The Internal Revenue Service has issued temporary regulations needed to implement new corporate-owned life insurance reporting procedures.

The Pension Protection Act of 2006 created a section of the Internal Revenue Code, Section 6039I, which requires companies that own COLI to file a COLI return each year.

The COLI return should show the number of employees that the company employees; the number insured by COLI contracts; the total amount of COLI coverage in force; the company’s name, address and industry; and a report on whether the company has gotten permission from the employees covered by the COLI policies to include the employees in COLI arrangements.

The new temporary regulations, published today in the Federal Register, state that the IRS commissioner can prescribe the manner of satisfying the Section 6039I reporting requirements.

The temporary regulations apply to tax years ending after Nov. 13, 2007, and expire Nov. 9, 2010, the IRS says.

The IRS also has published a notice of proposed rulemaking in connection with the temporary regulations.

The notice of proposed rulemaking is available ‘>Document Link

The temporary regulations are available