Demutualization

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  • Gretel
    Senior Member
    • Jun 2005
    • 4008

    #1

    Demutualization

    I decided to start a new thread on this since this pertains to all insurance companies who have done this.

    I have done more research on the issue and came across this link. This means the IRS is still fighting this. What I don't know is if a decision from the AZ district court would trump the US Court of Appeals for the Federal Circuit. Can anyone enlighten me?

    http://www.calt.iastate.edu/briefs/C...n% 20Case.pdf
  • JON
    Senior Member
    • Jul 2005
    • 1265

    #2
    Great

    article Gretel thank you. I still think I did right by showing basis on my sales 2007 and forward. Gave clients my explanation. If the IRS gets a significant win they better do so quickly. I think as the years go closed this will not open them even with a win. I believe a win for the IRS now is some alternative way of computing basis. Thanks for the information.

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    • Roland Slugg
      Senior Member
      • Aug 2006
      • 1860

      #3
      You may wish to file a protective claim for the client in question ... as well as other clients similarly affected. The demutualization process has been going on for quite a few years, and the IRS has been fighting the basis allocation issue the whole time. Personally, I think the IRS is wrong and that some basis SHOULD be allocated.
      Roland Slugg
      "I do what I can."

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