Stranger in a Strange Plan


Media reports highlighting the hazards of so-called stranger-originated (also known as stranger-owned) life insurance (STOLI) prompted U.S. House tax writers to ask Treasury Secretary Henry Paulson to investigate the practice as well as consider issuing guidance on its tax implications and help Congress notify “elderly taxpayers of the adverse tax consequences of investing in a product that is in fact ‘too good to be true.’ ” Reps. Richard E. Neal, D-Mass., and Phil English, R-Pa., the chairman and ranking member, respectively, of the Select Revenue Measures Subcommittee of the House Committee on Ways and Means, wrote Paulson in November. Aggressively promoted life insurance policies purchased by investors in the secondary market may in some instances subject those insured to unexpected inclusion of taxable income, the congressmen said.

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.