,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dbgi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #ac1 #bjbf,mr4  
,wyd5 introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to prev5t ! abuse 
( life insurance tax rules1 & = o!r     
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,protect+ ,prop] ,life     
,insurance f ,abuse ,act or ! ,,ppli    
,abuse ,act4  #b4 ,tax treatm5t (       
private placem5t contracts  7a7 ,9 g5]al
 ,*apt] #gi ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] section  
#ggjb;,b ! foll[+ new section3          
#ggjb;,c4 ,treatm5t ( applicable private
 placem5t contracts  7a7 ,g5]al rule    
,not)/&+ any o!r provision ( ?is title1 
an applicable private placem5t contract 
%all n be treat$ z an insurance or      
annuity contract = purposes ( ?is title4
  7b7 ,applicable private placem5t      
contract ,= purposes ( ?is section--    
7#a7 ,9 g5]al ,! t]m applicable private 

placem5t contract means any private     
placem5t contract if ! requirem5ts (    
subsection 7c7 are n met ) respect to   
any segregat$ asset acc\nt describ$ 9   
section #hag7;d7 to :i* am\nts receiv$  
"u su* contract are allocat$4  7#b7     
,private placem5t contract ,! t]m       
private placem5t contract means any     
contract-- 7,a7 :i*1 )\t reg>d to ?is   
section1 w\ld be treat$ = purposes ( ?is
 title z-- 7i7 a life insurance contract
 "u section #ggjb or an annuity contract
 "u section #gb1 &  7ii7 a v>iable      
contract 7)9 ! mean+ ( section          
#hag7;d771 &  7,b7 ) respect to :i* !   
hold] ( ! contract is requir$1 =        
purposes ( obta9+ a regi/ration         
exemption "u securities laws z 9 effect 
on ! date ( enactm5t ( ?is section      
7includ+ ! ,securities ,ex*ange ,act (  
#aicd & ! ,inve/m5t ,advisors ,act (    
#aidj71 to make a repres5tation t su*   
hold]-- 7i7 has a specifi$ m9imum am\nt 
( income or assets1  7ii7 has complet$ a
 specifi$ m9imum level ( education1 or  

7iii7 holds a specific lic5se or        
cr$5tial4  7#c7 ,special rules = =eign  
issu$ contracts ,9 ! case ( a contract  
issu$ outside ( ! ,unit$ ,/ates :i* is  
directly or indirectly held by a ,unit$ 
,/ates p]son1 if1 )\t reg>d to ?is      
section-- 7,a7 su* contract is a life   
insurance or annuity contract "u ! laws 
"u :i* x is issu$ 7or1 unless o!rwise   
provid$ "u regulations1 w\ld be su* a   
contract if issu$ 9 ! ,unit$ ,/ates71 & 
7,b7 7i7 9 ! case ( an annuity contract1
 or a contract provid+ insurance on     
retir$ lives 7z describ$ 9 section      
#hjg7;c77#f771 ! am\nts paid into or out
 ( su* contract reflect ! inve/m5t      
return & ! m>ket value ( #a or m assets 
7o!r ?an assets 9 ! g5]al acc\nts ( !   
issu] or re9sur]71 or  7ii7 9 ! case ( a
 life insurance contract1 ! am\nt ( !   
dea? b5efit 7or ! p]iod ( cov]age7 is   
adju/$ on ! basis ( ! inve/m5t return & 
! m>ket value ( #a or m assets describ$ 
9 clause 7i71  su* contract %all 7)\t   
reg>d to :e!r or n ! requirem5ts (      

