Exclusive: IRS weighs tax penalties on mortgage securities and Possible Industry Cover Up
Exclusive: IRS weighs tax penalties on mortgage securities
(Reuters) – The Internal Revenue Service has launched a review of the tax-exempt status of a widely-held form of mortgage-backed securities called REMICs.
The IRS confirmed to Reuters that the review comes in response to mounting evidence that banks violated tax requirements by mishandling the transfer of mortgages to REMICs, short for Real Estate Mortgage Conduits.
Should the IRS find reason to take tough action, the financial impact could be enormous. REMIC investments are held by pension funds, in individual retirement plans such as 401(k)s and by state and local government entities.
Check out the rest of the Reuters article here…
Also check out Yves Smith’s take on how there may be a cover up over at Naked Capitalism here…