Information Reporting of Mortgage Insurance Premiums, 70856-70858 [2013-28381]
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70856
Federal Register / Vol. 78, No. 229 / Wednesday, November 27, 2013 / Rules and Regulations
the transfer of the legacy U.S. Customs
Service of the Department of the
Treasury to DHS and the subsequent
renaming of the agency. As this rule
pertains to agency organization,
procedure, or practice it is exempt from
prior notice and public comment
pursuant to 5 U.S.C. 553(b)(A). For this
same reason, pursuant to 5 U.S.C.
553(d)(3), CBP finds that good cause
exists for not providing a delayed
effective date.
Code of Federal Regulations (19 CFR
Part 103) is amended as set forth below.
PART 103—GENERAL PROVISIONS
1. The general authority citation for
part 103 continues to read as follows:
■
Authority: 5 U.S.C. 301, 552, 552a; 19
U.S.C. 66, 1624; 31 U.S.C. 9701.
*
*
§ 103.21
*
*
*
[Amended]
Because no notice of proposed
rulemaking is required, the provisions
of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.) do not apply. This
amendment does not meet the criteria
for a ‘‘significant regulatory action’’ as
specified in Executive Order 12866, as
supplemented by Executive Order
13563.
2. Amend § 103.21 by:
a. Removing the words ‘‘Customs’’
and ‘‘the Customs Service’’ and adding
in their place ‘‘CBP’’;
■ b. Removing the words ‘‘Department
of the Treasury’’ and adding in their
place ‘‘Department of Homeland
Security’’; and
■ c. Removing the words ‘‘the United
States Customs Service’’ and adding in
their place ‘‘U.S. Customs and Border
Protection’’.
C. Unfunded Mandates Reform Act of
1995
§§ 103.22, 103.23, 103.24, 103.25, 103.27
[Amended]
This rule will not result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year, and it will not
significantly or uniquely affect small
governments. Therefore, no actions are
necessary under the provisions of the
Unfunded Mandates Reform Act of
1995.
■
■
■
B. The Regulatory Flexibility Act and
Executive Order 12866
D. Executive Order 13132
The rule will not have substantial
direct effects on the States, on the
relationship between the National
Government and the States, or on the
distribution of power and
responsibilities among the various
levels of government. Therefore, in
accordance with section 6 of Executive
Order 13123, this rule does not have
sufficient federalism implications to
warrant the preparation of a federalism
summary impact statement.
3. Amend §§ 103.22, 103.23, 103.24,
103.25, 103.27 by removing the words
‘‘Customs’’ and ‘‘the Customs Service’’
and adding in their place ‘‘CBP’’.
§ 103.26
[Amended]
4. Amend § 103.26 by:
a. Removing the words ‘‘Port
directors, special agents in charge, and
chiefs of field laboratories’’ and adding
in their place ‘‘Port directors, special
agents in charge within the Office of
Internal Affairs, chief patrol agents,
directors within the Office of Air and
Marine, directors of field laboratories, or
any supervisor of such officials’’.
■ b. Removing the word ‘‘Customs’’ and
adding in its place ‘‘CBP’’.
■
■
Dated: November 18, 2013.
Thomas S. Winkowski,
Acting Commissioner.
[FR Doc. 2013–27967 Filed 11–26–13; 8:45 am]
BILLING CODE 9111–14–P
E. Signing Authority
This document is limited to technical
corrections of CBP regulations.
Accordingly, it is being signed under
the authority of 19 CFR 0.1(b).
emcdonald on DSK67QTVN1PROD with RULES
List of Subjects in 19 CFR Part 103
Administrative practice and
procedure, Confidential business
information, Courts, Freedom of
information, Law enforcement, Privacy,
Reporting and recordkeeping
requirements.
