Demutualization

[Gretel]

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]

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.

[Roland Slugg]

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.