# 114-hr-5973: To amend the Internal Revenue Code of 1986 to clarify the tax treatment of certain life insurance contract transactions, and for other purposes.

114-hr-5973, To amend the Internal Revenue Code of 1986 to clarify the tax treatment of certain life insurance contract transactions, and for other purposes., is a 114th Congress bill sponsored by PATRICK TIBERI (R-OH); status Referred to the House Committee on Ways and Means. (as of 2025-11-18).

- Canonical: https://policyrisk.com/legislation/114-hr-5973
- As of: 2025-11-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 114-hr-5973
- Congress: 114
- Title: To amend the Internal Revenue Code of 1986 to clarify the tax treatment of certain life insurance contract transactions, and for other purposes.
- Status: Referred to the House Committee on Ways and Means.
- Introduced: 2016-09-08
- Sponsor: PATRICK TIBERI (R-OH)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: no
- Last recorded action: 2025-11-18

## Summary

This bill amends the Internal Revenue Code to modify the tax treatment of certain life insurance contract transactions. The bill establishes reporting requirements for acquisitions of life insurance contracts in a reportable policy sale. Specified details must be reported regarding: the payments, contracts, and people involved in the acquisition; the seller's basis; and payments of death benefits. A "reportable policy sale" is the acquisition of an interest in a life insurance contract, directly or indirectly, if the acquirer has no substantial family, business, or financial relationship with the insured apart from the acquirer's interest in such life insurance contract. The bill also: (1) specifies that no basis adjustment shall be made for mortality, expense, or other reasonable charges incurred under an annuity or life insurance contract; and (2) exempts the transfer of a life insurance contract, or any interest therein, in a reportable policy sale from the transfer for valuable consideration rule. (Under current law, the transfer for valuable consideration rule provides that, if a life insurance contract or an interest in a contract is transferred for a valuable consideration, the tax exclusion for amounts received under a life insurance contract due to the death of the insured is limited to the sum of the actual value of the consideration and the premiums and other amounts subsequently paid by the transferee.)

## Cosponsors (1)

- Rep. Kind, Ron [D-WI-3] (D-WI), 2016-09-08T00:00:00.000Z

## Related bills

- 114-hr-6176: Export Control Reform Act
- 114-hr-6045: STOP Act of 2016
- 114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Doby in recognition of his achievements and contributions to American major league…
- 114-hr-5447: Small Business Health Care Relief Act of 2016
- 114-hr-5292: Air Traffic Controller Hiring Improvement Act of 2016
- 114-hr-5090: To ensure that air transportation between the United States and the European Union complies with the intent of article 17 bis of the United States-European Uni…

## Sources
- [114-hr-5973 on Congress.gov](https://www.congress.gov/bill/114th-congress/house-bill/5973)

## Related
- [114-hr-6176: Export Control Reform Act](https://policyrisk.com/legislation/114-hr-6176)
- [114-hr-6045: STOP Act of 2016](https://policyrisk.com/legislation/114-hr-6045)
- [114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Dob…](https://policyrisk.com/legislation/114-hr-5621)
- [114-hr-5447: Small Business Health Care Relief Act of 2016](https://policyrisk.com/legislation/114-hr-5447)
- [114-hr-5292: Air Traffic Controller Hiring Improvement Act of 2016](https://policyrisk.com/legislation/114-hr-5292)
- [114-hr-5090: To ensure that air transportation between the United States and the European Un…](https://policyrisk.com/legislation/114-hr-5090)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/114-hr-5973 (as of 2025-11-18).