278 / What reporting requirements apply to employer-owned life insurance?

The Pension Protection Act of 2006 (“PPA 2006”) imposes new reporting requirements on all employers owning one or more employer-owned life insurance contracts. Final reporting regulations were issued in November 2008.¹ In addition, the IRS released Notice 2009-48 on certain issues that may arise when dealing with employer-owned life insurance contracts with respect to the IRC Section 101(j) notice and consent requirements and IRC Section 6039I’s information reporting requirements, both of which were enacted under PPA 2006. The Q&A guidance was effective June 15, 2009, but the IRS announced that it would not challenge a taxpayer who made a good faith effort to comply with IRC Section 101(j) based on a reasonable interpretation of the provision before that date.²

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1. IRC § 6039I; T.D. 9431, 73 Fed. Reg. 65981 (Nov. 6, 2008).

2. Notice 2009-48, 2009-24 IRB 1085.