The previously approved final
regulations provide guidance for loans made pursuant to a
split-dollar life insurance arrangement. To obtain a particular
treatment under the regulations for certain split- dollar loans,
the parties to the loan must make a written representation, which
must be kept as part of their books and records and a copy filed
with their federal income tax returns. In addition, if a
split-dollar loan provides for contingent payments, the lender must
produce a projected payment schedule for the loan and give the
borrower a copy of the schedule. This schedule is used by parties
to compute their interest accruals and any imputed transfers for
tax purposes.
US Code:
26 USC
83 Name of Law: Property transferred in connection with
performance of services
US Code: 26
USC 301 Name of Law: Distributions of property
US Code: 26
USC 7872 Name of Law: Treatment of loans with below-market
interest rates
US Code: 26 USC
61 Name of Law: Gross income defined
US Code: 26
USC 6103 Name of Law: Confidentiality and disclosure of returns
and return information
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.