subsection 7c7 are met ) respect to su* 
contract7 be treat$ z an applicable     
private placem5t contract = purposes (  
?is section 7&1 = su* purposes1 ! assets
 describ$ 9 subp>agraph 7,b7 ) respect  
to su* contract %all be treat$ z a      
segregat$ asset acc\nt ) respect to su* 
contract74  7#d7 ,p]man5t treatm5t ,a   
contract1 once treat$ z an applicable   
private placem5t contract "u ?is        
section1 %all be s treat$ = all         
subsequ5t p]iods )\t reg>d to :e!r x    
cont9ues to meet ! requirem5ts to be s  
treat$4  7c7 ,limitations = assets 9    
segregat$ asset acc\nt  7#a7 ,9 g5]al ,!
 requirem5ts ( ?is subsection are met ) 
respect to a segregat$ asset acc\nt only
 if-- 7,a7 ! assets 9 su* acc\nt support
 at lea/ #be private placem5t contracts1
 &  7,b7 9 ! case ( ea* ( ! contracts   
support$ by su* acc\nt-- 7i7 ! value (  
su* contract is support$ by ea* ( !     
assets 9 su* acc\nt 7& n by any asset n 
9 su* acc\nt71 &  7ii7 ! proportion (   
ea* su* asset support+ su* contract is !

 same z ! proportion ( ea* o!r su* asset
 support+ su* contract4  7#b7           
,aggregation ( contracts held by p]sons 
,= purposes ( p>agraph 7#a7-- 7,a7 ,9   
g5]al ,all private placem5t contracts   
held directly or indirectly by ! same   
p]son1 or a relat$ p]son to su* p]son1  
%all be treat$ z #a private placem5t    
contract4  7,b7 ,relat$ p]son  7i7 ,9   
g5]al ,a p]son %all be treat$ z relat$  
to ano!r p]son if !y be> a relation%ip  
to su* o!r p]son describ$ 9 section     
#bfg7;b7 or #gjg7;b77#a74  7ii7 ,memb]s 
( family ,= purposes ( clause 7i71      
sections #bfg7;b7 & #gjg7;b77#a7 %all be
 appli$ z if section #bfg7;c77#d7       
provid$ t ! family ( an individual      
consi/s ( a husb& & wife & memb]s ( a   
family describ$ 9 section               
#acfa7;c77#a77;,b71 except t !          
applicable date = purposes ( clause 7ii7
 !re( %all be ! date ! segregat$ asset  
acc\nt is e/abli%$4  7iii7 ,memb]s "u   
common control ,= purposes ( clause 7i71
 a rule simil> to section               

#ajh7;e77#d77;,c7 %all apply4  7d7 ,tax 
treatm5t ( hold]s ( contracts  7#a7     
,own]%ip ( assets & income  7,a7 ,9     
g5]al ,9 ! case ( an applicable private 
placem5t contract1 ! hold] ( su*        
contract %all be treat$ z if ! hold]--  
7i7 held its %>e ( ! assets 9 !         
segregat$ asset acc\nt support+ su*     
contract1 &  7ii7 receiv$ or accru$     
directly its %>e ( any am\nt ( net      
income1 net loss1 or cr$it e>n$ or      
accru$ ) respect to su* assets 7)\t     
reg>d to :e!r any am\nt is actually     
di/ribut$74  7,b7 ,net income or loss ,=
 purposes ( subp>agraph 7,a77ii7-- 7i7  
,net income ,! t]m net income means1 )  
respect to any assets support+ a        
contract-- 7,i7 ! am\nt 7if any7 by :i* 
! aggregate am\nt ( income 7includ+     
int]e/1 divid5ds1 or ga9s7 ) respect to 
su* assets is great] ?an  7,,ii7 !      
d$uctions all[$ "u ?is title :i* are    
directly connect$ ) ! production ( su*  
income4  7ii7 ,net loss ,! t]m net loss 
means1 ) respect to any assets support+ 

