表格1066 说明
关于表1066的说明,美国房地产抵押投资公司所得税返还
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- 表格1066 - 美国房地产抵押投资公司所得税返还
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.
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,
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instructions, and publications;
Use the online Internal Revenue Code, regulations, or
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other official guidance;
Get information on starting and operating a small
•
business;
Order IRS products online;
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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.
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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
information, see Designation of Partnership
A REMIC is any entity that:
Elects to be treated as a REMIC for the tax year and all
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prior tax years;
All of the interests in which are regular interests or
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residual interests;
Has one (and only one) class of residual interests and
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all distributions, if any, with respect to such interests are
pro rata;
Substantially all of the assets consist of qualified
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mortgages and permitted investments as of the close of
the third month beginning after the startup day (defined in
and at all times thereafter;
Representative, later.
Photographs of Missing Children
The IRS is a proud partner with the National Center for
Missing & Exploited Children® (NCMEC). Photographs of
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
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For which reasonable arrangements have been
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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
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
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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
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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.
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CAUTION
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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
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Adjustment Request (AAR); and
An amended Schedule Q (Form 1066) for each residual
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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
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)
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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,
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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.
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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:
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Instructions for Form 1066 (2023)
Give the IRS any information that is missing from the
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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
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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
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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.
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immediately once the application information is validated.
By mailing or faxing Form SS-4 to the IRS.
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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.
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selected by the REMIC.
The deduction for taxes paid or accrued to foreign
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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.
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The deduction for depletion under section 611 for oil
•
and gas wells.
Losses or deductions allocable to prohibited
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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)
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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
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
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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.
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•
•
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
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
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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.
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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
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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
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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
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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
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
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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
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foreign trust under the grantor trust rules; or
It received a distribution from a foreign trust.
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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)
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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,
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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
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this year.
Include in column (e):
Capital losses over the $3,000 limitation (for a REMIC
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with a startup day before November 12, 1991),
Other nondeductible amounts (such as losses from
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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
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return, and
Taxable income not recorded on the books this year.
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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,
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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
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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.
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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).
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Assets described in section 7701(a)(19)(C) (relating to
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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
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.
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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
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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
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
Section 212 expenses generally include operational
expenses such as:
Rent,
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Salaries,
Legal fees,
Accounting fees,
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Instructions for Form 1066 (2023)