ABA Tax Section Teleconference on New Sec. 7702 IRS Correction Procedures

The ABA  Tax Section is holding a teleconference/audio webcast on Wednesday, December 3, 2008, from 1:00-2:30 p.m. EST to discuss the new process for correcting compliance failures under section 7702:

On June 30, 2008, the IRS issued five revenue procedures that significantly changed the process for correcting compliance failures under section 7702 (defining “life insurance contract” for tax purposes), section 7702 (defining “modified endowment contract” for tax purposes), and under section 817(h) (imposing diversification requirements for variable life insurance and variable annuity contracts)

The five revenue procedures (Rev. Proc. 2008-38 through Rev. Proc. 2008-42) were developed as the need for improved procedures became more and more evident, particularly with respect to the formal cost of correction, i.e., the “toll-charge,” and in response to the Service and Treasury’s request for comments that was made in Notice 2007-15. The updated procedures make significant changes to the requirements for correction.

Online registration is available and the program confers 1.5 hours of CLE credit for 60-minute states and 1.8 hours in 50-minute states. 

-jl