Amendments to Regulations
For the reasons stated in the
preamble, part 103 of title 19 of the
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9642]
RIN 1545–BL48
Information Reporting of Mortgage
Insurance Premiums
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
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This document contains final
regulations that require information
reporting by persons who receive
mortgage insurance premiums,
including prepaid premiums,
aggregating $600 or more during any
calendar year. The final regulations
implement reporting requirements that
result from the extension of the
treatment of mortgage insurance
premiums made by the American
Taxpayer Relief Act of 2012. These
regulations will affect any person who,
in the course of a trade or business,
receives from an individual mortgage
insurance premiums that in the
aggregate total $600 or more during a
calendar year.
DATES: Effective Date: These regulations
are effective on November 27, 2013.
Applicability Date: For dates of
applicability, see § 1.6050H–3(g).
FOR FURTHER INFORMATION CONTACT:
Janet Engel Kidd at (202) 317–6844 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
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 December 20,
2006, by section 419(c) of the Tax Relief
and Health Care Act of 2006, Public Law
109–432 (120 Stat. 2967), provides that
the Secretary may, by regulations,
require any person who, in the course
of a trade or business, receives
payments of mortgage insurance
premiums from an individual
aggregating $600 or more during any
calendar year to file a return regarding
those payments in the form, at the time,
and containing the information
prescribed by the Secretary. Under
section 6050H(h)(2), on or before
January 31 of the year following the year
in which the premium is received, a
person required to file an information
return under section 6050H(h)(1) must
send a written statement to the
individual to whom the information
return relates showing the information
prescribed by the Secretary. Section
6050H(h)(3)(A) provides that rules
similar to the rules in section 6050H(c),
relating to the applicability of the
section 6050H reporting requirements to
governmental units, will apply with
respect to mortgage insurance
premiums. Section 6050H(h)(3)(B)
defines the term ‘‘mortgage insurance’’
to mean mortgage insurance provided
by the Veterans Administration (the
predecessor to the Department of
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27NOR1
emcdonald on DSK67QTVN1PROD with RULES
Federal Register / Vol. 78, No. 229 / Wednesday, November 27, 2013 / Rules and Regulations
Veterans Affairs), the Federal Housing
Administration, or the Rural Housing
Administration (the predecessor to the
Rural Housing Service), and private
mortgage insurance (as defined by
section 2 of the Homeowners Protection
Act of 1998) (12 U.S.C. 4901), as in
effect on the date of enactment of
section 6050H(h), which is the same
definition as ‘‘qualified mortgage
insurance’’ in section 163(h)(4)(E).
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 January 1, 2007, and December
31, 2011, or properly allocable to any
period ending on or before December
31, 2011, on mortgage insurance
contracts issued on or after January 1,
2007. Section 204 of the American
Taxpayer Relief Act of 2012 (ATRA),
Public Law 112–240, 126 Stat. 2313,
enacted on January 2, 2013,
retroactively applied the tax treatment
of qualified mortgage insurance
premiums as qualified residence interest
for 2012, and it extended that treatment
to premiums paid or accrued on or
before December 31, 2013, or properly
allocable to any period ending on or
before December 31, 2013, on mortgage
insurance contracts issued on or after
January 1, 2007. Unless extended or
made permanent by further legislation,
section 163(h)(3)(E) will not apply to
amounts paid or accrued after 2013 or
properly allocable to any period after
2013.
On May 7, 2009, the Treasury
Department and the IRS published
temporary regulations (TD 9449) under
section 163 in the Federal Register (74
FR 21256) that explained 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. The temporary
regulations also provided guidance as to
reporting requirements under section
6050H(h) to reporting entities receiving
premiums, including prepaid
premiums, for mortgage insurance. On
the same day, the Treasury Department
and the IRS published a notice of
proposed rulemaking (REG–107271–08)
cross-referencing the temporary
regulations in the Federal Register (74
FR 21295). No public hearing was
requested or held. No comments
responding to the notice of proposed
rulemaking were received.
VerDate Mar<15>2010
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Jkt 232001
On May 7, 2012, the Treasury
Department and the IRS published final
regulations (TD 9588) in the Federal
Register (77 FR 26698) adopting the
proposed regulations under section 163
relating to the allocation of prepaid
qualified mortgage insurance premiums,
as amended. Those final regulations did
not finalize the proposed regulations
relating to the reporting requirements
under section 6050H(h) for entities
receiving mortgage insurance premiums.
