With regard to group life insurance, the IRS has deemed that the first __________ of death benefit coverage may be excluded from the employee's compensation.
Explanation
Answer: C - With regard to group life insurance, the IRS has deemed that the first $50,000 of death benefit coverage may be excluded from the employee's compensation. Therefore, if an employer provides $80,000 of coverage to an employee, then only the amount that is over $50,000 will be subject to taxation. In this case, then, $30,000 would be subject to taxation ($80,000 - $50,000 = $30,000).
