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IRS to Cancel Offer to Disallow 80% of Deductions on Broad-Based COLI; Will Go to Court for 100% (PDF)
Internal Revenue Service [IRS] 
[Official Guidance] Oct. 11, 2002
Excerpt: To date, the Service has successfully litigated three cases involving broad-based COLI transactions.... In all three cases, the courts denied the claimed interest deductions on the ground that the COLI plans lacked economic substance.
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