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Formulár 1066 Inštrukcie

Pokyny pre formulár 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Daňové priznanie

Rev. 2023

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  • Formulár 1066 - U.S. Real Estate Mortgage Investment Conduit (REMIC) Daňové priznanie
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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 1066  
U.S. Real Estate Mortgage Investment Conduit  
(REMIC) Income Tax Return  
Section references are to the Internal Revenue Code  
How To Get Forms and Publications  
unless otherwise noted.  
Internet. You can access the IRS website at IRS.gov 24  
hours a day, 7 days a week to:  
Future Developments  
For the latest information about developments related to  
Form 1066 and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/  
Download forms, including talking tax forms,  
instructions, and publications;  
Use the online Internal Revenue Code, regulations, or  
other official guidance;  
Get information on starting and operating a small  
business;  
Order IRS products online;  
What’s New  
Research your tax questions online;  
Increased failure-to-file penalty. The minimum penalty  
under section 6651(a) for the failure to file Form 1066  
within 60 days of the due date has increased to the  
smaller of the tax due or $485. The penalty under section  
6698 that the IRS may charge when no tax is due has  
increased to $235 for each person who was a residual  
interest holder in the REMIC at any time during the year  
for each month or part of a month the return is late, for up  
to 12 months. For more information, see Late filing  
penalty, later.  
Search publications online by topic or keyword;  
View Internal Revenue Bulletins (IRBs) published in the  
last few years; and  
Sign up to receive local and national tax news by email.  
General Instructions  
Purpose of Form  
File Form 1066 to report the income, deductions, and  
gains and losses from the operation of a REMIC. In  
addition, the form is filed by the REMIC to report and pay  
the taxes on net income from prohibited transactions, net  
income from foreclosure property, and contributions after  
the startup day.  
Total assets at end of the tax year. If there are no  
assets at the end of the year enter -0-.  
Reminders  
Bipartisan Budget Act. The Bipartisan Budget Act of  
2015 (BBA) created a new centralized partnership audit  
regime that applies to a REMIC for tax years beginning  
after 2017. Under the centralized partnership audit  
regime, any adjustments to the partnership-related items  
of a REMIC are determined at the REMIC level.  
Who Must File  
An entity must file Form 1066 if it elected to be treated as  
a REMIC for its first tax year (and the election is still in  
effect) and it meets the section 860D(a) requirements  
listed below.  
Partnership representative (PR). Under the centralized  
partnership audit regime, a REMIC is required to  
designate a PR if it had more than one residual interest  
holder at any time during the tax year and it didn't elect out  
of the centralized partnership audit regime. The PR will  
have the sole authority to act on behalf of the REMIC  
under the centralized partnership audit regime. The  
person designated by the REMIC as the PR must have a  
substantial presence in the United States. For more  
A REMIC is any entity that:  
Elects to be treated as a REMIC for the tax year and all  
prior tax years;  
All of the interests in which are regular interests or  
residual interests;  
Has one (and only one) class of residual interests and  
all distributions, if any, with respect to such interests are  
pro rata;  
Substantially all of the assets consist of qualified  
mortgages and permitted investments as of the close of  
the third month beginning after the startup day (defined in  
the instructions for Item B—Date REMIC started, later)  
and at all times thereafter;  
Representative, later.  
Photographs of Missing Children  
The IRS is a proud partner with the National Center for  
missing children selected by the Center may appear in  
instructions on pages that would otherwise be blank. You  
can help bring these children home by looking at the  
photographs and calling 1-800-THE-LOST  
Has a calendar tax year; and  
For which reasonable arrangements have been  
designed to ensure that residual interests aren't held by  
disqualified organizations (as defined in section 860E(e)  
(5)), and information needed to apply section 860E(e) will  
be made available by the entity.  
(1-800-843-5678) if you recognize a child.  
Sep 21, 2023  
Cat. No. 64231R  
The last item in the above list doesn't apply to  
REMICs with a startup day before April 1, 1988 (or  
those formed under a binding contract in effect on  
Private Delivery Services (PDSs)  
!
REMICs can use certain PDSs designated by the IRS to  
meet the “timely mailing as timely filing” rule for tax  
returns. Go to IRS.gov/PDS for the current list of PDSs.  
CAUTION  
March 31, 1988).  
See section 860G for definitions and special rules. See  
section 860D(a) regarding qualification as a REMIC  
during a qualified liquidation.  
The PDS can tell you how to get written proof of the  
mailing date.  
For the IRS mailing address to use if you’re using a  
Making the Election  
The election to be treated as a REMIC is made by timely  
filing, for the first tax year of its existence, a Form 1066  
and having it signed by an authorized person. Once the  
election is made, it stays in effect for all years until it is  
terminated.  
PDSs can't deliver items to P.O. boxes. You must  
use the U.S. Postal Service to mail any item to an  
!
CAUTION  
IRS P.O. box address.  
Where To File  
First Tax Year  
If the REMIC's principal business, office, or agency is  
located in the United States, then file the return at:  
For the first tax year of a REMIC's existence, the REMIC  
must furnish the following in a separate statement  
attached to the REMIC's initial return.  
Department of the Treasury  
Internal Revenue Service  
Ogden, UT 84201-0007  
Information concerning the terms of the regular  
interests and the designated residual interest of the  
REMIC, or a copy of the offering circular or prospectus  
containing such information.  
If the REMIC's principal business, office, or agency is  
located in a foreign country or U.S. possession, then file  
the return at:  
A description of the prepayment and reinvestment  
assumptions made in accordance with section 1272(a)(6)  
and its regulations, including documentation supporting  
the selection of the prepayment assumption.  
Internal Revenue Service  
P.O. Box 409101  
Termination of Election  
Ogden, UT 84409  
If the entity ceased to qualify as a REMIC under the  
requirements of section 860D(a) in 2023, the election to  
be a REMIC is terminated for 2023 and all future years.  
