Our source tells us that an annuitant was in the process of factoring part of a Symetra Life annuity with Factoring company X when a representative of Symetra's factoring subsidiary Clearscape Funding materialized. Purportedly the annuitant was told that if he or she didn't use Clearscape for the transaction the resulting lump sum would be taxable.
IRS Private Letter Ruling 200918001 published May 1, 2009, was issued to, "Corporation X" which this author understands to be Symetra Assigned Benefits Service Company (SABSCO) . For Structured Settlements 4Real coverage of the Symetra Private Letter Ruling please read my post of May 7, 2009.
I'll leave readers to judge whether factoring with Clearcape is the only way to avoid a taxable event. I encourage both Clearcape and other factoring companies to respond to this post so that the there is a clear understanding about the tax consequences of selling structured settlement payment rights.
Leave a Reply