§ 6050Y. Returns relating to certain life insurance contract transactions

• (a)
  • (1) Every person who acquires a life insurance contract or any interest in a life insurance contract in a reportable policy sale during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
    • (A) the name, address, and TIN of such person,
    • (B) the name, address, and TIN of each recipient of payment in the reportable policy sale,
    • (C) the date of such sale,
    • (D) the name of the issuer of the life insurance contract sold and the policy number of such contract, and
    • (E) the amount of each payment.
  • (2) Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
    • (A) the name, address, and phone number of the information contact of the person required to make such return, and
    • (B) the information required to be shown on such return with respect to such person, except that in the case of an issuer of a life insurance contract, such statement is not required to include the information specified in paragraph (1)(E).
• (b)
  • (1) Upon receipt of the statement required under subsection (a)(2) or upon notice of a transfer of a life insurance contract to a foreign person, each issuer of a life insurance contract shall make a return (at such time and in such manner as the Secretary shall prescribe) setting forth—
    • (A) the name, address, and TIN of the seller who transfers any interest in such contract in such sale,
    • (B) the investment in the contract (as defined in section 72(e)(6)) with respect to such seller, and
    • (C) the policy number of such contract.
  • (2) Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
    • (A) the name, address, and phone number of the information contact of the person required to make such return, and
    • (B) the information required to be shown on such return with respect to each seller whose name is required to be set forth in such return.
• (c)
  • (1) Every person who makes a payment of reportable death benefits during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
    • (A) the name, address, and TIN of the person making such payment,
    • (B) the name, address, and TIN of each recipient of such payment,
    • (C) the date of each such payment,
    • (D) the gross amount of each such payment, and
    • (E) such person’s estimate of the investment in the contract (as defined in section 72(e)(6)) with respect to the buyer.
  • (2) Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
    • (A) the name, address, and phone number of the information contact of the person required to make such return, and
    • (B) the information required to be shown on such return with respect to each recipient of payment whose name is required to be set forth in such return.
• (d) For purposes of this section:
  • (1) The term “payment” means, with respect to any reportable policy sale, the amount of cash and the fair market value of any consideration transferred in the sale.
  • (2) The term “reportable policy sale” has the meaning given such term in section 101(a)(3)(B).
  • (3) The term “issuer” means any life insurance company that bears the risk with respect to a life insurance contract on the date any return or statement is required to be made under this section.
  • (4) The term “reportable death benefits” means amounts paid by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale.