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.

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.

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What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.