Instructions For Form 1066 - 2016 (Page 2 of 9) in pdf

Final Return

though the REMIC is filing the 2017 tax

Internal Revenue Service

return on a 2016 Form 1066, any tax law

P.O. Box 409101

If the REMIC ceases to exist during the

changes effective after December 31,

Ogden, UT 84409

year, check the box on Form 1066,

2016, have to be applied on the tax

page 1, item D(1).

return.

Accounting Method

The box on Schedule Q (Form 1066),

A REMIC must compute its taxable

In the case of 2 or 3, fill in the

item E(1) should also be checked to

income (or net loss) using the accrual

dates for the short tax year at

indicate when the schedule is for the

method of accounting. See section

the top of the form.

final quarter of the year.

CAUTION

860C(b).

Amended Return

Private Delivery Services

Under the accrual method, an

If the REMIC files its return and later

REMICs can use certain private delivery

amount is includible in income when:

becomes aware of changes it must

services designated by the IRS to meet

1. All the events have occurred that

make to income, deductions, or other

the “timely mailing as timely filing/

fix the right to receive the income, which

items, the REMIC should then file:

paying” rule for tax returns and

is the earliest of the date:

Form 1065X, Amended Return or

payments. These private delivery

a. The required performance takes

Administrative Adjustment Request

services include only the following.

place,

(AAR); and

DHL Express: DHL Express 9:00,

b. Payment is due, or

An amended Schedule Q (Form

DHL Express 10:30, DHL Express

1066), for each residual interest holder,

c. Payment is received and

12:00, DHL Express Worldwide, DHL

and check the box at item E(2). Give

2. The amount can be determined

Express Envelope, DHL Import Express

corrected Schedules Q (Form 1066) to

with reasonable accuracy.

10:30, DHL Import Express 12:00, DHL

each residual interest holder.

Import Express Worldwide

See Regulations section 1.451-1(a)

If a REMIC doesn’t meet the

Federal Express (FedEx): FedEx First

for details.

small REMIC exception under

Overnight, FedEx Priority Overnight,

sections 860F(e) and 6231, and

Generally, an accrual basis taxpayer

FedEx Standard Overnight, FedEx

CAUTION

related regulations, or makes the

can deduct accrued expenses in the tax

2Day, FedEx International Next Flight

election described in section 6231(a)(1)

year when:

Out, FedEx International Priority, FedEx

(B)(ii) not to be treated as a small

All events that determine the liability

International First, and FedEx

REMIC, the amended return will be a

have occurred,

International Economy

request for administrative adjustment,

The amount of the liability can be

United Parcel Service (UPS): UPS

and Form 1065X must be filed by the

figured with reasonable accuracy, and

Next Day Air Early A.M., UPS Next Day

Tax Matters Person. See sections

Economic performance takes place

Air, UPS Next Day Air Saver, UPS 2nd

860F(e) and 6227 for more information.

with respect to the expense.

Day Air, UPS 2nd Day Air A.M., UPS

Worldwide Express Plus, and UPS

There are exceptions to the

If the REMIC's federal return is

Worldwide Express

economic performance rule for certain

changed for any reason, it may affect its

items, including recurring expenses.

For the IRS mailing address to use if

state return. This would include

See section 461(h) and the related

you are using a private delivery service,

changes made as a result of an

regulations for the rules for determining

go to IRS.gov and enter “private delivery

examination of the REMIC return by the

when economic performance takes

service” in the search box.

IRS. Contact the state tax agency where

place.

the state return is filed for more

The private delivery service can tell

Rounding Off to Whole Dollars

information.

you how to get written proof of the

mailing date.

The REMIC may round off cents to

Assembling the Return

whole dollars on its returns and

Private delivery services can't

If you need more space to report items

schedules. If the REMIC does round to

deliver items to P.O. boxes. You

shown on the forms or schedules,

whole dollars, it must round all amounts.

must use the U.S. Postal

attach separate sheets reporting the

To round, drop amounts under 50 cents

CAUTION

Service to mail any item to an IRS P.O.

items. Use the same size and format as

and increase amounts from 50 to 99

box address.

on the printed forms. But show the totals

cents to the next dollar (for example,

on the printed forms. Be sure to put the

$1.39 becomes $1 and $2.50 becomes

Where To File

REMIC's name and employer

$3).

identification number (EIN) on each

If the REMIC's principal business, office,

If two or more amounts must be

sheet.

or agency is located in the United

added to figure the amount on a line,

States, then file the return at:

You must complete every applicable

include cents when adding the amounts

entry space on Form 1066. If you attach

and round off only the total.

Department of the Treasury

statements, don’t write “See Attached”

Internal Revenue Service

Recordkeeping

instead of completing the entry spaces

Ogden, UT 84201-0007

on this form.

The REMIC records must be kept as

long as their contents may be material in

Other Forms and Returns That

If the REMIC's principal business,

the administration of any Internal

May Be Required

office, or agency is located in a foreign

Revenue law. Copies of the filed tax

country or U.S. possession, then file the

returns should also be kept as part of

Form 1096, Annual Summary and

return at:

the REMIC's records. See Pub. 583,

Transmittal of U.S. Information Re-

Starting a Business and Keeping

turns. Use this form to summarize and

Records, for more information.

send information returns to the IRS.

-2-

Instructions For Form 1066 - 2016 Page 2

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