Source: https://www.law.cornell.edu/cfr/text/26/157.5891-1
Timestamp: 2020-01-24 03:28:45
Document Index: 348594841

Matched Legal Cases: ['§ 157', '§ 157', '§ 157', '§ 157', '§ 601', 'art 157']

26 CFR § 157.5891-1 - Imposition of excise tax on structured settlement factoring transactions. | CFR | US Law | LII / Legal Information Institute
Subpart A. Tax on Structured Settlement Factoring Transactions
Section 157.5891-1. Imposition of excise tax on structured settlement factoring transactions.
26 CFR § 157.5891-1 - Imposition of excise tax on structured settlement factoring transactions.
§ 157.5891-1 Imposition of excise tax on structured settlement factoring transactions.
(b) Exceptions for certain approved transactions -
(1) In general. The excise tax shall not apply to a structured settlement factoring transaction if the transfer of structured settlement payment rights is approved in advance in a qualified order.
(1) Applicable state statute means -
(ii) If there is no such statute, a statute that -
(3) Factoring discount means an amount equal to the excess of -
(4) Qualified order means a final order, judgment, or decree that -
(7) Structured settlement means an arrangement -
(i) That is established by -
(ii) Under which the periodic payments are -
(8) Structured settlement factoring transaction means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration other than -
(d) Coordination with other provisions of the Internal Revenue Code -
(1) In general. If the applicable requirements of sections 72, 104(a)(1), 104(a)(2), 130, and 461(h) were satisfied at the time the structured settlement involving structured settlement payment rights was entered into, the subsequent occurrence of a structured settlement factoring transaction shall not affect the application of the provisions of such sections to the parties to the structured settlement (including an assignee under a qualified assignment under section 130) in any taxable year.
(e) Effective dates. This section applies to structured settlement factoring transactions entered into on or after July 8, 2004. For structured settlement factoring transactions entered into before July 8, 2004, see § 157.5891-1T of this chapter (2003-1 C.B. 564. See § 601.601(d)(2) of this chapter.), as it appeared in the April 1, 2003, edition of 26 CFR part 157.