IRS Posts Tax Help for Life Insurers
August 14, 2019 by Allison Bell
The Internal Revenue Services has developed a system that could help U.S. life insurers comply with part of the Tax Cuts and Jobs Act of 2017 (TCJA).
The new system, described in IRS Revenue Procedure 2019-34, is supposed to give life insurers a quick way to change accounting methods that conflict with the new TCJA policy acquisition cost tax rules.
The TCJA changed the tax rules for life insurers’ reserves, and for how life insurers handle “policy acquisition expenses.”
“Policy acquisition expenses” include many types of costs related to selling and onboarding a new life insurance policy or annuity contract, including the payment of sales commissions to agents, brokers and distributors.
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