The Internal Revenue Service has posted a batch of revenue procedures that may help life insurers handle mistakes.
Revenue Procedure 2008-38 provides a procedure that a life insurer can use to “remedy a failure to account for charges for qualified additional benefits under the expense charge rule of Section 7702(c)(3)(B)(ii) of the Internal Revenue Code.”
Revenue Procedure 2008-39 provides a procedure that a life insurer can use to “remedy an inadvertent non-egregious failure to comply with the modified endowment contract rules under Section 7702A of the Internal Revenue Code.”