In general
If any annuity contract is held by a person who is not a natural person—
(A)#
such contract shall not be treated as an annuity contract for purposes of this subtitle (other than subchapter L), and
(B)#
the income on the contract for any taxable year of the policyholder shall be treated as ordinary income received or accrued by the owner during such taxable year.
For purposes of this paragraph, holding by a trust or other entity as an agent for a natural person shall not be taken into account.