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TREAS/IRS

RIN: 1545-BB84

Publication ID: Fall 2008

Title: Real Estate Mortgage Investment Conduit (REMIC) Residuals--Timing of Income for Foreign Holders
Abstract: These proposed regulations cross-reference temporary regulations that address transactions in which partnerships with foreign partners were being used in an attempt to avoid tax on some Real Estate Mortgage Investment Conduit (REMIC) excess inclusions. That avoidance would have violated Congress's clear intention that excess inclusion income should always produce some tax liability. Under the regulations, if a domestic partnership holds REMIC residual interests and allocates excess inclusions from those interests to foreign partners, the foreign partners' recognition of the excess inclusion income is accelerated for purposes of the withholding rules, and the partnership is required to withhold on the income, even in the absence of distributions of cash or property to the foreign partners.
Agency: Department of the Treasury(TREAS)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 26 CFR 1
Legal Authority: 26 USC 860G(b) 26 USC 7805

Legal Deadline: None

Timetable:

Action	Date	FR Cite
NPRM	08/01/2006	71 FR 43398
NPRM Comment Period End	10/30/2006
Final Action	12/00/2008

Additional Information: REG-159929-02 Drafting attorney: Arturo Estrada (202) 622-3900 Treasury attorney: Michael Novey (202) 622-1339 CC: FIP
Regulatory Flexibility Analysis Required: Undetermined	Government Levels Affected: None
Small Entities Affected: No	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: Arturo Estrada Attorney-Advisor Department of the Treasury Internal Revenue Service 1111 Constitution Avenue NW., Washington, DC 20224 Phone:202 317-4436 Fax:202 317-6753 Email: arturo.estrada@irscounsel.treas.gov