Taxation
US GAO Recommends Improvements in IRS Micro-Captive Audit Process
The US Government Accountability Office (GAO) has recommended that the Internal Revenue Service (IRS) clarify guidance on offshore micro-captive insurance audits and establish a formal review system for investigations. A GAO statement detailed the findings of its study into how the IRS conducts its enforcement of offshore insurance compliance issues. Learn More
Judgment in Micro-Captive Reporting Case Vacates IRS Notice 2016-66
A federal judge has granted a summary judgment motion filed by CIC Services in its case against the Internal Revenue Service (IRS), vacating IRS Notice 2016-66. The judge held that the IRS violated the federal Administrative Procedures Act in adopting the notice, and was arbitrary and capricious in doing so. Learn More
Captive Insurance Groups' Brief Supports Delaware Appeal in IRS Case
A coalition of 10 captive insurance associations filed an amicus brief this month in support of an appeal brought by the Delaware Department of Insurance in the case of United States of America v. State of Delaware Department of Insurance. Read More
IRS Looks To Hire 200 Attorneys To Focus on Abusive Tax Schemes
The US Internal Revenue Service’s (IRS) office of chief counsel plans to hire up to 200 additional attorneys to focus on abusive tax schemes, including abusive micro-captive arrangements. The IRS said the attorneys will help it manage the increasing caseload in its multiyear effort to stamp out abusive tax schemes. Read More
Avoiding Potential Pitfalls Is Key to Long-Term Captive Success
Captive insurance can be a powerful risk management and risk financing tool, but those considering forming a captive must avoid potential pitfalls. A recent report from Ernst & Young LLP outlines five potential pitfalls prospective captive owners should be aware of to ensure long-term captive success. Read More
Washington Commissioner Approves Regulations for Captive Fees, Taxes
The Washington State Office of the Insurance Commissioner has given final approval to regulations issued in August to implement legislation that state lawmakers passed in April imposing new fees on captive insurance companies licensed in other domiciles but doing business in the state of Washington. Read More
Washington Voters Reject Captive Tax Law in Advisory Ballot Measure
On Tuesday, Washington State voters rejected a recent law that imposes premium taxes on captive insurance companies licensed in other states but doing business in Washington State. However, the law will remain in effect unless state legislators vote to repeal the measure. Read More