Sarbanes-Oxley Won't Effect IRS Approach to Split-Dollar Rules, Says Treasury Official
by Harris, J. Christine
Tax Analysts Document #2002-21025

      At a conference in Washington September 13 Treasury's Michael Doran said the loan prohibitions of recently enacted corporate reform legislation won't affect IRS guidance on the loan treatment of certain split-dollar arrangements.


At a conference in Washington September 13 Treasury's Michael Doran said the loan prohibitions of recently enacted corporate reform legislation won't affect IRS guidance on the loan treatment of certain split-dollar arrangements.

During a panel discussion on the proposed split-dollar life insurance regulations (REG-164754-01) at ALI-ABA's annual Retirement, Deferred Compensation, and Welfare Plans of Tax-Exempt and Governmental Employers Conference, Doran, assistant Treasury benefits tax counsel, said it is unlikely that the existence of the Sarbanes-Oxley law (P.L. 107-204) will have any effect on the IRS's approach to split-dollar arrangements. (For the full text of REG-164754-01, see Doc 2002-16108 (24 original pages) or 2002 TNT 135-10.)

Whether the new law applies to split-dollar arrangements is a question for the Securities and Exchange Commission because the SEC has jurisdiction to interpret the language, Doran said.

Tax Analysts, 2002