the REMIC.

treated as issued on that day.

paid preparer to answer any questions

Line 10 — Other interest. Do not include

that may arise during the processing of its

Item C — Total assets at end of tax

interest deducted on line 9 or interest on

return. The REMIC is also authorizing the

year. Enter the total assets of the

indebtedness incurred or continued to

paid preparer to:

REMIC. If there are no assets at the end

•

purchase or carry obligations on which

of the tax year, enter the total assets as of

Give the IRS any information that is

the interest is wholly exempt from income

the beginning of the tax year.

missing from its return,

•

tax. You may elect to include amortization

Call the IRS for information about the

Section I

of bond premium on taxable bonds

processing of its return or the status of

acquired before 1988 unless you elected

any refund or payment(s), and

Line 1 — Taxable interest. Enter the

•

to offset amortizable bond premium

Respond to certain IRS notices that the

total taxable interest. “Taxable interest” is

against the interest accrued on the bond

REMIC may have shared with the

interest that is included in ordinary

(see the Section I, line 1, instructions). Do

preparer about math errors, offsets, and

income from all sources except interest

not include any amount attributable to a

return preparation. The notices will not be

exempt from tax and interest on tax-free

tax-exempt bond.

sent to the preparer.

covenant bonds. You may elect to reduce

The REMIC is not authorizing the paid

the amount of interest accrued on taxable

Line 11 — Taxes. Enter taxes accrued

preparer to receive any refund check,

bonds by the amount of amortizable bond

during the tax year but do not include the

bind the REMIC to anything (including

premium on those bonds attributable to

following:

•

any additional tax liability), or otherwise

the current tax year. See sections 171(c)

Federal income taxes (except the tax

represent it before the IRS. If the REMIC

and 171(e) for details.

on net income from foreclosure property);

-4-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2002 Page 4

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