Our company owns employee life policies but received no death benefit. Can annual Form 8925 reporting still apply?
Annual Form 8925 reporting can apply while employer-owned life-insurance contracts are in force even when no death benefit was received.
By AE Tax Advisors Team · Updated October 28, 2026
Annual Form 8925 reporting can apply while employer-owned life-insurance contracts are in force even when no death benefit was received. The reporting obligation concerns covered contracts and insured employees, subject to the form's scope and effective-date rules. Receiving proceeds is not the sole trigger.
A specific business-owner situation
A company maintains several key-person policies and assumes insurance tax forms matter only after an insured employee dies. The annual contract information may already be reportable.
Illustrative example, not a client result.
What to establish before filing
- Identify contracts within the form's scope.
- Reconcile covered employees and insurance amounts.
- Confirm notice consent and return attachment requirements.
Which fact changes the answer?
Contract issue dates and material changes can affect whether a policy falls within the applicable rules. Not every legacy policy has identical treatment.
A mistake to avoid
Do not omit annual reporting solely because the company had no insurance income.
Records that support the decision
- Policy inventory.
- Insured employee and consent records.
- Prior Forms 8925.
The decision to document
Include the policy inventory in the annual business-return checklist and review any missing prior-year filings.
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Related questions
- Our company will redeem a deceased owner's shares using insurance. Is that obligation automatically offset against the insurance value?
- I will buy my partner's shares using life-insurance proceeds. Does the stock basis automatically equal the policy payout?
Sources and editorial context
- Section 101: life-insurance proceeds and exceptions
- IRS Publication 559: estates and income in respect of a decedent
- IRS Form 8925 and instructions: employer-owned life insurance
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.