For 2023 and all future years, you must file the tax form for  
similarly organized entities (corporations, partnerships,  
trusts, etc.).  
Accounting Method  
A REMIC must compute its taxable income (or net loss)  
using the accrual method of accounting. See section  
860C(b). For more information about the accrual method  
of accounting, see Pub. 538.  
When To File  
Rounding Off to Whole Dollars  
Generally, REMICs must file the 2023 Form 1066 by  
March 15, 2024. However, if the entity will file its final  
return in 2023, Form 1066 is due by the 15th day of the  
3rd month following the date the REMIC ceased to exist.  
The REMIC may round off cents to whole dollars on its  
returns and schedules. If the REMIC does round to whole  
dollars, it must round all amounts. To round, drop amounts  
under 50 cents and increase amounts from 50 to 99 cents  
to the next dollar (for example, $1.39 becomes $1 and  
$2.50 becomes $3).  
If you need more time to file Form 1066, file Form 7004,  
Application for Automatic Extension of Time To File  
Certain Business Income Tax, Information, and Other  
Returns, to request an automatic extension. You must file  
Form 7004 by the regular due date of Form 1066.  
If two or more amounts must be added to figure the  
amount on a line, include cents when adding the amounts  
and round off only the total.  
Period Covered  
Recordkeeping  
File the 2023 return for:  
The REMIC’s records must be kept as long as their  
contents may be material in the administration of any  
Internal Revenue law. Copies of the filed tax returns  
should also be kept as part of the REMIC's records. See  
Pub. 583, Starting a Business and Keeping Records, for  
more information.  
1. Calendar year 2023;  
2. Short tax years beginning and ending in 2023; or  
3. Short tax years beginning and ending in 2024, if the  
2024 Form 1066 isn't available by the time the REMIC is  
required to file its 2024 return. Even though the REMIC is  
filing the 2024 tax return on a 2023 Form 1066, any tax  
law changes effective after December 31, 2023, have to  
be applied on the tax return.  
Final Return  
If the REMIC ceases to exist during the year, check the  
box on Form 1066, page 1, item D(1).  
In the case of (2) or (3) above, fill in the dates for  
the short tax year at the top of the form.  
The box on Schedule Q (Form 1066), item E(1), should  
also be checked to indicate when the schedule is for the  
final quarter of the year.  
!
CAUTION  
-2-  
Instructions for Form 1066 (2023)  
 
For more details, see the General Instructions for  
Certain Information Returns.  
Amended Return  
If the REMIC files its return and later becomes aware of  
changes it must make to income, deductions, or other  
items, the REMIC should then file:  
Form 8275, Disclosure Statement; and Form 8275-R,  
Regulation Disclosure Statement. Use these forms to  
disclose items or positions taken on a tax return that aren't  
otherwise adequately disclosed on the return or that are  
contrary to Treasury regulations (to avoid parts of the  
accuracy-related penalty or certain preparer penalties).  
Form 8300, Report of Cash Payments Over $10,000  
Received in a Trade or Business. Generally, this form is  
used to report the receipt of more than $10,000 in cash or  
foreign currency in one transaction or a series of related  
transactions.  
Form 1065-X, Amended Return or Administrative  
Adjustment Request (AAR); and  
An amended Schedule Q (Form 1066) for each residual  
interest holder, and check the box on item E(2). Give  
corrected Schedules Q (Form 1066) to each residual  
interest holder.  
If the REMIC's federal return is changed for any reason,  
it may affect its state return. This would include changes  
made as a result of an examination of the REMIC’s return  
by the IRS. Contact the state tax agency where the state  
return is filed for more information.  
Form 8811, Information Return for Real Estate Mort-  
gage Investment Conduits (REMICs) and Issuers of  
Collateralized Debt Obligations. A REMIC uses this  
form to provide the information required by Regulations  
section 1.6049-7(b)(1)(ii). This information will be  
published in Pub. 938, Real Estate Mortgage Investment  
Conduits (REMICs) Reporting Information. This  
Assembling the Return  
If you need more space to report items shown on the  
forms or schedules, attach separate sheets reporting the  
items. Use the same size and format as on the printed  
forms. But show the totals on the printed forms. Be sure to  
enter the REMIC's name and employer identification  
number (EIN) on each sheet.  
publication contains a directory of REMICs.  
Pub. 938 isn't printed. Instead, it is available on the IRS  
website. For more information about Pub. 938, go to  
Form 8822-B, Change of Address or Responsible  
Party—Business. This form is used to inform the IRS of  
a new REMIC address if the change is made after filing  
Form 1066.  
You must complete every applicable entry space on  
Form 1066. If you attach statements, don’t enter “See  
Attached” instead of completing the entry spaces on this  
form.  
Other Forms and Returns That May  
Be Required  
Form 1096, Annual Summary and Transmittal of U.S.  
Information Returns. Use this form to summarize and  
send information returns to the IRS.  
Form 1098, Mortgage Interest Statement. This form is  
used to report the receipt from any individual of $600 or  
more of mortgage interest and points in the course of the  
REMIC's trade or business.  
Forms 1099-A, B, C, INT, LTC, MISC, NEC, OID, R, S,  
and SA. Use these information returns to report  
acquisitions or abandonments of secured property;  
proceeds from broker and barter exchange transactions;  
cancellation of debt; interest income; certain payments  
made under a long-term care insurance contract and  
certain accelerated death benefits; miscellaneous  
information; nonemployee compensation; original issue  
discount; distributions from pensions, annuities,  
Payment of Tax Due  
The REMIC must pay the tax due (page 1, Section II,  
line 3) in full by the 15th day of the 3rd month following the  
end of the tax year.  
