ABA calls for expansion of de minimis exception for reportable policy sales

The American Bankers Association last week offered feedback to the Internal Revenue Service on proposed regulations regarding the application of the transfer for valuable consideration rules and associated information reporting requirements for reportable policy sales.

While ABA expressed appreciation for the creation of a de minimis exception from the definition of RPS for certain direct acquisitions of interests in life insurance contracts by C corporations, the association noted that this exception should be expanded to include additional transactions.