Benefit News

IRS Issues Regulations on COLI Reporting

November 13, 2007 - The policyholder of an "employer-owned life insurance contract may be required to file a return with the IRS. These temporary regulations are non-substantive and only provide that the tax commissioner may prescribe the form and manner of satisfying the reporting requirements on applicable policyholders owning one or more employer-owned life insurance contracts issued after August 17, 2006." The temporary regulations are applicable for tax years ending after November 13, 2007 and also serve as the text of the proposed regulations.

The information required includes:
(1) the number of employees of the at the end of the year;
(2) the number of employees insured under the contracts at the end of the year;
(3) the total amount of insurance in force at the end of the year under the contracts;
(4) the name, address and taxpayer identification number of the employer and the type of business in which the policyholder is engaged; and
(5) that the employer has a valid consent for each insured employee.

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