Allocation and Reporting of Mortgage Insurance Premiums, 21295 [E9-10664]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 74, Number 87 (Thursday, May 7, 2009)]
[Proposed Rules]
[Page 21295]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-10664]



[[Page 21295]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-107271-08]
RIN 1545-BH83


Allocation and Reporting of Mortgage Insurance Premiums

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
prepaid qualified mortgage insurance premiums. The temporary 
regulations reflect changes to the law made by the Tax Relief and 
Health Care Act of 2006 and the Mortgage Forgiveness Debt Relief Act of 
2007. The temporary regulations explain how to allocate prepaid 
qualified mortgage insurance premiums to determine the amount of the 
prepaid premium that is treated as qualified residence interest each 
taxable year under section 163(h)(4)(F) of the Internal Revenue Code 
(Code). The temporary regulations also provide guidance to reporting 
entities receiving premiums, including prepaid premiums, for mortgage 
insurance. The text of those temporary regulations also serves as the 
text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by August 5, 2009.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-107271-08), Room 
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
107271-08), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC, or sent electronically via the Federal 
eRulemaking Portal at https://www.regulations.gov (IRS REG-107271-08).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Angella Warren (202) 622-4950; concerning submission of comments or a 
request for a public hearing, Funmi Taylor at (202) 622-7180 (not toll-
free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the regulations under 26 CFR Part 1 
relating to sections 163(h) and 6050H(h). The temporary regulations add 
rules relating to the proper allocation of prepaid qualified mortgage 
insurance premiums and provide guidance to reporting entities receiving 
mortgage insurance premiums. The text of those temporary regulations 
also serves as the text of these proposed regulations. The preamble to 
the temporary regulations explains the amendments.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. 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. Because the 
regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Code, these regulations have 
been submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. The IRS and the Treasury Department request comments on the 
clarity of the proposed rules and how they can be made easier to 
understand. All comments will be available for public inspection and 
copying.
    A public hearing will be scheduled if requested in writing by any 
person that timely submits comments. If a public hearing is scheduled, 
notice of the date, time and place for the public hearing will be 
published in the Federal Register.

Drafting Information

    The principal author of these regulations is Angella Warren, Office 
of the Associate Chief Counsel (Income Tax and Accounting). However, 
other personnel from the IRS and the Treasury Department participated 
in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *

    Par. 2. Section 1.163-11 is added to read as follows:


Sec.  1.163-11  Allocation of certain prepaid qualified mortgage 
insurance premiums.

    [The text of this section is the same as the text of Sec.  1.163-
11T(a) through (d) published elsewhere in this issue of the Federal 
Register].
    Par. 3. Section 1.6050H-3 is added to read as follows:


Sec.  1.6050H-3  Information reporting of mortgage insurance premiums.

    [The text of this section is the same as the text of Sec.  1.6050H-
3T(a) through (e) published elsewhere in this issue of the Federal 
Register].

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E9-10664 Filed 5-6-09; 8:45 am]
BILLING CODE 4830-01-P