ITB 11-36: Final OID regulations rendered prior guidance obsolete

Insurance Tax Bulletin

The IRS issued Rev. Rul. 2011-15, concluding that the 1994 final regulations concerning original issue discount (OID) rendered Rev. Rul. 58-225 obsolete. Rev. Rul. 58-225 concludes that interest collected in advance by a life insurance company on policyholder loans ("prepaid interest"), constitutes taxable income in the year received.

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