Description: The Phase 3 tax is the description given to the federal income tax imputable to amounts withdrawn from the Policyholders Surplus Account maintained under the federal income tax law. This article discusses certain facets of the federal income Phase 3 tax as it relates to these withdrawals. Still significant for a large health insurer that has been in existence since before 1984 should health care become nationalized.

Description: Recap of two summer 1967 tax court decisions stemming from the 1959 Life Insurance Company Income Tax Act

Description: This article discusses the June 23, 1977 Supreme Court ruling that a life insurance company must include the net valuation portion but not the associated loading of deferred and uncollected premiums in its assets and gross premium income as well as in its reserves in computing its tax liability. Some companies have been using this procedure or a modification of it for the past few years. Other companies have been filing returns conforming to IRS regulations which required including gross deferred and uncollected premiums. These companies may need to file amended returns for open tax years if they paid taxes not due or understated usable operations/loss carry forwards. The author then goes on to review the implications of the court’s decision for companies filing amended returns.

Description: Discusses why it is so important for actuaries to actively monitor evolving issues with taxation of life insurance companies and products, and how to monitor the issues and get involved with the process.

Description: Reviews Elmer R. Benedict's book entitled Protecting Retirement Against Inflation, which present a broad program for equitable sharing of the inflation burden. The kingpin is an income adjustment, utilizing income taxes, designed to restore the purchasing power of the retired, disabled and surviving spouses.

Description: A recent list of government publications announces the publication of a volume entitled Actuarial Values I: Valuation of Last Survivor Charitable Remainders-Part B-Two-Life Tables for Untirusts and Pooled Income Funds - Internal Revenue Service Publication 7233 11-71 available from the Superintendent of Documents, U. S. Government Printing Office, Washington, D. C. 20402 for $4.50. The article outlines the actuarial formulas used in determining the tables used by the IRS.