UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 14, 2006 (July 12, 2006)

NATIONWIDE LIFE INSURANCE COMPANY

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (614) 249-7111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Item 8.01 – Other Events

In previous SEC filings, Nationwide Life Insurance Company (NLIC or the Company) disclosed that its federal income tax returns for tax years 2000-2002 were under Internal Revenue Service (IRS) examination pursuant to a routine audit. NLIC also disclosed that management established tax reserves representing its best estimate of additional amounts NLIC may be required to pay if certain positions it has taken are challenged and ultimately denied by the IRS. A significant component of those tax reserves was related to the separate account dividends received deduction (DRD).

NLIC recently reached substantial agreement with the IRS on all issues for tax years 2000-2002. Accordingly, the Company has revised its estimate of amounts that may be due in connection with certain tax positions, including the DRD, for all open tax years. As a result of the revised estimate, approximately $111.0 million of tax reserves will be released into earnings during the quarter ended June 30, 2006.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.