Internal Revenue Service Department of the Treasury Washington, DC 20224 Number: 202426001 Release Date: 6/28/2024 Index Number: 72.00-00
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Third Party Communication: None Date of Communication: Not Applicable Person To Contact: --------------------- , ID No. ----------------- Telephone Number: -------------------- Refer Reply To: CC:FIP:B04 PLR - 103975-24 Date: April 3, 2024
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Taxpayer = ----------- ------------------------------------------------------------------------ ------------ Date = ------------------------
Dear ---------------- :
This letter revokes a part of PLR 201424014 (PLR - 138374-13) issued to Taxpayer on March 10, 2014.
In PLR 201424014, the Internal Revenue Servi ce (the “Service”) issued two rulings with respect to a new term certain annuity option with variable payments (the “New Annuity Option”) that Taxpayer intended to offer with non-qualified deferred variable annuity contracts. This letter relates to the se cond ruling, that “[o]n and after the date an [o]wner elects the New Annuity Option, no amount will be includible in gross income before it is actually paid under the New Annuity Option.”
In a letter dated January 12, 2021, the Service notified Taxpayer t hat it was considering revoking this ruling. This letter is to inform you that this ruling is revoked because it is not in accord with the current views of the Service. See section 11.04, Rev. Proc. 2024 - 1, 2024-1 I.R.B. 1. Section 11.04 of Rev. Proc 20 24-1 provides that if a letter ruling is revoked, the revocation applies to all years open under the statute of limitations on assessment, unless the Service uses its discretionary authority under section 7805(b) of the Internal Revenue Code to limit the r etroactive effect of the revocation. In a letter dated January 24, 2024, Taxpayer requested that the Service exercise its discretionary
PLR - 103975-24
2 authority under section 7805(b) to limit the retroactive effect of the revocation to contracts with applications signed on or before Date. In accordance with the Taxpayer’s request, the Service has decided to grant relief under section 7805(b). Accordingly, the revocation will apply prospectively only to contracts with applications signed after Date.
In accordance with the power of attorney on file with this office, we are sending a copy of this letter to the Taxpayer’s authorized representatives.
Sincerely,
Elizabeth M. Hill Assistant to the Branch Chief, Branch 4 (Financial Institutions and Products)
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