Electronic deposit requirement. REMICs must use  
electronic funds transfer (EFT) to make all federal tax  
deposits (such as deposits of employment tax, excise tax,  
and income tax). Generally, an EFT is made using the  
Electronic Federal Tax Payment System (EFTPS). If you  
don't want to use EFTPS, you can arrange for your tax  
professional, financial institution, payroll service, or other  
trusted third party to make electronic deposits on your  
behalf.  
To get more information about EFTPS or to enroll in  
EFTPS, go to EFTPS.gov or call 800-555-4477. Additional  
information about EFTPS is also available in Pub. 966.  
Same-day wire payment option. If the REMIC fails to  
submit a deposit transaction on EFTPS by 8 p.m. Eastern  
time the day before the date a deposit is due, it can still  
make its deposit on time by using the Federal Tax  
Collection Service (FTCS) to make a same-day wire  
payment. To use the same-day wire payment method, the  
REMIC will need to make arrangements with its financial  
institution ahead of time. Please check with the financial  
institution regarding availability, deadlines, and costs.  
Financial institutions may charge a fee for payments made  
this way. To learn more about the information required by a  
financial institution to make a same-day wire payment, go  
retirement or profit-sharing plans, individual retirement  
arrangements (IRAs), insurance contracts, etc.; proceeds  
from real estate transactions; and distributions from an  
HSA, Archer MSA, or Medicare Advantage MSA. Also,  
use these returns to report amounts that were received as  
a nominee on behalf of another person.  
Generally, a REMIC must file Forms 1099-INT and  
1099-OID, as appropriate, to report accrued income of  
$10 or more of regular interest holders. See Regulations  
section 1.6049-7. Also, every REMIC must file Forms  
1099-MISC if it makes payments of rents, commissions, or  
other fixed or determinable income (see section 6041)  
totaling $600 or more to any one person in the course of  
its trade or business during the calendar year.  
Instructions for Form 1066 (2023)  
-3-  
and if the issue price of the residual interest is more than  
its adjusted basis, the excess is amortized and included in  
the residual interest holder's income ratably over the  
anticipated weighted average life of the REMIC (as  
defined in Regulations section 1.860E-1(a)(3)(iv)).  
If the transferor holds a regular interest and if the  
adjusted basis of the regular interest is more than its issue  
price, the regular interest holder treats the excess as  
amortizable bond premium subject to the rules of section  
171. If the transferor holds a residual interest and if the  
adjusted basis of the residual interest is more than its  
issue price, the excess is deductible ratably over the  
anticipated weighted average life of the REMIC (as  
defined in Regulations section 1.860E-1(a)(3)(iv)).  
Interest and Penalties  
Interest. Interest is charged on taxes not paid by the due  
date, even if an extension of time to file is granted. Interest  
is also charged on penalties imposed for failure to file,  
negligence, fraud, substantial valuation misstatements,  
substantial understatements of tax, and reportable  
transaction understatements from the due date (including  
extensions) to the date of payment. The interest charge is  
figured at a rate determined under section 6621.  
Late filing penalty. A penalty may be charged if the  
return is filed after the due date (including extensions) or  
the return doesn't show all the information required, unless  
each failure is due to reasonable cause and not due to  
willful neglect.  
If you receive a notice about a penalty after you file this  
return, reply to the notice with an explanation of why the  
return was late. We will determine if you meet the  
reasonable-cause criteria. Don't attach an explanation  
when you file your return.  
If taxes are due, we will charge a section 6651 penalty  
of 5% of the unpaid tax for each month or part of a month  
the return is late, up to a maximum of 25% of the unpaid  
tax; or, if the return is 60 days or more late, $485 or the  
balance of the tax due on the return, whichever is smaller.  
If no tax is due, we may charge a section 6698 penalty of  
$235 for each person who was a residual interest holder in  
the REMIC at any time during the year for each month or  
part of a month the return is late, for up to 12 months.  
Although we can charge both the section 6651 and  
section 6698 penalties when taxes are due, we will  
generally charge only one of the penalties, whichever is  
greater.  
Late payment penalty. The penalty for not paying the  
tax when due is usually 1/2 of 1% of the unpaid tax for  
each month or part of a month the tax is unpaid. The  
penalty can't exceed 25% of the unpaid tax. The penalty  
won't be charged if you can show reasonable cause for  
not paying on time.  
Payments Subject to Withholding at  
Source  
If there are any nonresident alien individuals, foreign  
partnerships, or foreign corporations as regular interest  
holders or residual interest holders, and the REMIC has  
items of gross income from sources within the United  
States (see sections 861 through 865), see Form 1042,  
Annual Withholding Tax Return for U.S. Source Income of  
Foreign Persons.  
Who Must Sign  
Startup day after November 9, 1988. For a REMIC with  
a startup day after November 9, 1988, Form 1066 may be  
signed by any person who could sign the return of the  
entity in the absence of the REMIC election. Thus, the  
return of a REMIC that is a corporation or trust would be  
signed by a corporate officer or a trustee, respectively. For  
REMICs with only segregated pools of assets, the return  
would be signed by any person who could sign the return  
of the entity owning the assets of the REMIC under  
applicable state law.  
Paid preparer’s information. If someone is paid to  
prepare the return, the preparer must sign the return and  
complete the “Paid Preparer Use Only” area.  
The paid preparer must:  
Other penalties. Penalties can also be imposed for  
negligence, substantial understatements of tax, reportable  
transaction understatements, and fraud. See sections  
6662, 6662A, and 6663.  
Have a valid Preparer Tax Identification Number (PTIN),  
Complete the required preparer information,  
Sign the return in the space provided for the preparer's  
signature, and  
Contributions to the REMIC  
Give the REMIC a copy of the return.  
Generally, no gain or loss is recognized by the REMIC or  
any of the regular or residual interest holders when  
property is transferred to the REMIC in exchange for an  
interest in the REMIC. The adjusted basis of the interest  
received equals the adjusted basis of the property  
transferred to the REMIC.  
