The Internal Revenue Service has released a revenue procedure dealing with the tax effects on securitized mortgages that have been modified to avoid foreclosures.

Revenue Procedure 2008-28 describes conditions under which modifications of certain mortgage loans will not cause the IRS to either challenge the tax status of some types of securitization vehicles that hold the loans or to assert that the modifications create a liability for tax on a prohibited transaction. However, the IRS cautioned that no inferences should be drawn about whether there would be similar consequences when a loan modification falls outside the scope of the revenue procedure.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access