At that time, the deduction for qualified
mortgage insurance premiums under
section 163 did not apply to amounts
paid or accrued after December 31,
2011, and the Treasury Department and
the IRS determined not to require the
reporting of nondeductible premiums.
The temporary regulations on the
reporting requirements, which were in
§ 1.6050H–3T, expired on May 4, 2012.
Explanation of Revisions
The final regulations adopt the
proposed regulations under § 1.6050H–
3 with two minor revisions. The first is
the addition of new paragraph (d),
which cross-references § 1.6050H–2
regarding the time, form, and manner of
reporting qualified mortgage interest.
The addition of this cross-reference is
intended to clarify that rules similar to
the rules applicable to the time, form,
and manner of reporting interest
received on qualified mortgages apply to
amounts required to be reported under
§ 1.6050H–3(a) . For instance, mortgage
insurance premiums are reported on a
Form 1098, ‘‘Mortgage Interest
Statement,’’ if the premiums received
from that individual in the aggregate
total $600 or more.
The second revision relates to the
effective date and applicability of these
final regulations. On January 2, 2013,
ATRA extended section 163(h) for
premiums paid or accrued on or before
December 31, 2013, or properly
allocable to any period ending on or
before December 31, 2013, on mortgage
insurance contracts issued on or after
January 1, 2007. In addition, ATRA
extended section 163(h) retroactively for
qualified mortgage insurance premiums
paid or accrued during 2012. These final
regulations under § 1.6050H–3 require
information reporting for mortgage
insurance premiums received on or after
January 1, 2013, and during periods to
which section 163(h)(3)(E) is applicable.
However, there were no final or
temporary regulations requiring
information reporting with respect to
qualified mortgage insurance premiums
paid or accrued during 2012. Therefore,
information reporting with respect to
qualified mortgage insurance premiums
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70857
was not required for premiums paid or
accrued during 2012.
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 December 31, 2012, or
properly allocated these premiums to
the calendar year ending December 31,
2012, on mortgage insurance contracts
issued on or after January 1, 2007, and
who did not previously treat those
amounts as qualified residence interest,
may, within the applicable period of
limitations, file a Form 1040X,
‘‘Amended U.S. Individual Income Tax
Return,’’ for 2012 to claim a refund
based on the treatment of those amounts
as qualified residence interest.
Special Analyses
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 U.S.C.
Chapter 6) is not required. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking that preceded
these final regulations was submitted to
the Chief Counsel for Advocacy of the
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70858
Federal Register / Vol. 78, No. 229 / Wednesday, November 27, 2013 / Rules and Regulations
Small Business Administration for
comment on its impact on small
business, and no comments were
received.
Drafting Information
The principal author of these
regulations is Janet Engel Kidd, Office of
the Associate Chief Counsel, Procedure
and Administration.
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:
■
emcdonald on DSK67QTVN1PROD with RULES
§ 1.6050H–3 Information reporting of
mortgage insurance premiums.
(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
$600 or more for any calendar year,
must make an information return setting
forth the total amount received from
that individual during the calendar year.
(b) Scope. Paragraph (a) of this section
applies to mortgage insurance provided
by the Federal Housing Administration,
Department of Veterans Affairs, or the
Rural Housing Service (or their
successor organizations), or to private
mortgage insurance (as defined by
section 2 of the Homeowners Protection
Act of 1998 (12 U.S.C. 4901) as in effect
on December 20, 2006). The rule stated
in paragraph (a) of this section applies
to the receipt of all payments of
mortgage insurance premiums, by cash
or financing, without regard to source.
(c) Aggregation. Whether a person
receives $600 or more of mortgage
insurance premiums is determined on a
mortgage-by-mortgage basis. A recipient
need not aggregate mortgage insurance
premiums received on all of the
mortgages of an individual to determine
whether the $600 threshold is met.