Note. A paid preparer may sign original returns, amended  
returns, or requests for filing extensions by rubber stamp,  
mechanical device, or computer software program.  
Paid Preparer Authorization  
If the REMIC wants to allow the IRS to discuss its 2023 tax  
return with the paid preparer who signed it, check the  
"Yes" box in the signature area of the return. This  
authorization applies only to the individual whose  
signature appears in the "Paid Preparer Use Only" section  
of the REMIC's return. It doesn't apply to the firm, if any,  
shown in that section.  
The basis to the REMIC of property transferred by a  
regular or residual interest holder is its fair market value  
immediately after its transfer.  
If the transferor holds a regular interest and if the issue  
price of the regular interest is more than its adjusted basis,  
the excess is included in income by the regular interest  
holder for the applicable tax years as if the excess were  
market discount on a bond and the holder had made an  
election under section 1278(b) to include this market  
discount currently. If the transferor holds a residual interest  
If the “Yes” box is checked, the REMIC is authorizing  
the IRS to call the paid preparer to answer any questions  
that may arise during the processing of its return. The  
REMIC is also authorizing the paid preparer to:  
-4-  
Instructions for Form 1066 (2023)  
 
Give the IRS any information that is missing from the  
Item C—Total assets at end of tax year. Enter the total  
assets of the REMIC. If there are no assets at the end of  
the tax year, enter zero.  
return;  
Call the IRS for information about the processing of the  
return or the status of any related refund or payment(s);  
and  
Section I  
Income—(Lines 1 Through 6)  
Respond to certain IRS notices that the REMIC has  
shared with the preparer about math errors, offsets, and  
return preparation.  
Line 1—Taxable interest. Enter the total taxable  
interest. Taxable interest is interest that is included in  
ordinary income from all sources except interest exempt  
from tax and interest on tax-free covenant bonds. You may  
elect to reduce the amount of interest accrued on taxable  
bonds by the amount of amortizable bond premium on  
those bonds attributable to the current tax year. See  
sections 171(c) and 171(e) for details.  
Line 2—Accrued market discount under section  
860C(b)(1)(B). Enter the amount of market discount  
attributable to the current tax year determined on the basis  
of a constant interest rate under the rules of section  
1276(b)(2).  
The REMIC isn't authorizing the paid preparer to  
receive any refund check, bind the REMIC to anything  
(including any additional tax liability), or otherwise  
represent the REMIC before the IRS.  
The authorization can't be revoked. However, the  
authorization will automatically end no later than the due  
date (excluding extensions) for filing the REMIC's 2024  
tax return. If the REMIC wants to expand the paid  
preparer's authorization or revoke the authorization before  
it ends, see Pub. 947, Practice Before the IRS and Power  
of Attorney.  
Line 4—Ordinary gain or (loss). Enter the net gain or  
Specific Instructions  
(loss) from Form 4797, Sales of Business Property, Part II.  
Line 5—Other income. Attach a statement listing by  
type and amount any other taxable income not reported  
on lines 1 through 4. If there is only one item of other  
income, describe it in parentheses to the left of the entry  
space on line 5 instead of attaching a statement.  
If the REMIC issued regular interests at a premium, the  
net amount of the premium is income that must be  
prorated over the term of these interests. Include this  
income on line 5.  
Generally, cancellation of REMIC debt (for example,  
cancellation of unpaid principal and accrued but unpaid  
interest owed to a REMIC regular interest holder) should  
be recognized as income and reported on line 5. Attach a  
supporting statement to line 5 to separately disclose  
income from cancellation of REMIC debt.  
REMICs with a startup date before November 12, 1991,  
enter any capital gain or (loss) on line 5. The REMIC can  
use the Schedule D, included in the 2011 Form 1066, or a  
statement showing the same information as it appears on  
the Schedule D, included in the 2011 Form 1066, to figure  
the capital gain (loss). Attach the schedule or statement to  
Form 1066.  
General Information  
Name, address, and EIN. Enter the REMIC's legal name  
and address on the appropriate lines. Include the suite,  
room, or other unit number after the street address. If the  
Post Office doesn't deliver mail to the street address and  
the REMIC has a P.O. box, show the box number instead.  
If the REMIC receives its mail in care of a third party (such  
as an accountant or attorney), enter on the street address  
line “C/O” followed by the third party's name and street  
address or P.O. box. If the REMIC has changed its  
address since it last filed a return (including a change to  
an “in care of” address), check the box for item D(3),  
Address change.  
Note. If a change in address or responsible party occurs  
after the return is filed, use Form 8822-B to notify the IRS  
of the change.  
Enter the REMIC's EIN on Form 1066, page 1, item A. If  
the REMIC doesn't have its own EIN, it must apply for one.  
A REMIC may apply for an EIN by one of the methods  
discussed below.  
Online by going to IRS.gov/EIN. The EIN is issued  
immediately once the application information is validated.  
By mailing or faxing Form SS-4 to the IRS.  
Deductions—(Lines 7 Through 14)  
If the REMIC hasn't received its EIN by the time the return  
is due, write “Applied for” in the space for the EIN. For  
more details, see Pub. 583.  
Include only deductible amounts on lines 7 through 14. A  
REMIC isn't allowed any of the following deductions in  
computing its taxable income.  
Item B—Date REMIC started. Enter the “startup day”  
The net operating loss deduction.  
selected by the REMIC.  
The deduction for taxes paid or accrued to foreign  
The startup day is the day on which the REMIC issued  
all of its regular and residual interests. However, a sponsor  
may contribute property to a REMIC in exchange for  
regular and residual interests over any period of 10  
consecutive days, and the REMIC may designate any 1 of  
those 10 days as the startup day. The day so designated  
is then the startup day, and all interests are treated as  
issued on that day.  
countries and U.S. possessions.  
