De Los Santos, TC Memo 2018-155: Taxpayer Participation in Corporate Welfare Plan Is Compensatory Split Dollar Life Insurance

In De Los Santos v. Commissioner, TC Memo 2018-155 (Sept. 18, 2018), the Tax Court held that a couple’s participation in a welfare plan involved a compensatory split-dollar life insurance arrangement. The husband was the sole shareholder of an S corporation that employed taxpayer and his wife. The S corporation made contributions to an employee welfare benefit plan, which purchased a life insurance policy covering the couple’s lives. The S corporation was the owner of the policy and the couple qualified as the nonowners; the S corporation provided the couple with benefits under the plan in connection with the performance of services.

Click here to see full opinion of  De Los Santos v. Commissioner, TC Memo 2018-155 (Sept. 18, 2018).

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal. 

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