INSURANCE: Federal budget calls for new reporting
Life settlement transactions would be subject to new reporting requirements under a provision included in the proposed 2011 budget.
Life settlement transactions would be subject to new reporting requirements under a provision included in the proposed 2011 budget. Specifically, a person or entity purchasing an interest in an existing life insurance contract with a death benefit worth at least $500,000 would be required to report the following information to the IRS, the issuing insurance company and the seller: the purchase price, the buyer’s and seller’s taxpayer identification numbers, and the issuer and policy number. For more information, see Page 69 here.
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