Internal Revenue Code:Sec. 6050V. Returns relating to applicable insurance contracts in which certain exempt organizations hold interests
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Contents |
Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART III - INFORMATION RETURNS
Subpart B - Information Concerning Transactions With Other Persons
Statute
Sec. 6050V. Returns relating to applicable insurance contracts in which
certain exempt organizations hold interests.
(a) In General.--Each applicable exempt organization which makes a
reportable acquisition shall make the return described in subsection
(c).
(b) Time for Making Return.--Any applicable exempt organization
required to make a return under subsection (a) shall file such return at
such time as may be established by the Secretary.
(c) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary prescribes,
``(2) contains the name, address, and taxpayer
identification number of the applicable exempt organization and
the issuer of the applicable insurance contract, and
``(3) contains such other information as the Secretary may
prescribe.
(d) Definitions.--For purposes of this section--
(1) Reportable acquisition.--The term `reportable
acquisition' means the acquisition by an applicable exempt
organization of a direct or indirect interest in any applicable
insurance contract in any case in which such acquisition is a
part of a structured transaction involving a pool of such
contracts.
(2) Applicable insurance contract.--
(A) In general.--The term `applicable insurance
contract' means any life insurance, annuity, or
endowment contract with respect to which both an
applicable exempt organization and a person other than
an applicable exempt
organization have directly or indirectly held an
interest in the contract (whether or not at the same
time).
(B) Exceptions.--Such term shall not include a
life insurance, annuity, or endowment contract if--
(i) all persons directly or indirectly
holding any interest in the contract (other than
applicable exempt organizations) have an insurable
interest in the insured under the contract
independent of any interest of an applicable
exempt organization in the contract,
(ii) the sole interest in the contract of an
applicable exempt organization or each person
other than an applicable exempt organization is as
a named beneficiary, or
(iii) the sole interest in the contract of
each person other than an applicable exempt
organization is--
(I) as a beneficiary of a trust
holding an interest in the contract, but
only if the person's designation as such
beneficiary was made without
consideration and solely on a purely
gratuitous basis, or
(II) as a trustee who holds an
interest in the contract in a fiduciary
capacity solely for the benefit of
applicable exempt organizations or
persons otherwise described in subclause
(I) or clause (i) or (ii).
(3) Applicable exempt organization.--The term `applicable
exempt organization' means--
(A) an organization described in section 170(c),
(B) an organization described in section
168(h)(2)(A)(iv), or
(C) an organization not described in paragraph (1)
or (2) which is described in section 2055(a) or section
2522(a).
(e) Termination.--This section shall not apply to reportable
acquisitions occurring after the date which is 2 years after the date of
the enactment of this section.
Amendments to Section
AMENDMENTS
2006 - Pension Protection Act of 2006 (P.L. 109-280) inserted new section
6050V. (Section 1211)
Section 1211(c) Study.--
(1) In general.--The Secretary of the Treasury shall
undertake a study on--
(A) the use by tax exempt organizations of
applicable insurance contracts (as defined under section
6050V(d)(2) of the Internal Revenue Code of 1986, as
added by subsection (a)) for the purpose of sharing the
benefits of the organization's insurable interest in
individuals insured under such contracts with investors,
and
(B) whether such activities are consistent with the
tax exempt status of such organizations.
(2) Report.--Not later than 30 months after the date of the
enactment of this Act, the Secretary of the Treasury shall
report on the study conducted under paragraph (1) to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Pension Protection Act of 2006 (P.L. 109-280)
Section 1211(d) <<NOTE: 26 USC 6050V.>> Effective Date.--The amendments made by
this section shall apply to acquisitions of contracts after the date of
enactment of this Act.
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