IRC Section 7702/7702A

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.