Taxation
High Court Rules for CIC Services in IRS Micro-Captive Reporting Case
In a unanimous ruling, the US Supreme Court held that captive manager CIC Services' challenge of an Internal Revenue Service (IRS) micro-captive reporting requirement is not prohibited by federal law. In its ruling, the high court overturned a federal district court ruling and remanded the case to the lower court. Learn More
IRS Issues Micro-Captive FAAs on Reporting and Penalties
The Internal Revenue Service (IRS) recently issued six field attorney advices, referred to as "FAAs," considering whether certain promoted micro-captive transactions under audit are substantially the same as the transactions of interest described in Notice 2016–66, and concluding they were. Learn More
IRS Creates Office To Focus on Abusive Micro-Captive Transactions
The US Internal Revenue Service (IRS) has created an Office of Promoter Investigations (OPI) to coordinate the agency's focus on abusive tax avoidance transactions, including abusive micro-captive insurance arrangements. The new office expands on the efforts of the IRS’ promoter investigations coordinator that began in the summer of 2020. Read More
SIIA Calls on IRS To Recognize Appropriate Captive Structures
The Self-Insurance Institute of America (SIIA) has responded to a recent statement by the Internal Revenue Service (IRS) on abusive micro-captive arrangements by calling on the IRS to move towards recognizing appropriate captive insurance structures and providing guidance. Read More
Washington State Lawmakers Give Final Approval to Captive Taxes, Fees
Legislation given final approval last week by Washington State lawmakers will set new requirements for captive insurance companies licensed in other domiciles but doing business in Washington. The legislation creates new fee and premium tax requirements for captives insuring Washington-based risks. Read More
IRS Warns Participants To Exit Abusive Micro-Captive Arrangements
The Internal Revenue Service (IRS) is urging participants in abusive micro-captive arrangements to exit those arrangements as soon as possible. The IRS said it has increased examinations of micro-captive arrangements and noted that it recently won another US Tax Court micro-captive case. Read More
Washington State Senate Approves New Captive Insurance Fees and Taxes
Legislation approved March 9 by the Washington State Senate would set new requirements for captive insurance companies licensed in other domiciles but doing business in Washington State. Under the legislation, captives licensed elsewhere and operating in Washington would be required to pay fees and premium taxes. Read More