IRS Publication 938 – IRS Forms, Instructions, Pubs 2026

IRS Publication 938 – IRS Forms, Instructions, Pubs 2026 – Investors, brokers, and tax professionals dealing with mortgage-backed securities often search for IRS Publication 938 to understand reporting requirements for Real Estate Mortgage Investment Conduits (REMICs) and Collateralized Debt Obligations (CDOs). This official IRS resource provides essential directories that simplify tax information requests and compliance.

Whether you hold regular or residual interests in a REMIC, accurate reporting prevents IRS notices and ensures proper taxation of interest, OID, and pass-through income. This comprehensive guide explains what Publication 938 covers, how to use it, key tax rules for REMIC and CDO holders, and where to access the latest version.

What Is IRS Publication 938?

IRS Publication 938, titled Real Estate Mortgage Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations (CDOs)), is a quarterly directory published by the Internal Revenue Service. Unlike explanatory guides such as Publication 550 (Investment Income and Expenses), it primarily lists REMICs and CDOs with contact information for issuers or trustees.

The publication compiles data submitted via Form 8811 (Information Return for Real Estate Mortgage Investment Conduits (REMICs) and Issuers of Collateralized Debt Obligations). Each quarterly directory includes:

  • Trust or REMIC names
  • Class identifiers (e.g., A-1, X, IO)
  • CUSIP numbers
  • Issuance or startup dates
  • Contact details (addresses, phone numbers) for representatives or trustees

The latest revision is Publication 938 (Rev. December 2024), available as a free PDF download from IRS.gov. It covers recent issuances and amendments, with updates posted for any legislative changes.

Access it here: Download IRS Publication 938 PDF

Understanding REMICs and CDOs

Real Estate Mortgage Investment Conduits (REMICs) are special-purpose vehicles that hold pools of mortgages and issue multiple classes of interests. Congress created REMICs in 1986 to streamline mortgage securitization with favorable tax treatment. A REMIC must have:

  • One or more classes of regular interests (treated as debt instruments)
  • Exactly one class of residual interests

Collateralized Debt Obligations (CDOs) are broader securitizations that may include mortgages, loans, or other debt. Publication 938 covers both REMIC-qualified structures and other CDOs for reporting purposes.

Regular interests function like bonds, paying principal and interest. Residual interests absorb remaining cash flows (or losses) after regular interests are paid, making them riskier and more complex for tax purposes.

Who Needs IRS Publication 938?

Publication 938 primarily serves:

  • Direct holders of REMIC or CDO interests (individuals, corporations, partnerships)
  • Brokers and middlemen who must report to clients
  • Nominees holding securities for others
  • Securities dealers, REITs, and investment companies with special reporting needs
  • Tax professionals preparing returns involving mortgage-backed securities

If you receive a Form 1099-INT, 1099-OID, or Schedule Q related to a REMIC, the directory helps you contact the issuer for missing details or clarifications.

How to Use the Publication 938 Directory?

The directories are organized by calendar quarter. To request tax information:

  1. Locate your specific REMIC or CDO in the relevant quarter’s list (by name, CUSIP, or class).
  2. Contact the listed representative or trustee by phone or in writing.
  3. Specify the quarters and classes held.
  4. Request required statements (e.g., income allocations, OID calculations).

Issuers must generally provide information within 30 days after the quarter ends or 14 days after your request, whichever is later. Nominees should contact the middleman instead of the REMIC directly.

Pro tip: Keep records of your requests and responses for audit protection.

Tax Reporting Requirements for REMIC Holders

Accurate reporting depends on whether you hold a regular or residual interest.

Regular Interest Holders

  • Treated as debt instruments for tax purposes.
  • Report interest income and Original Issue Discount (OID) on Schedule B (Form 1040) or the appropriate schedule.
  • Receive Form 1099-INT (for interest) and/or Form 1099-OID from the REMIC or trustee.
  • Use the accrual method for reporting.
  • OID is reported even if not paid in cash (phantom income).

Residual Interest Holders

  • Receive Schedule Q (Form 1066) quarterly, showing your pro-rata share of the REMIC’s taxable income or loss.
  • Report the total annual amount on Schedule E (Form 1040) as supplemental income or loss (Part IV or V, depending on context). Do not attach Schedule Q to your return.
  • Excess inclusion income (a portion of residual income) has special rules: It cannot be offset by most losses or deductions and may trigger unrelated business taxable income (UBTI) for tax-exempt entities.
  • File Form 1066 if you are the REMIC issuer (not the holder).

CDO holders follow similar rules, with income often reported as OID or interest depending on the structure.

Cross-reference: See IRS Publication 550 for general investment income rules and the Instructions for Forms 1099-INT and 1099-OID for detailed reporting guidance.

  • Form 8811 — Filed by REMIC issuers to provide contact information (data feeds Publication 938).
  • Form 1066 — Annual REMIC income tax return (filed by the REMIC entity).
  • Schedule Q (Form 1066) — Quarterly notice to residual interest holders.
  • Forms 1099-INT / 1099-OID — Information returns to regular interest holders.
  • Publication 550 — Investment Income and Expenses (broader context for REMIC taxation).

Common Questions About REMIC and CDO Reporting

  1. Q: Do I need to file anything special if I only hold regular interests?
    A: Usually not beyond reporting the 1099 amounts. Residual holders face more complexity.
  2. Q: What if I can’t find my REMIC in Publication 938?
    A: Contact your broker or check prior quarters. New issuances appear in subsequent directories.
  3. Q: Are REMIC losses deductible?
    A: Residual losses are generally deductible against other income (not passive activity limitations), but excess inclusions have restrictions.
  4. Q: Where do I find the most current directory?
    A: Always download the latest PDF from IRS.gov/Pub938. The site also notes future developments.

Why Accurate REMIC Reporting Matters in 2025–2026?

With ongoing interest rate changes and mortgage market activity, REMIC and CDO investments remain popular in portfolios. Proper use of Publication 938 ensures you obtain complete tax information, avoid underreporting penalties, and optimize your tax position.

Tax laws can change, so always verify with the latest IRS resources or consult a qualified tax professional for your specific situation.

Download the latest IRS Publication 938: https://www.irs.gov/pub/irs-pdf/p938.pdf

For more on investment taxation, explore IRS Publication 550 or consult a tax advisor familiar with structured finance products.

This article is for informational purposes only and is not tax or legal advice. Tax rules are complex and subject to change. Refer to official IRS sources and professional guidance for your circumstances.