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should not sign the return or complete the

room, or other unit number after the street

the current tax year. See sections 171(c)

paid preparer’s space.

address. If a preaddressed label is used,

and 171(e) for details.

include this information on the label. If the

Generally, anyone who is paid to

Line 2 — Accrued market discount

Post Office does not deliver mail to the

prepare the REMIC return must sign the

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

street address and the REMIC has a P.O.

return and fill in the “Paid Preparer’s Use

amount of market discount attributable to

box, show the box number instead. If the

Only” area of the return.

the current tax year determined on the

REMIC receives its mail in care of a third

basis of a constant interest rate under the

The paid preparer must complete the

party (such as an accountant or attorney),

rules of section 1276(b)(2).

required preparer information and —

enter on the street address line “C/O”

•

Sign the return in the space provided

Line 3 — Capital gain or (loss). Enter

followed by the third party’s name and

the amount shown on page 2, Schedule

for the preparer’s signature. A paid

street address or P.O. box. If the REMIC

D, line 12 or 13 (if any).

preparer may sign by rubber stamp,

has changed its address since it last filed

mechanical device, or computer software

a return (including a change to an “in care

Line 4 — Ordinary gain or (loss). Enter

program, as provided in Notice 2004-54,

of” address), check the box for “Address

the net gain or (loss) from Form 4797,

2004-33 I.R.B. 209.

change.”

Sales of Business Property, Part II.

•

Give the REMIC a copy of the return in

Line 5 — Other income. Attach a

Note. If a change in address occurs after

addition to the copy to be filed with the

schedule, listing by type and amount, any

the return is filed, use Form 8822,

IRS.

other taxable income not reported on

Change of Address, to notify the IRS of

Paid Preparer Authorization

lines 1 through 4. If there is only one item

the new address.

of other income, describe it in

If the REMIC wants to allow the IRS to

Enter the REMIC’s EIN on Form 1066,

parentheses to the left of the entry space

discuss its 2004 tax return with the paid

page 1, item A. If the REMIC does not

on line 5 instead of attaching a schedule.

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

have its own EIN, it must apply for one. A

If the REMIC issued regular interests at a

box in the signature area of the return.

REMIC may apply for an EIN:

premium, the net amount of the premium

•

This authorization applies only to the

By telephone at 1-800-829-4933 from

is income that must be prorated over the

individual whose signature appears in the

7:00 a.m. to 10:00 p.m. Monday through

term of these interests. Include this

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

Friday in the REMIC’s local time zone.

income on line 5.

•

REMIC’s return. It does not apply to the

By mailing or faxing Form SS-4,

firm, if any, shown in that section.

Deductions — (Lines 7 through 14).

Application for Employer Identification

Include only deductible amounts on lines

Number.

If the “Yes” box is checked, the REMIC

7 through 14. A REMIC is not allowed any

If the REMIC has not received its EIN by

is authorizing the IRS to call the paid

of the following deductions in computing

the time the return is due, write “Applied

preparer to answer any questions that

its taxable income.

for” in the space for the EIN. For more

may arise during the processing of its

•

The net operating loss deduction.

details, see Pub. 583.

return. The REMIC is also authorizing the

•

The deduction for taxes paid or

paid preparer to:

Unlike most entities, a REMIC

accrued to foreign countries and U.S.

•

Give the IRS any information that is

may not apply for an EIN online.

possessions.

•

missing from the return;

The deduction for charitable

CAUTION

•

Call the IRS for information about the

contributions.

processing of the return or the status of

•

Item B — Date REMIC started. Enter the

The deduction for depletion under

any related refund or payment(s); and

“startup day” selected by the REMIC.

section 611 for oil and gas wells.

•

Respond to certain IRS notices that the

•

Losses or deductions allocable to

The startup day is the day on which

REMIC has shared with the preparer

prohibited transactions.

the REMIC issued all of its regular and

about math errors, offsets, and return

residual interests. However, a sponsor

Line 9 — Amount accrued to regular

preparation. The notices will not be sent

may contribute property to a REMIC in

interest holders in the REMIC that is

to the preparer.

exchange for regular and residual

deductible as interest. Regular interests

The REMIC is not authorizing the paid

interests over any period of 10

in the REMIC are treated as indebtedness

preparer to receive any refund check,

consecutive days and the REMIC may

for federal income tax purposes. Enter the

bind the corporation to anything (including

designate any one of those 10 days as

amount of interest, including original issue

any additional tax liability), or otherwise

the startup day. The day so designated is

discount, accruing to regular interest

represent the corporation before the IRS.

then the startup day, and all interests are

holders for the tax year. Do not deduct

If the REMIC wants to expand the paid

treated as issued on that day.

any amounts paid or accrued for residual

preparer’s authorization, see Pub. 947,

interests in the REMIC.

Item C — Total assets at end of tax

Practice Before the IRS and Power of

Line 10 — Other interest. Do not include

year. Enter the total assets of the

Attorney.

interest deducted on line 9 or interest on

REMIC. If there are no assets at the end

The authorization cannot be revoked.

indebtedness incurred or continued to

of the tax year, enter the total assets as of

However, the authorization will

purchase or carry obligations on which

the beginning of the tax year.

automatically end no later than the due

the interest is wholly exempt from income

date (excluding extensions) for filing the

Section I

tax. You may elect to include amortization

REMIC’s 2005 tax return.

of bond premium on taxable bonds

Line 1 — Taxable interest. Enter the

acquired before 1988 unless you elected

total taxable interest. “Taxable interest” is

to offset amortizable bond premium

interest that is included in ordinary

Specific Instructions

against the interest accrued on the bond

income from all sources except interest

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

exempt from tax and interest on tax-free

General Information

not include any amount attributable to a

covenant bonds. You may elect to reduce

tax-exempt bond.

Name, address, and EIN. Print or type

the amount of interest accrued on taxable

the REMIC’s legal name and address on

bonds by the amount of amortizable bond

Line 11 — Taxes. If you have to pay tax

the appropriate lines. Include the suite,

premium on those bonds attributable to

on net income from foreclosure property,

-4-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2004 Page 4

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