a contract1 ! am\nt 7if any7 by :i* !   
am\nt "u clause 7i77,,ii7 exce$s ! am\nt
 "u clause7i77,i74  7iii7 ,am\nts n tak5
 into acc\nt ,no d$uction %all be tak5  
into acc\nt "u clause 7i77,,ii7 7includ+
 = res]ves1 fees1 or mortality *>ges7   
:i*-- 7,i7 is tak5 into acc\nt by !     
insur] or re9sur] ( ! applicable private
 placem5t contract1 or  7,,ii7 w\ld be s
 tak5 into acc\nt if su* contract 7     
treat$ z a life insurance or annuity    
contract4  7,c7 ,taxable ye> ( cessation
 ,if a life insurance contract or       
annuity contract ceases to be su* a     
contract by reason ( ?is section 9 a    
taxable ye> aft] ! taxable ye> 9 :i*    
issu$1 am\nts describ$ 9 subp>agraph    
7,a77ii7 = all prec$+ taxable ye>s %all 
be treat$ z receiv$ or accru$ dur+ !    
taxable ye> 9 :i* su* cessation occurs4 
7#b7 ,di/ributions  7,a7 ,9 g5]al ,any  
excess di/ribution receiv$ by a taxpay] 
f an applicable private placem5t        
contract %all be includ$ by ! taxpay] 9 
gross income z ord9>y income4  7,b7     

,excess di/ribution ,= purposes ( ?is   
p>agraph1 ! t]m excess di/ribution      
means1 ) respect to any applicable      
private placem5t contract1 any          
applicable di/ribution to a taxpay] to !
 ext5t t-- 7i7 ! am\nt ( su* applicable 
di/ribution1 :5 add$ to ! aggregate     
am\nt ( applicable di/ributions made )  
respect to su* contract 7:e!r or n made 
to su* taxpay]7 = all p]iods prec$+ su* 
applicable di/ribution1 exce$s  7ii7 !  
applicable adju/$ basis 9 su* contract  
imm$iately be=e su* applicable          
di/ribution4  7,c7 ,applicable adju/$   
basis ,= purposes ( ?is p>agraph1 ! t]m 
applicable adju/$ basis means1 ) respect
 to any applicable private placem5t     
contract z ( ! date ( any applicable    
di/ribution1 ! sum ( ! premiums & o!r   
am\nts paid by any p]son ) respect to   
su* contract z ( su* date-- 7i7 increas$
 by ! aggregate am\nt ( net income      
includible 9 gross income "u p>agraph   
7#a7 ) respect to su* contract 7:e!r or 
n includible by ! taxpay]7 = all p]iods 

prec$+ su* date1 &  7ii7 decreas$ by !  
aggregate am\nt ( d$uctions = net losses
 all[able to any p]son "u p>agraph 7#a7 
) respect to su* contract = all p]iods  
prec$+ su* date4  7,d7 ,applicable      
di/ribution ,= purposes ( ?is p>agraph1 
! t]m applicable di/ribution means1 )   
respect to any applicable private       
placem5t contract1 any paym5t by reason 
( ! dea? ( ! insur$1 any paym5t 9 !     
nature ( an annuity paym5t1 any )drawal1
 ! di/ribution ( any loan proce$s1 & any
 o!r simil> di/ribution or paym5t4  7,e7
 ,assignm5ts1 etc ,9 ! case ( !         
transf]ee ( a transf] = valuable        
consid]ation by assignm5t or o!rwise (  
an applicable private placem5t contract 
7or an int]e/ !re97-- 7i7 ! premiums &  
o!r am\nts paid by ! transf]ee ) respect
 to su* contract %all be ! sum ( !      
actual value ( su* consid]ation plus any
 premiums & o!r am\nts subsequ5tly paid 
by ! transf]ee1 &  7ii7 ! am\nts det]m9$
 "u subp>agraph 7,c7 ) respect to su*   
contract %all only include am\nts       

