12.04.07
IRS issues temporary regulations as to reporting of corporate owned life insurance – COLI
For policies purchased and owned by an employer after August 17, 2006, the following information is required under Code section 6039I:
- The number of employees of the employer at the end of the year;
- The number of employees insured under the contracts at the end of the year;
- The total amount of insurance in force at the end of the year under the contracts;
- The name, address and taxpayer id of the employer and the type of business; and
- That the employer has a valid consent for each insured employee (which insurance companies can provide);
The reporting is effective for tax years ending after November 13, 2007. However, the IRS it is not sure if it will require Form 8925 (in draft at the moment) to be attached to the employers tax return or if it will be revised to be a stand-alone form to be filed separately.
Please contact your SS&G representative with questions.