The Internal Revenue Service is changing the way it treats annuity withdrawals that follow partial exchanges of assets from one annuity to another.
The IRS will reduce the period it considers when deciding whether a taxpayer made a partial exchange to avoid taxes on a withdrawal to 12 months, from 24 months, officials write today in IRS Revenue Procedure 2008-24.
The IRS originally set the 24-month consideration period in IRS Notice 2003-51.