[Federal Register Volume 84, Number 240 (Friday, December 13, 2019)]
[Rules and Regulations]
[Pages 68042-68043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26866]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9879]
RIN 1545-BO94


Information Reporting for Certain Life Insurance Contract 
Transactions and Modifications to the Transfer for Valuable 
Consideration Rules; Correcting Amendment

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to Treasury Decision 9879, 
which was published in the Federal Register on Thursday, October 31, 
2019. Treasury Decision 9879 contained final regulations providing 
guidance on new information reporting obligations under section 6050Y 
related to reportable policy sales of life insurance contracts and 
payments of reportable death benefits and guidance on the amount of 
death benefits excluded from gross income under section 101 following a 
reportable policy sale.

DATES: Effective date. This correction is effective on December 13, 
2019 and is applicable on October 31, 2019.

FOR FURTHER INFORMATION CONTACT: Kathryn M. Sneade (202) 317-6995 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9879) that are the subject of this 
correction are under sections 101 and 6050Y of the Internal Revenue 
Code.

Need for Correction

    As published October 31, 2019 (84 FR 58460), the final regulations 
(TD 9879; FR Doc. 2019-23559) contained errors that may prove 
misleading and therefore need to be corrected.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

[[Page 68043]]

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *


0
Par. 2. Section 1.101-1 is amended by:
0
a. Revising paragraph (d)(2)(ii)(A)(1).
0
b. In paragraph (f)(4)(ii), removing the word ``consist'' and adding in 
its place ``consists.''
    The revision reads as follows:


Sec.  1.101-1   Exclusion from gross income of proceeds of life 
insurance contracts payable by reason of death.

* * * * *
    (d) * * *
    (2) * * *
    (ii) * * *
    (A) * * *
    (1) Is an employee within the meaning of section 101(j)(5)(A) of 
the acquired trade or business immediately preceding the acquisition 
(for purposes of this paragraph (d)(2)(ii)(A)(1), however, the 
reference in section 101(j)(5)(A) to highly compensated employee within 
the meaning of section 414(q) does not include a former employee); or
* * * * *

0
Par. 3. Section 1.6050Y-1(b) introductory text is amended by adding a 
sentence after the second sentence and revising the last sentence to 
read as follows:


Sec.  1.6050Y-1  Information reporting for reportable policy sales, 
transfers of life insurance contracts to foreign persons, and 
reportable death benefits.

* * * * *
    (b) * * * This section and Sec.  1.6050Y-3 apply to any notice of a 
transfer to a foreign person received after December 31, 2018. However, 
for reportable policy sales and payments of reportable death benefits 
occurring after December 31, 2018, and on or before December 31, 2019, 
and any notice of a transfer to a foreign person received after 
December 31, 2018, and on or before December 31, 2019, transition 
relief is provided as follows:
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2019-26866 Filed 12-12-19; 8:45 am]
 BILLING CODE 4830-01-P