• IRS Issues Final REMIC Regulations and Additional Guidance for Commercial Mortgage Loan Modifications
  • September 21, 2009 | Authors: John F. Baron; Paul S. Donohue
  • Law Firm: Alston & Bird LLP - Charlotte Office
  • On September 15, 2009, the Internal Revenue Service (IRS) issued final regulations under Sections 860A and 860G of the Internal Revenue Code (the "Final REMIC Regulations") and Revenue Procedure 2009-45 (the "Revenue Procedure"), both dealing with the federal income tax consequences of modifications to the terms of securitized commercial mortgage loans. The Final REMIC Regulations apply only to loans held in "real estate mortgage investment conduits" (REMICs) and are effective on September 16, 2009, while the Revenue Procedure applies to both REMICs and investment trusts and is retroactively effective as of January 1, 2008.