26 USC 6050Y - Returns relating to certain life insurance contract transactions

U.S Code last checked for updates: May 06, 2024

§ 6050Y.

Returns relating to certain life insurance contract transactions

(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 shall make a return for such taxable year (at such time and in such manner as the Secretary shall 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 with respect to whom information is required

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—

(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 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).

(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 shall make a return (at such time and in such manner as the Secretary shall 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)) with respect to such seller, and

(C)

the policy number of such contract.

(2)

Statement to be furnished to persons with respect to whom information is required

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—

(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 with respect to each seller whose name is required to be set forth in such return.

(c)

Requirement of reporting with respect to reportable death benefits

(1)

In general

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—

(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)) with respect to the buyer.

(2)

Statement to be furnished to persons with respect to whom information is required

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—

(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 with respect to each recipient of payment whose name is required to be set forth in such return.

(d)

Definitions

For purposes of this section:

(1)

Payment

(2)

Reportable policy sale

(3)

Issuer

(4)

Reportable death benefits

(Added Pub. L. 115–97, title I, § 13520(a), Dec. 22, 2017, 131 Stat. 2149.)

cite as: 26 USC 6050Y