This document contains a correction to Revenue Procedure 2009-55, 2009-52 I.R.B. 982. The composite loss discount factor for Reinsurance (Nonproportional Assumed Property) provided in Revenue Procedure 2009-55 was incorrect.
The Revenue Procedure incorrectly stated:
“Taxpayers that use the composite method of Notice 88-100 should use 94.3133 percent to discount unpaid losses incurred in this [the Reinsurance (Nonproportional Assumed Property)] line of business in 2009 and prior years and that are outstanding at the end of the 2019 taxable year.”
The Revenue Procedure should have stated:
“Taxpayers that use the composite method of Notice 88-100 should use 96.3133 percent to discount unpaid losses incurred in this [the Reinsurance (Nonproportional Assumed Property)] line of business in 2009 and prior years and that are outstanding at the end of the 2019 taxable year.”
For further information regarding this announcement, contact Sarah E. Swan at (202) 622-8443 (not a toll-free call).
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