KCI Tax Interpretation 2012
The KCI Tax InterpretationTM is a 275+ page business specification detailing
methods & calculations for providing tax law compliance testing for life
insurance contracts. This document
provided the functional specifications for the development of the KCI Tax
Server software system. It contains the
detailed processing rules, formulas, techniques, and examples necessary to
build an automated tax system.
Product
support for variable, universal, and traditional life insurance and associated
riders.
Tax functionality
includes:
·
Internal
Revenue Code Sections 72(e)
o Cost basis
o Taxable gain determination
·
7702
(DEFRA)
o Definition of life insurance
o Cash value accumulation testing
o Guideline premium testing and
adjustments
o Recapture ceiling
·
7702A
(TAMRA)
o MEC, 7-Pay testing, two year lookback
o Necessary Premium testing
o Reduction testing
o Material Change testing
·
1035
exchanges – incoming and outgoing
·
1099
formatting
Transaction support
for all significant policy tax events (e.g. premium payments, partial
surrenders, loans, contract changes, etc.).
Click
here for table
of contents. Click here for a sample section of the document.
We will license this
material on an
Contact us for pricing
details.
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Last
updated: February 16, 2012