EFFECTIVE-DATE CHANGE WILL BE MADE IN FINAL REGS ON REPORTING MORTGAGE INTEREST REIMBURSEMENTS.

Notice 92-60

On October 16, 1992, the Internal Revenue Service issued proposed regulations under section 6050H of the Internal Revenue Code (57 F.R. 47428) relating to the information reporting requirements for reimbursements of interest paid in connection with a qualified mortgage. In response to public comments and testimony at the public hearing held on November 30, 1992, the following changes will be implemented in the final regulations:

(1) EFFECTIVE DATE. The final regulations will provide that information relating to the reimbursement of mortgage interest must be reported on statements furnished to payors of record after December 31, 1993. This change conforms the effective date for statements furnished to payors of record with the effective date provided in the proposed regulations for Forms 1098 filed with the Service. If able to do so, persons that made mortgage interest reimbursements in 1992 are asked to report the information relating to those reimbursements to payors of record in order to assist the payors of record in filing correct tax returns. Penalties will not be imposed for incorrect reporting of reimbursements for 1992.

(2) INFORMATION REPORTED TO PAYORS OF RECORD. The final regulations will require that the aggregate amount of the reimbursement(s) paid to a payor of record for the year be reported to the payor of record. The requirement under section 1.6050H- 2(b)(ii) of the proposed regulations that interest recipients report to the payor of record the year or years in which the interest overpayments were made and the portion of the reimbursement attributable to each year will not be included in the final regulations.

At the time the 1993 Form 1098, Mortgage Interest Statement, went to print, the above decision relating to the information to be reported to payors of record had not been made. Therefore, the following sentence in the instructions for box 3 on the back of Copy B of the 1993 Form 1098 should be ignored:

     You should also receive information showing the year(s)

The principal author of this notice is Stephen J. Toomey of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this notice contact Mr. Toomey on (202) 622-4960 (not a toll-free call).