October 9, 2020 Revenue ruling analyzes whether change in basis of computing life insurance reserves occurs in 10 examples In Revenue Ruling 2020-19, the IRS analyzes whether a change in basis of computing life insurance reserves has occurred in various situations. Specifically, the revenue ruling describes a calendar-year life insurance company that issues life insurance and annuity contracts directly and reinsures the risks on similar contracts issued by other companies. The ruling presents 10 fact patterns and poses whether a change in basis of computing life insurance reserves under IRC Section 807(f), as amended by the Tax Cuts and Jobs Act, has occurred. | ||||