Therefore, a recipient need not report
mortgage insurance premiums of less
VerDate Mar<15>2010
16:16 Nov 26, 2013
Jkt 232001
than $600 received on a mortgage, even
though it receives a total of $600 or
more of mortgage insurance premiums
on all of the mortgages for an individual
for a calendar year.
(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 § 1.6050H–
2(a) with respect to the mortgage of the
individual who paid the mortgage
insurance premiums. For the
requirements for furnishing statements
with respect to Forms 1098 filed with
the Internal Revenue Service, see
§ 1.6050H–2(b).
(e) Cross reference. For rules
concerning the allocation of certain
prepaid qualified mortgage insurance
premiums, see § 1.163–11 of this
chapter.
(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 January 1, 2013, and during
periods to which section 163(h)(3)(E)
applies. This section does not apply to
any amounts of mortgage insurance
premiums that are allocable to any
periods to which section 163(h)(3)(E)
does not apply.
(g) Effective/applicability date. This
section applies to mortgage insurance
premiums received on or after January
1, 2013. For regulations applicable
before May 5, 2012, see § 1.6050H–3T as
contained in 26 CFR part 1 (revised as
of April 1, 2012).
§ 1.6050H–3T
[Removed]
Par. 3. Section 1.6050H–3T is
removed.
■
John M. Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: October 1, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2013–28381 Filed 11–26–13; 8:45 am]
BILLING CODE 4830–01–P
PO 00000
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DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2013–0011]
RIN 1625–AA00
Safety Zones; Pacific Northwest Grain
Handlers Association Facilities;
Columbia and Willamette Rivers
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing temporary safety zones
around the following Pacific Northwest
Grain Handlers Association facilities:
The Columbia Grain facility on the
Willamette River in Portland, OR, the
United Grain Corporation facility on the
Columbia River in Vancouver, WA, the
Temco Irving facility on the Willamette
River in Portland, OR, the Temco
Kalama facility on the Columbia River
in Kalama, WA, and the Louis Dreyfus
Commodities facility on the Willamette
River in Portland, OR. These safety
zones extend approximately between
the navigable channel and the shoreline
of the facility described. These safety
zones have been established to ensure
that on-water protest activities near
these facilities do not create hazardous
navigation conditions for vessels
protesting, transiting in the navigable
channel, or attempting to moor at the
facilities and that any on-water
activities do not create hazardous
conditions while grain-shipment vessels
are moored at the facilities.
DATES: This rule is effective without
actual notice from November 27, 2013
until November 27, 2015. For the
purposes of enforcement, actual notice
will be used from the date the rule was
signed, October 31, 2013, until
November 27, 2013.
ADDRESSES: Documents mentioned in
this preamble are part of docket [USCG–
2013–0011]. To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type the docket
number in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on ‘‘Open Docket
Folder’’ on the line associated with this
rulemaking. You may also visit the
Docket Management Facility in Room
W12–140 on the ground floor of the
Department of Transportation West
Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
SUMMARY:
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]]>Agencies
[Federal Register Volume 78, Number 229 (Wednesday, November 27, 2013)]
[Rules and Regulations]
[Pages 70856-70858]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28381]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9642]
RIN 1545-BL48
Information Reporting of Mortgage Insurance Premiums
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations that require
information reporting by persons who receive mortgage insurance
premiums, including prepaid premiums, aggregating $600 or more during
any calendar year. The final regulations implement reporting
requirements that result from the extension of the treatment of
mortgage insurance premiums made by the American Taxpayer Relief Act of
2012. These regulations will affect any person who, in the course of a
trade or business, receives from an individual mortgage insurance
premiums that in the aggregate total $600 or more during a calendar
year.
DATES: Effective Date: These regulations are effective on November 27,
2013.
Applicability Date: For dates of applicability, see Sec. 1.6050H-
3(g).