includ$ 9 gross income1 & d$uctions (1 !
 transf]ee4  7e7 ,tax treatm5t ( issu]s 
& re9sur]s  7#a7 ,9 g5]al ,9 ! case ( an
 issu] or re9sur] ( an applicable       
private placem5t contract 7includ+ a    
re9sur] ) respect to mortality risk =   
su* contract7-- 7,a7 premiums & res]ves 
) respect to su* contract %all n be     
treat$ z life insurance premiums or     
res]ves1 &  7,b7 not)/&+ section        
#ddf7;a7 or "p ,i ( sub*apt] ,l ( *apt] 
#a-- 7i7 premiums1 exp5ses1 & fees )    
respect to su* contract :i*1 )\t reg>d  
to ?is section1 w\ld be tak5 into acc\nt
 9 det]m9+ life insurance taxable income
 %all be s tak5 into acc\nt1 b  7ii7 !  
am\nts s tak5 into acc\nt %all be       
det]m9$ "u ! accrual me?od ( acc\nt+    
describ$ 9 section #ddf7;c77#b74  7#b7  
,contracts issu$ by =eign issu]s        
,not)/&+ subsection 7a71 an applicable  
private placem5t contract issu$ by a    
=eign insur] or re9sur] & to :i* section
 #dcga applies 7)\t reg>d to ?is        
section7 %all cont9ue to be treat$ z a  

contract to :i* su* section applies4    
7f7 ,regulations ,! ,secret>y %all issue
 su* regulations & o!r guidance z are   
necess>y to c>ry out ?is section &      
section #fjej;,,aa1 includ+ regulations 
or o!r guidance-- 7#a7 prev5t+ !        
avoidance ( ! application ( ?is section 
?r\gh relat$ p>ties1 accommodation      
p>ties1 pas/hr\gh entities1 tru/s1 or ! 
allocation ( assets o!r ?an ?r\gh       
segregat$ asset acc\nts1  7#b7 provid+ t
 an asset acc\nt or set ( assets n meet+
 ! requirem5ts ( section #hag7;d7 %all  
be treat$ z a segregat$ asset acc\nt    
meet+ su* requirem5ts if su* acc\nt or  
set ( assets a*ieves sub/antially ! same
 results z su* a segregat$ asset acc\nt 
or if su* treatm5t is o!rwise necess>y  
to prev5t ! avoidance ( ! purposes ( ?is
 section1  7#c7 prev5t+ ! tak+ into     
acc\nt ( items m ?an once1  7#d7 provid+
 rules = det]m9+ :e!r #a or m p]sons are
 indirect hold]s ( applicable private   
placem5t contracts1 &  7#e7 provid+     
rules = ! application ( ?is section 9   

cases :]e !re is m ?an #a hold] ( an    
applicable private placem5t contract or 
:]e applicable di/ributions are made at 
! same "t to #b or m p]sons ) respect to
 su* a contract4  4  7b7 ,con=m+ am5dm5t
 ,! table ( sections = *apt] #gi ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#ggjb;,b ! foll[+ new item3  ,section   
#ggjb;,c4 ,treatm5t ( applicable private
 placem5t contracts4  4  7c7 ,effective 
date  7#a7 ,9 g5]al ,! am5dm5ts made by 
?is section %all take effect on ! date (
 ! enactm5t ( ?is ,act & %all apply to  
contracts :e!r issu$ be=e1 on1 or aft]  
su* date4  7#b7 ,transition rule ,!     
am5dm5ts made by ?is section %all n     
apply to a contract issu$ on or be=e !  
date ( ! enactm5t ( ?is ,act :i* 7)\t   
reg>d to ?is p>agraph7 is an applicable 
private placem5t contract "u section    
#ggjb;,c ( ! ,int]nal ,rev5ue ,code (   
#aihf 7z add$ by ?is section7 if1 be=e !
 end ( ! #ahj-;day p]iod beg9n+ on su*  
date ( enactm5t1 su* contract-- 7,a7 is 

ex*ang$ =1 or conv]t$ to1 a life        
insurance or annuity contract t is n su*
 an applicable private placem5t         
contract1 or  7,b7 is cancell$ or       
o!rwise liquidat$4  #c4 ,report+        
requirem5ts  7a7 ,9 g5]al  7#a7 ,return 
requirem5t  7,a7 ,9 g5]al ,subp>t ,b (  
"p ,,iii ( sub*apt] ,a ( *apt] #fa ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#fjej;,,bb4 ,returns relat+ to          
applicable private placem5t contracts   
7a7 ,initial report  7#a7 ,9 g5]al ,e   
report+ issu]1 %all1 n lat] ?an !       
applicable date1 make a return 79 su* =m
 z ! ,secret>y may prescribe7 ) respect 
to ea* applicable private placem5t      
contract issu$ or re9sur$ by ! issu]4   
7#b7 ,in=mation includ$ ,su* return %all
 set =?-- 7,a7 ! "n1 address1 & ,,t9 ( !
 report+ issu]1  7,b7 ! "n1 address1 &  
,,t9 ( ! hold] ( ! contract1  7,c7 !    
applicable adju/$ basis 7z def9$ 9      
section #ggjb;,c7d77#b77 9 ! contract ( 
su* hold] 7det]m9$ z if an applicable   