The deduction for charitable contributions.  
The deduction for depletion under section 611 for oil  
and gas wells.  
Losses or deductions allocable to prohibited  
transactions.  
Line 9—Amount accrued to regular interest holders  
in the REMIC that is deductible as interest. Regular  
interests in the REMIC are treated as indebtedness for  
Instructions for Form 1066 (2023)  
-5-  
   
federal income tax purposes. Enter the amount of interest,  
including original issue discount, accruing to regular  
interest holders for the tax year. Don't deduct any amounts  
paid or accrued for residual interests in the REMIC.  
to those interests, the administrative costs associated with  
servicing that class outweigh the benefits of maintaining  
the class. It doesn't include the redemption of a class in  
order to profit from a change in interest rates.  
Line 10—Other interest. Don't include interest deducted  
on line 9 or interest on indebtedness incurred or continued  
to purchase or carry obligations on which the interest is  
wholly exempt from income tax. You may elect to include  
amortization of bond premium on taxable bonds acquired  
before 1988 unless you elected to offset amortizable bond  
premium against the interest accrued on the bond (see  
the Section I, line 1, instructions). Don't include any  
amount attributable to a tax-exempt bond.  
Line 1a—Gain from certain dispositions of qualified  
mortgages. Enter the amount of gain from the  
disposition of any qualified mortgage transferred to the  
REMIC other than a disposition from:  
The substitution of a qualified replacement mortgage for  
a qualified mortgage or the repurchase in lieu of  
substitution of a defective obligation;  
The foreclosure, default, or imminent default of the  
mortgage;  
The bankruptcy or insolvency of the REMIC; or  
A qualified liquidation.  
See section 860F(a) for details and exceptions.  
Line 11—Taxes. If you have to pay tax on net income  
from foreclosure property, you should include this tax  
(from Schedule J, line 10) on line 11 of Form 1066.  
Line 1b—Income from nonpermitted assets. Enter the  
amount of any income received or accrued during the year  
attributable to any asset other than a qualified mortgage  
or permitted investment. See section 860G(a) for  
definitions.  
Line 1c—Compensation for services. Enter the receipt  
by the REMIC of any amount representing a fee or other  
compensation for services.  
Line 1d—Gain from the disposition of cash flow in-  
vestments (except from a qualified liquidation). Enter  
the amount of gain from the disposition of any cash flow  
investment except from a qualified liquidation. A cash flow  
investment is any investment of amounts received under  
qualified mortgages for a temporary period (not more than  
13 months) before distribution to holders of interests in the  
REMIC. See section 860F(a)(4) for the definition of a  
qualified liquidation.  
Note. See section 164(d) for apportionment of taxes on  
real property between the seller and purchaser.  
Enter taxes accrued during the tax year but don't  
include the following.  
Federal income taxes (except the tax on net income  
from foreclosure property).  
Foreign or U.S. possession income taxes.  
Taxes not imposed on the REMIC.  
Taxes, including state or local sales taxes, that are paid  
or incurred in connection with an acquisition or disposition  
of property. Such taxes must be treated as a part of the  
cost of the acquired property or, in the case of a  
disposition, as a reduction in the amount realized on the  
disposition.  
Line 12—Depreciation. See the Instructions for Form  
4562, Depreciation and Amortization, or Pub. 946, How To  
Depreciate Property, to figure the amount of depreciation  
to enter on this line. You must complete and attach Form  
4562 if the REMIC placed property in service during 2023,  
claims a section 179 expense deduction, or claims  
depreciation on any car or other listed property.  
Line 13—Other deductions. Attach a statement listing  
by type and amount any other allowable deductions (such  
as bad debt deductions) for which no line is provided on  
Form 1066. If there is only one item of other deductions,  
describe it in parentheses to the left of the entry on line 13  
instead of attaching a statement.  
Part II—Tax on Net Income From Foreclosure  
Property  
For a definition of foreclosure property, see the  
instructions for Schedule L, line 1c, later. Net income from  
foreclosure property must also be included in the  
computation of taxable income (or net loss) shown on  
Form 1066, page 1, Section I.  
Line 6—Gross income from foreclosure property.  
Don't include on line 6 amounts described in section  
856(c)(3)(A), (B), (C), (D), (E), or (G).  
Schedule J  
Part I—Tax on Net Income From Prohibited  
Transactions  
Line 8—Deductions. Only those expenses that are  
directly connected with the production of the income  
shown on line 7 may be deducted to figure net income  
from foreclosure property. Allowable deductions include  
depreciation on foreclosure property, interest accrued on  
debt of the REMIC attributable to the carrying of  
foreclosure property, real estate taxes, and fees charged  
by an independent contractor to manage foreclosure  
property. Don't deduct general overhead and  
Losses not included. Don't net losses from prohibited  
transactions against income or gains from prohibited  
transactions in determining the amounts to enter on lines  
1a through 1d. These losses aren't deductible in  
computing net income from prohibited transactions.  
administrative expenses.  
For purposes of lines 1a and 1d, the term “prohibited  
transactions” doesn't include any disposition that is  
required to prevent default on a regular interest where the  
threatened default resulted from a default on one or more  
qualified mortgages, or to facilitate a clean-up call. A  
clean-up call is the redemption of a class of regular  
interests when, by reason of prior payments with respect  
Line 10—Tax on net income from foreclosure proper-  
ty. The REMIC is allowed a deduction for the amount of  
tax shown on this line. Include this amount in computing  
the deduction for taxes entered on Form 1066, page 1,  
Section I, line 11.  
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Instructions for Form 1066 (2023)  
Part III—Tax on Contributions After the Startup  
Day  
Don't complete this part if the startup day was before July  
1, 1987. For this purpose, startup day means any day  
selected by a REMIC that is on or before the first day on  
which interests in the REMIC are issued.  
