The Internal Revenue Service and its parent, the Treasury Department, are looking at tax issues related to life settlement transactions.
Treasury Secretary Timothy Geithner addressed the topic as the Senate Special Committee on Aging began holding a hearing with the title, “Betting on Death in the Life Settlement Market – What’s at Stake for Seniors?”
“We expect that guidance will be published in the Internal Revenue Bulletin soon,” Geithner wrote in a letter ot Sen. Herbert Kohl, D-Wis., chairman of the Senate’s Special Committee on Aging.
Kohl read part of the letter today at the beginning of the hearing.
Kohl suggested that a lack of IRS guidance on life settlements may be creating loopholes.