Insight

IRC Section 7702/7702A

Compliance Assessment Services

Alex Zaidlin

Alex Zaidlin

Advisory Managing Director, Actuarial, KPMG US

+1 917-655-6272

Sheryl Flum

Sheryl Flum

Managing Director, Financial Services Tax, KPMG US

+1 202-533-3394

Laura Gray

Laura Gray

Principal, KPMG’s Insurance Accounting Change Co-Lead, KPMG US

+1 404-222-3388

The recent move to a dynamic minimum rate structure under the 2020 Consolidated Appropriations Act has resulted in even greater need to understand and assess 7702/7702A calculations. 7702/7702A calculation requirements are highly prescriptive, with the potential for significant cost and reputational risk if not done right. At the same time, calculations are often performed in administrative systems that are effectively “black boxes” with limited visibility.

Our approach to 7702/7702A compliance assessment engagements has been developed through multiple successful projects and a modernized toolkit capable of processing large blocks of policies quickly and efficiently. We initiate 7702/7702A compliance assessment engagements by working with your actuaries and tax professionals and identifying business needs. As necessary, KPMG can facilitate the IRS remediation process through its extensive experience in working with the IRS.


A Fresh Look at IRC Section 7702: From a Technology Perspective

For more insight on this topic, read our article published by Society of Actuaries in Taxing Times.

For more insight on this topic, read our article published by Society of Actuaries in Taxing Times.