Instructions For Form 1066 - 2007 (Page 2 of 8) in pdf

7004 by the regular due date of the

Rounding Off to Whole

Assembling the Return

REMIC return.

Dollars

If you need more space to report items

shown on the forms or schedules,

Period Covered

The REMIC may round off cents to

attach separate sheets reporting the

whole dollars on its returns and

File the 2007 return for:

items. Use the same size and format as

schedules. If the REMIC does round to

1. Calendar year 2007;

on the printed forms. But show the

whole dollars, it must round all

2. Short tax years beginning and

totals on the printed forms. Be sure to

amounts. To round, drop amounts

ending in 2007; or

put the REMIC’s name and employer

under 50 cents and increase amounts

3. Short tax years beginning and

identification number (EIN) on each

from 50 to 99 cents to the next dollar

ending in 2008, if the 2008 Form 1066

sheet.

(for example, $1.39 becomes $1 and

is not available by the time the REMIC

$2.50 becomes $3).

You must complete every applicable

is required to file its return. However,

entry space on Form 1066. If you

the REMIC must show its 2008 tax year

If two or more amounts must be

attach statements, do not write “See

on the 2007 Form 1066 and incorporate

added to figure the amount on a line,

Attached” instead of completing the

any tax law changes that are effective

include cents when adding the amounts

entry spaces on this form.

for tax years beginning after December

and round off only the total.

31, 2007.

Other Forms and Returns

Recordkeeping

That May Be Required

In the case of 2 or 3 above, fill

The REMIC records must be kept as

in the tax year space at the top

Form 1096, Annual Summary and

long as their contents may be material

of the form.

Transmittal of U.S. Information Returns.

CAUTION

in the administration of any Internal

Use this form to summarize and send

Revenue law. Copies of the filed tax

Where To File

information returns to the Internal

returns should also be kept as part of

Revenue Service Center.

If the REMIC’s principal business,

the REMIC’s records. See Pub. 583,

office, or agency is located in the

Starting a Business and Keeping

Form 1098, Mortgage Interest

United States, then file the return at:

Records, for more information.

Statement. This form is used to report

Department of the Treasury, Internal

the receipt from any individual of $600

Final Return

Revenue Service Center, Ogden, UT

or more of mortgage interest and points

84201-0007.

in the course of the REMIC’s trade or

If the REMIC ceases to exist during the

business.

If the REMIC’s principal business,

year, check the box on Form 1066,

office, or agency is located in a foreign

page 1, item D(1).

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

country or U.S. possession, then file

OID, R, S, and SA. Use these

The box on Schedule Q (Form

the return at: Internal Revenue Service

information returns to report

1066), item E(1) should also be

Center, P.O. box 409101, Ogden, UT

acquisitions or abandonments of

checked to indicate when the schedule

84409.

secured property; proceeds from broker

is for the final quarter of the year.

and barter exchange transactions;

Accounting Method

cancellation of a debt; interest income;

Amended Return

A REMIC must compute its taxable

certain payments made under a

If the REMIC files its return and later

income (or net loss) using the accrual

long-term care insurance contract and

becomes aware of changes it must

method of accounting. See section

certain accelerated death benefits;

make to income, deductions, etc., the

860C(b).

miscellaneous income payments;

REMIC should then file an amended:

original issue discount; distributions

Under the accrual method, an

•

Form 1066 and check the box on

from pensions, annuities, retirement or

amount is includible in income when:

page 1, item D(4); and

profit-sharing plans, individual

•

1. All the events have occurred that

Schedule Q (Form 1066), for each

retirement arrangement (IRAs),

fix the right to receive the income,

residual interest holder, and check the

insurance contracts, etc.; proceeds

which is the earliest of the date:

box at item E(2). Give corrected

from real estate transactions; and

a. The required performance takes

Schedules Q (Form 1066) to each

distributions from an HSA, Archer MSA,

place,

residual interest holder.

or Medicare Advantage MSA. Also, use

b. Payment is due, or

these returns to report amounts that

If a REMIC does not meet the

c. Payment is received and

were received as a nominee on behalf

small REMIC exception under

2. The amount can be determined

of another person.

sections 860F(e) and 6231, and

with reasonable accuracy.

CAUTION

Generally, a REMIC must file Forms

related regulations, or makes the

1099-INT and 1099-OID, as

See Regulations section 1.451-1(a)

election described in section

appropriate, to report accrued income

for details.

6231(a)(1)(B)(ii) not to be treated as a

of $10 or more of regular interest

small REMIC, the amended return will

Generally, an accrual basis taxpayer

holders. See Regulations section

be a request for administrative

can deduct accrued expenses in the tax

1.6049-7. Also, every REMIC must file

adjustment, and Form 8082, Notice of

year when:

•

Inconsistent Treatment or

Forms 1099-MISC if it makes payments

All events that determine the liability

Administrative Adjustment Request

of rents, commissions, or other fixed or

have occurred,

•

determinable income (see section

(AAR), must be filed by the Tax Matters

The amount of the liability can be

6041) totaling $600 or more to any one

Person. See sections 860F(e) and 6227

figured with reasonable accuracy, and

•

person in the course of its trade or

for more information.

Economic performance takes place

business during the calendar year.

with respect to the expense.

If the REMIC’s federal return is

For more details, see the 2007

There are exceptions to the

changed for any reason, it may affect

General Instructions for Forms 1099,

economic performance rule for certain

its state return. This would include

1098, 5498, and W-2G.

items, including recurring expenses.

changes made as a result of an

See section 461(h) and the related

examination of the REMIC return by the

Form 8275, Disclosure Statement,

regulations for the rules for determining

IRS. Contact the state tax agency

and Form 8275-R, Regulation

when economic performance takes

where the state return is filed for more

Disclosure Statement. Use these forms

place.

information.

to disclose items or positions taken on

-2-

Instructions For Form 1066 - 2007 Page 2

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