The Internal Revenue Service and the Treasury Department accepted a mortgage related request in November 2016 for guidance under the IRS' Industry Issue Resolution (IIR) program.
Submitted by the American Council of Life Insurers, the request seeks clarification on reserves for deferred variable annuities that have guaranteed minimum benefits (GMxB) of various types and a new minimum valuation standard for life insurance policy reserves. The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers.
For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue. The goal is to recommend guidance to resolve the issue. This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations.
At any time, business associations and taxpayers may submit tax issues they believe could be resolved through the IIR program. IIR selection criteria and submission procedures are outlined in Revenue Procedure 2016-19, available at IRS.gov.