IRS Seeks Comments on Federal Employment Tax Checks, REMIC Reporting, and Housing Credit Allocations

IRS Opens Public Comment on Compliance and Reporting Burdens

The IRS is soliciting public comment on three distinct information collection activities as part of its obligations under the Paperwork Reduction Act. The agency seeks feedback on the clarity, utility, and burden of these collections. The deadline for submitting comments is March 23, 2026. Comments can be directed to Andres Garcia at the IRS, either by mail or via email at pra.comments@irs.gov, including "OMB Control No. 1545–1856" in the subject line. The information collections under review pertain to federal employment tax compliance checks, information returns for Real Estate Mortgage Investment Conduits (REMICs), and carryover allocations related to the Low-Income Housing Tax Credit (LIHTC). The IRS states that these are routine extensions of existing collections, with no changes to the paperwork burden reported.

Federal Hiring: The Tax Compliance Check (Form 14767)

The IRS is also seeking comments regarding Form 14767, "Consent to Disclose Tax Compliance Check." This form functions as an authorization under Section 6103(c) of the Internal Revenue Code, which permits the disclosure of confidential tax information to a designated third party. In this case, the third party is another federal agency conducting background checks for potential employment.

The IRS uses Form 14767 to prepare a tax compliance report, revealing whether a job applicant is current with their tax obligations. This report includes information on whether the individual has filed all required returns and paid all taxes due. A negative report can be a significant impediment to federal employment.

• Affected Public: Individuals, Households, and the Federal Government.
• Estimated Burden: The IRS estimates the total annual burden at 7,664 hours, based on 46,000 responses and an average of 10 minutes per response.

What is at stake is the vetting process for potential federal employees. Form 14767 serves as a gatekeeper, ensuring that individuals entrusted with public service meet basic tax compliance standards. The IRS's continued use of this form underscores the importance of tax compliance in federal employment suitability.

Market Transparency: REMIC Information Returns (Form 8811)

The IRS is now seeking public comment on the information collection requirements associated with Form 8811, Information Return for Real Estate Mortgage Investment Conduits (REMICs) and Issuers of Collateralized Debt Obligations.

The IRS is now seeking public comment on the information collection requirements associated with Form 8811, Information Return for Real Estate Mortgage Investment Conduits (REMICs) and Issuers of Collateralized Debt Obligations.

This form is crucial for market transparency in the complex world of mortgage-backed securities. A REMIC, or Real Estate Mortgage Investment Conduit, defined under IRC §§ 860A–860G, is a fixed pool of mortgages with multiple classes of interests issued to investors. These investment vehicles hold mortgages and issue interests to investors.

Form 8811 plays a critical role in ensuring investors receive timely and accurate tax information. The form addresses the problem of complex tiers of ownership, which can prevent the timely issuance of Form 1099s. Current regulations require REMICs to provide Forms 1099 to the true holders of interests in these investment vehicles. Due to the complex computations required at each level and the potential number of nominees, the ultimate investor may not receive a Form 1099 and other information necessary to prepare their tax return in a timely fashion.

The IRS uses Form 8811 to collect information, publishing a directory so brokers can contact REMICs to request financial information and timely issue Forms 1099 to holders. This directory is published in IRS Publication 938.

Here's a look at the "winners" and "losers" at stake:

• Winners: Brokers and middlemen rely on this directory to find REMIC representatives to obtain the data needed to issue accurate tax forms (Form 1099-OID or 1099-INT) to investors. This ensures they can fulfill their reporting obligations.
• Losers: Without Form 8811 and the resulting directory, brokers would struggle to identify the appropriate contact person at the REMIC level, potentially leading to delays or inaccuracies in tax reporting for investors.

The IRS estimates the following burden related to Form 8811:

• Estimated Number of Respondents: 3,000
• Estimated Time per Respondent: 4 hours, 23 minutes.
• Estimated Total Annual Burden Hours: 13,140

Affordable Housing: Carryover Allocations (LIHTC)

The IRS also seeks public comment on the information collection burdens related to buildings qualifying for carryover allocations under Section 42, the Low-Income Housing Tax Credit (LIHTC). This follows the previous notices related to Form 14767 and Form 8811, ensuring stakeholders can fulfill their reporting obligations.

The third notice pertains to buildings qualifying for carryover allocations associated with OMB Number 1545–0990. Under Section 42, the Low-Income Housing Tax Credit (LIHTC) program, developers use carryover allocations to extend the deadline for placing a building in service beyond the year the credit was allocated. To qualify for a carryover allocation, developers must generally meet the "10% Test" under Section 42(h)(1)(E), incurring more than 10% of the reasonably expected basis in the project within one year of the allocation date.

Affected stakeholders include housing developers and state agencies that administer the LIHTC program. This collection of information is necessary for the proper administration of the Low-Income Housing Tax Credit program. The IRS estimates the following:

• Estimated Number of Respondents: 1,000
• Estimated Time per Respondent: 1 hour
• Estimated Total Annual Burden Hours: 1,000

This information helps the IRS to monitor and ensure compliance with LIHTC requirements, contributing to the program's overall effectiveness in providing affordable housing.