1545-1018 Supporting Statement

SUPPORTING STATEMENT

Internal Revenue Service (IRS)

Allocation of Expenses by Real Estate Mortgage Investment Conduits (REMIC)

OMB Control Number 1545-1018

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

In general, a REMIC is a fixed pool of mortgages in which multiple classes of interests are held by investors and which elects to be taxed as a REMIC. The Internal Revenue Code (IRC) section 860D and its regulations prescribe the manner in which an entity elects status as a REMIC. IRC section 860F and its regulations govern the rules for certain income and loss the filing of the REMIC's income tax return. IRC sections 67 and 6049 and their regulations provide rules for certain deductions and income, as well as information disclosure requirements regarding the income and deductions.

The following regulations were added by Treasury Decisions (TD) 8366 and 8431:

Treasury Regulations section 1.67-3(f)(4)(ii) requires single-class REMICs to provide certain IRC section 67 information to a person holding a regular interest in the single-class REMIC pursuant to section 1.6049-7(e).

Treasury Regulations section 1.6049-7(e) requires the REMIC to provide certain information to brokers and middlemen who request the information to complete information returns.

Treasury Regulations section 1.6049-7(f)(7) requires brokers and middlemen to furnish certain information to corporations, non-calendar year taxpayers, and other specified persons who requests the information and for whom the broker or middleman holds as a nominee a REMIC regular interest or a collateralized debt obligation.

2. USE OF DATA

The data will be used by the recipients to accurately complete required information returns and other tax return information.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

The regulations provide that the parties may exchange the data by telephone, written mail, or any other method agreed to by both parties.

4. EFFORTS TO IDENTIFY DUPLICATION

The information obtained through this collection is unique and is not already available for use or adaptation from another source.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES

The collection of information requirement will not have a significant economic impact on a substantial number of small entities.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Consequences of less frequent collection would prevent the taxpayer from proper tax compliance and hinder the IRS from meeting its mission.

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

There are no special circumstances requiring data collection to be inconsistent with guidelines in 5 CFR 1320.5(d)(2).

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

In response to the Federal Register notice dated March 26, 2025 (90 FR 13825), we received no comments during the comment period regarding this guidance.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS

No payment or gift has been provided to any respondents.

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES

Generally, tax returns and tax return information are confidential as required by 26 U.S.C. 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS

There is no sensitive personally identifiable information (PII) in this collection. These are third-party disclosure requirements.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

The collection of information in these regulations are as follows:

Treasury Regulations section 1.67-3(f)(4)(ii) requires single-class REMICs to provide certain IRC section 67 information to a person holding a regular interest in the single-class REMIC pursuant to section 1.6049-7(e). We estimate that approximately 5 single class REMICs will have to provide the information to 5 brokers each and that each request will take .3 hour to furnish. Total burden: 8 hours.

Treasury Regulations section 1.6049-7(e) requires the REMIC to provide certain information to brokers and middlemen who request the information to complete information returns. We estimate that approximately 600 REMICs or other issuers of collateralized debt obligation will have to provide the information to 12 brokers or middlemen, and that each request will take .1 hour to furnish. Total burden: 720 hours.

Treasury Regulations section 1.6049-7(f)(7) Treasury Regulations Section 1.6049-7(f)(7) requires brokers and middlemen to furnish certain information to corporations, non-calendar year taxpayers, and other specified persons who requests the information and for whom the broker or middleman holds as a nominee a REMIC regular interest or a collateralized debt obligation. We estimate that approximately 50 brokers or middlemen will have to provide the information to 50 corporations each, and that each request will take .1 hour to furnish. Total burden: 250 hours.

Authority	Description	# of Respondents	# Responses per Respondent	Annual Responses	Hours per Response	Total Burden Hours
IRC § 67	1.67-3(f)(4)(ii)	5	5	25	.3	8
IRC § 6049	1.6049-7(e)	600	12	7,200	.1	720
IRC § 6049	1.6049-7(f)(7)	50	50	2,500	.1	250
Totals		655		9,725		978

Please continue to assign OMB control number 1545-1018 to these regulations:

1.67-3 1.6049-4 1.6049-7

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

The IRS estimates the total annual cost to respondents at $32,570.33.

To arrive at this figure, 51%¹ of burden of 978 was multiplied by $65.30 per hour. The IRS anticipates that 51% of taxpayers may use an accountant to provide data needed for information returns and other tax return information.

The above Hourly Wage Rate is the May 2024 Bureau of Labor Statistics mean wage for “Accountant and Auditors” (Major Group (13-2011)” of $44.96 times the wage rate benefit multiplier of 1.4524 (to account for fringe benefits) equaling a fully-loaded wage rate of $65.30.

The benefits multiplier is estimated by dividing total compensation of $46.84 by salaries and wages of $32.25, based on Employer Cost for Employee Compensation, September 2024 data, released December 17, 2024.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

There are no annualized costs to the Federal government. These are third-party disclosure requirements.

15. REASONS FOR CHANGE IN BURDEN

There is no change in the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.

	Requested	Program Change Due to New Statute	Program Change Due to Agency Discretion	Change Due to Adjustment in Agency Estimate	Change Due to Potential Violation of the PRA	Previously Approved
Annual Number of Responses	9,725	0	0	0	0	9,725
Annual Time Burden (Hr.)	978	0	0	0	0	978

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

There are no plans for tabulation, statistical analysis, and publication.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

The IRS believes that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the regulations expire as of the expiration date. Taxpayers are not likely to be aware that the IRS intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT

There are no exceptions to the certification statement.

1 The IRS estimates 51% of taxpayers would seek a tax professional to complete their tax return based on IRS Data Book, 2023.