FOR FURTHER INFORMATION CONTACT: Janet Engel Kidd at (202) 317-6844
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
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 December 20, 2006, by section 419(c) of
the Tax Relief and Health Care Act of 2006, Public Law 109-432 (120
Stat. 2967), provides that the Secretary may, by regulations, require
any person who, in the course of a trade or business, receives payments
of mortgage insurance premiums from an individual aggregating $600 or
more during any calendar year to file a return regarding those payments
in the form, at the time, and containing the information prescribed by
the Secretary. Under section 6050H(h)(2), on or before January 31 of
the year following the year in which the premium is received, a person
required to file an information return under section 6050H(h)(1) must
send a written statement to the individual to whom the information
return relates showing the information prescribed by the Secretary.
Section 6050H(h)(3)(A) provides that rules similar to the rules in
section 6050H(c), relating to the applicability of the section 6050H
reporting requirements to governmental units, will apply with respect
to mortgage insurance premiums. Section 6050H(h)(3)(B) defines the term
``mortgage insurance'' to mean mortgage insurance provided by the
Veterans Administration (the predecessor to the Department of
[[Page 70857]]
Veterans Affairs), the Federal Housing Administration, or the Rural
Housing Administration (the predecessor to the Rural Housing Service),
and private mortgage insurance (as defined by section 2 of the
Homeowners Protection Act of 1998) (12 U.S.C. 4901), as in effect on
the date of enactment of section 6050H(h), which is the same definition
as ``qualified mortgage insurance'' in section 163(h)(4)(E).
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 January
1, 2007, and December 31, 2011, or properly allocable to any period
ending on or before December 31, 2011, on mortgage insurance contracts
issued on or after January 1, 2007. Section 204 of the American
Taxpayer Relief Act of 2012 (ATRA), Public Law 112-240, 126 Stat. 2313,
enacted on January 2, 2013, retroactively applied the tax treatment of
qualified mortgage insurance premiums as qualified residence interest
for 2012, and it extended that treatment to premiums paid or accrued on
or before December 31, 2013, or properly allocable to any period ending
on or before December 31, 2013, on mortgage insurance contracts issued
on or after January 1, 2007. Unless extended or made permanent by
further legislation, section 163(h)(3)(E) will not apply to amounts
paid or accrued after 2013 or properly allocable to any period after
2013.
On May 7, 2009, the Treasury Department and the IRS published
temporary regulations (TD 9449) under section 163 in the Federal
Register (74 FR 21256) that explained 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. The temporary regulations also provided guidance as to reporting
requirements under section 6050H(h) to reporting entities receiving
premiums, including prepaid premiums, for mortgage insurance. On the
same day, the Treasury Department and the IRS published a notice of
proposed rulemaking (REG-107271-08) cross-referencing the temporary
regulations in the Federal Register (74 FR 21295). No public hearing
was requested or held. No comments responding to the notice of proposed
rulemaking were received.
On May 7, 2012, the Treasury Department and the IRS published final
regulations (TD 9588) in the Federal Register (77 FR 26698) adopting
the proposed regulations under section 163 relating to the allocation
of prepaid qualified mortgage insurance premiums, as amended. Those
final regulations did not finalize the proposed regulations relating to
the reporting requirements under section 6050H(h) for entities
receiving mortgage insurance premiums. At that time, the deduction for
qualified mortgage insurance premiums under section 163 did not apply
to amounts paid or accrued after December 31, 2011, and the Treasury
Department and the IRS determined not to require the reporting of
nondeductible premiums. The temporary regulations on the reporting
requirements, which were in Sec. 1.6050H-3T, expired on May 4, 2012.
Explanation of Revisions
The final regulations adopt the proposed regulations under Sec.
1.6050H-3 with two minor revisions. The first is the addition of new
paragraph (d), which cross-references Sec. 1.6050H-2 regarding the
time, form, and manner of reporting qualified mortgage interest. The
addition of this cross-reference is intended to clarify that rules
similar to the rules applicable to the time, form, and manner of
reporting interest received on qualified mortgages apply to amounts
required to be reported under Sec. 1.6050H-3(a) . For instance,
mortgage insurance premiums are reported on a Form 1098, ``Mortgage
Interest Statement,'' if the premiums received from that individual in
the aggregate total $600 or more.
