26 U.S.C. § 6050Y — Returns relating to certain life insurance contract transactions
submitted 9 years ago by Pub. L. 115-97 to r/title-26-INTERNAL-REVENUE-CODE · 740 words · no verdicts yet
This section requires reporting of certain life-insurance policy sales, seller investment, and death benefits. It requires statements to affected people.
(a) Requirement of reporting of certain payments (1) In general Every person who acquires a life insurance contract* or any interest in a life insurance contract in a reportable policy sale during any taxable year* must make a return for such taxable year (at such time and in such manner as the Secretary* must prescribe) setting forth— (A) the name, address, and TIN* of such person, (B) the name, address, and TIN of each recipient of payment in the reportable policy sale, (C) the date of such sale, (D) the name of the issuer of the life insurance contract sold and the policy number of such contract, and (E) the amount of each payment. (2) Statement to be furnished to persons about whom information is required Every person required to make a return under this subsection must give to each person whose name is required to be show in such return a written statement showing— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the information required to be shown on such return about such person, except that in the case of an issuer of a life insurance contract, such statement is not required to include the information specified in paragraph (1)(E).
(b) Requirement of reporting of seller’s basis in life insurance contracts (1) In general Upon receipt of the statement required under subsection (a)(2) or upon notice of a transfer of a life insurance contract to a foreign person, each issuer of a life insurance contract must make a return (at such time and in such manner as the Secretary must prescribe) setting forth— (A) the name, address, and TIN of the seller who transfers any interest in such contract in such sale, (B) the investment in the contract (as defined in section 72(e)(6)) about such seller, and (C) the policy number of such contract. (2) Statement to be furnished to persons about whom information is required Every person required to make a return under this subsection must give to each person whose name is required to be show in such return a written statement showing— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the information required to be shown on such return about each seller whose name is required to be show in such return.
(c) Requirement of reporting about reportable death benefits (1) In general Every person who makes a payment of reportable death benefits during any taxable year must make a return for such taxable year (at such time and in such manner as the Secretary must prescribe) setting forth— (A) the name, address, and TIN of the person making such payment, (B) the name, address, and TIN of each recipient of such payment, (C) the date of each such payment, (D) the gross amount of each such payment, and (E) such person’s estimate of the investment in the contract (as defined in section 72(e)(6)) about the buyer. (2) Statement to be furnished to persons about whom information is required Every person required to make a return under this subsection must give to each person whose name is required to be show in such return a written statement showing— (A) the name, address, and phone number of the information contact of the person required to make such return, and (B) the information required to be shown on such return about each recipient of payment whose name is required to be show in such return.
(d) Definitions For purposes of this section: (1) Payment The term “payment” means, about any reportable policy sale, the amount of cash and the fair market value of any consideration transferred in the sale. (2) Reportable policy sale The term “reportable policy sale” has the meaning given such term in section 101(a)(3)(B). (3) Issuer The term “issuer” means any life insurance company that bears the risk about a life insurance contract on the date any return or statement is required to be made under this section. (4) Reportable death benefits The term “reportable death benefits” means amounts paid by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale.
Every person who acquires a life insurance contract* or any interest in a life insurance contract in a reportable policy sale during any taxable year* shall make a return for such taxable year (at such time and in such manner as the Secretary* shall prescribe) setting forth—
the name, address, and TIN* of such person,
the name, address, and TIN of each recipient of payment in the reportable policy sale,
the date of such sale,
the name of the issuer of the life insurance contract sold and the policy number of such contract, and
the amount of each payment.
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
the name, address, and phone number of the information contact of the person required to make such return, and
the information required to be shown on such return with respect to such person, except that in the case of an issuer of a life insurance contract, such statement is not required to include the information specified in paragraph (1)(E).
Upon receipt of the statement required under subsection (a)(2) or upon notice of a transfer of a life insurance contract to a foreign person, each issuer of a life insurance contract shall make a return (at such time and in such manner as the Secretary shall prescribe) setting forth—
the name, address, and TIN of the seller who transfers any interest in such contract in such sale,
the investment in the contract (as defined in section 72(e)(6)) with respect to such seller, and
the policy number of such contract.
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
the name, address, and phone number of the information contact of the person required to make such return, and
the information required to be shown on such return with respect to each seller whose name is required to be set forth in such return.
Every person who makes a payment of reportable death benefits during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
the name, address, and TIN of the person making such payment,
the name, address, and TIN of each recipient of such payment,
the date of each such payment,
the gross amount of each such payment, and
such person’s estimate of the investment in the contract (as defined in section 72(e)(6)) with respect to the buyer.
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
the name, address, and phone number of the information contact of the person required to make such return, and
the information required to be shown on such return with respect to each recipient of payment whose name is required to be set forth in such return.
For purposes of this section:
The term “payment” means, with respect to any reportable policy sale, the amount of cash and the fair market value of any consideration transferred in the sale.
The term “reportable policy sale” has the meaning given such term in section 101(a)(3)(B).
The term “issuer” means any life insurance company that bears the risk with respect to a life insurance contract on the date any return or statement is required to be made under this section.
The term “reportable death benefits” means amounts paid by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale.
Source credit: (Added Pub. L. 115–97, title I, § 13520(a), Dec. 22, 2017, 131 Stat. 2149.)
- 2017Enacted · Pub. L. 115-97 · 131 Stat. 2149
A history note hasn’t been published yet. The record shows enactment by Pub. L. 115-97 on 2017-12-22.
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