December 4, 2024
Despite continued uncertainty over the future of federal tax rules on micro-captive insurance companies, the instruments seem to be increasingly popular for small businesses, especially in Florida, where rates for traditional commercial insurance have soared in recent years. SRA 831(b) …
March 27, 2024
Editor’s note: Captive insurance programs have blossomed in a number of Southern states in recent years, including Tennessee and North Carolina. But new questions have been raised about whether some micro-captives are used as tax shelters, and about the IRS …
July 3, 2023
The National Council of Insurance Legislators last week urged the Internal Revenue Service and the Federal Trade Commission to reconsider proposed rules that the organization said encroaches on state regulation. The first of the letters from NCOIL addresses a years …
May 17, 2021
The U.S. Supreme Court has allowed a challenge to an Internal Revenue Services (IRS) requirement for firms to report micro-captive insurance arrangements to proceed. The IRS authority to require the captive reporting is being challenged as invalid by a Tennessee …
April 9, 2021
Internal Revenue Service officials are again urging participants in “abusive” micro-captive insurance arrangements to exit these transactions as soon as possible. The IRS considers that many micro-captive arrangements are not really about insurance. The IRS has stepped up examinations of …
October 23, 2020
As the pandemic and rising insurance costs fuel greater interest by large firms in creating captive insurance organizations, the Internal Revenue Service continues to question small captive operations that it has long argued are tax avoidance vehicles and not valid …
September 16, 2019
The Internal Revenue Service said it is mailing a time-limited settlement offer for certain taxpayers under audit who participated in what the IRS calls “abusive micro-captive insurance” transactions. The IRS has been warning about these micro-captives for several years and …