di/ribution 7 to be made z ( !          
applicable date71  7,d7 any o!r         
contracts :i* are support$ by !         
segregat$ asset acc\nt support+ su*     
contract1  7,e7 ! "n1 address1 & ,,t9 ( 
! hold] ( any contract describ$ 9       
subp>agraph 7,d7 :o is relat$ 7)9 !     
mean+ ( section #ggjb;,c7c77#b77;,b77 to
 ! hold] ( su* contract1 &  7,f7 su* o!r
 in=mation z ! ,secret>y may require4   
7#c7 ,applicable date ,= purposes ( ?is 
section1 ! applicable date means1 )     
respect to any applicable private       
placem5t contract1 #cj days aft] ! lat] 
(-- 7,a7 ! date t is #ahj days aft] !   
date ( ! enactm5t ( ?is section1 or     
7,b7 ! date ! contract fir/ became an   
applicable private placem5t contract4   
7b7 ,annual reports  7#a7 ,9 g5]al ,e   
report+ issu] %all file an annual return
 ) respect to ea* applicable private    
placem5t contract issu$ or re9sur$ by ! 
issu]4  7#b7 ,"t = fil+ return ,! return
 "u p>agraph 7#a7 %all be fil$ at su* "t
 & 9 su* mann] z ! ,secret>y %all       

prescribe4  7#c7 ,in=mation includ$ ,a  
return fil$ "u p>agraph 7#a7 %all set   
=?-- 7,a7 ! "n1 address1 & ,,t9 ( !     
report+ issu]1  7,b7 ! "n address1 &    
,,t9 ( ! hold] ( ! applicable private   
placem5t contract1  7,c7 ! "n1 address1 
& ,,t9 ( ea* p]son receiv+ an applicable
 di/ribution 7z def9$ 9 section         
#ggib;,c7d77#b77 "u ! contract if su*   
p]son is n ! hold] ( ! contract1  7,d7 !
 am\nts = ! taxable ye> (-- 7i7 items ( 
income1 loss1 d$uction1 & cr$it = ! ye> 
) respect to ! assets ( :i* ! hold] is  
treat$ z ! own] by reason ( section     
#ggjb;,c7d77#a71  7ii7 ! am\nt ( any    
applicable di/ribution 7z s def9$7 "u ! 
applicable private placem5t contract & !
 portion ( su* di/ribution :i* is treat$
 z an excess di/ribution 7z def9$ 9     
section #ggjb;,c7d77#b771  7iii7 !      
hold]'s applicable adju/$ basis 7z def9$
 9 section #ggjb;,c7d77#b77 9 ! contract
 z ( ! date ( ea* applicable di/ribution
 made dur+ ! report+ p]iod & z ( ! la/  
day ( ! report+ p]iod 7det]m9$ z if an  

