Insurable Interest Canadian Insurance Blog

What You Need to Know The IRS has published new guidance about reporting losses on a tax form used to disclose pass-through entity profits. Schedules K-2 and K-3, used to report items of international tax relevance, do not allow reporting of negative amounts. Taxpayers should write a zero on the form and attach additional info, the IRS says. The Internal Revenue Service has published Fact Sheet 2023-20, an FAQ-style document meant to provide guidance to pass-through entities for electronically filing Schedules K-2 and K-3 to the IRS to report negative amounts. As noted in the fact sheet, the 2022 tax year schema for Schedule K-2 and K-3 do not permit negative values. The FAQ provides guidance to pass-through entities about how to report losses. As detailed on the IRS website, Schedule K-2 is an extension of Form 1120-S, known as Schedule K, and is used to report items of international tax relevance from the operation of an S corporation. Schedule K-3 is an extension of Schedule K-1 and is generally used to report to shareholders their share of the items reported on Schedule K-2. The question posed in the document goes as follows: “For the 2022 tax year, a pass-through...

Sheryl Moore, Wink CEO, suggested that the strong performance of the indexed products could soon affect the level of competition in that part of the market. “If sales keep setting records like this, the par whole life carriers will have no choice but to develop their own indexed solution,” she said. Cash-Value Life Basics Cash-value policies can help clients support many types of long-range planning, including charitable gift planning, long-term care planning and college cost planning, as well as estate planning. The issuer of a non-variable indexed life insurance ties growth in the death benefits to the performance of an investment index, such as the S&P 500 index. Because the policy is a non-variable insurance product, it must protect a policy owner who follows the policy rules against investment-market-related loss of principal. Sheryl Moore. Credit: Wink

What You Need to Know The suit alleges Wells Fargo made legal and fiduciary violations despite big settlements. Wells Fargo faces shareholder suits over multiple allegations. Separately, a judge dismissed another suit related to fake interviews allegedly conducted to meet diversity quotas. Wells Fargo continues to act in “lawless ways,” including renewing allegedly discriminatory practices in home loan lending, despite having recently paid $4.7 billion to resolve claims over inadequate risk compliance programs and infrastructure, according to a shareholder lawsuit. Trustees of the Sheet Metal Workers Local No. 33 Pension Fund filed a shareholder derivative lawsuit in U.S. District Court for the Northern District of California in July seeking redress “for Wells Fargo’s lawlessness under their stewardship.”  The lawsuit, which seeks damages and other relief, refers to the company as “an unwieldy conglomeration of randomly acquired banking companies merged over the past decades. The result is a behemoth, mega-bank prone to corporate scandal and general lawlessness.” The complaint cited comments from U.S. lawmakers who criticized Wells Fargo for alleged corruption and mismanagement and from the Consumer Financial Protection Bureau’s director, who late last year said that “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families.”...

As TD Ameritrade advisors and their clients’ accounts were about to move to the Charles Schwab platform as part of the long-planned conversion over the Labor Day weekend, a few industry experts told ThinkAdvisor they were keeping an eye out for any positive or ominous signs about whether the integration was running smoothly or not. Schwab has been moving accounts in groups since February. The transition to the Schwab platform scheduled for Labor Day Weekend, Sept. 2-5, represents the last major step to integrate the two companies as part of Schwab’s $22 billion acquisition of TD Ameritrade that closed in October 2020. Below are eight of the most significant issues and other things that advisors, consultants and others said they were looking for this weekend and the near future, or that TD advisors should be looking for. 1. Will the conversion go as smoothly as Schwab, TD Ameritrade advisors and their clients hope? “This has been in the works since November of 2019. I expect a smooth transition this weekend,” said Jay Coulter, president of Resilient Advisor and partner and chief investment officer at Resilient Wealth in Atlanta. “I expect it to be seamless for advisors who have prepared.” Coulter uses Altruist as the custodian and...