Line 11—Tax. Enter the amount of contributions received  
during the calendar year after the startup day (as defined  
in the prior paragraph). See section 860G(d). Don't  
include cash contributions described next.  
Item H—Foreign financial accounts. Check the “Yes”  
box if either (1) or (2) below applies to the REMIC.  
Otherwise, check the “No” box.  
1. At any time during the 2023 calendar year, the  
REMIC had a financial interest in or signature or other  
authority over any foreign financial account, including  
bank, securities, or other types of financial accounts in a  
foreign country (see FinCEN Form 114, Report of Foreign  
Bank and Financial Accounts (FBAR)); and  
a. The combined value of the accounts was more than  
$10,000 at any time during the calendar year, and  
Any contribution to facilitate a clean-up call or a  
qualified liquidation.  
b. The account wasn't with a U.S. military banking  
facility operated by a U.S. financial institution.  
Any payment in the nature of a guarantee.  
Any contribution during the 3-month period beginning  
2. The REMIC owns more than 50% of the stock in any  
on the startup day.  
corporation that would answer “Yes” to item 1 above.  
Any contribution to a qualified reserve fund by any  
If the “Yes” box is checked, do the following.  
holder of a residual interest in the REMIC.  
Enter the name of the foreign country or countries  
Attach a statement showing your computation.  
where the foreign account(s) is held in the space provided  
on the form. Attach a separate sheet if more space is  
needed.  
Additional Information  
Be sure to answer the questions and provide other  
information in items E through L.  
Electronically file FinCEN Form 114, also referred to as  
FBAR, with the Department of the Treasury using the  
FinCEN's BSA E-Filing System. Because FinCEN Form  
114 isn't a tax form, don't file it with Form 1066.  
Item E—Type of entity. Check the box for the entity type  
of the REMIC recognized under state or local law. If the  
REMIC isn't a separate entity under state or local law,  
check the box for “Segregated Pool of Assets” and state  
the name and type of entity that owns the assets in the  
spaces provided.  
Item F—Number of residual interest holders. Enter  
the number of persons who were residual interest holders  
at any time during the tax year.  
Item G—Electing out of the centralized partnership  
audit regime. A REMIC with only one residual interest  
holder at all times during the tax year doesn't need to  
complete item G because the REMIC isn't subject to the  
centralized partnership audit regime. If the REMIC had  
more than one residual interest holder at any time during  
the tax year, it may be eligible to elect out of the  
Go to FinCEN.gov for more information.  
Item I—Foreign trust. The REMIC may be required to  
file Form 3520, Annual Return To Report Transactions  
With Foreign Trusts and Receipt of Certain Foreign Gifts,  
if:  
It directly or indirectly transferred money or property to a  
foreign trust (for this purpose, any U.S. person who  
created a foreign trust is considered a transferor);  
It is treated as the owner of any part of the assets of a  
foreign trust under the grantor trust rules; or  
It received a distribution from a foreign trust.  
For more information, see the Instructions for Form  
3520.  
centralized partnership audit regime for the tax year if it  
has 100 or fewer residual interest holders in that year,  
each of which is either an individual, a C corporation, a  
foreign entity that would be treated as a C corporation if it  
was domestic, an S corporation, or an estate of a  
deceased residual interest holder. The election is made by  
checking the box on item G of a timely filed Form 1066. If  
the REMIC makes this election, it must also attach  
Schedule B-2 (Form 1065) to Form 1066 and provide all of  
the information requested on the Schedule B-2 for each  
residual interest holder and the shareholders of any S  
corporation residual interest holders. The REMIC must  
notify each residual interest holder of the election within  
30 days of making the election.  
Note. An owner of a foreign trust must ensure that the  
trust files an annual information return on Form 3520-A,  
Annual Information Return of Foreign Trust With a U.S.  
Owner. For details, see the Instructions for Form 3520-A.  
To report information required under section 6038B, the  
REMIC may be required to file Form 926, Return by a U.S.  
Transferor of Property to a Foreign Corporation; or Form  
8865, Return of U.S. Persons With Respect to Certain  
Foreign Partnerships. See the instructions for these forms  
for more information.  
Item L—Sum of the daily accruals. Enter the total of  
the daily accruals for all residual interests for the calendar  
year. See section 860E(c)(2) for details.  
If the REMIC had more than one residual interest  
holder at any time during the tax year and didn't elect out  
of the centralized partnership audit regime, it must  
complete the Designation of Partnership Representative  
on page 4 of Form 1066. For more information, see  
Schedule L, Balance Sheets per  
Books  
The amounts shown should agree with the REMIC's  
books and records. Attach a statement explaining any  
differences.  
Line 1a—Cash flow investments. These are any  
investments of amounts received under qualified  
Instructions for Form 1066 (2023)  
-7-  
mortgages for a temporary period (not more than 13  
months) before distribution to holders of interests in the  
REMIC.  
The amounts shown should agree with the REMIC's  
books and records and the balance sheet amounts.  
Attach a statement explaining any differences.  
Line 1b—Qualified reserve assets. The term “qualified  
reserve asset” means any intangible property that is held  
for investment and as part of a qualified reserve fund. For  
a definition of qualified reserve fund, including exceptions,  
see sections 860G(a)(7)(B) and (C).  
Include in column (d):  
Tax-exempt interest income,  
Other tax-exempt income,  
Income from prohibited transactions,  
Income recorded on the REMIC's books but not  
included on this return, and  
Line 1c—Foreclosure property. This is any real  
property (including interests in real property), and any  
personal property incident to such real property, acquired  
by the REMIC as a result of the REMIC's having bid in the  
property at foreclosure, or having otherwise reduced the  
property to ownership or possession by agreement or  
process of law, after there was a default or imminent  
default on a qualified mortgage held by the REMIC.  
