Treatment of Certain Voluntary Benefit Payments

July 12, 2023

The Internal Revenue Service (IRS) recently addressed whether benefit payments to employees in a particular welfare benefit plan are includable in gross income. The IRS identified circumstances under which such benefit payments should be treated as wages for federal tax purposes. Read More

NCOIL Calls on IRS To Reconsider Proposed Micro-Captive Regulations

July 5, 2023

The National Conference of Insurance Legislators (NCOIL) has urged the US Internal Revenue Service (IRS) to retract a proposed micro-captive rule NCOIL says poses a significant threat to the US framework of state-based insurance regulation. NCOIL said the proposed regulations violate the federal McCarran-Ferguson Act. Read More

831(b) Captives Listed Transaction Comments Due June 12

June 8, 2023

Proposed regulations issued by the Treasury Department and Internal Revenue Service include parameters for considering micro-captives listed transactions. Public comments on the proposed regulations are due to the IRS by June 12, and a public hearing in regard to these regulations is scheduled for July 19. Read More

Third Circuit Court of Appeals Affirms District Court Regarding IRS Subpoena

May 4, 2023

A US appeals court recently upheld a lower court ruling that the Delaware Department of Insurance must comply with an IRS subpoena for captive information. The case is part of ongoing IRS scrutiny of captive insurance companies opting to be taxed under section 831(b) of the Internal Revenue Code. Read More

Appeals Court Denies Delaware Bid To Block IRS Micro-Captive Summons

April 26, 2023

A federal appeals court has ruled against the Delaware Department of Insurance's efforts to block a summons from the Internal Revenue Service (IRS) for information about Delaware-domiciled captive insurance companies. A lower court had earlier denied the Delaware department's motion to quash the summons, leading to the appeal. Read More