# 26 U.S.C. § 6050V: Returns relating to applicable insurance contracts in which certain exempt organizations hold interests

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s6050V>. Cite pinpoints as 26 U.S.C. § 6050V(a)(1).

## § 6050V(a) In general

Each applicable exempt organization which makes a reportable acquisition shall make the return described in subsection (c).

## § 6050V(b) Time for making return

Any applicable exempt organization required to make a return under subsection (a) shall file such return at such time as may be established by the Secretary.

## § 6050V(c) Form and manner of returns

A return is described in this subsection if such return—

**§ 6050V(c)(1)** is in such form as the Secretary prescribes,

**§ 6050V(c)(2)** contains the name, address, and taxpayer identification number of the applicable exempt organization and the issuer of the applicable insurance contract, and

**§ 6050V(c)(3)** contains such other information as the Secretary may prescribe.

## § 6050V(d) Definitions

For purposes of this section—

**§ 6050V(d)(1) Reportable acquisition.** The term “reportable acquisition” means the acquisition by an applicable exempt organization of a direct or indirect interest in any applicable insurance contract in any case in which such acquisition is a part of a structured transaction involving a pool of such contracts.

**§ 6050V(d)(2) Applicable insurance contract.**

**§ 6050V(d)(2)(A) In general.** The term “applicable insurance contract” means any life insurance, annuity, or endowment contract with respect to which both an applicable exempt organization and a person other than an applicable exempt organization have directly or indirectly held an interest in the contract (whether or not at the same time).

**§ 6050V(d)(2)(B) Exceptions.** Such term shall not include a life insurance, annuity, or endowment contract if—

**§ 6050V(d)(2)(B)(i)** all persons directly or indirectly holding any interest in the contract (other than applicable exempt organizations) have an insurable interest in the insured under the contract independent of any interest of an applicable exempt organization in the contract,

**§ 6050V(d)(2)(B)(ii)** the sole interest in the contract of an applicable exempt organization or each person other than an applicable exempt organization is as a named beneficiary, or

**§ 6050V(d)(2)(B)(iii)** the sole interest in the contract of each person other than an applicable exempt organization is—

**§ 6050V(d)(2)(B)(iii)(I)** as a beneficiary of a trust holding an interest in the contract, but only if the person’s designation as such beneficiary was made without consideration and solely on a purely gratuitous basis, or

**§ 6050V(d)(2)(B)(iii)(II)** as a trustee who holds an interest in the contract in a fiduciary capacity solely for the benefit of applicable exempt organizations or persons otherwise described in subclause (I) or clause (i) or (ii).

**§ 6050V(d)(3) Applicable exempt organization.** The term “applicable exempt organization” means—

**§ 6050V(d)(3)(A)** an organization described in section 170(c),

**§ 6050V(d)(3)(B)** an organization described in section 168(h)(2)(A)(iv), or

**§ 6050V(d)(3)(C)** an organization not described in paragraph (1) or (2) which is described in section 2055(a) or section 2522(a).

## § 6050V(e) Termination

This section shall not apply to reportable acquisitions occurring after the date which is 2 years after the date of the enactment of this section.

## Connections

Cites: § 168 Accelerated cost recovery system; § 170 Charitable, etc., contributions and gifts; § 2055 Transfers for public, charitable, and religious uses; § 2522 Charitable and similar gifts

Cited by: § 6721 Failure to file correct information returns; § 6724 Waiver; definitions and special rules

## Amendments

- 2006-08-17: [Pub. L. 109-280](/26/act/109-280.md), 120 Stat. 1072