Generally, this property ceases to be foreclosure property  
at the close of the third tax year following the tax year in  
which the REMIC acquired the property. See sections  
860G(a)(8) and 856(e), and Regulations section 1.856-6  
for more details.  
Allowable deductions not charged against book income  
this year.  
Include in column (e):  
Capital losses over the $3,000 limitation (for a REMIC  
with a startup day before November 12, 1991),  
Other nondeductible amounts (such as losses from  
prohibited transactions and expenses connected with the  
production of tax-exempt income),  
Deductions allocable to prohibited transactions,  
Expenses recorded on books not deducted on this  
return, and  
Taxable income not recorded on the books this year.  
Note. Solely for purposes of section 860D(a), the  
determination of whether any property is foreclosure  
property will be made without regard to section 856(e)(4).  
Line 7—regular interests. These are interests in the  
REMIC that are issued on the startup day with fixed terms  
and that are designated as regular interests, if:  
1. Such interest unconditionally entitles the holder to  
receive a specified principal amount or other similar  
amounts; and  
2. Interest payments (or similar amounts), if any, with  
respect to the interest at or before maturity are payable  
based on a fixed rate (or at a variable rate described in  
Regulations section 1.860G-1(a)(3)), or consist of a  
specified portion of the interest payments on qualified  
mortgages and this portion doesn't vary during the period  
that the interest is outstanding.  
Designation of Partnership  
Representative (PR)  
Unless the REMIC has made a valid election out of the  
centralized partnership audit regime or had only one  
residual interest holder at all times during the tax year, the  
REMIC must designate a PR. The PR can be any person  
with a substantial presence in the United States. The PR  
will have the sole authority to act on behalf of the REMIC.  
If an entity is designated as PR, the REMIC must also  
appoint an individual to act on the entity's behalf (a  
designated individual (DI)). The DI must also have a  
substantial presence in the United States.  
How to designate. An original designation of a PR must  
be made on the REMIC's Form 1066 filed for each  
respective REMIC tax year.  
PR authority. The REMIC and all its residual interest  
holders (and any other person whose tax liability is  
determined in whole or in part by taking into account  
directly or indirectly adjustments determined under the  
centralized partnership audit regime) are bound by the  
actions of the PR in dealings with the IRS. A designation  
for a partnership tax year remains in effect until the  
designation is terminated by:  
The interest will meet the requirements of (1) even if the  
timing (but not the amount) of the principal payments (or  
other similar amounts) is contingent on the extent of  
prepayments on qualified mortgages and the amount of  
income from permitted investments.  
An interest will still qualify as a regular interest even if  
the specified principal amount of the regular interest (or  
the amount of interest accrued on the regular interest) can  
be reduced as a result of the nonoccurrence of one or  
more contingent payments with respect to any reverse  
mortgage loan held by the REMIC if, on the startup day for  
the REMIC, the sponsor reasonably believes that all  
principal and interest due under the regular interest will be  
paid at or prior to the liquidation of the REMIC.  
Valid resignation of the PR,  
Valid revocation of the PR, or  
Determination by the IRS that the designation isn’t in  
effect.  
Substantial presence. In order for either a PR or a DI to  
have substantial presence in the United States, they must:  
Make themselves available to meet in person with the  
IRS in the United States at a reasonable time and place,  
as determined by the IRS;  
Schedule M, Reconciliation of  
Residual Interest Holders’ Capital  
Accounts  
Have a street address that is in the United States;  
Have a telephone number with a U.S. area code; and  
Have a U.S. taxpayer identification number.  
Show what caused the changes in the residual interest  
holders' capital accounts during the tax year.  
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Instructions for Form 1066 (2023)  
     
Item B—Residual Interest Holder's Percentage of  
Ownership  
Schedule Q, Quarterly Notice to  
Residual Interest Holder of REMIC  
Taxable Income or Net Loss  
Allocation  
Enter in item B2 the percentage at the end of the calendar  
quarter. However, if a residual interest holder's percentage  
of ownership changed during the quarter, enter in item B1  
the percentage immediately before the change. If there  
are multiple changes in the percentage of ownership  
during the quarter, attach a statement giving the date and  
percentage before each change.  
Purpose of Schedule  
Schedule Q (Form 1066) shows each residual interest  
holder's share of the REMIC's quarterly taxable income  
(or net loss), the excess inclusion for the residual interest  
holder's interest, and the residual interest holder's share  
of the REMIC's section 212 expenses for the quarter.  
Item C—REMIC Assets  
Enter in item C the percentage of the REMIC's assets  
during the calendar quarter represented by each of the  
following categories of assets.  
Although the REMIC isn't subject to income tax (except  
on net income from prohibited transactions, net income  
from foreclosure property, and contributions made after  
the startup day), the residual interest holders are liable for  
tax on their shares of the REMIC's taxable income,  
whether or not distributed, and must include their shares  
on their tax returns.  
Real estate assets under section 856(c)(5)(B).  
Assets described in section 7701(a)(19)(C) (relating to  
the definition of a domestic building and loan association).  
These percentages must be computed using the  
average adjusted basis of the assets held during the  
calendar quarter. To do this, the REMIC must make the  
appropriate computation as of the close of each month,  
week, or day and then average the monthly, weekly, or  
daily percentages for the quarter. The monthly, weekly, or  
daily computation period must be applied uniformly during  
the calendar quarter to both categories of assets, and may  
not be changed in succeeding calendar quarters without  
IRS consent. If the percentage of the REMIC's assets for  
either category is at least 95%, the REMIC may show “95  
or more” for that category in item C.  
Note. Schedule Q (Form 1066) is a separate tax form that  
isn't part of Form 1066.  
