IRS determination 200427001: Service declines factual insurance agent status request
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This page covers one taxpayer's determination, issued in 2004, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.
Plain-English summary
A requester asked the IRS to approve procedures for deciding whether sales agents were full-time life insurance salesmen under § 3121(d)(3)(B). After reviewing the submission and discussing it at a conference, the IRS found the request too dependent on specific facts for a letter ruling and declined to issue one. It requested a refund of the user fee. The letter said the requester could submit Form SS-8 to seek a determination of a particular agent's employment status.
Ruling snapshot
- Question: Would the IRS approve the requester's procedures for classifying life insurance sales agents?
- Outcome: No ruling issued because the request was fact intensive.
- Key authorities: IRC § 3121(d)(3)(B); Rev. Proc. 2004-1.
Full text (IRS public release)
Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 200427001
Release Date: 7/2/04
Index Number: 3121.04-18
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Person To Contact:
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-----------------, ID No. -------------
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Refer Reply To:
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CC:TEGE:EOEG:ET1 – PLR 162442-03
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Date:
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March 10, 2004
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Re: ------------------------------------------------------
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Dear ------------------------------------
This letter is in response to --------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------ruling request asking that we approve the procedures that it uses for determining whether sales agents are full time life insurance salesmen under section 3121(d)(3)(B) of the Internal Revenue Code.
After reviewing the information you submitted and then further discussing the issue with you at a conference in the national office, it is apparent that your request is very factual in nature. Under section 6.02 of Rev. Proc. 2004-1, 2004-1 I.R.B. 1 the Service ordinarily will not issue letter rulings in certain areas because of the factual nature of the problem involved. Because of the factual nature of your ruling request, the Service declines to issue a letter ruling.
We have submitted a user fee refund request to our Communications, Records, and User Fee Unit (CRU Unit) using the above referenced address of -------------- as the address for the return of the user fee. The CRU unit separately processes this refund.
If you have any further questions please feel free to contact Mr. Rogers at (202) 622- 6040. If you want to request the determination of the employment status of a particular
PLR 162442-03
2
sales agent, you may follow the requirements in section 5.09 of Rev. Proc. 2004-1 for submitting a Form SS-8.
Sincerely,
Michael A. Swim
Senior Technical Reviewer,
Employment Tax Branch 1
Office of Division Counsel/
Associate Chief Counsel
(Tax Exempt & Government Entities)
cc: ----------------------------------------------------------------------------------------
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