Looking for a U.s. Department Of The Treasury Forms And Templates? Download it for free!

Note: Generally, a REMIC must file

Late filing penalty. A penalty may be

the rules of section 171. If the adjusted

Forms 1099-INT and 1099-OID, as

charged if (a) the return is filed after the

basis of a residual interest is more than

appropriate, to report accrued income of

due date (including extensions), or (b) the

its issue price, the excess is deductible

$10 or more of regular interest holders.

return does not show all the information

ratably over the anticipated weighted

See Regulations section 1.6049-7. Also,

required, unless each failure is due to

average life of the REMIC (as defined in

every REMIC must file Forms 1099-MISC

reasonable cause. If the failure is due to

Regulations section 1.860E-1(a)(3)(iv)).

if it makes payments of rents,

reasonable cause, attach an explanation

Payments Subject to

commissions, or other fixed or

to the return. If no taxes are due, the

Withholding at Source

determinable income (see section 6041)

penalty is $50 for each month or part of a

totaling $600 or more to any one person

month (up to 5 months) the return is late

If there are any nonresident alien

in the course of its trade or business

or does not include the required

individuals, foreign partnerships, or

during the calendar year.

information, multiplied by the total number

foreign corporations as regular interest

of persons who were residual interest

holders or residual interest holders, and

Form 8275, Disclosure Statement, and

holders in the REMIC during any part of

the REMIC has items of gross income

Form 8275-R, Regulation Disclosure

the REMIC’s tax year for which the return

from sources within the United States

Statement. Use these forms to disclose

is due. If tax is due, the penalty is the

(see sections 861 through 865), see

items or positions taken on a tax return

amount stated above plus 5% of the

Form 1042, Annual Withholding Tax

that are not otherwise adequately

unpaid tax for each month or part of a

Return for U.S. Source Income of Foreign

disclosed on the return or that are

month the return is late, up to a maximum

Persons.

contrary to Treasury regulations (to avoid

of 25% of the unpaid tax, or if the return

parts of the accuracy-related penalty or

Who Must Sign

is more than 60 days late, a $100

certain preparer penalties).

minimum or the balance of tax due on the

Startup day after November 9, 1988.

Form 8300, Report of Cash Payments

return, whichever is smaller.

For a REMIC with a startup day after

Over $10,000 Received in a Trade or

November 9, 1988, Form 1066 may be

Late payment penalty. The penalty for

Business. Generally, this form is used to

signed by any person who could sign the

not paying the tax when due is usually

report the receipt of more than $10,000 in

return of the entity in the absence of the

of 1% of the unpaid tax for each month or

cash or foreign currency in one

REMIC election. Thus, the return of a

part of a month the tax is unpaid. The

transaction (or a series of related

REMIC that is a corporation or trust would

penalty cannot exceed 25% of the unpaid

transactions).

be signed by a corporate officer or a

tax. The penalty will not be charged if you

Form 8811, Information Return for Real

trustee, respectively. For REMICs with

can show reasonable cause for not

Estate Mortgage Investment Conduits

only segregated pools of assets, the

paying on time.

(REMICs) and Issuers of Collateralized

return would be signed by any person

Other penalties. Penalties can also be

Debt Obligations. A REMIC uses this form

who could sign the return of the entity

imposed for negligence, substantial

to provide the information required by

owning the assets of the REMIC under

understatement of tax, and fraud. See

Regulations section 1.6049-7(b)(1)(ii).

applicable state law.

sections 6662 and 6663.

This information will be published in Pub.

Startup day before November 10, 1988.

938, Real Estate Mortgage Investment

Contributions to the REMIC

A REMIC with a startup day before

Conduits (REMICs) Reporting

Generally, no gain or loss is recognized

November 10, 1988, may elect to apply

Information. This publication contains a

by the REMIC or any of the regular or

the rules for REMICs with a startup day

directory of REMICs.

residual interest holders when property is

after November 9, 1988 (as described in

Note: Pub. 938 is not printed. Instead, it

transferred to the REMIC in exchange for

Regulations section 1.860F-4(c)(2)(iii)).

is available on CD-ROM or the Internet.

an interest in the REMIC. The adjusted

Otherwise, Form 1066 must be signed by

See How To Get Forms and

basis of the interest received equals the

a residual interest holder or, as provided

Publications on page 1 of the

adjusted basis of the property transferred

in section 6903, by a fiduciary as defined

instructions for details.

to the REMIC.

in section 7701(a)(6) who is acting for the

Form 8822, Change of Address, may be

REMIC and who has furnished adequate

The basis to the REMIC of property

used to inform the IRS of a new REMIC

notice as described in Regulations

transferred by a regular or residual

address if the change is made after filing

section 301.6903-1(b).

interest holder is its fair market value

Form 1066.

immediately after its transfer.

Note: For this purpose, the term “startup

day” means any day selected by a

Payment of Tax Due

If the issue price of a regular interest is

REMIC that is on or before the first day

more than its adjusted basis, the excess

The REMIC must pay the tax due (line 3,

on which interests in such REMIC are

is included in income by the regular

Section II, page 1) in full by the 15th day

issued. Otherwise, “startup day” is

interest holder for the applicable tax years

of the 4th month following the end of the

defined in the instructions for Item B on

as if the excess were market discount on

tax year. Enclose with Form 1066 a check

page 4.

a bond and the holder had made an

or money order for the amount due

election under section 1278(b) to include

Facsimile signature. A facsimile

payable to the “United States Treasury.”

this market discount currently. If the issue

signature is acceptable if the following

Interest and Penalties

price of a residual interest is more than its

conditions are met:

adjusted basis, the excess is amortized

Interest. Interest is charged on taxes not

1. Each group of returns sent to the

and included in the residual interest

paid by the due date, even if an extension

IRS must be accompanied by a letter

holder’s income ratably over the

of time to file is granted. Interest is also

signed by the person authorized to sign

anticipated weighted average life of the

charged on penalties imposed for failure

the returns declaring, under penalties of

REMIC (as defined in Regulations section

to file, negligence, fraud, substantial

perjury, that the facsimile signature

1.860E-1(a)(3)(iv)).

valuation misstatement, and substantial

appearing on the returns is the signature

understatement of tax from the due date

If the adjusted basis of a regular

adopted by that person to sign the returns

(including extensions) to the date of

interest is more than its issue price, the

filed and that the signature was affixed to

payment. The interest charge is figured at

regular interest holder treats the excess

the returns by that person or at that

a rate determined under section 6621.

as amortizable bond premium subject to

person’s direction. The letter must also

-3-

Instructions For Form 1066 - U.s. Real Estate Mortgage Investment Conduit (Remic) Income Tax Return - 2003 Page 3

Related Articles

Related forms

Related Categories