Taxation

An IRS summons for certain micro-captive information filed with the state of Delaware raises several interesting insurance business questions. Among them is whether some of the documents sought by the IRS can be produced electronically. Read More

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

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

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

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