The second revision relates to the effective date and applicability
of these final regulations. On January 2, 2013, ATRA extended section
163(h) for premiums paid or accrued on or before December 31, 2013, or
properly allocable to any period ending on or before December 31, 2013,
on mortgage insurance contracts issued on or after January 1, 2007. In
addition, ATRA extended section 163(h) retroactively for qualified
mortgage insurance premiums paid or accrued during 2012. These final
regulations under Sec. 1.6050H-3 require information reporting for
mortgage insurance premiums received on or after January 1, 2013, and
during periods to which section 163(h)(3)(E) is applicable. However,
there were no final or temporary regulations requiring information
reporting with respect to qualified mortgage insurance premiums paid or
accrued during 2012. Therefore, information reporting with respect to
qualified mortgage insurance premiums was not required for premiums
paid or accrued during 2012.
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 December 31, 2012, or properly allocated these premiums to the
calendar year ending December 31, 2012, on mortgage insurance contracts
issued on or after January 1, 2007, and who did not previously treat
those amounts as qualified residence interest, may, within the
applicable period of limitations, file a Form 1040X, ``Amended U.S.
Individual Income Tax Return,'' for 2012 to claim a refund based on the
treatment of those amounts as qualified residence interest.
Special Analyses
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 U.S.C. Chapter 6) is not required. Pursuant to
section 7805(f) of the Code, the notice of proposed rulemaking that
preceded these final regulations was submitted to the Chief Counsel for
Advocacy of the
[[Page 70858]]
Small Business Administration for comment on its impact on small
business, and no comments were received.
Drafting Information
The principal author of these regulations is Janet Engel Kidd,
Office of the Associate Chief Counsel, Procedure and Administration.
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
0
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). * * *
0
Par. 2. Section 1.6050H-3 is added to read as follows:
Sec. 1.6050H-3 Information reporting of mortgage insurance premiums.
(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 $600 or more for any calendar
year, must make an information return setting forth the total amount
received from that individual during the calendar year.
(b) Scope. Paragraph (a) of this section applies to mortgage
insurance provided by the Federal Housing Administration, Department of
Veterans Affairs, or the Rural Housing Service (or their successor
organizations), or to private mortgage insurance (as defined by section
2 of the Homeowners Protection Act of 1998 (12 U.S.C. 4901) as in
effect on December 20, 2006). The rule stated in paragraph (a) of this
section applies to the receipt of all payments of mortgage insurance
premiums, by cash or financing, without regard to source.
(c) Aggregation. Whether a person receives $600 or more of mortgage
insurance premiums is determined on a mortgage-by-mortgage basis. A
recipient need not aggregate mortgage insurance premiums received on
all of the mortgages of an individual to determine whether the $600
threshold is met. Therefore, a recipient need not report mortgage
insurance premiums of less than $600 received on a mortgage, even
though it receives a total of $600 or more of mortgage insurance
premiums on all of the mortgages for an individual for a calendar year.
(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 Sec. 1.6050H-2(a) with respect to the mortgage of the
individual who paid the mortgage insurance premiums. For the
requirements for furnishing statements with respect to Forms 1098 filed
with the Internal Revenue Service, see Sec. 1.6050H-2(b).
(e) Cross reference. For rules concerning the allocation of certain
prepaid qualified mortgage insurance premiums, see Sec. 1.163-11 of
this chapter.
(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
January 1, 2013, and during periods to which section 163(h)(3)(E)
applies. This section does not apply to any amounts of mortgage
insurance premiums that are allocable to any periods to which section
163(h)(3)(E) does not apply.
(g) Effective/applicability date. This section applies to mortgage
insurance premiums received on or after January 1, 2013. For
regulations applicable before May 5, 2012, see Sec. 1.6050H-3T as
contained in 26 CFR part 1 (revised as of April 1, 2012).
Sec. 1.6050H-3T [Removed]
0
Par. 3. Section 1.6050H-3T is removed.
John M. Dalrymple,
Deputy Commissioner for Services and Enforcement.
Approved: October 1, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-28381 Filed 11-26-13; 8:45 am]
BILLING CODE 4830-01-P
