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Final regulations and removal of temporary regulations.
CFR Part: "26 CFR Part 1"
RIN Number: "RIN 1545-BL48"
Citation: "78 FR 70856"
Document Number: "TD 9642"
"Rules and Regulations"
SUMMARY: This document contains final regulations that require information reporting by persons who receive mortgage insurance premiums, including prepaid premiums, aggregating
EFFECTIVE DATE: Effective Date: These regulations are effective on
Applicability Date: For dates of applicability, see
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: This document contains amendments to the Income Tax Regulations (26 CFR part 1) under section 6050H(h) of the Internal Revenue Code (Code) relating to reporting requirements for mortgage insurance premiums. Section 6050H(h)(1), enacted on
In general, section 163(h)(3)(E) treats premiums paid for qualified mortgage insurance by a taxpayer during the taxable year in connection with acquisition indebtedness with respect to a qualified residence as qualified residence interest. Prior to amendment in 2013, section 163(h)(3)(E) was effective for amounts paid or accrued between
Explanation of Revisions
The final regulations adopt the proposed regulations under
The second revision relates to the effective date and applicability of these final regulations. On
Because information reporting with respect to mortgage insurance premiums received during 2012 was not required, no penalty under section 6721 or section 6722 will apply with respect to the failure to report mortgage insurance premiums received during 2012.
Further, the fact that an individual did not receive a Form 1098 reporting the amount of mortgage insurance premiums paid for 2012 does not affect whether the individual satisfied the requirements under section 163(h) to treat qualified mortgage insurance premiums as qualified residence interest. Accordingly, any individual who paid or accrued qualified mortgage insurance premiums in the calendar year ending
It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. It is hereby certified that this rule will not have a significant economic impact on a substantial number of small entities. This certification is based on the fact that this rule merely reinstates the mortgage insurance information reporting requirements on the Form 1098 that previously existed from 2007 through 2011. In addition, persons receiving mortgage insurance premiums already are required to file the Form 1098 to report interest received on qualified mortgages and completing the mortgage insurance premiums box imposes little or no incremental burden in time or expense. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5
The principal author of these regulations is
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6050H-3 is also issued under 26 U.S.C. 6050H(h). * * *
Par. 2. Section 1.6050H-3 is added to read as follows:
(a) Information reporting requirements. Any person who, in the course of a trade or business, receives premiums, including prepaid premiums, for mortgage insurance (as described in paragraph (b) of this section) from any individual aggregating
(b) Scope. Paragraph (a) of this section applies to mortgage insurance provided by the
(c) Aggregation. Whether a person receives
(d) Time, form, and manner of reporting. Mortgage insurance premiums required to be reported under paragraph (a) of this section must be reported on the Form 1098 or successor form that is filed pursuant to
(e) Cross reference. For rules concerning the allocation of certain prepaid qualified mortgage insurance premiums, see
(f) Limitation on the reporting of mortgage insurance premiums. This section applies to mortgage insurance premiums described in paragraph (b) of this section that are paid or accrued on or after
(g) Effective/applicability date. This section applies to mortgage insurance premiums received on or after
Par. 3. Section 1.6050H-3T is removed.
Deputy Commissioner for Services and Enforcement.
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-28381 Filed 11-26-13;
BILLING CODE 4830-01-P
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