Treatment of life insurance premium for officers?

Question

S corp pays life insurance premium for its officer. His spouse and family is the beneficiery. The company treats the premium it pays as distribution to officer. Shouldn't this be added to his W2 as his income because his family is the sole beneficiary of the life insurance?

Answer 1

Ask your accountant about IRC section 142 (executive bonus).  That sounds like what you're talking about, but tax guys know tax law better than lowly insurance guys.

Answer 2

Not necessarily.  But this is  a tax question more than an insurance question.