What the IRS Manual Tells Staffers About Life and Annuities
September 18, 2024 by Allison Bell
Internal Revenue Service officials reveal some of their views about life insurance and annuities in the Internal Revenue Manuals, a guide for tax collectors.
One section, Part 5. Collecting Process, tells IRS employees what to do when they’re searching taxpayers’ finances for “reasonable collection potential.”
For IRS employees, the reasonable collection potential search is a broad, highly regulated version of what financial professionals do when they are trying to figure out how much clients or prospects can use to fund their financial plans.
But, instead of using the cash or other assets located to pay for a mutual fund, annuity or life insurance policy, the IRS employee uses the assets located to send cash to the U.S. Treasury and help pay for U.S. federal government programs and services, such as the U.S. Army, interstate highways and space stations.
Click HERE to read the full story via Think Advisor
Wink’s Moore on the Market: I don’t think I agree with this AT ALL.
“Tax collectors see whole life as an asset.
They classify term life premiums as a necessary expense.”
Just because I need insurance for my entire lifetime, rather than 20 years, the IRS can come at my cash values?
What do you think?
Fascinating, Allison Bell with ThinkAdvisor. Thanks for the convo fodder. -sjm
