by John Darer® CLU ChFC MSSC RSP CLTC
Since when are there rulings IN the Internal Revenue Code?
The following appeared in a paragraph (dealing with the purchase of a structured settlement annuity) within a New York Infant Compromise Order, obtained by the Structured Settlement Watchdog.
"ORDERED, that plaintiff shall have no rights or incentives of ownership in said annuity policy, it being the intention herein to conform to and keep within the guidelines in all respects and in good faith all applicable sections of the Internal Revenue Code and guidelines and rulings of the Internal Revenue Code; and it is further..."
- It's "incidents of ownership" NOT "incentives"! Incidents Of Ownership are any interests or rights that an individual maintains in an asset, including property and insurance, that allow the person to change, modify, use or benefit from that asset. Incentives are like "Buy one pair of Manolo's and get another at half price".
- The Internal Revenue Code is the main body of domestic statutory tax law of the USA, including laws covering the income tax, payroll tax, estate tax and statutory excise taxes. The Internal Revenue Code is published as Title 26 of the United States Code. The Internal Revenue Code is implemented by the government agency known as the Internal Revenue Service. Source: Wikipedia
- The Internal Revenue Service issues Private Letter Rulings
- The Internal Revenue Service issues Revenue Rulings
- We can assume what the drafter was TRYING to say, but this is Law 101 and Structures 101!
- Stop the doc-u-virus! It might be wise to leave the cookie cutter in the kitchen and the "scissors and glue" in the arts and crafts box.