Notable Private Letter Rulings
Rulings on Corporate Reorganizations and Corporate Transactions
- PLR 200804010 (Jan. 25, 2008) (Various rulings on merger of two mutual life insurance companies);
- PLR 9745013 (Aug. 7, 1997) (First ruling to address the conversion of a mutual insurance company to a stock insurance company under a mutual holding company structure);
- PLR 9313020 (Dec. 30, 1992) supplemented by PLR 9314016 (Jan. 6, 1993) (First rulings holding that the transfer of the business of a mutual insurer in rehabilitation to its subsidiary qualified as a tax-free "G" reorganization); with regard to the same rehabilitation, received PLR 9339024 (July 7, 1993) (First ruling regarding the impact of a rehabilitation on insurance annuity contracts held in connection with qualified retirement plans); PLR 9544026 (Aug. 4, 1995) (Similar tax-free "G" reorganization rulings on the rehabilitation of a mutual life insurer);
- PLR 8851016 (Sept. 22, 1988) (First ruling issued on tax consequences of a mirror subsidiary corporate acquisition); and
- PLR 8617088 (Jan. 29, 1986) (First ruling on tax-free reorganization or liquidation of insurance company prior to selling the insurance charter and licenses).
Rulings on Insurance Company Tax Issues
- TAM 200427024 (July 2, 2004) (Ruling which held that statutory reserves on deferred variable annuity contracts were computed on the basis of mortality tables and qualified as life insurance reserves under I.R.C § 816);
- TAM 200404034 (Sept. 2, 2003) (Ruling holding that REMIC residual interest excess inclusion income under I.R.C. § 860E is accounted for at the consolidated group level in a life/non-life consolidated return);
- PLR 200348001 (Aug. 28, 2003) (Ruling which held that premiums received by reinsurance company on policies of insurance or reinsurance of U.S. risks are exempt from insurance excise tax under I.R.C. § 4371 persuent to U.S.- Ireland income tax treaty);
- PLR 200342003 (July 9, 2003) (Ruling which provided guidance on the allocation of basis under the partial exchange of an annuity contract that is tax-free under I.R.C. § 1035);
- TAM 200339049 (Aug. 20, 2002) (Ruling which held that the "amount retained" under Treas. Reg. § 1.801-8(e)(1), used to calculate interest under I.R.C. § 812(b)(2)(A), includes all contractual charges and fees subtracted from separate accounts used to support variable annuity contracts);
- TAM 200038008 (June 13, 2000) (First ruling on the fees which are included in the "amount retained" for purposes of determining the company's share of the dividends received deduction on a separate account);
- PLR 200116041 (Jan. 24, 2001) (First ruling issued by the IRS under Treas. Reg. § 1.832-4(a)(4) and (8) as in effect for taxable years beginning after December 31, 1999, holding that increases in a premium stabilization reserve should be deducted as return premiums);
- TAM 200132006 (Aug. 13, 2001) (Ruling which held that a company may not compute premiums for retro debits and credits using accrual method);
- TAM 200115002 (Dec. 21, 2000) (Ruling which discussed the IRS position on unpaid loss reserves under I.R.C. § 832);
- TAM 200038008 (June 13, 2000) (First ruling issued where IRS held that taxpayer's method of computing the amount of the dividends received deduction under I.R.C. § 812 for its separate account based on former I.R.C. § 801(g)(5) and Treas. Reg. section 1.801-8(e) and (f) was appropriate);
- PLR 9905018 (Nov. 6, 1998) (First ruling determining qualification of life insurance company in rehabilitation for I.R.C. § 848 DAC reinsurer insolvency exception);
- PLR 9245006 (Nov. 22, 1991) (Ruling holding that certain reserves under an A&H policy qualify as life insurance reserves);
- TAM 8822002 (Feb. 26, 1988) (Precluding IRS from making inconsistent reserve adjustments following a settlement of prior years; this TAM also dealt with I.R.C. § 818(c) revaluation on universal life and graded premium products); and
- TAM 8752003 (Aug. 31, 1987) (Permissible reserve assumptions of an assuming company in an indemnity reinsurance transaction; the TAM also allowed this company to deduct its ceding commissions).
Rulings on Policyholder Tax Issues
- PLR 200036021 (June 7, 2000) (Ruling held that a term certain annuity could retain its tax qualification as an "immediate annuity" under I.R.C. § 72(u)(4), even though it had certain features that might be considered as more akin to a deferred annuity);
- PLR 9941036 (July 21, 1999) (First ruling on information reporting requirements under I.R.C. § 6041 for damage payments under structured settlements to individuals who may have sold their rights to factoring companies);
- PLR 9437028 (June 17, 1994) (First ruling holding that payments under a structured settlement agreement that were indexed to the Consumer Price Index were fixed and determinable within the meaning of I.R.C. § 130(c)(2)(A));
- PLR 9305013 (Nov. 9, 1992) (supplemented by PLR 9338018 (June 24, 1993)) and PLR 9239026 (June 29, 1992) (supplemented by 9338023 (June 24, 1993)) (First rulings preserving grandfathered and other favorable tax attributes under I.R.C. §§ 7702, 702A, 101(f), 264 and 72 of life and annuity contracts restructured in state rehabilitation proceedings, and rulings on the tax impact of proceedings on company tax issues); the firm also received many similar rulings on later transactions;
- PLR 9203009 (Jan. 29, 1991) and PLR 9117011 (May 18, 1990) (First rulings holding that the grandfathered tax status of life insurance contracts under I.R.C. §§ 7702, 7702A and 264 is not eliminated by a contract change allowing policy loan interest to be charged in arrears, rather than in advance);
- PLR 9106050 (Nov. 16, 1990) (First and only rulings of a regulatory nature under I.R.C. § 7702, the tax definition of a life insurance contract; rulings relate to the tax treatment of qualified and non-qualified additional benefits); and
- PLR 8604033 (Oct. 25, 1985) (The original and most favorable "carryover loan" ruling, concerning insurance policy exchanges in which policy loans are carried over to new policy).
Rulings on Consolidated Return Issues
- PLR 9910013 (Dec. 4, 1998) (First ruling granting extension of time under Treas. Reg. § 301.9100 to make election to apply 1995 consolidated return intercompany transaction rules); and
- PLR 8812047 (Dec. 23, 1987), supplemented by PLR 8825013 (Mar. 15, 1988) and PLR 8818047 (Feb. 10, 1988) (First ruling on life-nonlife consolidated return consequences of creation of insurance holding company).