applicable di/ribution 7 to be made on  
su* day71 &  7iv7 9 ! case ( a report+  
issu] describ$ 9 subsection             
7d77#a77;,b71 premiums or o!r am\nts    
paid or receiv$ by any p]son pursuant to
 any re9surance or risk-%ift+ arrangem5t
 describ$ 9 su* subsection1 &  7,e7 su* 
o!r in=mation z ! ,secret>y may require4
  7c7 ,/atem5t ,to be furni%$ to        
taxpay]s ) respect to :om in=mation is  
requir$  7#a7 ,9 g5]al ,e p]son t is    
requir$ to make a return "u subsection  
7a7 or 7b7 %all furni% to ea* p]son ^:  
id5tity is requir$ to be set =? "u      
subsection 7a77#b77;,b7 or subp>agraph  
7,b7 or 7,c7 ( subsection 7b77#c7 a     
writt5 /atem5t %[+--  7,a7 ! "n1        
address1 & phone numb] ( ! in=mation    
contact ( ! p]son requir$ to make su*   
return1 &  7,b7 ! in=mation requir$ to  
be %[n on su* return ) respect to !     
p]son to :om su* /atem5t is requir$ to  
be furni%$4  7#b7  ,furni%+ ( in=mation 
,! writt5 /atem5t requir$ "u p>agraph   
7#a7 ) respect to any return %all be    

furni%$ to ! p]son on or be=e ,janu>y   
#ca ( ! ye> foll[+ ! cal5d> ye> = :i* ! 
return is requir$ to be made4  7d7      
,def9itions ,= purposes ( ?is section-- 
7#a7 ,report+ issu] ,! t]m report+ issu]
 means any p]son :o-- 7,a7 issues a life
 insurance contract or annuity contract 
:i* is treat$ z an applicable private   
placem5t contract1 or  7,b7 re9sures1 or
 %ifts risks ) respect to any portion (1
 an applicable private placem5t         
contract4  7#b7 ,applicable private     
placem5t contract ,! t]m applicable     
private placem5t contract has ! mean+   
giv5 su* t]m "u section #ggjb;,c4  4    
7#b7 ,p5alties  7,a7 ,failure to provide
 initial return ,"p ,i ( sub*apt] ,b (  
*apt] #fh ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #fgbj;,d4 ,p5alty =      
failure to report applicable private    
placem5t contracts  7a7 ,imposition (   
p5alty  7#a7 ,9 g5]al ,any p]son requir$
 to make a return "u section            
#fjej;,,bb7a7 :o fails to file su*      

return ) ! ,secret>y be=e ! applicable  
date %all pay a p5alty equal to ! am\nt 
det]m9$ "u p>agraph 7#b74  7#b7 ,am\nt (
 p5alty  7,a7 ,9 g5]al ,! am\nt ( !     
p5alty det]m9$ "u ?is p>agraph is ! sum 
(-- 7i7 #a1jjj1jjj1 plus  7ii7 an       
additional #a1jjj1jjj = ea* p5alty p]iod
 end+ be=e ! date on :i* ! failure      
describ$ 9 subsection 7a7 has be5       
correct$4  7,b7 ,p5alty p]iod ,=        
purposes ( ?is subsection1 ! t]m p5alty 
p]iod means ea* p]iod ( #cj days beg9n+ 
aft] ! fir/ #cj-;day p]iod beg9n+ ) !   
applicable date4  7#c7 ,applicable date 
,= purposes ( ?is subsection1 ! t]m     
applicable date has ! mean+ giv5 su* t]m
 "u section #fjej;,,bb7a77#c74  7b7     
,special rules  7#a7 ,p]sons subject to 
insurance regulation ,9 ! case ( a      
p]son-- 7,a7 :i* is regulat$ by an ag5cy
 or entity "u =eign1 ,/ate1 or local    
law1 &  7,b7 :i* is requir$ to pay a    
p5alty "u ?is section1 ! requirem5t to  
pay su* p5alty %all be disclos$ to su*  
ag5cy or entity4 ,failure to make a     

