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Transamerica revealed Thursday that it's one of the life insurers that now has a private letter ruling on annuity advisory fees from the Internal Revenue Service.
The letter ruling lets Transamerica offer annuity holders a streamlined mechanism for paying advisory fees from the annuity assets, without creating tax headaches.
"In light of the private letter ruling, Transamerica plans to offer fee-friendly annuity benefits in 2020," the company said.
The IRS private letter ruling program gives taxpayers a way to get interpretations of the tax rules from the IRS.
The IRS posts anonymized versions of the rulings on the web. One taxpayer cannot rely on the interpretation in another taxpayer's letter ruling. Each taxpayers needs to get its own ruling.