General Instructions  
For each calendar quarter, complete Schedule Q (Form  
1066) for each person who was a residual interest holder  
at any time during the quarter. File Schedule Q with Form  
1066. Give one copy to the residual interest holder by the  
last day of the month following the month in which the  
calendar quarter ends. Keep one copy with a copy of  
Form 1066 as part of the REMIC's records.  
Specific Instructions  
If less than 95% of the assets of the REMIC are real  
estate assets (as defined in section 856(c)(5)(B)), the  
REMIC must also report to any real estate investment trust  
that holds a residual interest the information specified in  
Regulations section 1.860F-4(e)(1)(ii)(B). However, if a  
REMIC is an “eligible REMIC,as defined in Notice  
2012-5, and a percentage of its assets represented by  
either of the categories of assets described under REMIC  
assets, earlier, was less than 95% but at least 80%, then  
the REMIC need only specify in item C that the  
On each Schedule Q, enter the name, address, and  
identifying number for each residual interest holder and  
REMIC. For each residual interest holder that is an  
individual, you must enter the residual interest holder's  
social security number (SSN) (or individual taxpayer  
identification number (ITIN) for a resident or nonresident  
alien). For all other residual interest holders, you must  
enter the residual interest holder's EIN. However, if a  
residual interest holder is an IRA, enter the identifying  
number of the IRA trust. Don't enter the SSN (or ITIN) of  
the individual for whom the IRA is maintained.  
percentage for that category was at least 80%. For more  
information, see Notice 2012-5, available on page 291 of  
Internal Revenue Bulletin 2012-3 at IRS.gov/irb/  
Item A—What Type of Entity Is This Residual  
Interest Holder?  
Item F—Reconciliation of Residual Interest  
Holder's Capital Account  
State on this line whether the residual interest holder is an  
individual, a corporation, an estate, a trust, a partnership,  
an exempt organization, a nominee (custodian), or  
another REMIC. If the residual interest holder is a  
nominee, use the following codes to indicate in  
See the instructions for Schedule M, earlier.  
Line 1a—Taxable income (net loss) of the REMIC for  
the calendar quarter. Enter the REMIC's taxable  
income (net loss) for the calendar quarter. The sum of the  
totals for the four quarters in the calendar year must equal  
the amount shown on Form 1066, Section I, line 15.  
Line 1b—Your share of the taxable income (net loss)  
for the calendar quarter. Enter the residual interest  
holder's share of the taxable income (net loss) shown on  
line 1a (determined by adding the holder's daily portions  
under section 860C(a)(2) for each day in the quarter the  
parentheses the type of entity the nominee represents.  
I—Individual.  
C—Corporation.  
F—Estate or Trust.  
P—Partnership.  
E—Exempt Organization.  
R—REMIC.  
IRA—Individual Retirement Arrangement.  
Instructions for Form 1066 (2023)  
-9-  
holder held the residual interest). If line 1a is a loss, enter  
the residual interest holder's full share of the loss, without  
regard to the adjusted basis of the residual interest  
holder's interest in the REMIC.  
Litigation expenses, and  
The cost of preparing and distributing reports and  
notices to interest holders.  
Line 3b—Your share of section 212 expenses for the  
calendar quarter. Enter the residual interest holder's  
share of the amount shown on line 3a.  
Line 2a—Sum of the daily accruals under section  
860E for all residual interests for the calendar quar-  
ter. Enter the product of the sum of the adjusted issue  
prices of all residual interests at the beginning of the  
quarter and 120% of the long-term federal rate  
Paperwork Reduction Act Notice. We ask for the  
information on this form to carry out the Internal Revenue  
laws of the United States. You're required to give us the  
information. We need it to ensure that you are complying  
with these laws and to allow us to figure and collect the  
right amount of tax.  
(determined on the basis of compounding at the end of  
each quarter and properly adjusted for the length of such  
quarter). See section 860E(c) for details.  
Line 2b—Sum of the daily accruals under section  
860E for your interest. Enter zero if line 2a is zero.  
Otherwise, divide the amount shown on line 2a by the  
number of days in the quarter. Multiply the result by the  
residual interest holder's percentage of ownership for  
each day in the quarter that the residual interest holder  
owned the interest. Total the daily amounts and enter the  
result.  
Line 3. Complete lines 3a and 3b only for residual  
interest holders who are individuals or other pass-through  
interest holders (as defined in Temporary Regulations  
section 1.67-3T).  
Line 3a—Section 212 expenses of the REMIC for the  
calendar quarter. Enter the REMIC's allocable section  
212 expenses for the calendar quarter. The term  
“allocable section 212 expenses” means the aggregate  
amount of the expenses paid or accrued in the calendar  
quarter for which a deduction is allowable under section  
212 in determining the taxable income of the REMIC for  
the calendar quarter.  
You’re not required to provide the information requested  
on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number.  
Books or records relating to a form or its instructions must  
be retained as long as their contents may become  
material in the administration of any Internal Revenue law.  
Generally, tax returns and return information are  
confidential, as required by section 6103.  
The time needed to complete and file this form and  
related schedule will vary depending on individual  
circumstances. The estimated burden for business  
taxpayers filing this form and the related schedule is  
approved under OMB control number 1545-0123 and is  
included in the estimates shown in the instructions for their  
business income tax return.  
If you have comments concerning the accuracy of the  
time estimates or suggestions for making this form and  
related schedule simpler, we would be happy to hear from  
you. You can send us comments through IRS.gov/  
FormComments. Or, you can write to Internal Revenue  
Service, Tax Forms and Publications, 1111 Constitution  
Ave. NW, IR-6526, Washington, DC 20224. Don’t send  
tax questions, tax returns, or payments to the above  
address. Instead, see Where To File, earlier.  
Section 212 expenses generally include operational  
expenses such as:  
Rent,  
Salaries,  
Legal fees,  
Accounting fees,  
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Instructions for Form 1066 (2023)