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Title 26, Internal Revenue CodeRelease 119-110

§6050Y Returns Relating to Certain Life Insurance Contract Transactions

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 61 — INFORMATION AND RETURNS › Subchapter A — Returns and Records › PART III — INFORMATION RETURNS › Subpart B — Information Concerning Transactions With Other Persons › § 6050Y

Last updated Sep 22, 2026|Official source

Summary

People who buy or get an interest in a life insurance contract in a reportable policy sale must file a report with the IRS and give written notices to the people named in the report. The report must show who bought it, who got payments, the sale date, the insurance company and policy number, and how much was paid. The written notice must give a contact name and the same information for each person named, but if the notice comes from the insurance company it does not have to list the payment amounts. If an insurance company learns of a sale (or gets the buyer’s report) or learns a policy was moved to a foreign person, the company must file a report showing the seller’s name, address, TIN, the seller’s investment in the contract (as defined in section 72(e)(6)), and the policy number, and must give each named seller a written notice with a contact and those details. Anyone who pays reportable death benefits must also file a report and give notices showing payer and recipient names, addresses, TINs, payment dates, gross amounts, and an estimate of the buyer’s investment in the contract. Payment: cash or fair market value given in the sale. Reportable policy sale: meaning comes from section 101(a)(3)(B). Issuer: the insurance company taking the risk on the policy. Reportable death benefits: death payments on a policy that was transferred in a reportable policy sale.

Full Legal Text

Title 26, §6050Y

Internal Revenue Code, Source: USLM XML via OLRC

(a)Requirement of reporting of certain payments
(1)In general
Every person who acquires a life insurance contract or any interest in a life insurance contract in a reportable policy sale during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
(A)the name, address, and TIN of such person,
(B)the name, address, and TIN of each recipient of payment in the reportable policy sale,
(C)the date of such sale,
(D)the name of the issuer of the life insurance contract sold and the policy number of such contract, and
(E)the amount of each payment.
(2)Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A)the name, address, and phone number of the information contact of the person required to make such return, and
(B)the information required to be shown on such return with respect to such person, except that in the case of an issuer of a life insurance contract, such statement is not required to include the information specified in paragraph (1)(E).
(b)Requirement of reporting of seller’s basis in life insurance contracts
(1)In general
Upon receipt of the statement required under subsection (a)(2) or upon notice of a transfer of a life insurance contract to a foreign person, each issuer of a life insurance contract shall make a return (at such time and in such manner as the Secretary shall prescribe) setting forth—
(A)the name, address, and TIN of the seller who transfers any interest in such contract in such sale,
(B)the investment in the contract (as defined in section 72(e)(6)) with respect to such seller, and
(C)the policy number of such contract.
(2)Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A)the name, address, and phone number of the information contact of the person required to make such return, and
(B)the information required to be shown on such return with respect to each seller whose name is required to be set forth in such return.
(c)Requirement of reporting with respect to reportable death benefits
(1)In general
Every person who makes a payment of reportable death benefits during any taxable year shall make a return for such taxable year (at such time and in such manner as the Secretary shall prescribe) setting forth—
(A)the name, address, and TIN of the person making such payment,
(B)the name, address, and TIN of each recipient of such payment,
(C)the date of each such payment,
(D)the gross amount of each such payment, and
(E)such person’s estimate of the investment in the contract (as defined in section 72(e)(6)) with respect to the buyer.
(2)Statement to be furnished to persons with respect to whom information is required
Every person required to make a return under this subsection shall furnish to each person whose name is required to be set forth in such return a written statement showing—
(A)the name, address, and phone number of the information contact of the person required to make such return, and
(B)the information required to be shown on such return with respect to each recipient of payment whose name is required to be set forth in such return.
(d)Definitions
For purposes of this section: (1) Payment
(2)Reportable policy sale
The term “reportable policy sale” has the meaning given such term in section 101(a)(3)(B).
(3)Issuer
The term “issuer” means any life insurance company that bears the risk with respect to a life insurance contract on the date any return or statement is required to be made under this section.
(4)Reportable death benefits
The term “reportable death benefits” means amounts paid by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to reportable policy sales (as defined in subsection (d)(2) of this section) after Dec. 31, 2017, and reportable death benefits (as defined in subsection (d)(4) of this section) paid after Dec. 31, 2017, see section 13520(d) of Pub. L. 115–97, set out as an

Effective Date

of 2017 Amendment note under section 6047 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6050Y

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110