The Internal Revenue Service wants to write a new regulation that would affect whether it treats a life insurance company as a member of a controlled group of corporations.
In the past, an Internal Revenue Code section excluded life insurers from controlled groups, to keep the groups from enjoying a specific tax benefit, officials write in a notice about the proposed regulation that appears today in the Federal Register.
Since then, other laws and regulations have used the provision that defines controlled groups — Section 1563 of the Internal Revenue Code – for other purposes.
Some of the newer laws and regulations, such as a research tax credit provision, do treat a life insurer as being part of a corporate group, and not as a "separate life insurance controlled group," officials write.