Annuities: Endowment and Life Insurance (Included v. Not Included in Gross Income)

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 202426001
Release Date: 6/28/2024
Index Number: 72.00-00
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:FIP:B04
PLR-103975-24
Date:
April 3, 2024
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Taxpayer = ---
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Date = ---
Dear ---:
This letter revokes a part of PLR 201424014 (PLR-138374-13) issued to Taxpayer on
March 10, 2014.
In PLR 201424014, the Internal Revenue Service (the “Service”) issued two rulings with respect to a new term certain annuity option with variable payments (the “New Annuity Option”) that Taxpayer intended to offer with non-qualified deferred variable annuity contracts. This letter relates to the second ruling, that “[o]n and after the date an [o]wner elects the New Annuity Option, no amount will be includible in gross income before it is actually paid under the New Annuity Option.” In a letter dated January 12, 2021, the Service notified Taxpayer that it was considering revoking this ruling. This letter is to inform you that this ruling is revoked because it is not in accord with the current views of the Service. See section 11.04, Rev. Proc. 2024-1, 2024-1 I.R.B. 1. Section 11.04 of Rev. Proc 2024-1 provides that if a letter ruling is revoked, the revocation applies to all years open under the statute of limitations on assessment, unless the Service uses its discretionary authority under section 7805(b) of the Internal Revenue Code to limit the retroactive effect of the revocation. In a letter dated January 24, 2024, Taxpayer requested that the Service exercise its discretionary PLR-103975-24 2 authority under section 7805(b) to limit the retroactive effect of the revocation to contracts with applications signed on or before Date. In accordance with the Taxpayer’s request, the Service has decided to grant relief under section 7805(b). Accordingly, the revocation will apply prospectively only to contracts with applications signed after Date.
In accordance with the power of attorney on file with this office, we are sending a copy of this letter to the Taxpayer’s authorized representatives.
Sincerely,
Elizabeth M. Hill
Assistant to the Branch Chief, Branch 4 (Financial Institutions and Products) Cc: ---------------