June 2023

TAX DEVELOPMENTS

IRS Reportable Policy Sale Proposed Rule – Update

As we covered last month, the IRS has proposed rule changes for the application of the transfer for valuable consideration rules under the reportable policy sale (“RPS”) regulations arising in connection with IRC § 1035 exchanges of life insurance contracts and certain transfers of policies under business reorganizations. The comment period is open through July 10. We are supportive of the proposed updates.

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