disclosure 9 accordance ) ! prec$+      
s5t5ce %all be treat$ z a failure to :i*
 ?is section applies4  7#b7 ,p]sons     
subject to ,securities ,ex*ange ,act (  
#aicb ,9 ! case ( a p]son-- 7,a7 :i* is 
requir$ to file p]iodic reports "u      
section #ac or #ae7;d7 ( ! ,securities  
,ex*ange ,act ( #aicd or is requir$ to  
be consolidat$ ) ano!r p]son = purposes 
( su* reports1 &  7,b7 :i* is requir$ to
 pay a p5alty "u ?is section1 !         
requirem5t to pay su* p5alty %all be    
disclos$ 9 su* reports fil$ by su* p]son
 = su* p]iods z ! ,secret>y %all        
specify4 ,failure to make a disclosure 9
 accordance ) ! prec$+ s5t5ce %all be   
treat$ z a failure to :i* ?is section   
applies4  4  7,b7 ,failure to make      
annual returns or payee /atem5ts  7i7   
,returns ,section #fgbd7;d77#a77;,b7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ or at ! end ( clause 7xxviii71
 by ins]t+ or at ! end ( clause 7xxix71 
& by ins]t+ aft] clause 7xxix7 ! foll[+ 
new clause3  7xxx7 section              

#fjej;,,bb7b71  4  7ii7 ,/atem5ts       
,section #fgbd7;d77#b7 ( su* ,code is   
am5d$-- 7,i7 by r$esignat+ subp>agraphs 
7,,nn7 & 7,,oo7 z subp>agraphs 7,,oo7 & 
7,,pp71 respectively1 &  7,,ii7 by      
ins]t+ aft] subp>agraph 7,,mm7 ! foll[+ 
new subp>agraph3 7,,nn7 section         
#fjej;,,bb7c74 4  7#c7 ,cl]ical am5dm5ts
  7,a7 ,! table ( sections = subp>t ,b (
 "p ,,iii ( sub*apt] ,a ( *apt] #fa ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#fjej;,,aa ! foll[+ new item3  ,sec4    
#fjej;,,bb4 ,returns relat+ to          
applicable private placem5t contracts4  
4  7,b7 ,! table ( sections = "p ,i (   
sub*apt] ,b ( *apt] #fh ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#fgbj;,d4 ,p5alty = failure to report   
applicable private placem5t contracts4  
4  7b7 ,rules relat+ to =eign acc\nt tax
 compliance  7#a7 ,insurance companies  
treat$ z f9ancial in/itutions  7,a7 ,9  
g5]al ,section #adga7;d77#e7 ( !        

,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ or at ! end ( subp>agraph 7,b71
 by /rik+ ! p]iod at ! end ( subp>agraph
 7,c7 & ins]t+ 1 or1 & by add+ at ! end 
! foll[+ new subp>agraph3  7,d7 except z
 o!rwise provid$ by ! ,secret>y1 holds  
itself out z a life insurance company4  
4  7,b7 ,treatm5t ( c]ta9 corporations z
 =eign f9ancial in/itutions ,section    
#adga7;d77#d7 ( su* ,code is am5d$ by   
ins]t+ 7det]m9$ )\t reg>d to any        
election made "u section #iec7;d77 aft] 
=eign entity4  7,c7 ,limitation on      
au?ority to exclude ,section            
#adga7;f77#d7 ( su* ,code is am5d$ by   
ins]t+ 7o!r ?an an entity describ$ 9    
subsection 7d77#e77;,d77 be=e ! p]iod at
 ! end4  7#b7 ,private placem5t         
contracts treat$ z f9ancial acc\nts     
,section #adga7;d77#b7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
& at ! end ( subp>agraph 7,b71 by /rik+ 
! p]iod at ! end ( subp>agraph 7,c7 &   
ins]t+ 1 &1 & by ins]t+ aft] subp>agraph
 7,c7 ! foll[+ new subp>agraph3  7,d7   

any contract :i* is describ$ 9 section  
#ggjb;,c7b77#c7 & any sep>ate segregat$ 
asset acc\nt t holds assets support+ su*
 a contract4  4  7#c7 ,additional       
limitation on exceptions ,section       
#adgb7;c77#b7 ( ! ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by ins]t+ 7o!r   
?an paym5ts to an entity describ$ 9     
section #adga7;d77#e77;,d77 be=e ! p]iod
 at ! end4  7#d7 ,effective date ,!     
am5dm5ts made by ?is subsection %all    
apply to paym5ts made aft] ! date t is  
#a ye> aft] ! date ( ! enactm5t ( ?is   
,act4