Rulings on Insurance Company Tax Issues

  • PLR 201432013 (Apr. 22, 2014) (Ruling that transfer of operations to another health insurer did not cause a material change under section 833)
  • 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).
L. Wright