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Revenue Ruling

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 Rev. Rul. 65-24

1965-1 C.B. 31

Full Text

Rev. Rul. 65-24

I.T. 3513, C.B. 1941-2, 75, holds, in part, that, where an insurance company accepts a single sum payment representing the discounted value of annual premiums on a deferred annuity policy, the increment represented by the excess of the aggregate premiums stated in the policy over the discounted value should not be included in the gross income of the premium payor in the year in which the premiums fall due, and the insurance company should not report such excess to the payor on an information return.

I.T. 3513 is hereby amplified to make the holding therein equally applicable to advanced premiums paid on a life insurance policy.