Monthly LRA Update: November 2007

TAX DEVELOPMENT

IRS Issues Proposed and Temporary Regulations under Section 6039I

We received the following message yesterday from counsel at Davis & Harman.

The IRS today issued proposed and temporary regulations under section 6039I. But all they say is that the “Commissioner may prescribe the form and manner of satisfying the reporting requirements imposed by section 6039I on applicable policyholders owning one or more employer owned life insurance contracts issued after August 17, 2006.” That’s it; one sentence. I think this means the IRS is simply going to now issue a new Form 1099 that policyholders must start using to report the required info. Probably that form will come with some instructions about the various reporting items. Stay tuned for further details.