Taxation
What Is FATCA and How Do Captives Handle It?
This article explains how the Foreign Account Tax Compliance Act (FATCA) applies to captive insurance companies. It outlines reporting and documentation requirements for US and foreign captives, discusses withholding agent responsibilities, and explains key distinctions between foreign financial institutions and nonfinancial foreign entities under the FATCA rules. Learn More
How Self-Procurement Tax Can Influence Captive Domicile Decisions
Self-procurement tax is frequently overlooked when forming or expanding a captive insurance company. This episode explores when the tax applies, how home-state rules affect compliance, common misconceptions, potential double-taxation concerns, and why captive owners should evaluate self-procurement tax obligations during feasibility studies and domicile selection. Learn More
Why the CFM Decision Matters for Captive Insurance Programs
Recorded live at CICA 2026, Kristen Lawler of Crowe joins The Edge of Risk Podcast by IRMI to discuss the Tax Court's CFM Insurance decision and what it means for captive insurance governance, pricing discipline, documentation, and operational rigor under evolving Internal Revenue Service scrutiny. Read More
Maryland Bill Would Pause Captive Insurance Premium Tax Collection
Maryland lawmakers are considering legislation to temporarily suspend premium receipts taxes on certain captive insurance arrangements. The bill includes retroactive relief, requires a study on captive taxation and regulation, and sets a sunset on the provisions, reflecting a broader review of how captive insurance is treated at the state level. Read More
When Are Premiums Paid to a Captive Insurance Company Deductible for Federal Income Tax Purposes?
Premiums paid to a captive insurance company are deductible for federal income tax purposes only if the arrangement qualifies as true insurance. This requires risk transfer, risk distribution, and alignment with common insurance principles, as recognized by the Internal Revenue Service and courts. The structure and underlying risk profile ultimately determine deductibility. Read More
Captive Insurance and the CFM Decision: Operational Discipline Matters
In a recent issue of "Captive Insurance Company Reports," Kristen Lawler of Crowe LLP examines the Tax Court's CFM decision and its implications for captive insurance qualification. The analysis highlights the importance of operational discipline, governance, and the "commonly accepted notions" standard in federal tax determinations. Read More
Why Do Insurance Companies Discount Unpaid Loss Reserves?
Under federal tax law, insurance companies are allowed to take a current deduction for unpaid losses, which is an expense that is paid over time. Without the deduction for unpaid losses, the tax code would be exceedingly burdensome for insurance companies. Read More