Mike Weinberg sent out an email thru the ABA message board dealing with Equity Split Dollar. Part of his message follows. All planners who have been using Split Dollar for small business owners will want to follow the link to his site for the complete report.
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List subscribers may be interested in the following new developments:

1. Update on Equity Split-Dollar. We have been carefully monitoring and
reporting on the status of equity split-dollar insurance ever since the IRS
issued TAM 9604001 in January 1996. Our industry association, AALU,
comments on some new developments in recent Washington Report #98-79.

AALU reports that a recent rumor has been circulating that the IRS will
momentarily issue a new ruling applying the IRC sec. 7872 interest-free loan
rules to the taxation of equity split-dollar plans. Fortunately, to the best
of AALU's knowledge, this rumor is incorrect.

Nevertheless, it appears that the IRS is again reviewing the taxation of
split-dollar. According to the Washington Report: "In recent months, the
Revenue Service's national office in Washington has received a number of
private letter and technical advice requests which have focused squarely on
equity split dollar. As a consequence, we understand that the Service is
again reviewing the matter and may in the future again speak to the point."
A complete copy of the Report is posted on the Hot Topics page of our
Website for your assessment: http://expertpages.com/~weinberg - click on
"Hot Topics."

This Washington Report confirms a special briefing given a few weeks ago by
AALU to its Business Insurance & Estate Planning Committee, of which I serve
as a member. We also were informed in the briefing that AALU is involved in
one of the TAM cases in New England and that an IRS National Office
conference has been requested in the case, although no immediate IRS action
seems to be contemplated.

An IRS review of split-dollar taxation is not good news. If the "window" is
finally closing on the very favorable taxation of split-dollar, we think
clients and advisors contemplating split-dollar plans should consider
implementing and documenting those plans as soon as possible. That way
clients would be in a position to be protected by any grandfather provision
that is forthcoming. While grandfathering is likely, it is not guaranteed.
We would be pleased to further discuss these split-dollar issues with you.