Form 1066 is required to be filed by entities that elect to be treated as a Real Estate Mortgage Investment Conduit (REMIC) for their first tax year, meeting certain criteria. It is used to report income, deductions, and gains or losses from the operation of the REMIC, as well as the taxes on net income from prohibited transactions and contributions after the startup day.
What is Form 1066?
Form 1066 is used to report income, deductions and gains/losses from a Real Estate Mortgage Investment Conduit (REMIC), as well as taxes on certain types of net income. It must be filed by any entity that meets the requirements of section 860D(a) for the first tax year (or any following year) and elects to be treated as a REMIC. Electing to be treated as a REMIC requires the filing of the form and must be signed by an authorized person. Upon making the election, a statement containing terms of the regular interests and designated residual interest, along with prepayment/reinvestment assumptions must be attached. If an entity ceases to qualify as a REMIC, the election is terminated and the normal tax form for the entity is filed. Form 1066 is due by March 15 of the year following the tax year; an extension can be requested with Form 7004. The period covered includes the calendar year, any short tax years beginning and ending during the calendar year, or short tax years with a return filed in the following calendar year.
IRS Form 1066 – Who Needs to Fill It Out?
IRS Form 1066 must be filled out by an entity if they elected to be treated as a REMIC for its first tax year and meet the requirements of sections 860D(a). The election must be made by timely filing a Form 1066 and signing it with an authorized person. The form is due by March 15th 2023, unless an extension is requested. The form must cover the 2022 calendar year, 2022 short tax year, or 2023 short tax year with any tax law changes effective after December 31, 2022 being applied to the tax return.
Step-by-Step: Form 1066 Instructions For Filling Out the Document
Follow these step-by-step instructions to properly fill out Form 1066 for a REMIC. Determine if you are eligible by making sure you meet the section 860D(a) requirements. Make the election to be treated as a REMIC by filing the Form 1066 and attaching a statement with information about the interests in the REMIC and a description of prepayment and reinvestment assumptions. If the entity ceases to qualify as a REMIC, the election is terminated. File the 2022 Form 1066 by March 15, 2023. To request an automatic extension, file the Form 7004 by the regular due date of Form 1066. The period covered is either calendar year 2022, short tax year beginning/ending in 2022, or short tax year beginning/ending in 2023 if the 2023 form isn’t available.
Below, we present a table that will help you understand how to fill out Form 1066.
|Information Required for Form 1066||Details|
|Eligibility||Meet section 860D(a) requirements|
|Election to be treated as a REMIC||File Form 1066 and attach a statement with REMIC interest information and prepayment/reinvestment assumptions|
|Termination of Election||If entity ceases to qualify as a REMIC|
|Filing Deadline||File 2022 Form 1066 by March 15, 2023|
|Extension Request||File Form 7004 by regular Form 1066 due date for an automatic extension|
|Period Covered||Calendar year 2022, short tax year beginning/ending in 2022, or short tax year beginning/ending in 2023 if 2023 form isn’t available|
Do You Need to File Form 1066 Each Year?
To be treated as a Real Estate Mortgage Investment Conduit (REMIC) for a given tax year, and all prior tax years, you must file Form 1066. This form reports income, deductions, gains and losses, and taxes on prohibited transactions and net income, from your REMIC operations. In addition, you must make sure all assets (qualified mortgages and permitted investments) are held and available, and must provide a statement about the terms of the regular interests and the designated residual interests attached to your initial tax return. To maintain the election to be a REMIC for all future years, the return must be filled and signed by an authorized person. If the entity ceases to qualify as a REMIC, the election must be terminated and you must file the return for similarly organized entities instead. Form 1066 is generally due by March 15, but an extension may be requested with Form 7004 if needed. If filing for a short tax year, you must use the appropriate Form 1066 for the time period.
Download the official IRS Form 1066 PDF
On the official IRS website, you will find a link to download Form 1066. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1066