On April 10, the Obama Administration released its fiscal year 2014 budget (FY 2014 Budget). Of note, the FY 2014 Budget includes a number of tax proposals that target insurance companies or that otherwise would have a direct effect on them. Specifically, the proposals would:

- Modify the dividends-received deduction for life insurance company separate accounts. This proposal is estimated to raise $2.459 billion over 5 years and $5.101 billion over 10 years.

- Disallow a deduction for “non-taxed reinsurance premiums paid to affiliates.” This proposal is estimated to raise $2.621 billion over 5 years and $6.209 billion over 10 years.

- Modify the rules that apply to sales of life insurance contracts. This proposal is estimated to raise $257 million over 5 years and $641 million over 10 years.

- Require information reporting for “private separate accounts” established by life insurance companies. This proposal is estimated to raise $2 million over 5 years and $7 million over 10 years.